This document discusses cost estimation methods for civil engineering projects. It explains that cost is estimated by multiplying the quantity of materials or work by the rate per unit. It then describes different cost estimating methods used in civil engineering, including the unit method, superficial method, approximate quantities method, and bill of quantities method. These methods involve measuring quantities of major work items and multiplying them by unit rates to estimate total costs. The quality of available pricing information, type of information provided, estimator skills and experience affect the accuracy of cost estimates.
4. What is Cost ?
An estimate how much money will be needed
or price to be charged for something.
(Oxford Advanced Learner’s Dictionary)
5. Why Cost (Control) Is Important?
Pre-contract Stage Post contract Stage
Inception Design
Preliminary
cost
estimate
Comparative
cost estimate
Alternative
materials
Tender Construction
Form of
construction
Planned profits
achieved ?
Feedback for
future cost
estimating
available ?
What corrective
action to be
taken ?
Within economic limit of expenditure ?
14. Per unit of
measurement
RM 250.00/M3
Currency
How rate is read?
Price of item
15. Rate Build Up
Material Cost
Wastages
Plant Cost
Labour Cost
Profit & Overheads
16. Example Of Market Rate
Description Unit Rate (RM)
Excavation (pit) M3 10.00
Concrete Grade 15 M3 240.00
Concrete Grade 20 M3 255.00
Concrete Grade 25 M3 270.00
Formwork M2 28.00
Reinforcement Kg 3.20
Rate will differ from one project to another due to various factors such as
size, nature of work, location, market conditions, etc.
18. Notes On Costing For Civil Engineering
Projects
Involve large amount of uncertainty owing to
nature of ground conditions, temporary
works, etc.
19. Notes On Costing For Civil Engineering
Projects
Different method of measurement is used
for civil engineering works (CESMM).
Bill of quantities comprise large quantities
of comparatively few items.
Quantities usually approximate and
remeasurement required when work is
actually carried out.
20. Notes On Costing For Civil Engineering
Projects
Costing can be carried out by breaking
down works into smaller cost items and
price the quantities against a rate.
21. Notes On Costing For Civil Engineering
Projects
Costing similar to building works but more
towards method of construction rather than
material cost.
22. Cost Estimating Methods
Unit Method
Standard Unit Of
Accommodation
Appropriate
X Cost Per Unit Estimated
Cost
=
Low Mid High
23. Cost Estimating Methods
Superficial Method
Area Of Floors
Cost Per
X Square Metre Estimated
Cost
=
Low Mid High
24. Cost Estimating Methods
Approximate Quantities
Items Of Major
Cost Importance
Measured Only
Estimated X Unit Rate
Cost
=
Low Mid High
Build up on basis from cost
database price book or priced BQ
from previous project
25. Cost Estimating Methods
Bill Of Quantities
Measured
Quantities
Estimated X Unit Rate
Cost
=
Low Mid High
Build up on basis from cost
database price book or priced BQ
from previous project
Pre-Tender Estimate to
include other items like
Preliminaries, Provisional
Sums, Prime Cost Sums,
Contingency, etc.
26. Cost Estimating Methods
Quality of relevant available
pricing information
Type of information provided
Skills
Experience
Degree Of Accuracy
