The document provides an overview of estimating and costing in construction projects, emphasizing the importance of accurate cost estimation for budgeting and project planning. It outlines the purposes of estimating, types of estimates, items included in estimates, modes of measurement, and the necessity of administrative and technical approvals. Accurate estimates help in comparing bids, controlling costs, and efficient resource allocation.

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Estimating and Costing
Introduction to Estimating
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SHARAD INSTITUTE OF TECHNOLOGY,
COLLEGE OF ENGINEERING,YADRAV

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Introduction to Estimating
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 Estimation is the process of
calculating the probable cost
of a construction project.
 It includes material, labor,
equipment, overheads, and
contingencies.
 Accurate estimation helps in
budgeting, cost control, and
project planning.

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Purpose of Estimating
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 To determine the probable
cost of construction.
 To get administrative and
financial approval.
 To compare different tenders
and bids.
 To control project costs and
avoid overruns.
 To plan resource allocation
efficiently.

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Types of Estimates
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 Preliminary or Approximate
Estimate
 Detailed Estimate
 Revised Estimate
 Supplementary Estimate
 Annual Repair & Maintenance
Estimate
 Item Rate Estimate
 Lump Sum Estimate

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Items of Inclusion in Estimate
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 Cost of materials
 Cost of labor
 Cost of machinery and
equipment
 Overheads and contingencies
 Taxes and duties
 Profit margin for contractors
 Any additional costs (e.g., site
preparation, transportation)

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Modes of Measurement
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 Length (meters, feet)
 Area (square meters,
square feet)
 Volume (cubic meters,
cubic feet)
 Number (count of
items)
 Weight (kg, tons)

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Administrative Approval & Technical Sanction
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 Administrative Approval:
Formal approval from
authorities to proceed with the
project.
 Technical Sanction: Approval
by an engineer ensuring the
estimate is technically sound
and within norms.
 Both approvals are mandatory
before execution.