This document discusses estimating material costs for a quantity surveying degree. It addresses four main factors that influence estimating material costs: supply and availability, demand of the market, inflation factors, and size and type of construction project. Each factor is explained with an example of how it can affect cost estimates. The document also defines plants and tools, and recommends estimating plants by hourly/weekly rates and tools by percentages.

1. BACHELOR OF QUANTITY
SURVEYING (HONS)
[ESTIMATING]
(QSB60504)
Ngeow Xuan Ying
Loh Wei Ling 0319225
Loh Pey Mun 0318572
Michael Chang Vui Loong 0319198
Leong Karr Khei

2. Question 3
a) Material cost is estimated using the following formula:
Material cost = Material Unit Cost x Quantity Required
What are the four (4) main factors influencing the estimate of
a material cost? Explain and provide an example of how each
factors influence the estimate of the material cost.
(20 marks)
b) What are plants and tools? Recommend the methods of
estimating for plants and tools.
(5 marks)

3. Question 3 (a)
• The four (4) main factors influencing the
estimate of a material cost are :
 Supply and Availability
 Demand of the Market
 Inflation Factor
 Size and Type of Construction Project.

4. Supply and Availability of Material
• Materials are constantly affected by supply,
especially materials such as stones and
woods.
• A high demand paired with a scarcity, on
the other hand, often causes cost of
material to rise.
• Materials that are in very high demand
but also widely available are often less
expensive because of competition.
• Pricing incentives to motivate sales

5. Demand of the Market
• Supply and demand of materials will
affect the direct purchase price.
• The issue is to be careful and aware of
potential material and labor shortages.
• Availability may also affect the lead time
required for delivery and shipping and
handling costs
• A variety of sales taxes, import/export
duties, and other special fees indirectly
affect the cost of material.

6. Inflation Factor
• Inflation is the rate at which the general level of prices
for goods and services is rising and, consequently, the
purchasing power of currency is falling.
• A construction project can continue for years before
completion. During the construction period, the cost of
materials, tools, labors, equipment etc. may vary from
time to time.
• These variation in the prices should be considered during
cost estimation process.
• Inflation may have been taken into account in the
original estimates, but if the rate of inflation increases
above the predicted level during the construction period,
then the original cost estimate will be exceeded.

7. Size and Type of Construction Project
• Different types of project have different
levels of complexity and detail.
• Thus the building materials for each of the
project is vary according to its structure and
design as complexity can greatly increase
the cost of the material.
• For examples, a school cafeteria wouldn’t
require the same amount of time, nor the
same level of complexity, as a four star
restaurant. Construction costs for the four
star restaurant would be much higher than
the cafeteria even though it probably
would have smaller square footage.

8. Question 3 (b)
What are plants and tools?
Recommend the methods of
estimating for plants and tools.

9. PLANTS TOOLS
• Machinery used in an
industrial or manufacturing
process.
• A device/ implement,
especially one held in the
hand, used to carry out a
particular function

10. Methods of estimating for tools and
plants?
Plants
• Mechanical Plant (
Operated/ Non Operated
Plant): Hourly/Weekly
• Non- Mechanical Plant:
Week/Month
Tools
• Percentages (%)

11. The End
~Thank You~