UGANDA TECHNICAL COLLEGE - KICHWAMBA

PO BOX 33 FORT PORTAL UGANDA.

2023

Estimating and tendering

Ogwal Geoffrey tonny

UTC-Kichwamba
4/20/2023
Acknowledgment:

Utc ki Estimation and Tendering lecture notes by OGT

 Prequalification
Definitions;
1. Means of identifying contractors who indicates that they are qualify and
should be interested in tendering for a potential project.
2. Is a tender process that provides for short-list of providers from which
providers are obtained to bid?
3. Stages of tender process where a number of organization are pre-selected
and subsequently asked to submit a tender.

Used where works, services, or supplies are of routine nature or bidding is

for a group of similar contracts.
Purposes
 To assessed the technical and managerial competency and financial
soundness of the interested bidders
 It protects the buyer and the end user by ensuring good quality products
are procured and distributed.
Prequalification questioner (PQQ):
 Experience of similar works
 Capacity to handle the project
 Financial standing
 References
 Health and safety records

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Utc ki Estimation and Tendering lecture notes by OGT

 Tender
Definition;
This is invitation to suppliers to submit a bid to supply products or services. An
official fee is needed to fortify and secure the tender bid engagement.
Steps in the tender process.
 Register your interest
 Attend information sessions
 Develop your tender response
 Review resent awarded contract
 Write a compelling bids
 Understand the payment terms
 Find referees
 Check and submit your bid

Tendering
Definition;
This is an administration procedure of sending out tender document through the
media inviting capable firms to state the price of every items in the Bills of
Quantities.
Tendering documents:
A tender document may include:
1. A cover letter pointing out specific contractual details such as contract
period, starting date, together with details of any special problems to be
encountered such as restricted hours of working.
2. Drawings
3. Bill(s) of quantities
4. The specifications
5. Form of tender (formal acknowledgment that the supplier understands)
6. Tender pricing document
7. Form of contract (the condition of contract)
8. The evaluation process
9. The submission process
Points to consider when preparing a tender
 Name of the firm
 Size of the firm
 Evidence of financial stability
 Location of firm
 Recent experience of this type of work
 Health and safety records
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Utc ki Estimation and Tendering lecture notes by OGT

  Availability of resources
 Management structure of firm
 Details of liability insurance
Purposes/importance of tendering:
 To select a suitable contractor at a suitable time
 To properly price the unit rate in the BOQ
 To calculate the estimated cost of the preliminary items applicable to the
contract being priced
 To prepare the estimate for submission to management for adjudication
into the contract.
Methods of tendering
The followings are the methods of tendering with their merits and demerits.
 Open tendering
This is a procedure of giving out tender through advertising in the press any
willing firm that wishes to do so to submit the tender, bid or offer. The
advertising will give an outline details of the type of work, the scale
programmed and any other key features.
Any interested firm applies for the tender and they are usually no
formalities other than a little fee for the tender document to discourage
those who are not interested in the job.
This system is commonly used by public bodies e.g. Governments, public services
although it is also used by private institutions.
Merits;
 There is high competition hence low cost
 Newly firm may apply hence give chance to any company.
 No chance of favoritism
 Client will realize a big sum of money
Demerits;
 There are large number of tenders to evaluate hence much time and
money is wastage.
 There is difficulty in selecting the right firm
 There is high corruption
 There is normally pressure to accept the low tender.
2. Selective tendering
Here the procedure is to select a limited numbers of firms known to the client or
architect and invite them to tender and it is mainly used by private institutions.
Selection should be made sufficiently earlier for firm to be asked whether they
will be willing to tender at the required time.
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Utc ki Estimation and Tendering lecture notes by OGT

Merits:
 The most competent firm will be selected
 Since tenders are few there is time and cost saving
 Cheap in terms of evaluation
 Companies with tested results are selected
Demerits:
 The firms are sometime over loaded and they may be reluctant to decline
some tenders at the time they have a lot of jobs.
 It brings favoritism and corruption
 There is high cost of bidding since the firms are selected.
 Newly formed firms that are competent are denied chance to tender.

3. Negotiated tendering:
This is usually for construction of very difficult nature of work where the
magnitude of the contract may be unknown at first or where earlier competition
is most important or where continuous or repetition of an existing contract is
considering reserved. For this contract, there is usually no time to waste for
drawings and BOQs to be prepared, one firm is selected and negotiated with.
Merits:
 No document is prepared hence time saving
 There is no corruption
 More issues can be discussed into details between the client and the
tenderer
 Offers a more rational price basis for the contract per half stimulates
design improvement.
Demerits:
 Very expensive on the client side
 It is hard to satisfy the test of public accountability.

4. Single/nominated tendering:

This is the type of tendering where only one firm is able to satisfy the
criteria for selection and this likely happens when specialized or nominated
contractors are selected in the supply of some selected materials,
installations.
Merits and demerits are as in negotiated tendering.

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Utc ki Estimation and Tendering lecture notes by OGT
5. Serial tendering:
This is a method of tendering where the client deliberately extends the
contract of similar scheme which are carried over a period of time within
the same area and permitted the phased utilization of the site organization
and plants e.g. construction of schools.
It is useful for main contractor and can also secure the benefits of the
increased size of order and production plant for component contracts and
specialized site installations works which become sub-contract to a series of
main contract.

Merits:
 It encourages keener price than would project for single project
 Time savings
 Cheap to evaluate
 Experience gained on the earlier project will be useful

Demerits:
 Inflations always affect serial type of contract
 Expensive
 It does not satisfy public accountability.

Criteria that firms applying for (contract, tender, and procurement,

prequalification) is expected to meet;
1 Be registered and practicing member
2 Company should have no conflict of interest
3 Should have fulfill the obligation for paying taxes
4 Should have valid trading licenses
5 Should not be subjected to legal proceedings in respect to bankruptcy or
questionable business deal.
The preparation of a tender
Having determined the methods by which contractor will be selected and the
necessary documentation having been prepared, the next stage in the process is
the invitation of a number of suitable contractors to submit tenders.
The general procedures:
 The arrival of the tender documents
 The decision to tender
 The preparation of the estimate
 The adjudication
 The submission of tender

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Utc ki Estimation and Tendering lecture notes by OGT

Construction firm’s organization:
There are three types of organization structure in project;
1 Functional
2 Metrix
3 Project zed
The combination of functional and Metrix organization is that each manager
reports directly to the general manager. The structure will vary according to the
organization or institutions;
 Chief executive director
 Managing director
 Project director
 Quality manager
 Financial team
 Legal manager
 Project supervisor
 Project coordinator
Why these structure should be in place;
 It helps to ensure on-time project completion within the set period
or budget.
Department involved in tender preparation: There are three departmental
committees i.e.
1 Procurement
2 Evaluation
3 Awarding
 Procurement:
This is the process of buying goods, works or services, they make adjustment and
receive tender documents from the bidders
In other word procurement is a means of obtaining goods, materials, plants and
services through rentals, lease, and hire away other means at the best possible
value for money for the client.
Objectives;
 Accountability in the spending of public funds.
 Transparency in the steps of decision making process.
 It improve on profits
 It protect the client during execution of work
 To acquire resources in the most efficient and effective way
Parties to procurement are; promoter/client, engineer, contractor/bidder.

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Utc ki Estimation and Tendering lecture notes by OGT

Methods of procurement;
1. Standard approach.
The client procures the resources on two occasions namely; by appointing
the consultant and later contractor
The role of the main contractor is to implement all the construction works.
The consultant prepares working drawing and specification before calling
for tender.
2. Early selection approach.
Here site operations are started early than normally possible
This is achieved by overlapping the designing and construction stage, since
the drawing and specification are not yet ready by the time the main
contractor is appointed
It is difficult to obtain a fixed rate for the work and this can increase risk of
disagreement between the client and contractor.
3. Design and contract approach.
Also known as turn and key or package deal approach. The contractor is
responsible for both design and construction, better coordination is always
achieved
It is difficult to combine with tendering process and the client rely on the
integrity and competence of the contractor.
4. Divide contract approach.
Here the separate contractors are appointed for he parts of the work
example earthwork, so that the site operation can start early than would
otherwise be possible.
5. Direct labour approach.
This is often used for similar projects which are technically simple
The approach is normally unsuitable for larger projects as construction
capacity is limited by lack of plants and skilled staff.

The general principles set up by National Join Consultative Committee for

building would includes
 Maximum economy and efficiency in procurement
 Achieving transparency in the procedures related to procurement.
 Promoting the integrity of and fairness and public confidence in the
procurement process
 Promoting competition among suppliers and contractors for the
supply of goods or services
 Providing for the fair and equitable treatment of all suppliers and
contractors
 Fostering and encouraging participation in procurement
Categories of construction resources that need to be procured in the project
a. Technical and managerial expertise
b. Man power, plants, equipment and materials.
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Utc ki Estimation and Tendering lecture notes by OGT

How tendering process can be abused by the client and the contractor;
 Large number of firms
 Late submissions are accepted
 False advertising of tender
 Corruption and favoritisms
 Failure to notify the results
 Short tender periods
 Qualified tenders and alternative bids
 Lack of information on the tender documents required.

 Evaluation of tender: Is the stage in the procurement during which a

contracting authority identify which one of the tender meeting the set
requirements is best evaluated.
The roles of evaluating committee are to;
 Review and evaluate proposal submitted by the contact
 Verify tender documents and makes recommendation.
 Recommend in the report which bidders should be awarded
 Prepare evaluation reports
 Maintain confidentiality throughout the process.
Evaluation criteria:
a. Preparation begins using the tender
b. Cost verses price
c. Quality requirements
d. Assessing tender responses
Factors to consider in the evaluation of tender
a. Price
b. Understanding of the requirement
c. Technical skills
d. Resource availability
e. Management skills and systems
Requirements met by companies during evaluation exercise
a. Legal status (certificate of registration)
b. Key personnel handling the work
c. Name of directors
d. Address, phone numbers and location of the firm
e. Power of attorney to the signatory of the bid
f. Original general receipt for non-refundable fee for the bid.
 Awarding committee; they evaluate the proposal (tender offers) taking parts
and award the contract.

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Utc ki Estimation and Tendering lecture notes by OGT

 Methods of awarding contract:
1. Lease price; the procurement contract is awarded to the best
price
2. Most economical advantageous; the proposals are graded
according to their price for value and the contract is awarded to
the one with the best grade
3. Mean value; the contract is awarded to a bid closer to the mean
value of the proposal
Purposes of awarding committee:
1. To plan and carry out the awards ceremony
2. To evaluate the nominees for each award to select winners in
each categories
Although an award may be made at any time after the tender closings, the
bidders is not bond to accept the award after the specified tender acceptance
Award letter;
This letter constitutes a commitment for company to reimburse contactor for any
arrangement necessary to commence the work. It describes awarding the
contract and notifying the bidders. Once the tender review process has been
completed, the purchaser should be in position to either award the contract or to
obtain approval to make the award.
Tender evaluation and award
The technical evaluation of bidders always recommends the lowest priced bid to
take up the contract provided that the contractor bid is eligible and is determined
to perform the contract successfully.
Stages
1. A preliminary examination to determine the eligibility of bidders
2. A detailed evaluation to determine the commercial and technical
responsiveness of the compliant bids
3. A financial comparison to compare cost of the eligible bids received.
Documents for eligibility bidders
 Valid and current license
 Certificate of registration
 Income tax clearance certificate
 Vat registration certificate or equivalent
 Audited account for the last three years
 Commercial documentations
 Written letter of acceptance of the conditions of the proposed
contract
 Agreed in writing with proposed project completion schedule
 Acceptable work program
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Utc ki Estimation and Tendering lecture notes by OGT

  Acceptable technical and managerial team
 Evident of ownership of acceptance
Performance guarantee:
An agreement between a client and a contractor for the contractor to perform all
of their obligations under the contract.
Performance/contract bond:
Security issued by an insurance company or bank to guarantees satisfactory
completion of a project by the contractor.
Tender guarantee bid bond:
Used as a security for bids submitted on the contract. This indicate that the bidder
will execute the contract at a bid price, up on award of the contract.
Contract adjudication:
This is the method of resolving contract disputes without involving prolonged
legal process.
Process of adjudication:
 Act quickly
 Decide whether the Right to Adjudicate exists
 Adjudicate
 How to challenge an adjudicator’s decision on enforcement?
 Get expert advice from the start
Parties in adjudication process:
 The referring party
 The responding party
 The construction adjudicator
Situations where contract adjudication can be held
 Termination of contract
 Professional negligence
 Breaches of construction project
 Final accounts (payment)
 Disruption in delay in construction process
 extension of time for completing the project
 interim payment
 Defect in building.

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Utc ki Estimation and Tendering lecture notes by OGT

 Estimating:
Definitions;
I. Estimating is the process of producing the cost of materials, plants
and labours (cost of construction works).
II. Estimation is also the prediction of what the key cost of material,
land and plant, labour for constructing a facility will be carried out.
Importance of estimating:

One of the keys to commercial success is a construction company’s ability

to estimate costs of construction work and to construct that work at the
estimated cost.

1. Estimate the cost of construction work

2. Provide the most realistic production
Bid price: Is the total cost construction and that of the make-up.
Construction cost includes,
 Labour (estimated for productivity outputs) how much a labourer takes to
lay bricks.
 Material (based on quotations from suppliers together with addition on
storage, handling and wastage)
 Plant (estimate based on quotations from hire companies)
 Sub-contractor’s cost (based on calculations from sub-contractor’s with
additions for services)
 Site on cost (based on assessments on the staff and general support
facilities required)
Company’s make-up includes;
 Company overheads (based on calculations of company’s head office
budget and forecast profit turn over)
 Profits (based on calculations of the minimum profit)
 Risk (based on an assessment of risks involved in the project and is thus
largely a subjective element)
Bid process (competitive) stage:
 Decision to tender
 Programming the estimate
 Preliminary project study
 Preparing a construction cost estimate
 Preparing reports for tender adjudication
 Adjudication process

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Utc ki Estimation and Tendering lecture notes by OGT

Parties involved in estimating and tendering:
 Client’s/promoter’s staff or their professional representatives
 Consultant.
 Contractor, planners, plant managers, site management staff
 Sub-constructors and nominated suppliers
 Quantity surveyor.
Terms used in estimating and tendering
1. Preliminaries;
General particular work, such as names of the parties involved, details
of work, description of the site and conditions of the contract.
2. Preambles;
These covers description of materials and workmanship
3. Prime cost sum
An amount of money to be included in the tender for work or materials
provided by,
4. Provisional sum
Amount of work which has not yet been finally detailed or for
contingency sum to cover the cost of any unforeseen work.
5. Variations
These are the modification of specification by the client or architect
6. Interim payment
Periodic payment made to the contractor by the client
7. Final account
Payment made on completion of work to the contractor
8. Retention
Money retained by the client until the end of an agreed defects liability
period
9. Defects liability period
Period of usually 6 months after practical completion of the project
[Link] certificate
Tis is issued at interval as the work proceeds and their issue entitle the
contractor to be paid certain portion of the contract price
[Link] certificate
Issued on the completion of making good defect or after defect liability
period
[Link] sum
This is the special kind of provisional sum which is meant to meet or
offset cost of work or expenses. Issued under the description of the
architect or employer
[Link] builder’s work
Work carried out by builder’s own operatives, employ people to work
for you.

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Utc ki Estimation and Tendering lecture notes by OGT
 [Link]
Is amount of money added to the net estimated cost as a return on
investment capital considering completion of work?
[Link]
These include payment of salaries to the head office staff, operating
costs and similar items which are necessary for the administration of the
contract and which are not normally charge directly to the actual cost of
work
[Link]-in-contract (turn and key/package deal)
The contractor undertakes the whole of the services required from
design
[Link]-in rate
Total cost/price of executing a unit piece of work. It included the cost of
labour, plants, materials, profits and overheads.
[Link] out put
This is the most uncertain part of a unite area.
[Link] constant
This is the records which give the average unite time for each
operative.
Analysis of rates
This is the process of determining the rate of an item or work/supply of
the materials. A reasonable profit, usually 10%-20% for the contractor
should be included in the analysis of rates.
Factors affecting the analysis of unit rates
 Materials
 Labour
 Site conditions
 specifications
 conditions of contracts
 quantum of work
 special equipment
 place of work
 profits to the contractor
 miscellaneous
Purposes of carrying out rate analysis
 to compute the current actual cost per unit of work at the locality
 to examine the viability of the rates offered by the contractors
 to calculate the quantity of materials and labour strength required for
project planning
 to fix up labour contract rates
 To fix profits and overheads.

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Utc ki Estimation and Tendering lecture notes by OGT
Labour
Labour refers to workers who provide physical effort for the execution of
particular works.
Labour rate
This is the stipulated amount of payment being set by the working rule
agreement to the workers.
Factors attributing to labour rates
 basic rate of pay in accordance with the working rule agreement
 third party insurance and federation payment
 guaranteed time inclement (unpleasantly cold/wet) weather
 training levy
 sickness benefit
 national insurance
 travelling expenses
 percentage addition to cover the cost brought about by the operative
working fewer hours than expected
 overtime
Example of building up labour rates
Competitions are made basing on a week of 5 days, 8 hours a day that amounting
to 40 hours in a week, considering a year of 50 weeks.
unskilled skilled
Basic pay per day 8000/= 15000/=
Third party insurance as a % of basic 2.5% 2.5%
Guaranteed time ‘’ 2% 2%
Graduated pension ‘’ 2% 2%
Sickness 0.5% 0.5%
Holiday with pay 200000/= 350000/=
National insurance (annually) 128000/= 128000/=
Public holiday (annually) 120000/= 120000/=
Training levy per week 5000/= 10000/=

Calculations
Skilled
Basic pay-----------------------------------------------15000/8= 1875×40 =75000/=
Third party--------------------------------------------0.025×75000/= = 1875/=
Guaranteed time------------------------------------0.02×7500/= = 1500/=
Graduated pension-------------------------------- 0.02×4000/= = 800/=
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Utc ki Estimation and Tendering lecture notes by OGT

Sickness ---------------------------------------------0.005×7500/= =37.5/=
Holiday ---------------------------------------------------------350000/50 = 7000/=
National insurance-----------------------------------------128000/50 = 2560/=
Public holiday----------------------------------------------120000/50 = 2400/=
Training levy------------------------------------------------ = 10000/=
Total per week---------------------------------------------= 101,173/
Rate per hour 101,173/40 = 2,529.313/=

Calculations
Unskilled
Basic pay-----------------------------------------------------8000/8= 1000×40 =40000/=
Third party--------------------------------------------------0.025×40000/= = 1000/=
Guaranteed time------------------------------------------0.02×40000/= = 800/=
Graduated pension---------------------------------------0.02×40000/= = 800/=
Sickness ----------------------------------------------------0.005×40000/= =200/=
Holiday ----------------------------------------------------200000/50 = 4000/=
National insurance------------------------------------128000/50 = 2560/=
Public holiday------------------------------------120000/50 = 2400/=
Training levy--------------------------------------- = 5000/=
Total per week--------------------------------------= 56,760/=
Rate per hour 56,760/40 = 1,419/=
Factors that lead to variation in labour rate
 variation in attitudes, culture, of the individuals
 location of work e.g. underground works
 weather conditions
 workmanship expected
 level of supervision
 site organization
 skills of workers

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Utc ki Estimation and Tendering lecture notes by OGT

Factors that affect labour rates
 supervision
 overtime
 holidays
 training levy
 locality

Costing for concrete

The nature of works in concrete works section of BOQ falls broadly into six
categories:
1. in-situ concrete (ready mixed concrete and site mixed)
2. reinforcement
3. formwork
4. precast concrete
5. pre-stressed concrete
6. in-situ and precast flooring
Factors that affect the cost of concrete work (both ready mixed and site mixed)
i. specification of the concrete
ii. total approximate quantity to be ordered
iii. transportation distance from the mix company
iv. methods of mixing
v. material required
vi. workmanship and finish expected
vii. site organization and administration
viii. position of mixing in relation to the areas and quantity of concrete to be
placed
Needs for ready concrete mixed
 luck of spaces available
 time factors (work needed faster)
 concrete needed at a large scale
Example one
To calculate the cost of placing concrete in any location a decision on plant and
labour to be employed must be made. In this case it is decided to use the
following;
1. plant
(One (1) crane and two (2) skips at shillings 150000/=per day, vibrators at
shillings 30000/=per day)

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 2. labour
One (1) ganger at shillings 65000per day, five (5) labourers at shillings
60000per day and crane driver at shillings 72,000per day.
The cost of providing concrete by ready mixed truck is shillings 90000/m3
Allowing 10% for waste.
Calculate the cost to the contractor of placing concrete in foundations using
the above labour and plants configuration, if the average daily pour size is
70m3.
Solutions;
Plant cost,
Cost of crane and skips----------------------------------------------------------150000/day
Crane driver------------------------------------------------------------------------72000/day
Vibrator---------------------------------------------------------------------------- -30000/day
Total plant cost------------------------------------------------------------------- 252000/day
Average plant cost/m3---------------------------------252000/70---------3600/=per m3
Labour cost
Concrete ganger----------------------------------------------------------------- 65000/day
5-labourers------------------------------------------------------60000×5--------300000/day
Total labour cost-------------------------------------------------------- ----------365000/day
Average cost per m3----------------------------------------365000/70------5214/=per m3
Material cost;
Cost of suppling concrete per m3---------------------------------------------90000/=
Allowing 10% wastage----------------------------------------------------------- 9000/=
Total materials cost/m3---------------------------------------------------------99000/=
Total cost/m3 to the contractor
Plant cost + labour cost + material cost (3600 + 5214 + 99000) = 107,814/=/m3.

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Example two
Utc ki Estimation and Tendering lecture notes by OGT
The total quantities of concrete in a project is 1125m3. One of the bill items reads
as follows
Item description units quantities rate Amount
F723 Placing reinforced concrete M3 35
class 225/20 to bases
thickness 300 -500mm.

Calculate the cost to the contractor of placing concrete give the cost element that
should be included in the rate for item F723, base the cost calculation on the
following data.
 The average rate of placing is 250m3 per week.
 The concrete placing is planned to take 45 weeks
 The plan provided for placing of concrete is given below.

number Plan item dedication Cost per

week (£)
2 22 RB cranes 1-50% concrete 800
placing
1-100% concrete
placing
4 Skips 100% 22
5 Dumpers 100% 84
6 vibrators 100% 42

The labour required is one (1) ganger and four (4) labourers whose cost are;
Ganger cost £ 390 per week
Labourers cost £ 360 per week

Solutions
Plant cost:
2 cranes each 800 per week------------------------------------1600 per week
4 skips each 22 per week--------------------------------------88 per week
5 dampers each 84 per week---------------------------------42 per week
6 vibrators each 42 per week---------------------------------252per week
Total plan cost-----------------------------------------------£2360 per week
Labour cost: Ganger--------------------------------------------------------------390 per week
4 labourers------------------------------------------360×4--1440 per week

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Utc ki Estimation and Tendering lecture notes by OGT

Total labour cost--------------------------------------------------£1830 per week
Material cost
Placing concrete at a rate of 250×35 per week----------------------8750/1125 = 7.8
Therefore, for 45 weeks---------------------------7.8×45---------------351
Total cost to the contractor (plant cost + labour cost + material cost)
(2360 + 1830 + 351) -------------------------------------------------£4541
Concrete (site mixed)
When pricing the site mixed concrete the following factors are to be considered;
I. Cost of materials required to make the concrete
II. Methods of mixing involving plants and labours
III. Cost of transporting, placing and any surface treatment.
IV. Types of mixers to be used
V. Position of mixing
VI. workmanship involved
VII. Site organization
Calculating for cost of materials (concrete)
1. Cement; cement supplied in bags or bulk
Density of cement= 1400kg/m3
(1.3ton- 1.4 ton/m3) but 1 bag = 50kg, therefore 1m3 of cement contains
1400/50 = 28 bags.
2. Aggregates – delivered to site in tones by tipper Lorries
3. Sand delivered to site in m3 or tones.
Allowance for wastage of materials and shrinkages (40%) =0.6.
Example one
Calculate using the volume batching, the unit rate of concrete and prepare the
material delivery list given the following information considering a slab of 7m by
15m of 150mm thick
 Concrete of mix grade 20 (1:2:4)
 Cement cost 36000/=per 50kg bag
 Transport for cement is 500/=per bag
 Unloading of cement is 50/= per bag
 Sand is delivered at 15000/= per m3
 Aggregates is delivered at 40000/= per tone
 Concrete mixer is 0.5 hours at 6250/=
 6-Unskilled labourer paid at 1000/=
 Add 5% wastage and 25% profits and overheads
 Density of cement--------1.3 tone/m3,
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  moist sand-----1.3,
 dry sand----1.5 and
 aggregates----1.6
Solutions
Description Rate Amount

Cement 36000 936000

1m3- 1300/50 =26 bags
Transport 26 bags 500 13000
Unloading 26 bags 50 1300
950300
Add 5%= 1.05×950300 997815
Sand 15000 30000
2m3 of sand delivered
Coarse aggregates 40000 256000
4m3/tones delivered
4×1.6=6.4
286000
Add 5%= 1.05×286000 300300
1,298,115/=
997815+300300

Therefore, 7m3 of dry concrete = 1298115

But, 1m3 = 1298115/7 = 185445/=
Cost of 1m3 of wet concrete = 1298115/4.2 = 309,075/=
Mixing cost
Concrete mixer---------------0.5hours & 6250--------------------= 3125
Labour--------------------------6 hours & 1000----------------------= 6000
Total-----------------------------------------------------------------------= 9125/=
Cost of concrete, mixer and labour--------=309075+9125 = 318200/=
Add 25% overheads and profits = 1.25×318200 = 397750/=
Cost of 1m3 of floor slab = 1×1×0.15= (0.15×397750) =59,662.5/=

Note: 7m3 of dry concrete when mixed with water (7×0.6) of wet concrete, 40%
lost due to shrinkage.

Page 20
Material supply list
Utc ki Estimation and Tendering lecture notes by OGT
Cement:
26 bags of cement in 1m3 was used to produced 7m3
After mixing with water = 7×0.6 = 4.2
Therefore, 1m3 of concrete = 26/4.2 = 6 bags
Sand:
4.2m3 of concrete was given by 2m3 of sand, 1m3 of sand requires 2/4.2 = 0.48
m3 of sand
Coarse aggregates:
4.2m3 of concrete was used for 4m3 of aggregates
1m3 of concrete requires 4/4.2 = 0.95m3 of aggregates
But density of aggregates is 1.6= 1600×0.95=152tones.
Volume of concrete slab= (15×7×0.15) m3=15.75m3.
Materials required for 15.75m3 0f concrete
 Cement 6×15.75 = 95 bags
 Sand 0.48×15.75 = 8m3
 Aggregates 1.52×15.75 = 24tones
Material delivery lists:
Item Description Unit Quantity Rate Amount
01 Cement Bags 95 36000 3420000
02 Sand M3 8 15000 120000
03 Aggregates Tones 24 40000 960000
Total 4500000

Example two:
Compute the unit rate of concrete and prepares the material delivery list if the
concrete floor slab measures 8×6×0.15 using the following market survey.
 Ordinary port land cement cost 36000/=
 Building sand cost 20000/=/m3 delivered
 Coarse aggregates cost 50000/=/m3 delivered
 Y12 cost 28000/=/piece and spaced at 200mmc/c
 Tying bars and spacers is 2% of reinforcement
 Concrete mixer is hired at 60000/=/hour
 Porker vibrator is hired at 40000/=/hour
 One skilled and one unskilled operates the mixer
 Mixer output is 2m3/hour
Page 21
 Allow 20% overheads,20% voids in concrete and 5% waste of materials

Utc ki Estimation and Tendering lecture notes by OGT

  Take density of reinforcement as 7850kg/m3,and density of cement as
1.4tone/m3
 Mix ratios is grade 3(1:1:3)
 Labour constant;0.3hours for skilled at 2500/=/hour
0.6hours for unskilled at 1000/]/hour
1.5hours for unskilled per ton of reinforcement.
Solutions
Concrete mix of grade 3(1:1:3) =5m3
M3 of cement contained 1400/50 =28bags
28×36000 =1008000/=
Building sand 1×20000 = 20000/=
Coarse aggregates 3×50000/= = 150000/=
Total Cost of 5m3 of concrete = 1178000/=
Cost of m3 of dry concrete =1178000/5 = 235600/=ssss
Add 5% waste 1.05×235600 = 247380/=
Add 40% voids 1.4×247380 = 346332/=
Mixer 60000/0.5 = 30000/=
Operators; Skilled 2500×0.5 =1250/=
Unskilled 2×1000×0.5 =1000/=
Porker vibrator 40000×0.5 =20000/=
Total cost of m3 of concrete =398582/=
But total quantity of concrete required in floor slab
(8×6×0.15)=7.2m3
Therefore cost =7.2×398582 =2869790/=
Reinforcement;
0.2m
6m
8m
Longitudinal bars = span/spacing+1 =6/0.2+1 =31
Transverse bars = 8/0.2+1 =41
Total length of the bars (31×8) + (41×6) 494m,
Numbers of bars 495/12 =42 bars.

Page 22
Cost of bars =42×28000/= =1176000/=
Tying bars and spacers =2/100×1176000/= =23520/=
Fixing and bending = 1ton takes 48000/=

Utc ki Estimation and Tendering lecture notes by OGT

But Mass =Volume× Density=πd2l/4 = (3.142(0.002) squares×12×7850)12
=447.46kg
Cost =447.46/1000×48000 =21478/=
Total cost of reinforcement =1176000+23520+21478 =1220998/=
Total cost of concrete slab =12200998+2540030 =3761028/=
Add 20% overheads 1.2×3761028 =4513234/=
Material list;
Concrete required =8×6×0.15 =7.2m3
Mixes = 1:1:3 =5m3of dry concrete
Used concrete 60/100×5=3m3 of wet concrete.
Cement 28/3×7.2 =68bags
Sand 1/3×7.2 =2.4m3
Aggregates 3/3×7.2 =7.2m3

N Items Unit Quantity Rates Amount

o
01 Cement Bags 68 36000 2448000
02 Building sand M3 2.4 20000 48000
03 Coarse aggregates M3 7.2 50000 360000
04 Y12 Pieces 42 28000 1176000
Total 4023000

Page 23

Costing for carpentry and joinery

Utc ki Estimation and Tendering lecture notes by OGT

Timbers for carpentry and joinery works can be purchased from the timber
merchants in a sawn state. The emphasis in modern construction is to fabricate
the components in a specialist sub- contractor workshop whenever possible and
reduce the site labour to a minimum.
Waste of timbers
The cutting and waste factor on in situ carpentry and joinery can be generally at
about 10% but for certain members in some situation, it may be higher.
Factors that are attributed in estimating for any carpentry and joinery works:
 the size of section expected
 labour involved in cutting and fixing
 the purpose of the structure
 The type of item made e.g. Windows, doors and roof trusses.
Roofing in corrugated iron sheets
Example one
Compute the unit rate for roofing in corrugated iron sheets of size 3000×900mm
with side laps of 114mm, in an iron sheet each corrugation measures 76mm and
the end laps of 150mm.
The iron sheets are then fitted to the timber purlin with nails and washers.
Take the following information’s;
 The roofing sheets cost 15000/=/m2
 Roofing nails cost 6000/=/kg having 50 nails
 There are 10 nails/m2 of the roof surface
 Washers cost 50/= each
 Labour rates for skilled and unskilled are 2500/= and 1000/=/hour respectively.
 Labour constant is 0.3hours for both labourers.
 Allow 5% waste of materials and 20% profits and overheads.
Solutions
Area of the exposed surface; (3-0.15) (0.9-0.114)
Cost of the iron sheet =15000×2.2401=33602/=
Allow 5% waste = 1.05×33602 = 35282/=
900mm Nails = (10×2.2401)6000/50 = 2688/=
Allow 5% waste =1.05×2688 = 2822/=
Washers = (10×2.2401)50 = 1120/=
Allow 5% waste= 10.5×1120= 11760/=
3000mm
Page 24
Cost of labours: Skilled = 0.3×2500= 750/=

Utc ki Estimation and Tendering lecture notes by OGT

 Unskilled =0.3×1000= 300/=

Total cost of roofing = 41080/=

Allow 20% profits and overheads =1.2×41080 = 49296/=per m2

Roofing in tiles;
Example two:
Calculate the unit rate for roofing in tiles of size 400×225mm with side end laps of
75mm and side laps of 25mm,if each tile cost 1600/= delivered to site.
The tiles are hooked on a 50×38mm battens converted from 150×50×4200mm
pine tree.
Each pine timber of 150×50×4200mm cost 24000/= delivered on sides.
The battens are to be fixed using 76mm nails each costing 30/=.
Galvanized iron sheet cost 5000/=/m2
Allow 2.5% waste of tiles, 10% waste of battens, 5% waste of nails and 20%
overheads.
Consider the spacing of battens and nails to be 325mm and 600mm respectively.
Labour constant for skilled and unskilled is 0.3 hours/m2
Labour rates for skilled and unskilled are 2500/= and 1000/= respectively.
Solutions
Area of exposed surface
(0.4-0.75) (0.225-0.025) = 0.068m2
Therefore n0 of tiles in m2 = 1/0.068 =15.75tiles
400mm Allow 2.5% waste = 16 tiles

75mm

Cost of tiles = 16×1600 =25600/=

225mm 25mm

Page 25

Utc ki Estimation and Tendering lecture notes by OGT

Battens;
Considering m2

No of lines of battens
1/0.325(spacing) +1 = 4
1m Length of batten = 1×4 = 4m
Since 150×50×4200 pine was bought
Then batten 150/38 = 3.95
1m Cost per piece of batten =2400/3.95 = 6080/=
Cost per meter =6080/0.42(length of timber) = 1447/=
Cost of battens = 1447×4 = 5788/=
Allow 10% waste = 1.1×5788 = 6367/=
Nails;
No of nails in a line of batten = 1÷0.6 (spacing) +1 = 2.7
Total of nails = 2.7×4 = 11
Allow 5% waste of nails = 11.34 nails
Cost of nails = 11.35×30 = 340/=
Galvanized iron sheet = 5000/=per m2
Labours; Skilled = 0.3×2500 = 750/=
Unskilled = 0.3×1000 = 300/=
Total cost of roofing works = (25600+6367+5340+1050) = 38357/=
Allow 20% overheads = 1.2×38357 = 46028/=

Page 26

Finishing works:

Utc ki Estimation and Tendering lecture notes by OGT

 Ceiling board.
Example one;
Built a unite rate /m2 for casting and plastering ceiling board with cement sand
mortar mix 1:4 given the following information.
 Ordinary Portland cement cost 33000/=/bag of 50kg
 Lake sand cost 30000/=/tone
 Transport and offloading are 500/= and 50/= respectively
 Mixer output is 2m3/hour and hired at 150000/=/day
 Take density of sand as 1.3tone/m3 and cement as 1.4tone /m3
 Metal lathe cost 36000/=/bundle of 10 pieces of (6×2feets)
 1kg of 2” nails cost 6500/= delivered and having 150 nails
 Thickness of the ceiling is 20mm and 15mm for plaster
 One small square of the ceiling takes 40 nails
 One skilled and one unskilled operates the machine
 One skilled and one unskilled takes 1hour to cast 4m2
 One skilled and one unskilled takes 1hour to plaster 2m2
 Labour rates for skilled and unskilled are 3000/= and 1500/= respectively
 Add 5% waste of materials, 25% consolidation and 20% profits.
 NB. Ignore the cost of ceiling formwork.
Solutions:
Materials;
Mortar mix = 1:4 = 5m3
1m3 of cement takes 1400/50 = 28 bags.
28×33000 = 924000/=
Transport @ 500/= 28×500 = 14000/=
Offloading @ 50/= 28×50 = 1400/=
4m3 of building sand = 4×1.3×30000 = 156000/=
Total of 5m3 = 1095400/=
Cost of m3 = 1095400/5 = 219080/=
Add 5% and 25% = 30% = 1.3×219080 = 287543/=
Mixer;
150000/16 = 9375/=
Operators;
Skilled = 3000×0.5 = 1500/=
Unskilled = 1500×0.5 = 750/=
Total of m3 of mortar = 299168/=

Page 27
Plastering and casting ceiling
Considering m2 = 1×1×0.015 = 0.015m3

Utc ki Estimation and Tendering lecture notes by OGT

 1×1×0.02 = 0.02m3
Total volume of plastering and ceiling works = 0.035m3
Cost/m2 = 0.035×299168 =10471/=
Labours;
Plastering- Skilled = 3000×0.5 = 1500/=
- Unskilled = 1500×0.5 = 750/=
Ceiling- Skilled = 3000×0.25 = 750/=
- Unskilled = 1500×0.25 = 375/=
Total cost of plastering and ceiling works = 13846/=
Metal lathe;
1bundle of 10 pieces cost 36000/=
Therefore 1piece = 3600/=
Assuming 50mm side end laps
Area of exposed surface = (1.8-0.05) (0.6-0.05) = 0.9625m2

6ft. 50mm
No of lathes in m2=
1/0.9625 = 1.03
Cost = 1.03×3600 = 3708/=
2ft. Add 5% waste =
1.05× 3708 = 3893/=
50mm Nails = no of nails = 3×40 = 120
Cost = 120×5600/150 = 5200/=
Add 5% waste =1.05×5200 = 5460/=
Total cost of ceiling works = 13846+3893+5460 = 23199/=
Add 20% profits = 1.2×23100 = 27838.8/=
Facing bricks:
Example.
Calculate the cost of finishing (3×10) m wall with facing bricks built in
cement sand mortar mix 1:3, given the following information’s.
 Cement cost 28000/=per bag delivered at site
 Fine aggregates cost 15000/=per ton delivered at site
 1000 facing bricks cost 500000/=delivered at site
 One facing brick measures 100×200mm bedded to a mortar base of
10mm and joint of 8mm
 2 unskilled labour mix 2m3 in 1hour
 Allow 5%waste,25% shrinkage and 20% profits and overheads
Page 28
 Labour rate for unskilled and skilled is 1000/=and 2000/= respectively

Utc ki Estimation and Tendering lecture notes by OGT

  Take density of cement as 1.3 ton/m3 and density of moist sand as
1.5ton/m3
Solutions
Mortar 1:3 = 4m3
Cement 1m3 taking 1.3ton = 1300kg
Therefore 1300/50 = 26 bags of cement
26×28000= 728000/=
Fine aggregate 1m3 taking 1.5tonne.
3m3 3×1.5= 4.5
Therefore 4.5×15000 = 67500/=
Total cost of 4m3 of dry mortar = 795500/=
Cost of 1m3 --------------- 795500/4= 198875/=
Add 5% ------------------ 1.05×198875= 208819/=
Add 25% shrinkage-------------- 1.25×208819= 261023/=
Mixing----------------------- unskilled 2×0.5×1000= 1000/=
Total cost of 1m3 = 262023/=
Facing bricks
Taking m2 of wall
Area of 1 facing brick 0.208×0.108= 0.0225m2
No of facing bricks in 1m2 = 1/0.0225 = 44.5 bricks.
1m Add 5% waste 1.05×44.5 = 47 bricks

1m
200
100
COST of 47 bricks =500000/1000*47= 23500/=
Labour
Assume the skilled lays 100bricks per hour
100 bricks---------------------------1hr.
1brick-----------------------------------1/100=
Page 29
45bricks----------------------------------45/100
Skilled-------------------------------45/100×2000 = 900/=

Utc ki Estimation and Tendering lecture notes by OGT

Total cost of facing brick work 900+23500= 24400/=
Mortar required for the work
Volume of mortar in 1m2---------------1×1×0.01= 0.01m3
Cost------------------------------------------0.01×262023= 2620/=
Total cost of finishes--------------------2620+24400= 27020/=
Add 20% profits ------------------------1.02×27020= 32424/=
Therefore the amount required to face the wall of 3*10
= 30×32424 = 972720/=

Page 30

Brick/block work

Utc ki Estimation and Tendering lecture notes by OGT

Factors that affect the costs of brick/block work in estimating and tendering
works.
 Wall thickness
 Height of the workplace
 Skills of masons applied
 Specification of building unit
 Workmanship involved
 Level of supervision
 Site organizations.
In order for the estimator to price the unit rate for block or brick work, it is
necessary to know the following;
 How to build up the price per cubic meter for the mortar to be used.
 The number of bricks/blocks in square meter
 The percentage to be added for waste of materials.
 Amount of skilled and unskilled hours required for each unit operation.
Example one;
Built up a unit rate of half brick wall in stretcher bond laid in cement sand mortar
mix 1:4 given the following information’s.
 50 kg bags of cement cost 28000/=
 Transport is 4000/=per 20 bags of cement including offloading
 Sand costs 40000/=per m3 delivered
 Common bricks cost 150000/= per 1000 bricks
 Transport is 62000/= per 1000 bricks
 Craft man and porter are paid 300/= and 125/= per hour respectively.
 Craft man laid 60 bricks per hour.
 2 porters produce 2m3 of mortar per hour.
 A single brick measured (230×150×100) mm and mortar thickness is 20mm.
 Take density of cement as 1300kg/m3 and sand as1400kg/m3.
 Allows 5%wasteof materials, 25% consolidation, 20% profits and overheads.

Solutions
Mortar mix ………………….1:4…………..= 5m3
1m3 of cement…………………..1300/50 = 26 bags
26×28000/= = 728,000/=
Transport and offloading ………………4000/20×26……………. 5200/=
4m3 of sand………………………………40000×4……………………………….160000/=
Total costs of 5m3 of dry mortar……………………………………………..893200/=
Page 31
Costs of m3……………………….893200/5………………………………….178,640/=

Utc ki Estimation and Tendering lecture notes by OGT

Allow 5% waste 1.05×178640………………………………187,572/=
Allow 25 % consolidation…………1.25×187,572…………………….234,465/=
Labour.
Porters ……………..2×125×0.5……………………………………………………..125/=
Total costs of m3 of mortar 234465+125…………234590/=
Bricks.
Number of bricks in m2, considering brick measurement and mortar thickness in
half wall thick.
0.25×0.12…………….0.03m2
No. of bricks……….1/0.03…………..33.3 bricks.
Allow 5% waste 1.05×33.3……...35 bricks
Costs of bricks…………………..35×150000/1000………………………..5250/=
Transport …………………………35×62000/1000………………………….2170/=
Total costs…………………………………………………………………………….7420/=
Mortar.
Quality of mortar required
Volume of the wall (m2)……………..1×1×0.15……………………………0.15m3
Volume of brick………..0.23×0.15×0.1………………………………..0.00345m3
Total volume of all bricks …………………0.00345×33.3…………..0.1149m3
Volume of mortar………….0.15-0.1149………………………………..0.0351m3
Costs of mortar in m3……………0.0351×2344645……………….8,229.72/=
Laying bricks;
Skilled………….1/60×33.3×300…………………………………………………..167/=
Unskilled……..1/60×33.3×125…………………………………………………….69/=
Therefore total costs of brick work;

7420+8229+167+69……………………………………………………………..14563/=
Allows 20% profits and overheads 1.2×14563…………………..17,476/=

Page 32

Example two

Utc ki Estimation and Tendering lecture notes by OGT

Calculate the cost of building 225mm thick wall of dimensions 3m*4m in cement
sand mortar mix 1:4 built in Header bond. Consider the data bellow,
 Bricklayer lays 50 bricks per hour
 Concrete mixture output is 2m3per hour
 The concrete mixture is hired at 18200/=per day of 8 working hours
 One skilled and one unskilled operate the mixture
 Cement costs 26000/=per 50kg bag
 Transportation and offloading of cement is 1000/= and 100/=per bag
respectively
 Sand costs 30000/=per m3 delivered to site
 1000 bricks delivered to site costs 200000/=
 Labour rates for skilled and unskilled are 1500/= and 800/=respectively per
hour
 One brick measures (225*102.5*65) mm and the mortar bed is 10mm
 Take density of cement as 1400kg/m3 and sand as 1300kg/m3
 Add 5% waste of materials, 25% consolidation and 20% profits

Solutions.
Mortar 1:4……………………………………………………..5m3
Cement m3…………………………………………..1400/50……………….28 bags
28×35000/=……………….980000/=
Transport……………………………………………….28×1000/=…………………..28000/=
Offloading………………………………………………...28×100/=……………………2800/=
Sand………………………………………………………….4×30000/=……………..120000/=
Total costs of 5m3 of dry mortar……………………………………………..1130800/=
Costs of m3……………………………1130800/5…………………………………226160/=
Add 5% waste of materials………………1.05×226160……………………237468/=
Add 25% consolidation…………………….1.25×237468…………………..296835/=
Mixture
18200/16……………………………………………………………………………………11375/=
Operators ……………..skilled………………………1500×0.5………………………750/=
Unskilled…………………...800×0.5………………………400/=
Total costs of m3 of mortar
400+750+11375+296835………………………………………………………..309360/=

Page 33

Utc ki Estimation and Tendering lecture notes by OGT

Brick work
Consider m2…………area of 1 brick………0.075×0.1125……………..0.00844m2
No. of bricks to be laid in m2……………….1/0.0084…………………….118.5 apr.119
Add 5% waste………………………1.05×118.5 ………………………………….125 bricks.
Costs of bricks in m2………125×200000/1000………………………….25000/=
Labour
50 bricks………….1hour, 1brick………..1/50
Skilled ………………119/50×1500………………………………………………..3570/=
Unskilled …………..119/50×800…………………………………………………1904/=
Total costs of brick work…………25000+3570+1904………………..30474/=
Volume of mortar required
Volume of the wall……………1×1×0.225…………………………………….0.225m3
Volume of one brick……………..1.025×0.065×0.225…………………0.00147m3
Volume of all the bricks in m2………..118.5×0.00147…………….0.177m3
Therefore volume of mortar in m2………………..0.225-0.117…….0.048m3
Costs …………………………………………..0.048×243210…………………..11674/=
Total costs of m2 of wall…………….11674+30474……………………42184/=
Add 20% profits ……………………………1.2×42185……………………..50620.8/=
Therefore the required wall of 3×4…………..12m2, will costs
12×50620.8…….607449.6/=
Assignments
Question one
a) In relation to procurements, state seven (7) general principles set by NJCC
(National join consultative committee for building construction) for a
successful procurement process. 7 marks
b) Outline eight (8) ways in which tender process are abused by the client and
the contractor. 8 marks
c) Explain any five (5) factors that can lead to loss of tender by the bidder
during the time of award of the contract. 5 marks
Question two
a) Define the term labour constant as applied in estimating. 2 marks
b) State any four (4) factors that affect the costs of brick/block work in the
construction industry 4 marks
Page 34
c) One of the construction site for a super market requires the construction of
a block wall in stretcher bond. As one of the estimator, built up a unit rate
Utc ki Estimation and Tendering lecture notes by OGT
 per m2 for walling with cement sand mortar mix (1:4) given the following
market survey data; 14 mark
 Ordinary Portland cement cost 33000/=per bag of 50kg
 Cement transport and offloading is 1000/= and 100/=
 Lake sand costs 33000/=per ton delivered to site
 Mixer output is 2m3 per hour
 Mixers is hired at 150000/=per day of 8 working hours
 The mixer is operated by one skilled and one unskilled labourers
 Labour output for skilled and unskilled is 1500/= and 1000/=
 One skilled and unskilled laid 35 blocks per day per 8 hours
 Allows 5% waste, 25% voids, 25% profits and overheads
 Take density of cement as 1.4 ton per m3 and sand as 1.4 ton per m3
 The concrete block measures 200*200*300 and costs 3500/=
delivered
 The mortar thickness is 20mm.

Other examples
1. Compute the costs per tone for the provision and fixing of 20mm diameter
reinforcement given the following data;
a. Material purchase costing 2000000/=
b. Waste 2%
c. Tie wire and spacing 2%
d. Cutting and bending 15 hours per tone
e. Fixing and labour 20 hours per tone
f. Bar bending machine is within on site cost
g. Site transportation is within on site cost
h. Labour for steel fixer is 3000/=per hour
i. Allow 20% profits and overheads

Solutions
Purchase …………………………………………………………2000000/=
Waste……………………1.05×2000000………………….2100000/=
Tie bar and spacers………0.02×2000000……………….40000/=
Cutting, bending, and fixing (15hours+20hours)…………………..35hours
Labour for fixing……………………..35×3000…………..105000/=
Total costs………………………………………………………2245000/=
Allows 20%.....................1.2×2245000…………….2694000/=

2. Calculate the costs of reinforcement per kg for slabing a 2×6m2 septic tank,
given the following information;
o 16mm bar costs 45000/=per piece and its placed at 200mm c/c
Page 35
o Tying bars and spacers is 2% of reinforcement
o Fixing and bending is 50000/=per tone
Utc ki Estimation and Tendering lecture notes by OGT
 o Labour constant for cutting is 1.5 hours for unskilled per tone
o Density of reinforcement is 7850kg/m3
o Allows 5% waste and 20% profits
o Labour rates for skilled and unskilled 2500/= and 1000/=per hour

200mm

6m
Solutions
No. of longitudinal bars………………..2/0.2+1……………………….11
No. of main bars……………………………6/0.2+1………………………31
Total length of all the bars (11×6) + (31×2)…………………………128m
No. of pieces of 16mm diameter bars………….128/12………………………..10.7
Allows 5% waste……………………1.05×10.7……………………….11.24………….12
Costs 12*4500…………………………………………………….540000/=
Tying bars and spacers…………..0.02×540000………..10800/=
Fixing and bending
W=πd2/4×p……….. (π (0.016)2/4×12×7850)12………….227.28kg
Costs………………………………. (227.28/1000)50000………………11364/=
Labour for cutting……………1.5×1000(227.28/1000)………… 341/=
Total cost of work……540000+10800+11364+341…………..562505/=
Allows 20% profits 1.2×562505…………………………………… 675006/=
Costs per kilogram………………675006/227.28……………………..2970/=

Page 36

Utc ki Estimation and Tendering lecture notes by OGT