MIT_CED Estimation & Costing Online Study Material
February 1, 2021
Definition of Estimation and Costing
1. Estimating is the technique of calculating or computing the various quantities and the
expected Expenditure to be incurred on a particular work or project.
2. Particularly if the funds available are less than the estimated cost the work is done in part or
by reducing it or specifications are altered, the following requirement are necessary for
preparing an estimate.
3. Drawings like plan, elevation and sections of important points.
4. Detailed specifications about workmanship & properties of materials etc.
5. Standard schedule of rates of the current year.
Requirement for Estimation and Costing
1. Estimate give an idea of the cost of the work and hence its feasibility can be determined i..e
whether the project could be taken up with in the funds available or not.
2. Estimate gives an idea of time required for the completion of the work.
3. Estimate is required to invite the tenders and Quotations and to arrange contract.
4. Estimate is also required to control the expenditure during the execution of work.
5. Estimate decides whether the proposed plan matches the funds available or not.
Specifications
1. General Specifications: This gives the nature, quality, class and work and materials in
general terms to be used in various parts of woks. It helps to form a general idea of building.
2. Detailed Specifications: These gives the detailed description of the various items of work
laying down the Quantities and qualities of materials, their proportions, the method of
preparation workmanship and execution of work.
Rates
For preparing the estimate the unit rates of each item of work are required.
1. For arriving at the unit rates of each item.
2. The rates of various materials to be used in the construction.
3. The cost of transport materials.
4. The wages of labour, skilled or unskilled of masons, carpenters, Mazdoor, etc.,
Lumpsum
While preparing an estimate, it is not possible to work out in detail in case of petty items. Items other
than civil engineering such items are called lump sum items or simply L.S. Items. The following are
some of L.S. Items in the estimate.
1. Water supply and sanitary arrangements.
2. Electrical installations like meter, motor, etc.,
3. Architectural features.
4. Contingencies and unforeseen items.
In general, certain percentage on the cost of estimation is allotted for the above L.S. Items Even if
sub-estimates prepared or at the end of execution of work, the actual cost should not exceed the L.S.
amounts provided in the main estimate.
Work Charged Establishment:
During the construction of a project considerable number of skilled supervisors, work assistance,
watch men etc., are employed on temporary basis. The salaries of these persons are drawn from the
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L.S. amount allotted towards the work charged establishment that is, establishment which is charged
directly to work. an [Link] of 1½ to 2% of the estimated cost is provided towards the work
charged establishment.
Measurement Of Materials And Works Units Of Measurements
The units of measurements are mainly categorised for their nature, shape and size and for making
payments to the contractor and also. The principle of units of measurements normally consists the
following:
1. Single unit’s works like doors, windows, trusses etc., are expressed in numbers.
2. Works consists linear measurements involve length like cornice, fencing, hand rail, bands of
specified width etc., are expressed in running metres (RM)
3. Works consists areal surface measurements involve area like plastering, white washing,
partitions of specified thickness etc., are expressed in square meters (m2)
4. Works consists cubical contents which involve volume like earth work, cement concrete,
Masonry etc are expressed in Cubic metres.
Rules for Measurement
The rules for measurement of each item are invaribly described in IS-1200. However some of the
general rules are listed below.
1. Measurement shall be made for finished item of work and description of each item shall
include materials, transport, labour, fabrication tools and plant and all types of overheads for
finishing the work in required shape, size and specification.
2. In booking, the order shall be in sequence of length, breadth and height or thickness.
3. All works shall be measured subject to the following tolerances.
a. Linear measurement shall be measured to the nearest 0.01m.
b. Areas shall be measured to the nearest 0.01 sq.m
c. Cubic contents shall be worked-out to the nearest 0.01 cum
4. Same type of work under different conditions and nature shall be measured separately under
separate items.
5. The bill of quantities shall fully describe the materials, proportions, workmanships and
accurately represent the work to be executed. 6. In case of masonary (stone or brick) or
structural concrete, the categories shall be measured separately and the heights shall be
described:
a. from foundation to plinth level
b. from plinth level to First floor level
c. from Fist floor to Second floor level and so on.
Define Abstract estimate
This is the third and final stage in a detailed estimate. The quantities and rates of each item of work,
arrived in the first two stages, are now entered in an abstract form. The total cost of each item of work
is now calculated by multiplying the quantities and respective rates.
Define quantity surveyor
A qualified or experienced person who does the above mentioned works (taking off, squaring,
abstracting and billing) is called a quality surveyor
Define analysis of rates
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Determination of rates of works from the qualities and cost of materials and labours required
is termed as analysis of rates
What are methods to be adopted for volume calculating?
1. From cross-section
2. From spot level
3. From contours
Define a tender
Tender is an offer given in writing to execute specified articles or materials at a certain rate, within a
fixed time, under certain conditions of agreement between the contractor and the party, which may be
a government department or an individual.
Define 'contract'
Contract is merely an agreement being enforceable by law between two persons or parties.
What are the types of culvert?
1. Arch culvert
2. Slab culvert
3. Pipe culvert
4. Box culvert
What are the methods of estimate?
1. Detailed estimate
2. Abstract estimate
What are the types of estimate?
1 Preliminary Estimate or Rough cost estimate
2. Plinth area estimate
3. Cube Rate Estimate or Cubical Content Estimate
4. Approximate Quantity Method Estimate
5. Detailed Estimate or Item Rate Estimate [Link] Estimate
7. Supplementary Estimate And Revised Estimate. [Link] Repair or Maintenances Estimate
9. Supplementary Estimate
Briefly explain about preliminary Estimate.
The estimate which prepared using any rough method to get the approximate cost construction
anticipated in a project is called an approximate or rough estimate. Since this estimate is normally
prepared in the preliminary estimate.
Write the duties of quantity surveyor.
1. Preparing bill of quantities (Taking off, squaring, Abstracting and billing)
2. Preparing bills for part payments at intervals during the execution of work.
3. Preparing bill of adjustment in the case of variations ordered during the execution of work
4. Giving legal advice in case of court proceedings
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Estimate the quantities of brickwork and plastering required in a wall 4m long, 3m high and 30
cm thick. Calculate also the cost if the rate of brickwork is Rs.32.00 per cu.m and of plastering
is Rs. 8.50 per sq.m
Quantities of brickwork = LxBxH
= 4m x 3m x 0.30m
= 3.6 cu.m Quantity of plastering (two faces) = 2 x 4m x 3m
= 24sq.m Cost of brickwork =3.6 x 320.00
= Rs.1152.00 Cost of plastering = 24x 8.50
= Rs.204.00
Total cost =1152.00 + 204.00 = Rs.1356.00
Define detailed estimate
The estimate, which provides the itemwise quantities of works, item wise unit rates and itemwise
expenditure anticipated in thre project/construction, is called a detailed estimate
Write the essential qualities of a good surveyor.
1. The quality surveyor must be well versed with the drawings of work.
2. He should be able to read the drawing correctly and bill the quantities accurately
3. He should have a through knowledge of the construction procedure to be adopted, the
various items of works involved in the execution: and the different materials to be used in the
work.
4. He should be able to prepare schedule to be priced by tenderor.
Define lead.
Lead is the crow flying horizontal distance from the centre of borrow pit to the centre of the
earthwork at site, i.e centre of the area of excavation to the centre of placed earth.
Define lift.
Lift is the distance through which the excavated soil is lifted beyond a certain specified depth.
The actual expenditure incurred in the construction of a school building which have a total
length of main walls 140m is [Link] the approximate cost of a similar school
building which will have 180m length of main walls.
Total expenditure = Rs.4,97,000 Total length of main walls = 140m
Rate per m length of main wall = 4,96,000/140 = Rs.3550/- Length of main walls in the
proposed building = 180m Approximate cost = 180 x 3550 = Rs.6,39,000/-
Define estimate.
An estimate is a computation or calculation of the quantities required and expenditure likely to be
incurred in the construction of a work. The estimate is the probable cost of a work and is determined
theoretically by mathematical calculation based on the plans and drawing and current rates.
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Write the recommendation for degree of accuracy in measurements.
� Dimensions of works shall be measured to an accuracy of 0.01 m
� Thickness of R.C works shall be measured to an accuracy of 0.0005 m
� Areas of works shall be calculated to the nearest 0.01 m2
� Volumes of work shall be calculated to the nearest 0.01 m3
� Volumes of wood shall be calculated to the nearest 0.001 m3
Briefly explain about revised estimate
The estimate, which is prepared When any major change or alteration is made in the plan / structural
arrangement, with or without affecting the estimate cost, and
When the estimated cost is likely to exceed by more than 5% during execution, due to increase in the
cost of materials and labour or due to increase in the cost of materials and labour or due to alterations
in the items of works to get the revised quantities /rates/ amount is called a revised estimate
Calculate the quality of brickwork in an arch over a 1.80m span opening. The arch is
[Link] and the breath of a wall is 40 cm.
Radius of the arch =1.8m
Thickness of arch = 40 cm
The breath of wall = 40cm
Mean dia = 3.60+0.40 = 4 m
Mean length of the arch given = 1/6 *(22/7)* 4 = 2.1m
Quantity of brickwork = 2.1*0.40*0.4 = 0.34cu.m
No of bricks required = 0..34cu.m @ 550 bricks per cu.m = 187
Define Floor area
It defined as covered area i.e plinth area excluding area of walls (generally 10% -15 %) sills of the
doors are not included in floor area. The floor area of very storey shall be measured separately.
Define Carpet area
This means area in a building which is useful one i.e area of drawing room, dining room bedroom
etc. Areas of kitchens, staircase, stores, verandahs, entrance hall, bathroom, basement etc. are
excluded. It is generally 50% to 60% of the plinth area.
Define Plinth area
It is defined area of a building measured at floor level. It is measured by taking external dimensions
excluding plinth offset if any.
What are the methods of taking out estimates?
� Centre line method
� Crossing method
� Out to Out and in to in method
� Bay method
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� Service unit method
Briefly explain about bay method.
This method is useful and is generally followed in case of buildings having several bays. The
cost of the typical bay is worked out and is then multiplied by the number of bays in that building.
The extra cost for the end walls and difference in framing, if there is any, should be made, so as to
arrive at the correct cost
Workout the quality of stone metal required for [Link] for wearing coat of a 4m wide
road. The thickness of the metal road required is 12cm loose.
Quality of metal = 1 X 2 X 1000 X 4 X 0.12 = 960.00cu.m
An approach road [Link] is to be constructed. Work out the quantity of materials required
i.e. stone metal and bricks. Data is given below.
Length = 2 Km
Metalled width = 3.60m
Soiling of bricks = 10cm
Wearing coat of stone metal = 12 cm Solution
Quantity of bricks = 1 x 2 x 1000 x 3.60 x 0.10 = 720 cu.m
No of bricks = 720.0 x 3.60 x 0.12 = 3,60,000
Stone metal = 1 x 2000 x 3.60 x 0.12 = 864 cu.m
Bricks = 3,60,000 Nos
A cement concrete road ([Link]) is to be constructed over the existing water bound macadam
road .The thickness of slab =[Link] length of the road is one km and the width
[Link] the quality of cement concrete and the material required,
Solution: Quality of cement concrete = 1 x 1000 x 3.60 x 0.10 = 360 cu.m
Calculate the quality of earthwork for the construction of an approach road
Length = 1Km
Width of formation = 10 m
Height of embankment = 60 cm
Side slope = 1:2 Solution
Quantity of earth work = L (Bd+Sd2) B=10cm ; d =0.60m ;S = 2
Quantity of earth work = 1000 x (10 x 0.60) +2 x 0.60 x 0.60 = 6720 cu.m 19.
What are the methods of measurements of earthwork?
The work shall be measured as given below
� Each dimension shall measured nearest to 0.01
� Area shall be worked out nearest to 0.01 m2
� Volume shall be worked out nearest to 0.01 m3
Write the essentials requirements of contract.
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There must be an offer of one party, and its acceptance by the other party to make an
agreement.
There must be an intention of both the parties to create legal relation.
The object of the contract must be legal, and it must not be opposed to any policy of the
government or company.
The agreement to make a contract should be supported by consideration, or recongnised by
law.
What are the types of contract?
1. Lump-sum contract
2. Cost plus percentage of cost contract [Link] rate contract
3. Labour contract
4. Integrated contracting system
What are the important legal implications of a contract?
Agreement should not violate the provisions of law.
It should not have any adverse effect on the morals of the society
The form of contract should be in writing and each page of the documents of the contract
should of the contract should be signed by both the parties.
A contractor who refuse to carry out the work before completion can be sued in a court of law
for breach of contract.
What is specification?
Specification is an important document attached with a tender form/contract agreement, which in
most cases controls the quality of materials and works.
State the different types of specification.
1. General or brief specification
2. Detailed specification
3. Standard specification
Describe general or brief specification
General specification gives the nature and class of work and materials in general to be used in
the various parts of the works, from the foundation to the superstructure.
General specifications give idea of the whole work or structure and are useful for preparing
the estimate.
Describe detailed specification
The detailed specifications form a part of the contract document. The detailed specification of
an item of the work specifies the qualities and quantities of materials proportion of mortar
workmanship, the method of preparation and execution and method measurement.
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The detailed specifications of different items of work are prepared separately which
description what the work should be and how they should executed and constructed.
What are the types of penalties that are imposed on a contract and why are they imposed?
Penalties may be imposed for non-fulfillment of conditions of contract such as not
maintaining progress, delay in completion and unsatisfactory work etc. The penalty may be
fixed sum per day or a percentage of the estimated cost upto 10%
What is arbitration?
Arbitration means the settlement of a dispute by the decision of a third person chosen and
acceptable as a judge. The decision of the arbitrator is binding on both the parties. In public works
department the superintending engineer function as the arbitrator
Why and when the earnest money deposit are collected?
While submitting a tender, the bidder has to deposit with the department an amount equal to
about 2 � % of the estimated cost of the work which is called earnest money deposit. This amount
serves as a check to prevent the contractor from refusing to accept the work or runway, when his
tender has been accepted. In case of refusal to take up the work his earnest money is forefeied.
Why and when the security deposit are collected?
At the time of execution of the contract agreement, the successful tender has to deposit a
further sum of 1% of the contract amount to the department. This amount is known as security
deposit. This amount is kept as a check so that the contractor fulfils all terms and conditions of the
contract. The security deposit will be refunded to the contractor on the satisfactory completion of the
whole work, after the observation period of 6 months
Analysis of Rates or Rate Analysis
In order to determine the rate of a particular item, the factors affecting the rate of that item are studied
carefully and then finally a rate is decided for that item. This process of determining the rates of an
item is termed as analysis of rates or rate analysis.
The rate of particular item of work depends on the following:
Specifications of works and material about their quality, proportion and constructional
operation method.
Quantity of materials and their costs.
Cost of labours and their wages.
Location of site of work and the distances from source and conveyance charges.
Overhead and establishment charges
Profit
Cost of materials at source and at site of construction:
The costs of materials are taken as delivered at site inclusive of the transport local taxes and other
charges.
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Purpose of Analysis of rates:
To work out the actual cost of per unit of the items.
To work out the economical use of materials and processes in completing the particulars item.
To work out the cost of extra items which are not provided in the contract bond, but are to be
done as per the directions of the department
To revise the schedule of rates due to increase in the cost of material and labour or due to change in
technique.
Cost of labour -types of labour, standard schedule of rates:
The labour can be classified in to
Skilled – 1st class
Skilled – 2d Class
Unskilled
The labour charges can be obtained from the standard schedule of rates 30% of the skilled labour
provided in the data may be taken as Ist class, remaining 70% as II class. The rates of materials for
Government works are fixed by the superintendent Engineer for his circle every year and approved by
the Board of Chief Engineers. These rates are incorporated in the standard schedule of rates.
b) Factors which affect the rate analysis of civil works are:
Specification of the civil work and materials such as quality of materials, proportion of mortar or
concrete, thickness of plastering, number of coats of painting, depth of excavation, type of soil
etc.
Location of the construction site – Distance of construction site from source of materials,
availability of labours, availability of water, machinery etc. influence rate analysis of construction
work.
Quantity of materials, number of different types of labours and rates of materials and labours
influence the rate analysis.
Profit of the contractor, miscellaneous expenses and other overheads also influence the rate
analysis.
Define valuation? Explain the need of valuation?
A valuation is the process of determining the fair market value of a company in a notional
context, meaning that the valuation is a) time specific, b) there is no negotiation, and c) there
is no exposure to the open market. Valuations are highly subjective calculations that aim to
determine the fair market value of a company. There are many common situations when
valuations are required, including business reorganizations, expropriations, employee share or
stock option plans (ESOPs), mergers and acquisitions (M&A), and shareholder disputes.
Valuation of Building
Valuation of a building depends on the type of the building, its structure and durability, on the
situation, size, shape, frontage, width of roadways, the quality of materials used in the
construction and present day prices of materials. Valuation also depends on the height of the
building, height of the plinth, thickness of the wall, nature of the floor, roof, doors, windows
etc. The valuation of a building is determined on working out its cost of construction at
present day rate and allowing a suitable depreciation.
Six Methods of Valuation
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Rental Method of Valuation
Direct Comparisons of the capital value
Valuation based on the profit
Valuation based on the cost
Development method of Valuation
Depreciation method of Valuation
Rental Method of Valuation
In this method, the net income by way of rent is found out by deducting all outgoing from the gross
rent. A suitable rate of interest as prevailing in the market is assumed and Year’s purchase is
calculated. This net income multiplied by Year’s Purchase gives the capitalized value or valuation of
the property. This method is applicable only when the rent is known or probable rent is determined by
enquiries.
Direct comparison with the capital Value
This method may be adopted when the rental value is not available from the property concerned, but
there are evidences of sale price of properties as a whole. In such cases, the capitalized value of the
property is fixed by direct comparison with capitalized value of similar property in the locality.
Valuation based on profit
This method of Valuation is suitable for buildings like hotels, cinemas, theatres etc for which the
capitalized value depends on the profit. In such cases, the net income is worked out after deducting
gross income; all possible working expense, outgoings, interest on the capital invested etc. The net
profit is multiplied by Year’s Purchase to get the capitalized value. In such cases, the valuation may
work out to be high in comparison with the cost of construction.
Valuation based on cost
In this method, the actual cost incurred in constructing the building or in possessing the property is
taken as basis to determine the value of property. In such cases, necessary depreciation should be
allowed and the points of obsolescence should also be considered.
Development Method of Valuation
This method of Valuation is used for the properties which are in the underdeveloped stage or partly
developed and partly underdeveloped stage. If a large place of land is required to be divided into plots
after providing for roads, parks etc, this method of valuation is to be adopted. In such cases, the
probable selling price of the divided plots, the area required for roads, parks etc and other
expenditures for development should be known. If a building is required to be renovated by making
additional changes, alterations or improvements, the development method of Valuation may be used.
Depreciation Method of Valuation
According to this method of Valuation, the building should be divided into four parts:
Walls
Roofs
Floors
Doors and Windows
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And the cost of each part should first be worked out on the present day rates by detailed
measurements. The present value of land and water supply, electric and sanitary fittings etc should be
added to the valuation of the building to arrive at total valuation of the property.
Specifications of First class brickwork
All of the bricks used should be of first class.
See the characteristics of first class bricks
Soaking of bricks should be done by submerging in a tank before use.
Soaking should be continuing until the air bubbles are ceased.
Soaking should be for a period of 12 hour before use.
Mortar specifications for first class brickwork
Material of mortar should be of standard specifications.
For mortar, cement should be fresh ordinary Portland cement of standard specifications.
Sand should be sharp and free from organic and foreign particles.
If we want to make rich mortar, sand should be coarse or medium. For weak mortar, local
fine sand may be used. Cement sand ratio of mortar should be 1:3 to 1:6 as specified.
To get the required proportion, materials of mortar should be measured with the
measuring box.
Materials of mortar should be first mixed dry to have a uniform colour.
The platform should be clean for mortar mixing. Mixing should be done at least three
times. Then water should be added gradually for workable consistency.
Mortar should be freshly mixed. Old mortar should not be used.
Mortar should be mixed with water for one hour work so that mortar may be used before
setting.
a) There are different types of construction contracts and their comparison is presented in this article.
A construction contract is an agreement between two or more parties to execute the construction
works as per certain terms and conditions.
A construction contracts contains general and special conditions of agreement, details of
construction project work, their specifications, time limits, payments and penalties for delivery
delays etc. and ensures every party’s rights and obligations.
A construction contract document is a valid document can be enforced under certain authority or
law.
Types of Construction Contract Documents
At early stages for any construction project, owner with his engineer or consultant prepares
necessary documents for tender process which will be included in the contract. These documents
are called contract documents.
b) Following are the types of documents in a construction contract:
General conditions
Special conditions
Drawings and specifications
B.O.Q (bill of quantity)
Letter of acceptance
Contractor bid
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Conditions of Construction Contract
Conditions of contract are terms which rule the relationships between the owner and the contractor,
define each party’s rights and obligations, specify method of payment and determine actions required
when existing any disputes between the owner and the contractor.
Following are the conditions of contract for construction projects:
General conditions of contract
Special conditions of contract
General conditions of contract
They are standard terms that suit the majority of projects, they include:
Definition of the project
Contract components
Rights and responsibilities for the owner and the contractor
Project schedule
Payment method
Warranty and delay penalty
Special conditions of contract
They are the modifications required to suit the uniqueness of the project, make the contract flexible
for the nature of the project and achieve project objectives.
Selection of Type of Construction Contracts
One of the characteristics of construction projects is uniqueness. Every project has its special
circumstances, so it’s important to select the contract type which suits the project. The process of
selecting the type of contract is developed by the owner.
Measurement In Civil Engineering
Measurement of civil Engineering work executed in the field is carried out based on thumb rule.
Indian standards provide the approximate rules to measure the quality in the field. They are
comprehensive and follow almost all areas. Following are the list of Indian Standards -
Indian standards (Standard Description)
IS 1200 : Part 1 : 1992 Methods of measurement of building and civil engineering works: Part 1 Earthwork
IS 1200 : Part 2 : 1974 Method of measurement of building and engineering works: Part 2 concrete works
IS 1200 : Part III : 1976 Method of Measurement of Building and Civil Engineering Works - Part III :
Brickwork
IS 1200 : Part 4 : 1976 Method of measurement of building and civil engineering works: Part 4 stone masonry
IS 1200 : Part 5 : 1982 Method of measurement of building and civil engineering works: part 5 form work
IS 1200 : Part 6 : 1974 Method of measurement of building and civil engineering works: Part 6 refractory work
IS 1200 : Part 7 : 1972 Method of measurement of building and civil engineering works: Part 7 hardware
IS 1200 : Part 8 : 1993 Method of measurement of building and civil engineering work: Part 8 steel work and
iron work
IS 1200 : Part 9 : 1973 Method of measurement of building and civil engineering work: Part 9 roof covering
(including cladding)
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What is a tender notice?
Tender notice is the publicity of offer to the contractor to quote their rates for construction for
construction work or supplied. Sealed tenders are invited in the most open and public manner. It is
made public by advisement in leading newspaper, in the government gazette or by notice in English
and in the regional languages in public places.
What information should a contract document contain?
[Link] page [Link] page
[Link] notice and tender forms [Link] of quantities
[Link]
[Link] specifications [Link] specification
[Link] of issue of materials [Link] of contract.
[Link] is Estimate?
[Link] of measurements for various items of building construction
[Link] out various Items of building Construction?
[Link] out types of Approximate Estimate?
[Link] is detailed estimate?
[Link] required for Detailed Estimate?
[Link] is abstract estimate?
[Link] of Detailed Estimate?
[Link] is Analysis of Rates?
[Link] is Preliminary Estimate?
[Link] the quantities of brickwork for a wall of 4m long, 3m high and 30cm thick.
[Link] Quantity Surveyor?
[Link] of Quantity Surveyor?
[Link] is Lead & Lift?
[Link] actual expenditure incurred in the construction of a school building which have a total
length of main walls 140m is [Link] the approximate cost of a similar school
building which will have 180m length of main walls.
[Link] various formulas used to calculate Volume of Earthwork?
[Link] is Floor Area?
[Link] is Carpet Area?
[Link] is Plinth Area?
[Link] is Tender?
[Link] is Contract?
[Link] of Contract?
[Link] is Specification?
[Link] is Arbitration?
[Link] EMD?
[Link] is SSR?
[Link] influencing Value of building?
[Link] of Valuation?
[Link] Value vs Salvage Value?
[Link] Sinking Fund?
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[Link] of Valuation?
[Link] is depreciation?
[Link] methods of depreciation?
[Link] is M. Book?
[Link] is BBS?
[Link] of 16mm dia. Steel bar of 1m long?
[Link] of Steel and Cement?
[Link] Format of Detailed Estimate?
[Link] Format of Abstract Estimate?
[Link] Format of BBS?
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