Chapter 1: Introduction to Estimation
Department of Architecture
Raju Bhele
Lecturer | Transportation Engineering
Department of Civil Engineering
19 September 2025
CHAPTER 1: INTRODUCTION
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1. General introduction
2. Purpose of Estimating
3. Requirement of Estimating
4. Technical terms
5. Units of Measurement and Payments for
Various Items of Building
6. Works and Materials
7. Methods of Measurement of Building Work
8. Sub Head of Various Items of Building
Work
9. Various Methods of Taking out Quantities
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10. Abstracting Bill of Quantities
BUILDING CONSTRUCTION SITE WATER SUPPLY AND SANITATION PROJECT SITE
PROBABLE COST OF CONSTRUCTION
TUNNEL CONSTRUCTION SITE GAUTAM BUDDHA INTERNATIONAL AIRPORT
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ESTIMATION
PROBABLE COST OF
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CONSTRUCTION
PROBABLE COST:
Material, Labour, Plant And
Equipment, Work Charge
Establishment, Supervision
PROBABLE COST/ACTUAL COST
DRAWING/SPECIFICATION/RATE
SKILL AND EXPERIENCE OF
ESTIMATORS
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1. Introduction
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Before undertaking the construction of any project it is important to know probable
cost of construction of project.
Here, probable cost of construction includes cost of material, labor cost, plant and
equipment cost, establishment charges, supervision charges, taxes etc.
Sometimes calculated probable cost will not be equal to actual cost. In such case,
probable cost is reduced by decreasing quantity of material or by changing
specification.
Therefore, an estimate can be defined as a probable cost of construction of
project determined by calculation of quantities of various items of works.
For preparation of an estimate, the quantities of different items of works are
calculated by simple measurement and from these quantities probable cost is
calculated. © Raju Bhele 9/19/2025
2. Purposes of an estimating.
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To give clear idea about probable cost of construction of project before they are
taken into hand.
To give information about types and quantities of plants and equipment required.
To provide information about types and quantity of construction material.
To provide information about types and quantities of labor required for
completion of the project.
To fix up the completion period from the volume of works involved in the estimate.
To construction a construction schedule and program and also arrange the funds
required to complete the work according to the programming.
To justify the investment from benefit cost ration ( for ideal investment this ration
should be more than one)
To invite tenders and prepares bills for payment.
To determine value of property.
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3. Actual cost
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The actual cost is the actual expenditure incurred in completing
a work excluding profit but including all other incidental,
establishment and travelling charges.
All such expenditure in connection with the work is accounted
regularly in a register book and are summed up after
completion or during handing over the work to know the actual
cost
Generally the contractor maintains such account register for the
actual cost of work.
Actual Cost can be known only after the completion of work,
because the price of construction material may change day by
day and also some time the work may stop due to some natural
calamity
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Estimated cost Vs Actual cost????
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4. Data required to prepared an estimate
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1. Drawings.
2. Specifications.
3. Rates
1. Drawing
The drawing is the basis from which quantities of
various items of works are calculated.
Thus, complete and fully dimensioned drawing
are required for preparation of an accurate estimate.
If the drawings are not clear and without
complete dimensions the preparation of
estimation become very difficult. So, It is very
essential before preparing an estimate. © Raju Bhele 9/19/2025
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2. Specifications:
It includes nature of work, quantity and quality of material to be used, types and quantity
of manpower etc required for completion of project. Specification is generally two
types.
2.1 General specification:
This gives the nature, quality work and materials in general terms to be used in various
parts of wok. It helps to form a general idea of projects
2.2 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.
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3. Rate:
From complete and fully dimensioned drawing quantities of different items of works
are estimated and these quantities are multiplied by rates.
So, rates for different items of works are required to determine the estimated cost.
For preparing the estimate the unit rates of items of following works are required.
The rates of various materials to be used in the construction.
The cost of transport materials.
The wages of labour, skilled or unskilled masons, carpenters, Mazdoor, etc.,
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5. Definition of terms.
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Administrative approval.
For any work or project, it is necessary to obtain acceptance of the proposals by the
competent authority of the administrative department.
Thus, administrative approval is formal acceptance of proposals by competent
authority of engineering department for incurring expenditure.
The engineering department prepares rough cost estimates and submits to concern
authority/department for administrative approval.
After receiving the administrative approval, detailed drawing, design and estimate
cost are prepared by engineering department and submitted to the
administrative department for sanction
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Technical sanction
Technical sanction means the sanction of the detailed estimate, design, calculation of
quantities of works, rates and cost by the competent authority of the engineering
department
After receipt of administrative approval and expenditure sanction, a detailed
estimate is further sanctioned by a competent technical authority of the engineering
department empowered by the government which ensure that the proposals are
structurally sound and estimate is accurately calculated based on adequate data.
After the technical sanction of estimate is given, then the work is taken up for
construction.
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Department charges or centage charges
When the engineering department takes up the work of other engineering
department, a percentages amount of 10% to 15% of the estimated cost is
charged to meet expenses of establishment, designing, planning, supervisions
etc. This charge is known as departmental charges.
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Work charged establishment
Work charged establishment is the establishment which is charged to work directly.
During construction of a building or a project, a certain number of workers –
supervisors, chaukidars etc. are required to be employed and their salaries are paid
from the amount of work charged establishment provided in the estimated.
For work-charged establishment a percentage of 1.5% to 2% of estimate cost is
included in the estimate.
The work charges employees are temporary staff and their appointment shall have
to sanction by competent authority for a specified period.
Their service are terminated at expiry of sanctioned period and if their services are
required fresh sanctioned shall have to be taken
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Contingencies.
The term contingencies indicate incidental expenses of miscellaneous characters
which cannot be classified under any distinct item sub-head.
To meet such unforeseen expenses an additional amount of 3% to 5% of the
estimated cost of work is provided in the total estimate.
Miscellaneous incidental expenses which cannot be classified under any sub-head of
items are meet from the amount provided under contingencies.
If there is any saving against the amount provided under contingencies, this amount
may be utilized with the sanction of the competent authority to meet the expenses to
minor changes in design etc.
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7. Methods of measurement of building works
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Measurement of works plays a very important role in planning and execution of
any work or project from the time of preparation of first estimate until the
completion of work an final settlement of payments.
The methods may vary from place to place, so for convenience uniform
methods should be followed.
General rules:
1. The measurement shall be made item wise for finished item of work.
2. The order of dimensions while booking shall be sequence of length, breadth and
height or thickness.
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3. All works shall be measured subjected to following tolerances.
Linear measurement shall be measured to nearest 0.01 m
Exceptions:
Wood works-nearest 0.002 m
Steel reinforcement-nearest 0.005 m
Thickness of RCC slab-nearest 0.005 m
<20 cm thick road pavement-nearest 0.005 m
Area shall be measured to the nearest 0.01 sq. meter
Exception: steel plate-nearest 0.001 sq. meter
Cubic contents shall be worked out to nearest 0.01 cum
Exceptions:
wood work-nearest 0.001 cum
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Steel reinforcement-nearest 0.002 MT (1kg)
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4. Same types 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 the work to be executed.
6. In case of masonry (stone or bricks) or structural
concrete, the categories shall be measured
separately and the height shall be described as
From the foundation to plinth level
From the plinth level to first floor
From first floor to second floor level and so on
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8. Different civil/building works
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Earthwork:
Unit of measurement: cubic unit
Earthwork of different nature (excavation in foundation,
trenched and in filling in plinth, in banking ) shall be
measured under separate items.
Concrete work
Unit of measurement: cubic unit (by measuring L, B, H),
nearest to 1 cm
No deduction shall be made for opening upto 0.1 sq meter
(1 sq ft)
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3. D.P.C (damp proof course)
Usually 2.5 cm of proportion 1:1.5:3 width standard
water proofing material is provided at plinth level to full
width of plinth wall. D.P.C is calculated in sq. unit i.e.
(length x breadth). D.P.C is not provided at the sills of
doors.
4. Soling.
If soil is not of good quality in such case a layer of dry
brick or stone is applied below foundation concrete.
Soling is calculated in sq. unit e.g. m2 etc by specifying
thickness
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RCC works
Unit of measurement: cubic unit excluding reinforcement
Steel reinforcement shall be measured under separate items in
quintal
It includes RCC slab, beams, column, lintels footing etc
Bricks work
Unit of measurement: cubic unit
No deductions or additions shall be made upto 0.1 sq.m in section
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Deduction for following cases should be made.
Rectangular opening.
Rectangular opening: Full deduction.
Amount of deduction: length x height x thickness of
wall
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Small Segmental Arches
Deduction is done for rectangular opening only
Amount of deduction: length x height x thickness of wall
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Large segmental opening: deduction s made for
both opening
Deduction area of segmental arch is considered as
A = (2/3) of span × rise = (2/3)× l × r
Total deduction area will be V=[ l × h + (2/3)× l × r] × t
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Semi-circular portion
Actual area of semicircular arch is A =
r 2
2
But for deduction area of semi circular arch is considered as
A = (3/4) of span × rise = (3/4) × l × r
Total deduction area will be V=[ l × h + (3/4)× l × r] × t
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Arch masonry work
Quantity of masonry in arch = lm × thickness of arch × thickness of wall
where lm = mean length of the arch
So deduction is D = lm × thickness of arch × thickness of wall
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Lintels over opening
Deduction (quantity of lintel only): length x thickness x thickness of wall
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Plastering
Unit of measurement: [Link] stating thickness
Plastering of roofs, ceiling wall etc shall be measurement in the
separate items
Pointing:
Unit of measurement: sq. unit
Deduction similar to plastering
Wood works:
Unit of measurement: cubic units
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Painting
Unit of measurement: sq. unit stating the number of coats
Different types of surface such as steel, wood, fibre board,
concrete surface etc shall measured under separate items
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9. Subheads of various items of works
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The whole work is divided into different classes of items and items of similar nature are
grouped under sub heads of works
1. Earthwork
2. Concrete work
3. Brick work
4. Stone work Under each sub head there are different items of
works. E.g. under earthwork, the cost of all items of
5. Steel work
earth work in excavations, in filling, dressing of
6. Wood work earthworks etc is taken
7. Roofing
8. Flooring
9. Plastering and pointing work
10. Painting and polishing
11. Miscellaneous work
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Per % cum
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10. Various method of taking out quantities
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1. Separate or individual or long wall and short wall or out to out and in to in.
2. Center line method.
3. Crossing method
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10.1 Separate or individual or long wall and short wall or out to out and in to in
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In this method, the longer walls running in one
direction are taken as long wall and the length is
measured from out to out and the shorter wall
running in direction perpendicular to the long wall
are taken as short wall and measured from in to in
for the particular layer of the work.
These length of longer and shorter walls are
multiplied by breadth and height (depth) of
corresponding layer separately and added to get the
quantities.
The length of long and short walls varies in every
layer of footings
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Length of long wall = c/c length of long
wall + half breadth of one side + half
breadth of other side. = c/c length of long
wall + breadth of one side.
Length of short wall = c/c length of short
wall – half breadth of one side – half
breadth of other side = c/c length of short
wall – breadth of one side.
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c/c length of long wall = 5.30 m
c/c length of short wall = 4.30 m
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10.2 Centre line method.
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In this method, the total centre line length of wall in a
building is calculated and the same value is multiplied by
breadth and depth of respective item to get the total
quantity of work.
This method is very fast method but it requires special
attention and consideration at junction.
When there are number of junctions in a building a special
consideration should be made at each junctions to find out
correct quantity.
For each junctions half breadth of the respective item is to
be deducted from centre line length.
Quantity = sum c/c length of wall (long and short wall) x
thickness of wall x height.
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10.3 Crossing method
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In this method overall perimeter of building is measured from outside and four times wall thickness is
deducted to get centre length.
Total c/c length = total perimeter – 4 x thickness of wall
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Bill of Quantities
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This is a complete list of all items of works involved with description, quantity and
unit of rate against each item of work.
These are filled up in tabular form similar to abstract of estimate cost but the rate
and amount column remain blank.
Such bill of quantities is provided in a tender form for item rate tenders.
Contractors put up their own competitive rates and calculate the totals to offer their
estimated amount to complete work.
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