📘 Estimation, 10 Revised
estimate prepared
20 Plinth area =
built-up area measured
Costing & Valuation
– Topic 1: General & when excess > 10% at floor level.
over sanctioned.
Methods of
21 Carpet area
Estimation
11 Repair & excludes thickness of
maintenance estimates walls.
1 Estimation
are annual/routine.
predicts quantities &
22 Floor area =
cost before execution.
12 Supplementary carpet area +
& revised estimate thickness of walls.
2 Detailed
together =
estimate = accurate &
supplementary revised 23 Salvage value =
based on
estimate. estimated value after
drawings/specification
useful life.
13 Abstract of
3 Approximate
estimate shows 24 Scrap value =
estimate used for
item-wise cost. sale value of
administrative
dismantled material.
approval.
14 Administrative
approval = sanction of 25 Book value =
4 Plinth area
competent authority. original cost –
estimate cost/m² ×
depreciation.
plinth area of building.
15 Technical
sanction = detailed 26 Capitalized value
5 Cube rate
scrutiny by engineer in = net annual income ×
estimate = cost/m³ ×
charge. years purchase.
volume.
16 Contingencies 27 Years purchase
6 Service unit
usually taken as = 100 / interest rate
method → cost per
3–5%. %.
bed, seat, student, km
road.
17 Work charged 28 Obsolescence =
establishment = value loss due to
7 Preliminary
1.5–2%. outdated technology.
estimate accuracy ±
10–15%.
18 Tools & plants = 29 Market value =
1–1.5% of estimated value in open market
8 Detailed
cost. on given date.
estimate accuracy ±
5%.
19 Centage charges 30 Sinking fund =
= department’s fund for replacement
9 Supplementary
overhead/service of building/asset.
estimate for additional
charge (10–15%).
work not in original.
31 Annuity = 41 Rate analysis = 52 Labour
annual installment for determination of unit component = 25–35%.
sinking fund. cost of item.
53 Overheads ≈
32 Depreciation = 42 Data required 5–10%.
(Original cost – Scrap for rate analysis →
value) / Life. material, labour, T&P, 54 Contractor’s
overheads. profit = 10–15%.
33 Straight-line
method = constant 43 Lead statement 55 In PWD system,
depreciation/year. indicates distance of Schedule of Rates used
material source. for analysis.
34 Diminishing
balance method = 44 Lead measured 56 In CPWD, DSR
depreciation on book in 50 m multiples for (Delhi Schedule of
value. earthwork. Rates) is used.
35 Quantity of 45 Task/Out-turn = 57 Approximate
earthwork estimated work done by cost of building = Rs.
by mid-section labour/day. 15000–25000/m²
method. (2020 base).
46 For brickwork –
36 Centre line average out-turn = 1 58 Cost of water
method faster for walls m³/ mason/day. supply works ≈ 5–7%
with uniform of building cost.
thickness. 47 For plastering –
8–12 m²/mason/day. 59 Cost of sanitary
37 Crossing or works ≈ 4–5%.
junction in centre line 48 For earthwork –
method requires 2.5–3 m³/labour/day. 60 Cost of
deduction. electrification ≈ 8%.
49 Labour
38 Long wall–short requirement for 1 m³ 61 Cost of roads ≈
wall method used for brickwork ≈ 6.5 10–15%.
estimating walls. mandays.
62 Cost of boundary
39 Long wall length 50 Analysis of rates wall ≈ 5%.
= C/L length + includes 4 parts:
thickness/2. Material, Labour, T&P, 63 Work-charged
Additions. establishment =
40 Short wall temporary staff wages
length = C/L length – 51 Material during work.
thickness/2. component of cost =
60–70% in building 64 Tools & plant =
works. depreciation & repair
cost of equipment.
65 Lump sum items 76 Lowest tender is 87 Prismoidal
= items difficult to generally accepted if formula = (A1 + 4Am
measure in detail. technically suitable. + A2)/6 × L.
66 Prime cost = net 77 Earnest money ≈ 88 For accurate
cost of material + 1–2% of estimated earthwork, prismoidal
labour. cost. formula preferred.
67 Provisional sum 78 Security deposit 89 Lumpsum
= reserved for ≈ 10% of tendered contract = contractor
unforeseen works. cost. paid fixed sum.
68 Net rate = rate 79 Running account 90 Item-rate
excluding contractor’s bill = progressive contract = contractor
profit. payment during work. paid per unit of item.
69 Gross rate = 80 Final bill = 91 Percentage-rate
rate including settlement after contract = % above or
contractor’s profit. completion. below schedule of
rates.
70 Turnkey project 81 Arbitration
= contractor delivers clause resolves 92 Cost-plus
ready-for-use project. disputes between contract = actual cost
client & contractor. + agreed profit %.
71 Deposit work =
executed by 82 Contractor’s 93 Labour contract
department but paid ledger = record of all = only labour provided,
by other agency. payments. materials by client.
72 Muster roll = 83 Cash book = 94 BOT (Build
record of labour daily financial Operate Transfer) =
employed daily. transactions. contractor recovers
cost by operating
73 Measurement 84 Imprest = fixed facility.
book = primary record cash advance for petty
of work executed. expenses. 95 Escalation
clause accounts for
74 Work order = 85 Measurement of rise in cost during
written authority to earthwork done by execution.
start work. cross-section method.
96 Deviation
75 Tender = offer 86 Mid-section statement = records
to execute work at formula = (A1 + A2)/2 variation from
quoted rate. × L. estimate.
