Detailed Notes: Estimation and Costing | Electrical Engineering SSC JE (Technical) - Electrical Engineering (EE) PDF Download

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UNIT – I – ESTIMATION, COSTING AND VALUATION - SCIA1702 
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UNIT – I – ESTIMATION, COSTING AND VALUATION - SCIA1702 
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I. ESTIMATE 
 
INTRODUCTION: 
? Estimation or estimating is the process of calculating the quantities of various items 
of works involved in the project. 
? Estimate is a document which furnishes the quantities of different works involved, 
their rates and the expenditure anticipate in a project. 
NECESSITY OF ESTIMATES: 
? To know about the approximate cost of the building construction. 
? To calculate the tax of the building 
? To fix the rent of building 
? The know about the various items of works involved in the building construction 
and arrange the available materials of the construction. 
? To arrange the labours of the construction works. 
? Take the approval for the government projects. 
? To having the loan from the bank. 
ESTIMATION: 
In the civil engineering field, the construction activity contains the following three steps. 
• Plans: Preparation of drawings plan, section, elevation, with full dimension and 
detailed, specifications meeting the requirements of the proposed structure. 
• Estimation: Preparation of an estimate is for arriving the cost of the structure to 
verify the available funds or to procure the required funds for completion of the 
proposed structure. 
• Execution (construction): It is a grounding the proposed structure, for 
construction as per the provision contained in drawings and estimation. 
? In, Estimation and costing there are two basic points involved in construction of 
structures are: 
• Quantity: The quantity aspects is with reference to the measurement in the 
drawings (plan, elevation, section) 
• Quality: The quality aspects is with reference to the specifications, i.e properties 
of materials, workmanship etc. 
• The estimation and costing of any structure is defined as the process of 
determination of quantities of items of work, and its cost for completion. Estimate 
of a project is therefore, a forecast of its probable cost. 
Page 3


1 
 
 
 
 
    
UNIT – I – ESTIMATION, COSTING AND VALUATION - SCIA1702 
2 
 
 
I. ESTIMATE 
 
INTRODUCTION: 
? Estimation or estimating is the process of calculating the quantities of various items 
of works involved in the project. 
? Estimate is a document which furnishes the quantities of different works involved, 
their rates and the expenditure anticipate in a project. 
NECESSITY OF ESTIMATES: 
? To know about the approximate cost of the building construction. 
? To calculate the tax of the building 
? To fix the rent of building 
? The know about the various items of works involved in the building construction 
and arrange the available materials of the construction. 
? To arrange the labours of the construction works. 
? Take the approval for the government projects. 
? To having the loan from the bank. 
ESTIMATION: 
In the civil engineering field, the construction activity contains the following three steps. 
• Plans: Preparation of drawings plan, section, elevation, with full dimension and 
detailed, specifications meeting the requirements of the proposed structure. 
• Estimation: Preparation of an estimate is for arriving the cost of the structure to 
verify the available funds or to procure the required funds for completion of the 
proposed structure. 
• Execution (construction): It is a grounding the proposed structure, for 
construction as per the provision contained in drawings and estimation. 
? In, Estimation and costing there are two basic points involved in construction of 
structures are: 
• Quantity: The quantity aspects is with reference to the measurement in the 
drawings (plan, elevation, section) 
• Quality: The quality aspects is with reference to the specifications, i.e properties 
of materials, workmanship etc. 
• The estimation and costing of any structure is defined as the process of 
determination of quantities of items of work, and its cost for completion. Estimate 
of a project is therefore, a forecast of its probable cost. 
3 
 
• The process of calculating the quantities (The quantity with reference to the 
measurement in the drawings, i.e., plans, elevation, section) and cost of various 
construction items i.e., excavation, concreting, masonry, plaster etc. of the project 
is called an “estimate”. 
• Estimating is the technique of calculating or Computing the various quantities and 
the expected Expenditure to be incurred on a particular work or project. 
NEEDS FOR ESTIMATION AND COSTING: 
Estimate give an idea of the cost of the work and hence its feasibility can be determined 
Estimate gives an idea of time required for the completion of the work. 
Estimate is required to invite the tender sand Quotations and to Arrange contract. 
Estimate is also required to control the expenditure during the execution of work. 
Estimate decides whether the proposed plan matches the funds avail or not. 
To know the quantities of various items of work, a material and labour and their source 
of identification. 
To decide whether the proposal can match the available funds to complete the structure. 
To obtain the administrative and technical sanction of estimate from the competent 
authorities to release the funds for construction. 
To invite tenders or quotations based on the estimate quantities for entrust of works to the 
execution. 
DATA REQUIRED FOR PREPARING AN ESTIMATE: 
Drawings: The detailed drawings of plan, elevation and section, drawn to a scale are 
necessary to take the details of measurements of various items of work. 
Specifications: The specifications give the nature, quality and class of materials, their 
proportion, method of execution and workmanship and the class of labor required. The cost 
of the work varies with its specifications. The cement mortar with 1:3 is costlier than cement 
mortar with 1:6. 
Rates: The rates for various items of work, the rates of various materials to be used in 
construction, the wages of different categories of labour should be available for preparing 
an estimate. The location of the work and its distance of source of materials and cost of 
transport should be known. These rates may be obtained from the Standard Schedule of 
Rates prepared by the engineering departments. 
To prepare an accurate estimate, a detailed estimate of quantities of various items of work 
and an abstract estimate of the quantities and their unit rates are required. 
 
 
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UNIT – I – ESTIMATION, COSTING AND VALUATION - SCIA1702 
2 
 
 
I. ESTIMATE 
 
INTRODUCTION: 
? Estimation or estimating is the process of calculating the quantities of various items 
of works involved in the project. 
? Estimate is a document which furnishes the quantities of different works involved, 
their rates and the expenditure anticipate in a project. 
NECESSITY OF ESTIMATES: 
? To know about the approximate cost of the building construction. 
? To calculate the tax of the building 
? To fix the rent of building 
? The know about the various items of works involved in the building construction 
and arrange the available materials of the construction. 
? To arrange the labours of the construction works. 
? Take the approval for the government projects. 
? To having the loan from the bank. 
ESTIMATION: 
In the civil engineering field, the construction activity contains the following three steps. 
• Plans: Preparation of drawings plan, section, elevation, with full dimension and 
detailed, specifications meeting the requirements of the proposed structure. 
• Estimation: Preparation of an estimate is for arriving the cost of the structure to 
verify the available funds or to procure the required funds for completion of the 
proposed structure. 
• Execution (construction): It is a grounding the proposed structure, for 
construction as per the provision contained in drawings and estimation. 
? In, Estimation and costing there are two basic points involved in construction of 
structures are: 
• Quantity: The quantity aspects is with reference to the measurement in the 
drawings (plan, elevation, section) 
• Quality: The quality aspects is with reference to the specifications, i.e properties 
of materials, workmanship etc. 
• The estimation and costing of any structure is defined as the process of 
determination of quantities of items of work, and its cost for completion. Estimate 
of a project is therefore, a forecast of its probable cost. 
3 
 
• The process of calculating the quantities (The quantity with reference to the 
measurement in the drawings, i.e., plans, elevation, section) and cost of various 
construction items i.e., excavation, concreting, masonry, plaster etc. of the project 
is called an “estimate”. 
• Estimating is the technique of calculating or Computing the various quantities and 
the expected Expenditure to be incurred on a particular work or project. 
NEEDS FOR ESTIMATION AND COSTING: 
Estimate give an idea of the cost of the work and hence its feasibility can be determined 
Estimate gives an idea of time required for the completion of the work. 
Estimate is required to invite the tender sand Quotations and to Arrange contract. 
Estimate is also required to control the expenditure during the execution of work. 
Estimate decides whether the proposed plan matches the funds avail or not. 
To know the quantities of various items of work, a material and labour and their source 
of identification. 
To decide whether the proposal can match the available funds to complete the structure. 
To obtain the administrative and technical sanction of estimate from the competent 
authorities to release the funds for construction. 
To invite tenders or quotations based on the estimate quantities for entrust of works to the 
execution. 
DATA REQUIRED FOR PREPARING AN ESTIMATE: 
Drawings: The detailed drawings of plan, elevation and section, drawn to a scale are 
necessary to take the details of measurements of various items of work. 
Specifications: The specifications give the nature, quality and class of materials, their 
proportion, method of execution and workmanship and the class of labor required. The cost 
of the work varies with its specifications. The cement mortar with 1:3 is costlier than cement 
mortar with 1:6. 
Rates: The rates for various items of work, the rates of various materials to be used in 
construction, the wages of different categories of labour should be available for preparing 
an estimate. The location of the work and its distance of source of materials and cost of 
transport should be known. These rates may be obtained from the Standard Schedule of 
Rates prepared by the engineering departments. 
To prepare an accurate estimate, a detailed estimate of quantities of various items of work 
and an abstract estimate of the quantities and their unit rates are required. 
 
 
4 
 
 
 
 
UNITS OF MEASUREMENT: 
? The units of different works depend on their nature, size and shape. In general, the 
units of different items of works are based on the following principle. 
? Massive or volumetric items of work such as earth work, concrete for foundations, 
R.R Masonry, Brick Masonry etc. The measurements of length, breadth, height or 
depth shall be taken to compute the volume or cubical contents. 
? Shallow, thin and surface work shall be taken in square unit or in area. The 
measurements of length and breadth or height shall be taken to compute the area, 
Ex. Plastering, white washing etc. 
? Long and Thin work shall be taken in linear or running units and linear 
measurement shall, be taken. 
Ex: Fencing, Rainwater pipes, ornamental borders 
etc. 
? Single units of work are expressed in numbers. 
Ex. Doors, Windows, Rafters, Trusses etc. 
DUTIES OF QUANTITY SURVEYOR: 
? The quantity surveyor must be well versed with the drawing of work. 
? He should be able to read the drawing correctly and bill the quantities accurately. 
? He should have the knowledge of the construction procedure. 
? He should be able to write the description of different works. 
? He should able to prepare the schedule of the project. 
? He should be able to value all variations under the contract. 
Page 5


1 
 
 
 
 
    
UNIT – I – ESTIMATION, COSTING AND VALUATION - SCIA1702 
2 
 
 
I. ESTIMATE 
 
INTRODUCTION: 
? Estimation or estimating is the process of calculating the quantities of various items 
of works involved in the project. 
? Estimate is a document which furnishes the quantities of different works involved, 
their rates and the expenditure anticipate in a project. 
NECESSITY OF ESTIMATES: 
? To know about the approximate cost of the building construction. 
? To calculate the tax of the building 
? To fix the rent of building 
? The know about the various items of works involved in the building construction 
and arrange the available materials of the construction. 
? To arrange the labours of the construction works. 
? Take the approval for the government projects. 
? To having the loan from the bank. 
ESTIMATION: 
In the civil engineering field, the construction activity contains the following three steps. 
• Plans: Preparation of drawings plan, section, elevation, with full dimension and 
detailed, specifications meeting the requirements of the proposed structure. 
• Estimation: Preparation of an estimate is for arriving the cost of the structure to 
verify the available funds or to procure the required funds for completion of the 
proposed structure. 
• Execution (construction): It is a grounding the proposed structure, for 
construction as per the provision contained in drawings and estimation. 
? In, Estimation and costing there are two basic points involved in construction of 
structures are: 
• Quantity: The quantity aspects is with reference to the measurement in the 
drawings (plan, elevation, section) 
• Quality: The quality aspects is with reference to the specifications, i.e properties 
of materials, workmanship etc. 
• The estimation and costing of any structure is defined as the process of 
determination of quantities of items of work, and its cost for completion. Estimate 
of a project is therefore, a forecast of its probable cost. 
3 
 
• The process of calculating the quantities (The quantity with reference to the 
measurement in the drawings, i.e., plans, elevation, section) and cost of various 
construction items i.e., excavation, concreting, masonry, plaster etc. of the project 
is called an “estimate”. 
• Estimating is the technique of calculating or Computing the various quantities and 
the expected Expenditure to be incurred on a particular work or project. 
NEEDS FOR ESTIMATION AND COSTING: 
Estimate give an idea of the cost of the work and hence its feasibility can be determined 
Estimate gives an idea of time required for the completion of the work. 
Estimate is required to invite the tender sand Quotations and to Arrange contract. 
Estimate is also required to control the expenditure during the execution of work. 
Estimate decides whether the proposed plan matches the funds avail or not. 
To know the quantities of various items of work, a material and labour and their source 
of identification. 
To decide whether the proposal can match the available funds to complete the structure. 
To obtain the administrative and technical sanction of estimate from the competent 
authorities to release the funds for construction. 
To invite tenders or quotations based on the estimate quantities for entrust of works to the 
execution. 
DATA REQUIRED FOR PREPARING AN ESTIMATE: 
Drawings: The detailed drawings of plan, elevation and section, drawn to a scale are 
necessary to take the details of measurements of various items of work. 
Specifications: The specifications give the nature, quality and class of materials, their 
proportion, method of execution and workmanship and the class of labor required. The cost 
of the work varies with its specifications. The cement mortar with 1:3 is costlier than cement 
mortar with 1:6. 
Rates: The rates for various items of work, the rates of various materials to be used in 
construction, the wages of different categories of labour should be available for preparing 
an estimate. The location of the work and its distance of source of materials and cost of 
transport should be known. These rates may be obtained from the Standard Schedule of 
Rates prepared by the engineering departments. 
To prepare an accurate estimate, a detailed estimate of quantities of various items of work 
and an abstract estimate of the quantities and their unit rates are required. 
 
 
4 
 
 
 
 
UNITS OF MEASUREMENT: 
? The units of different works depend on their nature, size and shape. In general, the 
units of different items of works are based on the following principle. 
? Massive or volumetric items of work such as earth work, concrete for foundations, 
R.R Masonry, Brick Masonry etc. The measurements of length, breadth, height or 
depth shall be taken to compute the volume or cubical contents. 
? Shallow, thin and surface work shall be taken in square unit or in area. The 
measurements of length and breadth or height shall be taken to compute the area, 
Ex. Plastering, white washing etc. 
? Long and Thin work shall be taken in linear or running units and linear 
measurement shall, be taken. 
Ex: Fencing, Rainwater pipes, ornamental borders 
etc. 
? Single units of work are expressed in numbers. 
Ex. Doors, Windows, Rafters, Trusses etc. 
DUTIES OF QUANTITY SURVEYOR: 
? The quantity surveyor must be well versed with the drawing of work. 
? He should be able to read the drawing correctly and bill the quantities accurately. 
? He should have the knowledge of the construction procedure. 
? He should be able to write the description of different works. 
? He should able to prepare the schedule of the project. 
? He should be able to value all variations under the contract. 
5 
 
REQUIREMENTS OF A GOOD ESTIMATOR: 
The quantity surveyor must be well versed with the drawings of works. 
He should be able to read the drawing correctly and bill the quantities accurately. 
IMPORTANT TERMS: 
? Plinth area 
? It is the covered built-up area measured at the floor level of any storey. 
? Plinth area is also called as built-up area and is the entire area occupied by the 
building including internal and external walls. 
? Carpet area 
? This means area in building which is useful on i.e area of drawing room, dining 
room, kitchens staircase, stores, verandas, Entrance hall, bathroom. 
? It is generally 50% to 60% of plinth area. 
? Carpet Area is the area that can be covered by a carpet. 
? This area does not include the thickness of pillars and inner walls. 
?  The common areas are also not included. Common areas are the lifts, staircase, 
lobby, play area etc. 
DIFFERENT TYPE OF ESTIMATES: 
? Preliminary/Approx./Abstract/Rough Cost Estimate 
? Plinth Area Estimate 
? Cube Rate or Cubical Content Estimate 
? Appx. Quantity Method Estimate 
? Detailed Estimate or Item Rate Estimate 
? Supplementary Estimate 
? Revised Estimate 
? Sub-Estimate 
? Annual Repair or Maintenance Estimate (A.R or A.M Estimate) 
? Complete Estimate 
Preliminary or Approximate estimate: 
? This estimate is prepared to decide financial aspect, policy and to give idea of the 
cost of the proposal to the competent sanctioning authority.