Tuesday, May 12, 2020

CONSTRUCTION COST ESTIMATION EXAMPLE


Example 1
o      In order to construct a square metre of the blockwall, the following are required:
o      Materials: [Blocks-13 Nos; Mortar (1:3) head pans-3 Nos; Water – 1 bucket]
o      Labour: [Mason-1No; labourer – 1 No]
o      Equipment: [None]
o      Overhead [site expenses 20%; head office expenses 10%]
o      Markups [risk 5%; profit 10%]
o      The table below summarizes the calculation for the price for construction of a square metre of blockwall.


Requirements

Qty
Price per Unit (Tshs)
Amount
Materials
Blocks
13
1000
13000
Mortar
3
600
1800
Water
1
200
200
Labour
Masons charge per blocks
13
150
1950

Labourer charge per blocks
13
90
1170
Machine
-

-
-
Total direct costs
18,120
Site overheads (20%)
3,624
Main office overheads (10%)
1,812
Total costs
23,556
Risk 5%
1,177.8
Profit 10%
2,355.60
Rate per m2
27,089.40

Example 2
The following information is available to an estimator who is required to build up a unit rate for 1:2:4 concrete for foundation using volume batching.  This information is then used to illustrate how this unit rate is built up and adjusted to be entered in the bills of quantities as a balanced bid unit rate estimate.

A         Costs of Resources

Cement
o   Cost per tone ex-factory (loaded free)      ….       200,000/=
o   Delivery to site by hired 7ton lorry km    ….       200/= per ton-km
o   Distance – factory to site                          ….       20km
o   Unload and site and store                         ….       7 men @ 1 hour @ 1350/= per
hour per lorry load
o   Wastage due to breakage                          ….       2.5%
o   Density of cement                                     ….       1442kg/m3

Aggregates
o   Cost per m3 ex-quarry (loaded free)                     ….       13,500/=
o   Delivery to site by 7ton (5 m3) lorry                     ….       200/= per ton-km
o   Distance-quarry to site                              ….       18km
o   Labour banking at site                              ….       3 men @ 1hour @ 1350/= per
hour per lorry load
Sand
o   Cost per m3 ex-quarry (loaded free)                     ….       11000/=
o   Delivery to site by 7ton (4 m3) lorry                     ….       200/= per ton- km
o   Distance quarry to site                              ….       25 km
o   Labour banking at site                              ….       2 men @ 1hour @ 1350/= per hour per lorry load

B         Mixing (Using mixer with output 3m3/hour)

Mixer
o   Hire rate 8,350/= per hour, including fuel
o   Efficiency 75%

Vibrator
o   Hire rate 4,300/= per hour, including fuel

Skilled labour
o   1 mixer operator @ 1700/= per hour
o   1 skip attendant @ 1200/= per hour

General labour

o   Cement      1
o   Sand          2
o   Aggregate 3
6 @ 1350/= per hour
Allowing for 30% shrinkage of concrete in place, a 20% overhead and a 10% profit, what would be your balanced bid unit rate estimate per m3, assuming that water is priced in the preliminaries.

C         Unit rate build up

Cement
o   Cost per 7ton lorry, ex-factory, 7 ton @ 200,000/                                    = 1,400,000/=
o   Cost of delivery to site per load, 7 ton @ 200/= x 20 km             =      28,000/=
o   Cost of unloading and sorting, 7 @ 1hour x 1350/=                                =        9,450/=
Sub total                                 = 1,437,450/=
o   Cost of waste due to breakage at 2.5%                             =      35,936.25
Total                                       = 1,473,386.25
o   Cost per m3 = (1442kg x 1,473,386.25)/7000                =    303,517.57

Aggregates

o   Costs per lorry load, ex quarry, 5m3 @ 13,500/=                         =     67,500/=
o   Cost of delivery to site per load, 7 ton @ 200/- x 18 km             =     25,200/=
o   Cost of Banking at site, 3@ 1hour x 1350/=                                            =       4,050/=
Total                           =     96,750/=
o   Cost per m3                = 96,750/5                               =     19,350/=

Sand

o   Cost per lorry load-ex-quarry, 4m3 @ 11,000/=                           =     44,000/=
o   Cost of delivery to site per load, 7 ton @ 200 x 25km                             =     35,000/=
o   Cost of banking at site, 2 @ 1hour x 1350/=                                            =       2,700/=
Total          =                      81,700/=  
                                                            Cost per m3    = 81,700/4                   =     20,425/=

Mixing
Mixer
o   Hire rate 8,350/= per hour                          =          8,350/=
o   Efficiency 75%                                                    
o   Production per hour 3 x 75% = 2.25 m3 (productivity)              
                        Cost per m3 = 8350/2.25                    =         3,711.11

Labour
o   1 mixer operator @ 1,700/- per hour                                =       1,700/=
o   1 skip attendant @ 1200/- per hour                                  =       1,200/=
o   6 general labour @ 1350/= per hour                                 =       8,100/=
Total      =     11,000/=
Cost per m3 = 11,000/2.25                 =       4,888.89

Vibrator
o   Hire rate 4,300/= per hour                        =         4,300/-
Cost per m3 = 4,300//2.25                  =         1,911.11

            D         Summary

            1 m3 of cement @ 303,517.57                                                = 303,517.57
2 m3 of sand @ 19,350.00                                          =   40,850.00
4 m3 of aggregate @ 20,425.00                                              =   77,4 00.00
7 m3     (of concrete)                            Sub total          = 421,767.57
            Add 30% for shrinkage                                                           = 126,530.27
                                                                                                = 548,297.84
Cost per m3        = 551,092.84/7                                 =   78,328.26
Add: Mixer                                                            3,711.11
         Vibrator                                                         1,911.11
         Labour                                                           4,888.89
                                                Sub total          =   88,839.37
Allow for 20% overhead                                                             17,767.87
106,607.25
o   Add: 10% profit                                                         10,660.72
o   Cost per m3                                                             117,267.97    Say 117,268    

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