Module 2 Lesson 3 CE 104 - Building Systems Design-converted PDF

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Module 2: Lesson 3Welcome to Module 2 Lesson 3!Quantity Surveying and Cost EstimatesIntroductionPreliminary estimates also known as preliminary estimates are made during a construction project's design and planning period. There are many estimation techniques, some of which are outdated and some of ...

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Module 2: Lesson 3

Welcome to Module 2 Lesson 3! Quantity Surveying and Cost Estimates Introduction Preliminary estimates also known as preliminary estimates are made during a construction project's design and planning period. There are many estimation techniques, some of which are outdated and some of which are widely recommended and used by today's Quantity Surveyors.

Intended Learning Outcomes At the end of the session, the students should be able to: 1. Understand the importance of quantity surveying in construction; and 2. Identify the classifications in cost estimation;

Discussions Quantity Survey Quantity Survey (QS) is a process that deals with the monitoring and management of construction project costs. QS Measurement relies on sophisticated measurement rules that are understood by experienced practitioners.

Quantity Surveying is the estimation of quantities and cost of different items of work to be executed in a project. At the conceptual stage, such estimation is done on the basis of conceptual drawings, or in case of any non-availability of such drawings, it is done on a thumb-rule basis utilizing expertise and experience of specialists. In general, we can describe a quantity survey as follows: 1. Description and preparation of the bill of quantities and its items required for the tender. 2. Preparation of the site material, material types, and material distribution. Accuracy, thoroughness, and ability to reconcile quantity and cost at every point of time are the important qualities of a good quantity surveyor. The illustration below shows the importance of quantity surveying and why it is required in every project.

Role of Quantity Surveyors during Various Stages of the Project:

The required skills of quantity surveyors are: Ability to understand the drawing details, design drawings, shop drawings, and as-builts. Excellent knowledge of the calculation of the areas and volumes, and knowledge of fees of workers, technicians, rules, and law of the contracts. In addition to the knowledge of related financial issues/taxes, bank transactions, insurances, and its implication. Knowledge of the productivity of the workers and technicians. Quantity surveying services availed into two phases: Pre-Tender Phase and Post-Tender Phase. Pre-Tender Phase Feasibility and market studies Preliminary cost planning Procurement advise at the concept design stage Cost management during design development Value engineering Life cycle costing Preparation of tender documents Schedule of materials

Pre-Tender Phase Soliciting of competitive bids and offers with technical proposal Optimizing of superior technical, the capability of bidders and price evaluation Preparation of selected panel of preferred bidders Negotiation with preferred bidders Client’s benefit from accurate interim valuations of the work in progress Settlement of rational interim payments to contracts for progress work Projection of timely financial statements Estimation of final revised cost to completion Settlement of the final account of contractors

Taking off Quantities Taking off is the process of measuring dimensions from working drawings and recording them in a systematic and concise manner along with the description of each item.

Methods of Taking Off 1. English Method Taking off (dimension from the drawings) Grouping them

Billing or Bill of Quantities

2. PWD Method Taking out (dimensions from the relevant drawings) Squaring the dimensions Abstracting

Abstracting – the process by means of which the quantities of items of identical character and description are collected from the “take-off sheets”, totaled and deduction made in order to arrive at the net total quantities of respective items and in trade-wise order called abstracting.

Billing – it is a claim for the amount of work done or materials supplied. It is consisting of: 1. Work Order or Agreement No. 2. Item No. 3. Complete Description of Item 4. Unit of Item 5. Quantities of Item executed 6. Rate of Item (as per BOQ) 7. Total Amount of Individual Item 8. Total Billed Amount 9. Standard Deduction, as applicable

Cost Estimates Rate analysis is to determine the current rate per unit of an item at the locality. The purpose of rate analysis is to examine the viability of rates offered by, to the client, or contractor, to fix up the agency or labor contractor to do the job, and to fix the cost targets towards labor, material, equipment, and other heads and to measure the performance of the project in financial terms. It is classified under three heads: 1. Direct expenses 2. Indirect expenses

3. Profit The following sub-heads are estimated and a summation of these is the rate per unit of an item: 1. 2. 3. 4. 5.

Quantity of materials and costs Labor costs Cost of equipment of tools and plant Contingencies Different heads of indirect expenses to be considered in the estimation

6. Profit

Summary Quantity Surveying is the estimation of quantities and cost of different items of work to be executed in a project. Quantity surveying services availed into two phases: Pre-Tender Phase and Post-Tender Phase. Methods of Taking Off: English Method PWD Method Billing is classified under three heads: Direct expenses Indirect expenses Profit

Reference Estimating in Building Construction. 7 th Edition. Frank R. Dagostino. Steven J. Peterson. Pearson. Estimation and Quantity Surveying. Sushant Sharma.

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