RICS SCHOOL OF BUILT ENVIRONMENT,

AMITY UNIVERSITY,
NOIDA, UTTAR PRADESH

MBA

CONSTRUCTION PROJECT MANAGEMENT

YEAR 2017-2018, SEMESTER-2

CONSTRUCTION COST MANAGEMENT SYSTEMS

PROJECT ASSIGNMENT

SUBMISSION BY: SUBMITTED TO:

1. Akshay M. Parab A13559017103 Ms. TAQDEES ANJUM
2. Aamir Rahman A13559017188 Course Faculty (CCMS)
3. Aabhas Arora A13559017144 Dated: 28th March 2018
4. Manish Ranjan A13559017072
5. Shekarchary Pagidimarri A13559017148
6. Yugank Jain A13559017129

0 Construction Cost Management Systems

ACKNOWLEDGMENT
We are grateful because we managed to complete Construction Cost Management Systems
assignment within the time given by our lecturer Ms. Taqdees A. This assignment cannot be
completed without the effort and co-operation from our group members. We also sincerely
thank our lecturer Ms. Taqdess A. for the guidance and encouragement in finishing this
assignment and for teaching us in this course.

1 Construction Cost Management Systems

CONTENTS
1. List of tables
2. IS code comparison
3. Introduction
4. Assumptions log
5. Resource planning
 Schedule of labours
 Schedule of bulk materials
 Schedule of P&M
6. Cost planning & EV analysis
7. Conclusion
8. References
9. Annexure

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1. List of Tables
S. No. Description
2.2.1 Earthwork (code comparison)
2.2.2 RCC (code comparison)
2.2.3 Brickwork (code comparison)
5.1.1 Schedule of labour
5.1.2 Average cost of labour
5.1.3 Labour cost
5.2 Material cost
5.3 P&M cost
6. Cost planning and EVM

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 2. TABULATION AND COMPARISON OF CODES

2.1 List of codes and their brief introduction

1. IS CODES
 Indian standard codes are list of codes used for civil engineers in India for design
and analysis of civil engineering structures like buildings, dams, roads, railways,
airports and many more.
 I.S. 1200:1973 is used for all measurements of building and civil engineering
works.
 I.S. 1200 code has 28 parts which gives the data for measurement of different items
of civil engineering works.
 I.S. 1200:2003 Part 5 is used to measure the formworks for buildings and other
structure

2. POMI
 Principle of Measurement (International) is written by Royal Institute of
Chartered Surveyors organization (RICS) in England in June 1979.
 It is used for Measurement of Construction and related Works

3. CESMM4
 Civil Engineering Standard Method of Measurement is published by
Institutional of Civil Engineers (ICE) in London in 1974 by the revised version
of standard method of measurement of Civil engineering quantities.
 It is used for measurement of civil engineering works.

4. NRM 2
 New Rules of Measurement Book is written by Royal Institute of Chartered
Surveyors (RICS) in January 2013.
 It is used for detailed measurement of civil engineering works.
 It also suggests RIBA plan of works.

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 2.2. Code comparison for

2.2.1. Earthwork

IS 1200 POMI CESMM4 NRM2

Clubbing of items
Items are clubbed together -NA- -NA- -NA-
based on detailed descriptions
of items in this standard.

Booking of dimensions
The order shall be consistent -NA- -NA- -NA-
and should be in the sequence
of Length, breadth, width or
height.

Measurements
In Decimal system Measurement shall be -NA- -NA-
a) Dimensions in 0.01m taken to the nearest 10
b) Area in 0.01 m2 millimetres
c) Volume in 0.01 m3 No deduction for voids
of area less than 1.00m2

Bill of Quantities
Items of work shall fully The objects of bills of The objects of the Bill The primary purposes of a
describe materials and quantities are: of Quantities are bill of quantities to provide a
workmanship and accurately 1. To assist in the (a) to provide such co-ordinated list of items,
represent the work to be accurate preparation of information of the together with their
executed tenders, by providing quantities of work as to identifying descriptions and
for measurement of enable tenders to be quantities, that comprise the
quantities on a uniform prepared works to enable contractors
basis efficiently and to prepare tenders efficiently
2. To provide a basis for accurately and
the financial control of (b) when a contract has accurately
a project, in accordance been entered, to Type of BOQ
with the conditions of provide for use of the 1. Firm
contract. priced Bill of 2. Approximate
Quantities
in the valuation of work
executed

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Classification
1. Soft/loose soil 1. Bore holes 1.Topsoil -NA-
2. Hard/dense soil 2. Trial holes 2. Material other than
3. Mud 3. Site preparation topsoil, rock or hard
4. Soft/Disintegrated 4. Excavation material
rocks 5. dredging 3. Rock
5. Hard rock (req. 4. artificial hard
blasting) material exposed at the
6. Hard rock (blasting Commencing Surface
prohibited) 5. Stated artificial hard
material not exposed at
the Commencing
Surface
6. Controlled and
hazardous material
exposed at the
Commencing Surface
7. Controlled and
hazardous material not
exposed at the
Commencing Surface

Method of Measurement:
The measurement of Excavation shall be All excavation by Quantities relate only to the
earthwork shall be done measured by volume as different is calculated depths and dimensions
in cubic metres, unless it is the void which is to be in cubic meters shown on the drawings and
stated in contract occupied by the over dig is not included
permanent construction

VARIOUS TYPES OF
EXCAVATION:
1. Rock Cutting Earthwork generally: 1. Excavation by 1. Site
2. Filling 1. Excavation dredging clearance/preparation
3. Surface Dressing 2. Dredging 2. Excavation for 2. Excavations
4. Rough Excavation 3. Disposal cutting 3. Disposal
5. Surface Excavation 4. Filling 3. Excavation for 4. Fillings
6. Excavation Over 5. Bore holes foundations 5. Membranes
Area 6. Tunnel 4. General excavation
7. Excavation in excavation
Trenches for 7. Surface
Foundations and for excavation
Pipes, Cables
8. Post Holes
9. Return, Fill and Ram
10. Embankments

Table 2.2.1

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 2.2.2.RCC
IS 1200 POMI CESMM 4 NRM 2
Clubbing of items
Items are clubbed -NA- -NA- -NA-
together based on
detailed descriptions of
items in this standard.

Booking of dimensions
The order shall be -NA- -NA- -NA-
consistent and should be
in the sequence of
Length, breadth, width
or height.

Measurements
In Decimal system -NA- The volume of 1. Concrete
a) Dimensions in concrete volume is
0.01m measured shall measured net
b) Area in 0.01 m2 exclude that of 2. Deductions
c) Volume in 0.01 nibs or external are not made
m3 splays each not for
exceeding 0.01 reinforcement,
m2 in cross- steel sections,
sectional cast-in
area. accessories,
voids ≤
0.05m3 except
voids in
troughed and
coffered slabs
3. All concrete
measurement
are done in
cubic metres.

Bill of Quantities 4.
Items of work shall fully -NA- -NA- -NA-
describe materials and
workmanship and
accurately represent the
work to be executed

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 Miscellaneous work:
1. Expansion -NA- -NA- 1. Sprayed in-
Joints situ concrete
2. Damp-proof 2. Fiber
course reinforced in-
3. Waterproofing situ concrete
Concrete 3. Designed
4. Guniting joints in in-
5. Pack/Pressure situ concrete
Grouting 4. Grouting
6. Grouting 5. Filling
Stanchion Bases mortices or
7. Holding Down holes
Bolts 6. Filling chases
8. Cutting in 7. Composite
Concrete concrete work
9. Toothing and 8. Holding down
Bonding or tie straps

Table 2.2.2

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 2.2.3. BRICKWORK
IS 1200 POMI CESMM 4 NRM 2
Description of item
To include conveyance, -NA- Item -NA-
delivery, handling, unloading, descriptions
storing, waste, returns, shall be stated
scaffoldings, tools and tackle, by material,
as necessary. dimension, and
type of Bricks or
equivalent to
British standard
specifications.

Waste
All measurements of cutting -NA- 1. Volumes and Extra material for
shall, unless stated, be deemed areas curved work.
to include consequent waste. measured
shall include
joints and
exclude
those
copings and
sills.
2. No
deductions
are made
from
projecting
surfaces.
3. No
deductions
are made for
holes and
openings for
more than
0.25m2.

Deduction
Where min area is defined for -NA- -NA- No deductions are
opening or void, it shall refer to made for voids whose
within the space measured. c/s area is less than
0.50 m2.

Measurement in stages
Work shall be measured below -NA- -NA- -NA-
or above the ground stating its
depth or height

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 Separate work measurements
a. Work in or under water -NA- Mean -NA-
b. Work in liquid mud dimensions shall
c. Work in or under foul be used to
position calculate the
d. Work interrupted by areas and
tides volumes of
e. Work in snow walls, facing to
f. Levels of tides to be concrete and
stated casing to metal
g. Where dewatering and sections and the
pumping required to be heights of
stated, a separate columns and
specific provision is piers
made.
Bills of Quantities
Items of work shall fully -NA- -NA- -NA-
describe materials and
workmanship, and accurately
represent the work to be
executed.

MEASUREMENT:
• Brickwork shall generally Walls and Mean 1 The description
be measured in cubic piers shall be dimensions shall shall describe the type
metres, unless otherwise measured by be used to of construction of the
stated. area no calculate the masonry such as
• Walls one brick thick and deduction areas and rubble or ashlar work
less shall each be measured shall be made volumes of and height of
separately square metres from the area walls, facing to coursing.
stating thickness. of walling on concrete and 2 Walls are measured
• For walling which is more which the casing to metal on the centre line of
than three bricks in faced or fair sections and the the material unless
thickness actual thickness faced work heights of otherwise stated.
of wall shall be measured. columns and 3 The radius of curved
NO deduction for: piers. work is taken from the
• Ends of dissimilar In determining centre line.
materials up to 0.1 m2 in the thicknesses 4 Battering walls are
section. of walls, facing sloping walls with
• Iron fixtures, such as wall and casing, the parallel sides.
ties, pipes up to 300 mm presence of 5 Thickness stated for
diameter surface features tapering walls is the
• Fireplaces, Chimney, etc shall be ignored mean thickness.
• Pillars / Columns The nominal 6 No deductions to be
thickness of made for voids or built
walls, facing to in items whose cross
concrete and sectional area equal to
casing to metal or less than 0.50m2.
sections shall be
Table 2.2.3
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 3. INTRODUCTION
The report consists of a basic estimation and costing for a construction project comprising of
four towers at Noida with profile of B+25 floors. The duration of the project is 26 months in
which 18 months is scheduled for structural works and 8 months for finishing works. The
contract value of this project is 210 crores.

The rough budget breakup for the project has been done taking some relevant assumptions to
complete the project. Cost analysis using EVM and unit costing method is done in this project.

The estimation of the project has been done with the help of IS 1200: methods of measurement
of building and civil engineering works, CPWD standards and manuals, etc.

3.1 Problem Statement

Project manager of XYZ Construction Ltd. is assigned a residential site consisting of 4
towers at Noida with profile 1 Basement + 25 typical floors each of height 3 m. Typical
floor drawing is given. Basement work is not in the scope of the contract. Scope of
items in the contract are notified below. Project Manager needs to submit the budgeted
cost for the project. Duration of the project is 26 months in which 18 months is
scheduled for structural works and 8 months for finishing works. Contract value of this
project is 210 Crs

3.2 Project Description

• Calculate the quantities to be executed for different items of work highlighted in the
project. Assumptions can be made for missing things in the drawing.
• Calculate the Project parameters - PBIT, PAT, ROCE, Off top, EVA, and cover applied
on Labour, material and P&M
• Prepare a rough budget breakup for the project highlighting your assumptions

Prepare a cost control sheet and perform variance analysis using EVM & Unit costing
method considering the given data and assuming planned unit costs for the remaining
project. Refer Table 6 in annexure

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 4. ASSUMPTION LOG

 The cost of the material and labour are assumed to be constant throughout the project
 The wastages are considered on an average basis of the industry standards
 The overheads include transportation incurred if any and the other indirect costs like salary of
office staff etc.
 The estimation should be taken up to 2 decimal places only the remaining digits can be assumed
to be redundant
 Cost of formwork includes the cost of supplementary items required like nails, supports etc.
 All tools and equipment’s required for the installation of the material are accommodated such
that their initial cost is covered
 The requirement for plant and machinery is taken on a rental basis only and does not includes
the owning cost of the equipment
 The concreting requirements should rather be assumed on the positive side as margin for steel
reinforcement in concreting volume is neglected
 Reinforcement is taken on basis of volume on concrete and should be considered as a general
estimate only
 Wastages in reinforcement can be considered up to a margin of 3%

12 Construction Cost Management Systems

 5. RESOURCE PLANNING

5.1 SCHEDULE OF LABOUR

Semi-
Description Unskilled Skilled
skilled
Basic Rate 250.00 350.00 450.00
P.F. @ 12% 30.00 42.00 54.00
Tools and minor consumables @ 7.5% 18.75 26.25 33.75
Retrenchment @ 15 days Salary for 240
Days 14.42 20.19 25.96
Bonus @ 20% of basic 50.00 70.00 90.00
Total 363.17 508.44 653.71
Overheads and Profit @ 12% 43.58 61.01 78.45
Grand Total = 406.75 569.46 732.16
Table 5.1.1
Weighted Avg Cost ( Per day ) 499.73
Avg Cost ( Per Manhour ) 62.47

Table 5.1.2.

LABOUR COST

Avg
Cost Labour
S. No Item Unit Quantity Productivity P5 UNIT Total Cost
per Cost/Unit
MH
1 Concreting Cum. 50005.66 18 MH/Cum. 62.47 50086.13 1124.38
Conventional
2 Formwork Sqm. 134897.5 4 MH/Sqm. 62.47 134963.97 249.86
Aluminium
3 Formwork Sqm. 5503.685 1.5 MH/Sqm. 62.47 5567.65 93.70
4 Reinforcement MT 146285.5 60 MH/Tonnes 62.47 146407.97 3747.95
5 Block Work Sqm. 86145.12 2 MH/Sqm. 62.47 86209.59 124.93
Gypsum
6 Plastering Sqm. 522001.8 1 MH/Sqm. 62.47 522065.31 62.47
7 Putty Works Sqm. 517030.9 0.75 MH/Sqm. 62.47 517094.11 46.85

TOTAL LABOUR COST 1462394.71

Table 5.1.3

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5.2 SCHEDULE OF BULK MATERIALS
MATERIAL COST [Table 5.2]
S.No DESCRIPTION UNIT QUANTITY RATE AMOUNT
Concrete - M60
1 Cement - OPC Bags 450050.981 ₹ 267.00 ₹ 24,03,272.24
2 Fly Ash Kgs 4000453.17 ₹ 2.20 ₹ 88,00,996.97
3 20mm Aggregate Mt 26853.0419 ₹ 604.00 ₹ 1,62,19,237.30
4 10mm Aggregate Mt 25503.5508 ₹ 604.00 ₹ 1,54,04,144.68
₹
5 Crusher Sand Cum 22440.04 2,968.20 ₹ 6,66,06,532.63
6 Micro silica Kgs 2000226.58 ₹ 29.00 ₹ 5,80,06,570.94
TOTAL (A) ₹ 16,74,40,754.76
Reinforcement
₹ ₹
7 Reinforcement MT 5049.2 46,150.00 23,30,20,580.00
8 Binding Wire Kgs 50492 ₹ 57.20 ₹ 28,88,142.40
9 Cover blocks Mt 5050 ₹ 150.00 ₹ 7,57,500.00
TOTAL (B) ₹ 23,66,66,222.40
Conv. Formwork
10 Conventional Formwork Sqm. 137542.553 ₹ 190.00 ₹ 2,61,33,085.07
11 Binding Wire Kgs 137543 ₹ 57.20 ₹ 78,67,459.60
TOTAL (C) ₹ 3,40,00,544.67
Aluminium Formwork
12 Aluminium Formwork Sqm. 5611.60 ₹ 250.00 ₹ 14,02,900.00
TOTAL (D) ₹ 14,02,900.00
Block Work
13 Block Work -100mm No's 567132 ₹ 65.00 ₹ 3,68,63,580.00
Block Work -150mm No's 78627 ₹ 75.00 ₹ 58,97,025.00
Blockwork-200mm No's 129549 ₹ 87.60 ₹ 1,13,48,492.40
₹
Sand For Masonry Cum 4651.84 3,180.20 ₹ 1,47,93,781.57
14 Fixoblock Ultratech Kgs 12 ₹ 15.00 ₹ 180.00
TOTAL (E) ₹ 6,89,03,058.97
Gypsum Plastering
15 Gypsum Kgs 4682356.51 ₹ 8.60 ₹ 4,02,68,265.98
TOTAL (F) ₹ 4,02,68,265.98
Putty Works
16 Fine Putty Kgs 739353.464 ₹ 17.90 ₹ 1,32,34,427.01
17 Coarse Putty Kgs 1664837.87 ₹ 13.30 ₹ 2,21,42,343.67
TOTAL (G) ₹ 3,53,76,770.68

₹
TOTAL COST (A+B+C+D+E+F+G) 58,40,58,517.46

14 Construction Cost Management Systems

 5.3 SCHEDULE OF P&M

Table 5.3

15 Construction Cost Management Systems

 6. COST PLANNING AND ECONOMIC VALUE ANALYSIS
S. No Description Cost in Rs Remarks
X Project Duration in Months 26
A Plant & Machinery Cost 342921280 A
B Material Cost 584058517.5 B
C Labour Cost 1462394.71 C
D Direct Cost 928442192.2 D=A+B+C
E Project Overheads @ 10% of Direct Cost 92844219.22 E= (8.6% x D)
F TOTAL COST 1021286411 F=D+E
G Risk @ 2% of Total Cost 20425728.23 G= 4% of D
H Contingency @ 2% of Total Cost 20425728.23 H= 3% of D
I TOTAL SALES PRICE 1062137868 I = F+G+H
J CONTRACT VALUE 2100000000

K GROSS MARGIN 1037862132 K= J-I

L % Margin 49.42200629 (K/J) *100
M H.O over heads @ 2% on Total Sales Price 21242757.36 M = 3% of I
N PBIT (GM-HO OH) 1016619375 N=K-M

O TAX @33% (PBIT X33%) 335484393.7 O = 33% of N

P PAT or NE (PBIT - Tax) 681134981.1 N-O

Q % Mark-up (Off Top ) 97.71444589 (J/I-1) *100

R Cover 2.261853261 R = (J/D)

S Average working capital 102128641.1 AWC=(I/X) *2.5

T Average asset value 40851456.46 AAV=40%*S

U Average Net Fund Employed 142980097.6 ANFE=S+T

V ROCE 4.763844707 ROCE=P/U

W Opportunity Cost 19659763.42 OC=13.75%*ANFE

Y Economic value added 661475217.7 EVA=PAT-OC

Table 6

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 7. CONCLUSION
• The plant and machinery cost is 33.57% of the total cost
• The material cost is 57.18% of the total cost
• Whereas the labour cost comes out to be only 0.14% of the total cost while in real world
scenario the labour component constitutes at least 10-15% of the total cost
• This anomaly can be explained through the difference between the theoretical productivity
and the actual observed productivity on site
• Also, the considered profit earned by the contractor through the estimate 47%
approximately which is again not observed in the real world scenario as the industry
standards for profit margin after tax deduction is 12-20 % this anomaly again is due to the
considerations of theoretical data and neglecting of the major factors which cause cost
overruns the factors can be listed as: -
• Decreased seasonal productivity of labour
• Acts of force majeure like earthquake, governmental proceedings etc.
• Fluctuations in market price of materials
• Availability of labour
• Changes in the GFC drawings at the crucial stages
• Conflict between client and contractors and various other parties involved

17 Construction Cost Management Systems

 8. REFERENCES

• Jha, K.N. (2011), Construction Project Management - Theory and Practice, Pearson Education,
New Delhi.
• Delhi Schedule of Rates
• IS 1200
• POMI
• CESMM 4
• NRM 2
• https://www.papertostone.com
• https://www.indianrealestateforum.com

18 Construction Cost Management Systems

 9. ANNEXURES
 TABLE 1: ITEM OF WORK ALLOCATION
 TABLE 2: ITEM DESCRIPTION FOR BOQ
 TABLE 3: MATERIAL RATES:
 TABLE 4: HIRE CHARGES OF EQUIPMENT PER MONTH:
 TABLE 5: MIX DESIGN
 TABLE 6: DETAILS AFTER MONITORING AT THE END OF 10TH MONTH

19 Construction Cost Management Systems