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CE8701 Estimation & Costing Guide

There are several methods of preparing estimates: 1. Preliminary or approximate estimate - Uses rough calculations to estimate overall costs. 2. Detailed estimate - Provides itemized quantities, unit rates, and costs for each work item. 3. Revised estimate - Made when plans change, affecting quantities or costs. 4. Supplementary estimate - For additional work not in original estimate. The quantity surveyor prepares estimates and bills of quantities, measures work completed, and advises on legal and payment issues during construction.

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0% found this document useful (0 votes)
274 views28 pages

CE8701 Estimation & Costing Guide

There are several methods of preparing estimates: 1. Preliminary or approximate estimate - Uses rough calculations to estimate overall costs. 2. Detailed estimate - Provides itemized quantities, unit rates, and costs for each work item. 3. Revised estimate - Made when plans change, affecting quantities or costs. 4. Supplementary estimate - For additional work not in original estimate. The quantity surveyor prepares estimates and bills of quantities, measures work completed, and advises on legal and payment issues during construction.

Uploaded by

ankit pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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1
QUESTION BANK

Name of the Department : Civil Engineering

Subject Code & Name : CE8701 & Estimation, Costing and Valuation Engineering

Year & Semester : IV & VII

UNIT – I

ww 1. What is an estimate?
QUANTITY ESTIMATE
PART – A

w.E An estimate is forecast of probable cost of a project. The quantities of each


item of works are calculated by menstruation methods. The cost of the calculated

a
quantities is worked out. This
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forms an estimate.

2. Give the units of measurements for following items of work?


(i)
(ii)
Damp proof course – m2
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Earth filling in excavation in foundation – m3
(iii) Formwork – m2
(iv) Weathering coarse – m2 nee
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3. Under what circumstances revised estimate is prepared?
Revised estimate is prepared when any major change or alteration g.n
is made in the
estimate cost.
plan/ structural arrangement, with or without affecting the
et
4. What is Plinth Area Estimate?
The estimate which prepared using any rough method to get the
approximate cost construction anticipated in a project is called preliminary
estimate.

5. What are different types of estimates?


Approximate Estimate
Detailed Estimate
Revised Estimate
Annual Maintenances Estimate
Supplementary Estimate

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Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC

6. Give the units of measurements for following items of work? 2


 Steel reinforcement in R.C.C works – tones
 11.5 cm thick partition wall in brick work – m3

7. What are methods to be adopted for volume calculating?



From cross-section

From spot level

ww •
From contours

w.E
a
8. What is centre line method?
syE
The centre line method is simple and quick for computing

ngi
the quantities. In this method, the length of long walls and short walls are to be
found out at the centerline of walls. It requires special care at the junctions,
meeting points of cross-walls etc...
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9. Different between revised and supplementary estimate?
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g.n
REVISED ESTIMATE:
Revised estimate is required due to change of rate
or quantity of materials, so no additions or revisions of drawings is necessary.
SUPPLEMENTARY ESTIMATE:
Supplementary estimate is required due to some
et
new works or due to change of design, so additions or revisions of drawings
may be necessary.

10. What are the methods of estimate?

1. Detailed estimate

2. Abstract estimate

11. What are the types of estimate?

 Preliminary Estimate or Rough cost estimate

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Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
 Plinth area estimate
3
 Cube Rate Estimate or Cubical Content Estimate

 Approximate Quantity Method Estimate

 Detailed Estimate or Item Rate Estimate

 Revised Estimate

 Supplementary Estimate And Revised Estimate.

ww  Annual Repair or Maintenances Estimate

 Supplementary Estimate

w.E
12. Briefly explain about preliminary Estimate.

a The estimate which prepared using any rough method to get the
approximatecost
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construction anticipated in a project is called an approximate or
rough estimate. Since this estimate is normally prepared in the preliminary estimate.

ngi
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13. Estimate the quantities of brickwork and plastering required in a wall 4m
long, 3m
rin
high and 30 cm thick. Calculate also the cost if the rate of
brickwork is Rs.32.00 per cu.m and of plastering is Rs. 8.50 per sq.m

Quantities of brickwork = LxBxH


g.n
= 4m x 3m x 0.30m

= 3.6 cu.m
et
Quantity of plastering (two faces) = 2m x 4m x 3m

= 24sq.m

Cost of brickwork =3.6 x 320.00

= Rs.1152.00

Cost of plastering = 24x 8.50

= Rs.204.00

Total cost =1152.00 + 204.00

Department of Civil Engineering


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Accredited by NAAC
= Rs.1356.00
4
14. Define detailed estimate

The estimate, which provides the itemwise quantities of works, item wise unit
rates and itemwise expenditure anticipated in thre project/construction, is called a
detailed estimate

15. Define Abstract estimate

This is the third and final stage in a detailed estimate. The quantities and rates

ww
of each item of work, arrived in the first two stages, are now entered in
an abstract form. The total cost of each item of work is now calculated by

w.E
multiplying the quantities and respective rates.

16. Write the duties of quantity surveyor.

a•
syE
Preparing bill of quantities (Taking off, squaring, Abstracting and billing)

ngi
Preparing bills for part payments at intervals during the execution of work.

nee
Preparing bill of adjustment in the case of variations ordered during the
execution of work
• rin
Giving legal advice in case of court proceedings

PART – B g.n
1. What are the methods of estimates? Discuss.
et
2. Explain different types of estimates and differentiate detailed estimate from cubic rate
estimate.
3. Briefly explain the different types of estimates discussing when each one is preferred.
4. Explain about the calculation of quantities of brickwork and RCC work in arches.
5. Estimate the quantities
of the following items of
work:

i) Earthwork excavation in foundation

ii) Foundation concrete

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iii) First class brickwork with 1:4 CM and 20 mm cement plaster on walls
5

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.

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et

Department of Civil Engineering


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Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC

6
6. Estimate the quantities of various item of works by centre line method from the Fig 2.
7. Estimate the quantities of various item of works by cross method from the Fig 2.
8. Estimate the quantities of various item of works by out-to-out and in-to-in method
from the Fig 2.

ww
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a syE
ngi
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et

Department of Civil Engineering


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Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC

7
UNIT-II

RATE ANALYSIS AND COSTING


PART-A

1. Write the essential qualities of a good surveyor.



The quality surveyor must be well versed with the drawings of work.

ww •
He should be able to read the drawing correctly and bill the quantities

w.E •
accurately

He should have a through knowledge of the construction procedure to be

a syE
adopted, the various items of works involved in the execution: and the
different materials to be used in the work.

ngi
He should be able to prepare schedule to be priced by tenderor.

nee
2. What are the main components of culvert?
rin
g.n
[Link]

[Link] walls

[Link] et
3. What are factors to be considered in design of septic tank?

The following factors should be taken into consideration:



Material should be water proof and corrosion resistant.

Natural ventilation provided should be adequate

A manhole should be provided to permit inspection and cleaning.

Baffles should be limited to one at the inlet and one at the outlet.

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The escape of gas and sludge to effluent pipe should be avoided.
8
4. Define lead.

Lead is the crow flying horizontal distance from the centre of borrow pit to the
centre of the earthwork at site, i.e centre of the area of excavation to the centre of
placed earth.

5. Define lift.

ww Lift is the distance through which the excavated soil is lifted beyond a certain
specified depth.

w.E
6. The actual expenditure incurred in the construction of a school building which
have a total length of main walls 140m is Rs.4.97lakhs. Estimate the approximate

a syE
cost of a similar school building which will have 180m length of main walls.

Total expenditure = Rs.4, 97,000

Total length of main walls = 140m ngi


nee
Rate per m length of main wall = 4, 96,000/140 = Rs.3550/-

Length of main walls in the proposed building = 180m


rin
Approximate cost = 180 x 3550 = Rs.6, 39,000/-
g.n
7. Write the formula for Mid ordinate rule and Prismoidal formula Rule.

Mid sectional area method:


et
Q = (Bdm+sdm2) x L

Where

B–
Formation width
S –
Side slopes

dm – Mean depth

L – Length of the section


Prismoidal formula rule:

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Q = L/6(A1 +A2+4Am)
9
2
A1 = Bd1 + sd1

A2 = Bd2+Sd22

Am = Bdm+sdm2

dm = (d1+d2)/2

8. What is the size of septic tank for 25 and 50 users?


2.5 cum and 4 cum

ww
9. What are the methods to be adopted for volume calculating?
 From cross-section

w.E  From spot level


 From contours

a syE
10. What are the main components of culvert?
 Abutments
 Wing walls
 arch ngi
11. What are the types of culverts?
 Arch culvert nee
 Slab culvert
 Pipe culvert rin
 Box culvert
g.n
12. What are the requirements of design of septic tanks?
 Settling of incoming sewage
 Digestion of the settled sludge
et
 Storage of digested sludge till it is taken out.
13. What are the types water supply works?
 Raw water storage reservoir
 Sedimentation tank
 Overhead tanks
 Clear water reservoir
 Filters-slow and gravity
14. What are the types of sanitary works?
 Grit chambers
 Man holes

Department of Civil Engineering


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 Imhoff tanks
 Skimming tanks 10
 Septic tanks
 Aeration tanks
15. List out the factors that the quality of water depends upon.
 Rate of supply of water from water works
 Type of uidins such as residential, public etc.
16. List out the condition that to be considered for the earthwork of a canal.
 Canal passing in full cutting
 Canal passing in full embankment

ww  Canal partly in cutting and partly in embankment

w.E
a syE
ngi
PART B
nee
rin
1. Estimate the quantity of the following items of septic tank from Fig 1. (i)
Plastering, (ii) brickwork in CM 1:6 and (iii) R.C.C. for soak pit cover.
g.n
2. Estimate the quantity of the following items of septic tank from Fig 1. (i)
Earthwork excavation in foundation, (ii) P.C.C [Link] and (iii) R.C.C. for soak pit
cover.
et
3. Estimate the quantities of the following items of work from Figure2. (i)
Brickwork in CM 1:4, (ii) P.C.C. [Link] and numbers of bricks and number of
cement bags.

4. Estimate the quantities of the following items of work from Figure3. (i)
Brickwork in CM 1:4, (ii) P.C.C. [Link] and numbers of bricks and number of
cement bags.

5. Calculate the quantites of ingredients of 10 cum of M10 and M20 grade of


concrete.

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Accredited by NAAC
6. Calculate the quantites of ingredients of 15 cum of cement concrete [Link] and
[Link]. 11

7. A retaining wall is proposed to be provided as shown figure. Estimate detail the


quantities for the item of work. length of the retaining wall is
20m.(Apr/May2008)

 Cement concrete [Link] (8)

 Brick work in CM 1:4 (8)

 Earthwork in excavation

ww  Plastering work

w.E
8. The accompanying sketches with details Figure refer to a box culvert. Estimate
in detail the quantities for the following items of work. (Nov/Dec 2009)
 Reinforcement in cover slab using bar-bending schedule.

a syE
 P.C.C. 1:5 in foundation

 Brick work in CM 1:4 in foundation

ngi
 Brick work in CM 1:4 in parapet wall

nee
rin
g.n
et

Department of Civil Engineering


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Accredited by NAAC

12

ww
w.E
a syE
ngi
nee
rin
g.n
FIGURE 1
et

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13

ww
w.E
a syE
ngi
nee
rin
g.n
et
FIGURE 2

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Accredited by NAAC

14
UNIT-III

SPECIFICATION, REPORTS AND TENDERS

PART-A

1. What is specification?

Specification is an important document attached with a tender

ww form/contract agreement, which in most cases controls the quality of


materials and works.

w.E
2. State the different types of specification.

a1. General or brief specification

2. Detailed specification syE


3. Standard specification
ngi
3. Describe general or brief specification
nee
General specification gives the nature and class of work and materials in
general to be used in
rin
the various parts of the works, from the foundation to the
superstructure. General
are useful for preparing the g.n
specifications give idea of the whole work or structure and
estimate.

4. Describe detailed specification.


et
The detailed specifications form a part of the contract document.
The detailed specification of an item of the work specifies the
qualities and quantities of materials proportion of mortar
workmanship, the method of preparation and execution and method
measurement.

The detailed specifications of different items of work are prepared


separately which description what the work should be and how they
should executed and constructed.

5. Define analysis of rates.

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Determination of rates of works from the qualities and cost of materials and
labours required is termed as analysis of rates 15

6. Define a tender.
Tender is an offer given in writing to execute specified articles or materials at a
certain rate, within a fixed time, under certain conditions of agreement between
the contractor and the party, which may be a government department or an
individual.

7. Define ‘contract’.
Contract is merely an agreement being enforceable by law between two persons

ww or parties.

w.E
8. Write the essentials requirements of contract.

a syE
There must be an offer of one party, and its acceptance by the other
party to make an agreement.

ngi
There must be an intention of both the parties to create legal relation.

nee
The object of the contract must be legal, and it must not be opposed to
any policy of the government or company.
rin

The agreement to make a contract should be supported by
consideration, or recongnised by law. g.n
9. What are the types of contract?
et
1. Lump-sum contract

2. Cost plus percentage of cost contract

3. Item rate contract

4. Labour contract

5. Integrated contracting system

10. What are the important legal implications of a contract?

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Agreement should not violate the provisions of law.
16

It should not have any adverse effect on the morals of the
society

The form of contract should be in writing and each page of the
documents of the contract should of the contract should be
signed by both the parties.

A contractor who refuse to carry out the work before

ww completion can be sued in a court of law for breach of contract.

11. What are the types of penalties that are imposed on a contract and why

w.E are they imposed?

a
Penalties may be imposed for non-fulfillment of conditions of contract such as
not maintaining
syE
progress, deley in completion and unsatisfactory work etc. The
penalty may be fixed sum per day or a percentage of the estimated cost upto 10%.

ngi
12. What is arbitration?
nee
rin
Arbitration means the settlement of a dispute by the decision of a third person
chosen and acceptable as a judge. The decision of the arbitrator is binding on both
the parties. In public
the arbitrator g.n
works department the superintending engineer function as

13. Why and when the earnest money deposit are collected? et
While submitting a tender, the bidder has to deposit with the department an
amount equal to about 2 ½% of the estimated cost of the work which is called
earnest money deposit. This amount serves as a check to prevent the contractor
from refusing to accept the work or runway, when his tender has been accepted. In
case of refusal to take up the work his earnest money is forfeited.

14. Why and when the security deposit are collected?


At the time of execution of the contract agreement, the successful tender has to
deposit a further sum of 1% of the contract amount to the department. This amount
is known as security deposit. This amount is kept as a check so that the contractor
fulfils all terms and conditions of the contract. The security deposit will be refunded

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to the contractor on the satisfactory completion of the whole work, after the
observation period of 6 months 17

15. What is a tender notice?


Tender notice is the publicity of offer to the contractor to quote their rates for
construction for construction work or supplied. Sealed tenders are invited in the
most open and public manner. It is made public by advisement in leading newspaper,
in the government gazette or by notice in English and in the regional languages
in public places.

ww 16. What information’s should a contract document contain?

w.E 1. Title page

2. Index page

a syE
3. Tender notice and tender forms

4. Schedule of quantities

5. Drawings ngi
6. General specifications nee
7. Detailed specification
rin
8. Schedule of issue of materials
g.n
9. Conditions of contract.
et
PART-B

1. Briefly explain the detailed specification of road work.

2. Briefly explain the following terms:

a) Tender

b) Contract document

c) Termination of contract

d) Overhead cost in analysis of rates.

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Accredited by NAAC
3. Using current schedule of rates for materials and labours, prepare data for the
following items of work: 18

a) Half brick with CM 1:4 for 1 m2

b) Plain cement concrete [Link] for 1 m3

4. Briefly explain about the types of contract system.

5. What is meant by arbitration? Mention the criteria for the appointment and
termination of an arbitrator.

6. What is meant by tender? Explain about the scruting and acceptance of tender.

ww 7. Write detailed specification of the following PCC [Link] in foundation,

w.E bbrickwork in cement mortar 1:6 in super structure and DPC course.

8. Write down detailed specification of the following:

a syE
a) Cement concrete in foundation.

b) Plastering in cement mortar 1:6.

9. (i)
ngi
Explain the sequential procedure of opening of tenders.

(ii) Discuss about three forms of contractors.


nee
rin
10. Using current schedule of rates for materials and labours, prepare data for the
following items of work:

c) Half brick with CM 1:6 for 1 m 2


g.n
d) Plain cement concrete [Link] for 1 m 3

et

Department of Civil Engineering


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Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
UNIT IV
CONTRACT 19
PART – A
1. What are the basic principles of report writing?
a) Need for project
b) Investigation and design carried out
c) Details of proposal
d) Schedule of rates
e) Cost
2. Write a report on a residential building.

ww a) Types and location of building


b) Types of soil and foundation

w.E c) Details of structural element


d) Joinery detail

3.
a e) Plumbing detail

syE
f) Estimate cost of the project
Write a report on the construction of a culvert.
a) Types and location of building
b) Types of soil and foundation ngi
c) Catchment area detail
d) Loading classification nee
e) Detail of structural element
f) Estimated cost of the project rin
4. Define report preparation.
g.n
Report describing the various features of the work, is accompanied with
estimate. The report should be written in clear language. It should be written in
such a way that while studying it one can get an idea about the whole work.
et
5. What are the points to be included in the report?
a) Brief history of the work
b) Objectives, necessity and utility of the project with reasons
c) Selection of site
d) Surveying
e) Availability of materials
6. Write a report on road construction.
a) Location and class of road
b) Type of soil, subgrade and sub-base
c) Alignment of road
d) Plane table survey

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Accredited by NAAC
e) Loading classification
f) HFL details 20
g) Details of culverts across the road is any
h) Estimates cost of the project

7. Give the estimate for the sanitary installation.


Sanitary works usually consist of providing flush type latrines and
connecting with sewer lines of septic tank. For estimating the number of
different fittings are found out and rates are taken per number for supply and
fixing in position.

ww 8. Give the estimate for the water supply.


The water works mainly consist of pipe lines the connection with mains

w.E should bbe enumerated stating size and length of pipe from the water main upto
the boundary of the property together with the charge of water and local

aauthorities.

syE
9. Write a report on school building.
a) Types and location of building
b) Types of soil and foundation
c) Details of structural element ngi
d) Joinery detail
e) Plumbing detail nee
f) Estimate cost of the project
10. Write a report for laying W.B.M. road. rin
a) Location and class of road
b) Type of soil, subgrade and sub-base g.n
c) Alignment of road
d) Plane table survey
et
e) Loading classification
f) HFL details
g) Details of culverts across the road is any
h) Estimates cost of the project

PART B
1. Prepare a report on estimate for construction of a culvert.
2. Prepare a report on estimate for construction of a road construction.
3. Prepare a report on estimate for construction of water supply works.
4. Prepare a report on estimate for construction of sanitary installation.

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Accredited by NAAC
5. What are the points to be considered in the report writing and explain the
residential building report? 21
6. Write a report to accompanying an estimate for a village water supply scheme.
7. Explain in detail how you will work out standard rent of a government
building.
8. Prepare a report on estimate for construction of distributing – irrigation
channel.
9. Prepare a report on estimate for construction of a medical building.
10. Prepare a report on estimate for construction of a school building.

ww
w.E UNIT-V

VALUATION

a
1. Define valuation
syE PART-A

ngi
Valuation is the process of estimating the cost of a property based on its present

nee
condition. The properties may be immovable properties like land, buildings,
mines trees quarries etc., and movable properties such as coal, oil, steel,
cement, sand etc.
rin
2. What is the purpose of valuations?
g.n
o For assessment of wealth tax, property tax etc

o For fixation of rent et


o For security of loans or mortgage

o For insurance, betterment charges etc

o For compulsory acquisition

o For reinstatement.

3. Define Floor rate.

It is the ratio between the total built up area (Plinth area) of all
floors and the area of the plot.

Department of Civil Engineering


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TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY


Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
Floor Area Ratio = Total Plinth area of all floors / Plot area
22
4. Define Plinth area rate.

It is the ratio between the total present cost of a particular type of


building and its plinth area.

Plinth area rate = Total present cost of a building/ plinth area.

5. A property fetches a net income of Rs.900.00 deducting all outgoings.


Workout the capitalized value of the property if the rate of interest is 6%
per annum.

ww Year’s purchase = 100/6 = 16.67

w.E Capitalized value of the property = net income x Y.P

a syE
= 900 x 16.67

= Rs.15003.00

ngi
6. Find the plinth area required for the residential accommodation for an
assistant Engineer in the pay scale of Rs.400.00 to 1,000 per month.

Average pay = 400+1000 /2 = Rs.700/month nee


Average month rent @10% of salary = 700.00/10 = Rs.70.00
rin
Average annual rent 70.00 x 12 = Rs. 840.00
g.n
Capital cost of the building @ 6% interest = 840 x 100 / 6 = Rs.14000.00

Plinth area required @ Rs.150.00 per sq.m of plinth area


et
= 14000/150 = 93.33sq.m
Normally the quarters for the assistant engineer should be constructed at the
cost of Rs.14000.00 having plinth area of 93.33 sq.m.

But due to the increase in the cost of construction, this may be increased
by 100% and the capital cost of construction may be fixed as Rs.28,000.00 and
the approximate plinth areas of 93.33

7. A pumping set with a motor has been installed in a building at a cost


[Link] the life of the pump as 15 years, workout the amount

Department of Civil Engineering


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TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY


Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
of annual installment of sinking fund to be deposited to accumulate the
whole amount of 4% compound interest. 23

The annual sinking fund I = Si/(1+i)n – 1

= 2500 x 0.04 /(1+0.04)15 -1 = Rs.125

The owner is to deposit Rs.125/-annually in 4% compound interest


carrying investment for 15 years to accumulate Rs.2500/-

8. An old building has been purchased by a person at a cost of Rs.30,000/-


excluding the cost of the [Link] the amount of annual sinking fund

ww at 4% interest assuming the future life of the building as 20 years and


scarp value of the building as 10% of the cost of purchase.

w.E The total amount of sinking fund to be accumulated at the end of 20 years

a S = 3000x (90/100) = Rs.27000.00

syE
ngi
Annual installments of sinking fund I = Si/(1+i)n – 1

nee
= 27000 x 0.04 /(1+0.04)20 -1 = Rs.907.20

rin
Annual installments for sinking fund requires for 20 years = Rs.907.20

g.n
9. Write the necessity of valuation.

et
Rent fixation. It is generally taken as 6% of the valuation of the property

For buying and selling

Acquisition of property by Govt.
• •
To be mortgaged with bank or any other society to raise loan For
various taxes to be given and fixed, by the Municipal Committee

Insurance: For taking out on insurance policies.

10. Define the Value :

Department of Civil Engineering


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TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY


Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
Value-Present day cost of a engineering structures (saleable value).
24
11. Define the Cost:

Original cost of construction. It is used to find out the loss of value of


property due to various reasons.

12. Define the Gross income:


Total amount of the income received from the property during the year,
without deducting outgoings

ww 13. Define the Net come:

An amount left at the end of the year after deducting all useable outgoings

w.E
14. Define the Obsolescence:

a
The value of property decreases if its style and design are outdated i.e rooms
not properly set,
syE
thick walls, poor ventilation etc. The reason of this is fast
changing techniques of construction, design, ideas leading to more comfort
etc.
ngi
15. What is market value? .(May/Jun 2007)
nee
The market value of a property is the amount which can be obtained at any

rin
particular time from the open market, if the property is put for scale. The market value
of a property depends on the availability & demand. The market value may value may
also vary due to reasons such as changes in fashions, means of transport and
communication, population movement, etc... In a particular place. g.n
16. What is sinking fund? (May/Jun 2007)(Nov/dec2010)
At the expiry of the period of utility, a property is either to be replaced. The
et
fund set aside for this purpose is known as sinking fund.

17. What is Scrap value? (Nov/Dec 2007) (Apr/May 2008)


Scrap value is the value of dismantled materials. For a building, when the life
is over at the end of its utility period, the dismantle materials like steel, bricks, timber
etc...Will fetch certain amount on sale which is the scrap value of the building. The
scrap value of a building may be 10% of its total cost of construction.

18. What is capital Cost? .( Nov/Dec 2007)(Nov/Dec 2008)

Department of Civil Engineering


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TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY


Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
Capital cost is the total cost of construction including cost of land, or the
original total amount spent by the owner to possess the property. 25

19. What is capitalized value? (Apr/May2008) )(Nov/Dec 2009)


It is defined as the amount of money hose annual interest will be equal to the
net income arising from the property.
Capitalized value = Year’s purchase X Net income

20. What is meant by Depreciation? (Apr/May 2008)(Nov/Dec 2009)


Depreciation is the gradual exhaustion of the usefulness of a property. This
may be defined as the decrease in the value of a property due to structural

ww deterioration, use, age, wear, and tear, decay and obsolescence.


21. What are the important factors influencing the value of building?

w.E i. Type of the building

ii. Location of the building

a syE
iii. Expected life of the building

ngi
iv. Size and shape of the building

v. The Present condition of the building

vi. Legal control of the building nee


22. Define the Year’s purchase
rin
Year’s purchase : It may be as the figure which when multiplied by the net g.n
income from a property gives capitalized value of the [Link] can also
be defined as “a certain amount of
certain rate of interest can be received”
capital whose annuity of Rs.1/- at a
et
Year’s purchase = 100/rate of interest = 1/i

23. Define the Annuity.

Annuity : The return of capital investment in the shape of annual installments


monthly, quarterly, half yearly &yearly.

PART-B

Department of Civil Engineering


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TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY


Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC

1. What are the methods of determining the depreciation? Explain with an example 26
Depreciation based methods of valuation of property. (Nov/Dec 2010)(Nov/Dec
2009) (Nov/Dec2007)
2. Calculate the standard rent of a building with the following data: (Nov/Dec 2010)
Cost of land: Rs 2, 50,000
Cost of building: Rs. 7, 50,000
Expected life of the building: 60 years
Returns expected: 5% on land & 8% on building
Annual repairs: 1% on the cost of building
Sinking fund on 4% interest basis on 90% of the cost of building

ww Other outgoings: 30% of the return from the building


3. Calculate the value of a building at 12% interest basis from the following details :

w.E ( Nov/Dec 2009)

a Cost of land: Rs. 1,000/sq.m

syE
Cost of building: Rs. 6,000/sq.m
Plinth area of Building: 130sq.m

ngi
Area of land- Restricted to 1.5 times of plinth of building.
Cost of sanitary & water supply each – 7.5% of building cost.
Cost of electrification – 10% of building cost.
Age of the building –17years.
Rate of depreciation – 1.5%
nee
rin
4. Explain in detail about the four methods of calculating depreciation.
(May/June2007)(Nov/Dec2008)
g.n
5. An old building has been purchased by person cost of Rs. 5, 00,000. Excluding the
cost of land. Calculate the amount of annual sinking fund at 5% interest assuming the
future life of the building as 30 years and the scraps value of the building as 12% of
the cost of purchase. (May/June2007)(Nov/Dec2008)
et
6. Explain the different methods of valuation. (May/June2007)
7. Explain different forms of value and also explain about freehold property.
8. (i) Explain the purpose of valuation.
(ii) Write short notes on:
a) Scrap value
b) Salvage value
c) Market value
d) book value
e) Sinking fund
9. Explain the following:
a) Types of lease
b) Mortgage

Department of Civil Engineering


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TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY


Deviyakurichi-636112, Attur (TK), Salem (DT). Website: [Link]
Approved by AICTE, New Delhi and Affiliated to Anna University, Chennai
Accredited by NAAC
c) Methods of depreciation
d) Escalation 27
10. What is meant by an annuity? Explain about the types of annuity and lease.

ww
w.E
a syE
ngi
nee
rin
g.n
et

Department of Civil Engineering


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Common questions

Powered by AI

Cube rate estimates provide quick approximate costs based on cubic content area, useful for preliminary decision-making in large projects. They lack the precision needed for budget control, unlike detailed estimates, which provide comprehensive calculations necessary for cost management throughout the project lifecycle .

A plinth area estimate, which provides a rough approximated cost based on the building's plinth area, is preferred in the early stages of planning when a quick, general sense of the project's cost is needed. It is ideal for preliminary budgeting and decision-making, while a detailed estimate is used later for precise budgeting and procurement processes .

Depreciation is calculated by considering the building's structural deterioration, age, and factors like wear, tear, and obsolescence. The methods for calculating depreciation include Straight Line Method, Declining Balance Method, and Sum of Years' Digits Method, each addressing different facets of depreciation's impact .

A detailed estimate provides itemwise quantities of works, unit rates, and anticipated expenditures for a project, offering a comprehensive overview of costs. In contrast, an abstract estimate is the final stage of a detailed estimate, where quantities and rates are accumulated in an abstract form to calculate the total cost of each item .

A sinking fund is set aside to replace or repair a property at the end of its utility period. It is calculated using the formula I = Si/(1+i)n - 1, where 'I' is the annual installment, 'Si' is the total amount to be accumulated, 'i' is the rate of interest, and 'n' is the number of periods. For example, if Rs.2500 is needed to be accumulated over 15 years at 4% interest, the annual sinking fund installment would be Rs.125 .

A revised estimate is necessary when there is a change in the rate or quantity of materials without alterations in the drawings, often due to modifications in material costs. On the other hand, a supplementary estimate is needed for new works or design changes, which may require updates to the drawings .

Scrap value refers to the amount fetched by selling dismantled materials of a building after its life ends, typically around 10% of its construction cost. Salvage value, however, is the estimated price for selling whole, functioning parts or slightly used structures before the end of their useful life .

The market value of a property fluctuates due to factors like shifts in fashion, changes in transport and communication, population movements, and demand. These changes affect the appeal and utility of a location, thereby impacting its market value at any given time .

A contract document must contain the title page, index, tender notice and forms, schedule of quantities, drawings, general and detailed specifications, conditions of the contract, and a materials issue schedule. These components ensure clarity, safeguard legal interests, and define work scope, standards, and expectations .

A quantity surveyor is responsible for preparing detailed bills of quantities, managing frequent payments, and preparing bills for variations during construction. Additionally, they provide legal advice during court cases, supporting dispute resolution and contractual compliance .

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