Estimating and costing complete note

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'Compete with Confidence'
Chapter:
Estimating and Costing
For PSC preparation classes of Engineer
Er. Amit K. Yadav
---------------------------------------------------------------
 Estimate is the process of calculating
the quantities and costs of of various
items required in connection with
the work.
Estimated cost is the theoretical cost of the
work or the probable cost of the work.
Estimated cost = Theoritical cost/Probable
cost
*Q. The Estimated cost is
a. Theoritical Cost of the work
b. Actual Cost of the work
c. both a & b
d. none
Actual Cost=> It is the actual expenditure of
the work after the completion of the work
from the account register of the completed
work. Actual cost never include Profit given to
the contractors.
*Q. Actual Cost is:
a. Expenditure cost + Profit
b. Expenditure cost only
c. Expenditure cost – Profit
d. Estimated cost
*Q. If the Estimated cost of a work is Rs. 5
lakh only, then the possible actual cost of the
work can be:
a. Rs. 5,00,000/-
b. Rs. 5,00,500/-
c. Rs. 4,90,000/-
d. all of the above
Purposes of Estimating:
 To give reasonably accurate idea of
the cost of the work
 Estimating various materials required
to complete the particular work
 Estimating various categories of
labourers required
 Estimating various tools and plants
required for completing the work
 Estimating time of completion of work
 To Justify the investment from B/C
ration( *For Feasibility: B/C ratio >1)
 To Invite tenders and prepare bill for
payment
 To draw up the construction schedule
 Estimate the existing properties for
valuation
*Q. Which among the following is not the
purpose of estimating?
a. Estimating tools and plants
b. To justify Investment
c. To know the time of project completion
d. To estimate actual quantity of
materials and cost
Requirement for Estimating/Data
Required for Estimating:
1. Drawings(Fully Dimensioned)=> From
this we work out dimensions and thus
quantity of work.

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2. List of rates( Schedules of Rate)=>
Rates approved by government =>
One material rate fixation committee
in every district:
Chairman= CDO,
Members(LDO from DCC, One
Representative from
DCC,FNCCI
representatives,CAN
representative, Financial
Controller), and Member
Secretary = CDE
Note* : CDO= Chief District
Officer(1st
Class Officer), LDO=
Local Development Officer(
2nd
Class Officer), CDE= Chief
District Engineer (2nd
Class
Officer), DCC= District
Coordination Committee,
CAN= Contractors Association
of Nepal
*Q. The chairman of material rate fixation
committee in district is:
a.CDO
b. LDO
c. NEA Chairman
d. SP
*Q. Who among the following is not the
member of District Material rate fixation
committee?
a. FNCCI representative
b. District Financial Controller
c. Nepal Engineers Association Member
d. CDO
3. Specification: General specification=>
it gives general idea of the work,
Detail Specification=> it gives detail
idea of work.
*Q. Which among the following is the legal
document used for contract?
a. General Specification
b. Detail Specification
c. Rate of Schedules
d. Fully Dimensioned drawing
*Q. Which among the following is the legal
document used for contract?
a. Specification
b. Schedules rate
c. Construction schedules
d. Estimate of cost
4. Updated modes of
measurement(Deduction/Addition)=
> Standard mothod of
measurement:NS-389-254, IS-1200-
1965
5. Standard Circulars:( Taxes,
Insurance)=> These Policies changes
from time to time
Principles of unit of measurement: It mainly
depends upon shape, size, nature of work,
i.e.
i. Mass, voluminous, thick work =>
m3
(eg. E/W, B/W)
ii. Shallow, Surface, thin work =>
m2
(eg. Plastering, Painting)
iii. Long and thin work => running
meter (r.m. or m), eg. pipe work,
lighting conductor
iv. Piece Work=> numbers(nos.) , eg.
wall fan fitting, tube light bulb
fitting etc.
Note: Surface /Shallow excavation means:
<30cm depth & length >1.5m excavation
(PSC=Er./S-Er./Asst.S-Er)

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*Q. The Unit of measurement of Surface
excavation is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of Surface
dressing is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of lime
concrete on roof is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of fixing of
glass pane is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of Supply of
glass pane is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of lighting
conductor is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of B/w In
steining is:
a. m
b. m3
c. m2
d. nos
*Q. The Unit of measurement of steel work
in trusses is:
a. m
b. m3
c. kg
d. quintal
*Q. The Unit of measurement of half brick
wall is:
a. m
b. m3
c. m2
d. nos
# Some others important Units of
measurement:
i. Beading( Ornamnetal decoration
in arch structure)=> r.m.
ii. B/W in Soling => m2
iii. cutting of tree=> r.m.

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iv. collapsible gate=> m2
v. DPC(damp proof course) => m2
vi. Expansion/Contraction Joint=>
r.m.
vii. Form work => m2
viii. Hold fast => Kg
ix. Pile driving=> r.m.
x. Providing KM stones, direction
posts, boundary pillars along road
side => nos.
xi. Pointing => m2
xii. Explosives=> Kg
xiii. Railing of staircase=> r.m.
xiv. Fitting Commode=> r.m.
*Q. Weight of steel per m3
volume is:
a. 7000kg
b. 1440kg
c. 7850 kg
d. 2400 kg
*Q. Weight of Cement per m3
volume is:
a. 7000kg
b. 1440kg
c. 7850 kg
d. 2400 kg
*Q. Weight of concrete per m3
volume is:
a. 7000kg
b. 1440kg
c. 7850 kg
d. 2400 kg
Accuracy Measurement: (NS 389-2054)
General: Length => Nearest to 0.01 m, Area
=> Nearest to 0.01 m2
,volume => Nearest to
0.01 m3
*Exception:
1. Length: woodwork=> 0.002 m, Steel
Reinforcement=> 0.005 m., Thickness of RCC
slab=> 0.005 m, <20 cm thick Road
pavement=> 0.005 m
2. Area: Steel Plate => 0.001 m2
3. Volume : woodwork=> 0.001 m3
, steel
reinforcement=> 0.001 MT
Separate Measurement :
1. Earthwork: Separate Measurement in
Ordinary soil, mixed soil, soft rock,
hard rock due to difference in rates
2. Depth/Lift of Excavation: Separate
Measurement for 0 - 1.5m, 1.5 -3 m,
3-4.5 m due to difference in rates
*Q. Which of the following is correct
depth range for excavation for separate
measurement:
a. 1-4.5 m
b. 3-4.5 m
c. 2.5 – 4.5 m
d. none
3. B/W: Separate measurement for B/W
in
soling/foundation/superstructure/arc
hes due to difference in rates.
Note(PSC): No deduction in B/W for
upto 0.1 m2
opening or covered by
any pipe or bends of beams
4. Concrete Work: Separate
measurement for pcc in
foundation/RCC due to difference in
rate. NOte(PSC): No deduction upto
0.1m2
opening or duct, also volume of
steel reinforcement is not deducted
5. Formwork: Separate measurement
for formwork of wood/ply/steel etc.
due to difference in rates. Note(PSC):

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No deduction for upto 0.4 m2
opening
.
6. False Ceiling: Separate measurement
of ceiling of ply/fiber/steel etc due to
difference in rates. Note(PSC): No
deduction upto 0.4 m2
opening/duct
7. Painting Work : Separate
measurement of panelled door/flush
door/glazed door etc and finally
multiplied by multiplying
factor/coefficient.
Types of
Painting Work
Multiplying coeff
MS Grill 1.0
CGI sheet 1.14
Glazed window 0.50
Panelled door 1.30
Standard Format of Detail Estimate
by Government of Nepal
Preparation of Detail Estimate:
A. Measurement Sheet/Quantity
Sheet:
It
e
m
N
o
Desc
ripti
on of
work
N
o
L B H
/
D
Q
t
y
Re
mar
ks
Method of measurement:
1. Long and short wall
method=> every single block
is broken into two equal long
walls and short walls, => can
be used for both regular and
irregular plans, most reliable
method, also called PWD
method( Public work
department)
2. Centerline method: quantity
= Centerline perimeter*
Width of wall, => this method
is used only for regular
geometry like: uniform width
plan, hexagon, octagon,
circular geometry etc.
3. Bay Method: qty = no. bay *
qty of one bay
Q. The correct order of items in
measurement in qty measurement sheet is:
a. L,B,D,Description
b.L,B,No
c. No,L,B,H/D,
d. All of above
Q. Which method of quantity measurement
is the best suited to all types of plan
geometry?
a. Centerline method
b. Long and Short wall method
c. Bay Method
d. None of above
B. Abstract of Cost/
Abstract/Estimated cost Sheet:
Ite
m
No
Descrip
tion of
work
Qt
y
Un
it
Ra
te
Amo
unt
Rem
ark
Total
=A
then for Technical sanction/administrative
approval:
B = Work charged establishment = 2.5% of A (
*generally 2-5%)
C= Contingency = 2.5 % of A (generaly 2-
5%)
Then GRAND TOTAL= (A+B+C)= this is total
estimated cost

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For Budgeting Purpose by GoN
D= Price escalation = 10% of A
E = Physical Contingency = 10 % of A
Total =A+D+E
VAT= 13% OF (A+D+E)
Grand total =Total + VAt
 Note: Work Charge Establishment
means charge/cost separated for
temporary staff of contractor (eg.
watchman, supervisor,gate-keeper)
 Contingency means charge
separated for incident
items(technical error)
Q. The Correct order of items of abstract of
estimate is:
a. Item no, Qty, amount, rate
b. Item No, qty, No, rate
c. Item No, Qty, Rate, Amount
d. none
Q. The provision of work charged
establishment in detail estimate is for
technical sanction is:
a. 5%
b. 7.5%
c. 2.5 %
d. 10%
Q. The provision of work Contingency in
detail estimate for administrative approval
is:
a. 5%
b. 7.5%
c. 2.5 %
d. 10%
Q. The provision of work Price escalation in
detail estimate for budget formulation is:
a. 5%
b. 7.5%
c. 2.5 %
d. 10%
Q. The provision of work physical
contingency in detail estimate for budgeting
purpose is:
a. 5%
b. 7.5%
c. 2.5 %
d. 10%
*Q. VAT is added to:
a. Rate Analysis
b. Valuation
c. Detail Estimate
d. all of above
C. Bill Of Quantity(BOQ): The format
is similar to the abstract of
estimate in such a way that it is
used for tendering process for
form fill up.
Ite
m
N
o
Descri
ption
of
work
Q
ty
U
ni
t
Rate Amo
unt
Rem
ark
I
n
Fi
g
In
Wo
rds
   To be filled by
Tenderer
To be filled by
Tenderer

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Q. Which of the following is used in
Tendering process for form fill up ?
a. Abstract Of Estimate
b. BOQ
c. Detail Estimate
d. all of above
Q. Which of the following is already filled by
Bidder before bidding process in BOQ sheet ?
a. Description of work
b. Rate
c. Amount
d. All of above
Q. Which of the following is filled by
Tenderer?
a. Item No
b. Quantity
c. Amount
d. none
Note: The Same BOQ sheet when filled by
Tenderer becomes abstract of Estimate.
TYPES OF ESTIMATE:
1. Approximate/Preliminiary/Rough/Co
nceptual estimate=> For feasibility
study.
2. Detailed Estimate=> It is done after
getting the administrative approval of
approximate estimate. It is the most
reliable estimate.
*Q. Which among the following is the
most reliable estimate?
a. Preliminiary Estimate
b. Annual repair and maintenenace
estimate
c. Detail Estimate
d. Supplementary Estimate
3. Revised Estimate=> This estimate is
done if the sanction(approved) detail
estimate exceeds more than 5% due
to insufficinent in rates or other
reasons. Moreover , a comparative
statement is to be prepared in this
estimate and get approved.
Comparative
Statement
Original
Estimat
e
Revised
Estimat
e
It
e
m
N
o
Desc
ripti
on
Q
t
y
U
ni
t
R
a
t
e
Am
ou
nt
R
a
t
e
Am
ou
nt
*Q. Which of the following estimates
always need to prepare comparative
statement and approved?
a. Rough Estimate
b. Detail Estimate
c. Revised Estimate
d. Supplementary estimate
*Q. The sanctioned detail estimate
needs to be revised and re approved
if the estimate exceeds:
a. 5%
b. 10%
c. 15 %
d. 20%
*Q. The preliminiary estimate is also
called :
a. Detail Estimate
b. Feasibilty estimate
c. Rough Estimate
d. Revised estimate
4. Supplementary Estimate=> A detail
estimate done if additional work is

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added during the construction. eg.
addition of a separate guard house in
pre estimated apartment building
need to be estimated.
5. Extension and improvement
estimate=> Detail estimate to be
done if the pre designed and
estimated project need to be
extended and improved. eg. addition
of a storey over previously built 4
storeyed building.
6. Annual Repair and maintenance
estimated=> Budget for it=1.5 to 2 %
of capital cost of structure per
year.(PSC/Imp)
7. Complete Estimate=> Estimate of
building + Estimate of structure
*Q. The investment required for the
completion of any project is obtained by:
a. Planning
b. Estimating
c. Budgeting.
d. Management
*Q. As per the norms prepared by Ministry of
Transport and & work, one porter can carry a
wt. 0f …………………..in one day:
a. 50 kg upto 5 kosh
b. 40 kg upto 4 kosh
c. 30 kg upto 3 kosh
d. none
#ANALYSIS OF RATES:
Defn
: The method of determining the rate of
an item of work, considering the cost of
materials, cost of labour, hire charges of tools
and plants, overhead cost, profit etc is called
rate analysis.
*Q. The rate analysis is done considering the
cost of:
a. Material and labour
b. Labour and hire of tools and plants
c. Material, Labour and Tools and plants.
d. Materials, Labour and hire of tools &
plants
Note: In rate analysis, Overhead =5%, Profit to
contractor =10%, so overhead including profit
or profit including overhead= 15%, cost of hire
of tools and plants = 3 % of cost of unskilled
labourers for that work.
*Q. In rate analysis, the overhead cost added
is generally:
a. 5%
b.10%
c. 15%
d. 20%
*Q. In rate analysis, the profit margin added
is generally:
a. 5%
b.10%
c. 15%
d. 20%
*Q. In rate analysis, the overhead cost added
is generally:
a. 25%
b.10%
c. 15%
d. 20%

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*Q. In rate analysis, the profit margin added
is generally:
a. 3%
b.10%
c. 15%
d. 20%
*Q. In rate analysis, the cost of hire of tools
and plants added to that of cost of unskilled
labourers for that work is generally:
a. 5%
b.10%
c. 15%
d. 3%
# In General:Cost of materials = 65 to 70 % of
whole cost, Cost of labours = 30 to 35 % of
whole cost, cost of foundation and plinth =10
to 15 % of whole cost (For Building)
 Cost Breakdown of a building
work (CBS)
1. E/W cost =1-1.5 % of whole cost
2. Cost of concrete in foundation =5 – 6
%
3. cost of B/W = 30 – 34%
4. cost of ordinary flooring =5 – 6%
5. cost of roofing =18 – 20 %
6. cost of wood works = 16 – 20%
7. cost of plastering and pointing = 10-12
%
8. miscellaneous work =4 – 6 %
 CBS of Road:
1. E/w in Cutting/Banking = 14 % of
whole work
2. soling cost including stone +
consolidation = 44 %
3. cost of wearing coat(including
stone
aggregate+consolidation+bitumen
)= 22%
4. other items =20%
Purposes of Rate Analysis:
 To revise the schedules of rate
 to work out the cost of extra items of
work
 to examine the viability of tender
rates
 to fix up the labour contract rates
Requirement for Rate analysis:
 Correct information of market rates of
materials
 correct information of market rate of
various categories of labourers
 o/p of labourers or out-turn of
labourers
 knowledge of rate and out-turn of
various various tools and plants to be
used in the work
 up to date knowledge of construction
work
Factors affecting the rate analysis:
 Quality of materials
 proportion of mortar
 location
 facilities available with respect to
tools and plants to the site
 transportation facilities available for
materials, labourers to the site
 overhead charges ( 2 to 5 % generally)
 profit desired( work load/amount of
project)
 management
 experience of workers
#Government procedure for preparing rate
analysis:
A. Cost of materials
=
Rs. X
B. Cost of Labour = Rs. Y

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C. Cost of hire of
tools and plants(
Including fuel) =
Rs. Z
TOTAL = Rs. (X + Y
+ Z)
D. Contractors
Overhead and
Profit =
15 % of
Total
Grand Total = 1.15
Total is
the unit
rate of
that
work
*Q. An estimate for any construction work is
a process of calculating:
a. quality of materials
b. quantities of various items
c. specification of materials
d. cost of materials
#Some Examples of rate analysis:
#An analysis of rate of PCC(1:2:4) /m3 :
i. Volume of concrete = 1 m3
ii. Add 50 – 60 % in it to get dry
volume of PCC = 1.54 m3
iii. Cement = 1/7 *1.54 =0.22 m3
=0.22*28.8 bags= 6.3 bags
iv. sand = 2/7 * 1.54 =0.44 m3
v. Aggregate = 4/7 *1.54 =0.88 m3
vi. water= (w/c)ratio * cement
weight = 0.5 *(6.30*50)= 158 liter
*Costing:
I. Materials
 Cement =6.3 bags * unit rate of 1
bag = Rs…..
 Sand = 0.44 * unit rate per m3
=
Rs……
 Agg =0.88 * unit rate
 Water = 158 ltr * Rs. 0.3/ltr
=Rs……
 Total =Rs. X
II. Labourers:
 Skilled =1 nos. * rate = Rs……
 Unskillled = 4 nos * rate = Rs…..
 Total = Rs. Y
III. Contractors Overhead including profit:
= 15 % of (A+B)
Grand Total = 1.15 of (X + Y) is the unit
per m3
of PCC.
*Q. What % is to be added to the volume of
Wet Concrete to get dry concrete?
a. 30%
b. 40 to 50 %
c. 50 to 60 %
d. none
*Q. What % is to be added to the volume
of Wet mortar to get dry mortar for B/W
?
a. 30%
b. 40 to 50 %
c. 50 to 60 %
d. none
*Q. What % is to be added to the volume
of Wet mortar to get dry mortar for
plastering?
a. 30%
b. 40 to 50 %
c. 50 to 60 %
d. none

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*Q. What % is the volume added for
uneven surfaces during plastering by C-S
mortar in the wet mortar ?
a. 10 to 20 %
b. 40 to 50 %
c. 50 to 60 %
d. none
*Q. What % of bricks is provisioned to be
wasted according to standard norms:
a. 20%
b. 7.5%
c. 5%
d. none
*Q. What % of steel reinforcement is
provisioned to be wasted according to
standard norms:
a. 20%
b. 7.5%
c. 5%
d. none
*Q. The general w/c ratio ranges from:
a. 1 to 2
b. 0 to 0.5
c. 0.45 to 0.5
d. o.5 to 0.9
*Q. The general rate of water in NS
norms is:
a. Rs. 2/ltr
b. Rs. 1/ltr
c. Rs. 0.6/ltr
d. Rs. 0.3/ltr
*Q. The number of unskilled labourers
required for general PCC (1:2:4) per 10
m3
is:
a. 4 nos.
b. 10 nos.
c. 40 nos.
30 nos.
*Q. The Standard norms of Labourers
requirement for 1:2:4 PCC per m3
for
skilled:unskilled is?
a. 1:3.5
b. 1:4
c. 4:1
d. 1: 6
# Note:
1. PCC for RCC work ( 1:2:4) per m3
=>
Skilled : Unskilled = 0.8 : 7
2. PCC for RCC work(1:2:4) using Tools
and equipment=> Skilled:Unskillled=
0.5 : 3.5 , Extra materials: Diesel= 3
ltrs, Petrol =0.1 ltrs, Equpment: Mixer
= 0.6 Hrs, Vibrator = 0.25 Hrs
3. 50 mm thick PCC(1:2:4) per 10 m2
=>
Skilled :Unskilled= 1.25:2.50
4. 40 mm thick PCC(1:2:4) per 10 m2
=>
skilled:Unskilled =1.25:2
5. 75 mm thick PCC(1:2:4) per 10m2
=>
skilled : unskilled= 1.25:3
6. B/W( 1:6) C-S mortar per m3
in ground
floor =>
skilled:unskilled=1.5:2.2:0.2(for
scaffolding)
7. B/W( 1:6) C-S mortar per m3
in upper
floor =>
skilled:unskilled=1.5:2.2:0.7(for
scaffolding)

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8. Woodwork => unskilled = 1/10 *
skilled nos., for 1m3
,skilled:unskilled=
34:3.4
9. Steel reinforcement(1 MT )=> Skilled
:Unskilled= 12:12 and Binding wire =
10 Kg per MT
10. Plastering(12.5 mm) per 10 m2
wall=>
skilled :unskilled =1.2:1.6
11. Plastering(12.5 mm) per 10 m2
ceiling=> skilled :unskilled =1.5:2.0
*Q. The binding wire required for 10 MT
of steel reinforcement work is:
a. 10kg
b. 50 kg
c. 100 kg.
d. none
#VALUATION:
 It is an art of assessing the present
fair value of property like land, land
and bulding, factory,agricultural
land, machines, jewellery etc.
*Factors affecting Valuation=> Structure
type, Life , rent, supply and demand,
location etc.
*Cost =The original cost of the property.
eg. construction cost/ purchase cost
*Value = The present saleable value of
property
*Q. The Value of any property is always:
a. less than the cost
b. more than the cost
c. equal to the cost
d. all of the above
*Purpose of valuation:
 Buy and sell of property
 Auction bid of property( lilam)
 Acqusition of property(adhikaran)
 Security of loan(mortgage)
 Insurance of property
 Determination of rent of the property
( 6-10 % of the value of property)
 partition of property
 for assessment of taxes (property tax
etc)
 Determination of court fee of the
property( 0.5 to 1 % of total property
value)
 preparation of balance sheet of a
company/firm
*Q. Which among the following is not the
purpose of valuation?
a. Auction of bid of property
b. Security of loan
c. construction of a structure
d. insurance of property
*Q. What is the general % of court fee of the
property?
a. 1% of value of property
b.5% of value of property
c. 0.5-1% of value of property
d. 3% of value of property
*Q. What is the general % of rent per year of
a property?
a. 1% of value of property
b.10.5%% of value of property
c. 6-10% of value of property
d. 3% of value of property

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*Principle of Valuation:
 Cost depends upon the supply and
demand of property
 cost depends upon its design and
specification of materials used
 cost depends upon its location
 cost depends upon the purpose for
which valuation should be done
 cost is affected by age of property and
its maintenance condition
#Terminologies:
1. Book Vakue => Original cost of
building – depreciation till that year
2. Scrap or Junk Or Demolition value=>
It is the value of carefully dismantled
materials at the end of its utility
period after deducting the cost of
dismantling .( 8 – 10 % of value of
property), it may be –ve or zero or
+ve depending upon the cost of
dismantling
3. Salvage value=> It is the value of
existing structure/property at the end
of its utility period without
dismantling.( 8 -10 % of the value of
property), it is always zero or +ve but
never –ve
4. Distress value=> It is always lower
than market value due to financial
difficulty or insufficient knowledge of
market value. etc.
5. Monopoly Value=>It is always higher
than market value due to shape,
size,and location of property.
6. Assessed value=> It is recorded value
of property in the register of
municipality for taxes.
7. Obsolescense Value=> Loss in value
of property due to old/fashion out
model of property
8. Capitalized value => Net rent * years
purchase(yp ), where net rent = gross
rent – outgoings(repairs,taxes,loss
etc), yp =
1
(𝑖 𝑝+𝑖 𝑐)
where, ip =highest prevailing rate of interest,
ic = rate of sinking fund =
𝑖
(1+𝑖) 𝑛−1
, i =
rate of interestfor sinking fund, n=
future life of structure in year
9. Sinking Fund => It is the accumulation
of fund to reconstruct or replace the
structure/machine at the end of its
utility period, Annual Sinking Fund(I)
=S*Ic where, s= total sinking fund
10. Depreciation=> Types:
 Physical depreciation=> Due
to wear and tear, action of
time
 Functional Depreciation=>
Due to inadequacy of
hight,width,obsolescence etc.
 Contingent Depreciation=>
Due to structural defects(EQ,
FLOOD ETC)
#METHODS OF CALCULATING
DEPRECIATION:
1. Straight Line Method: Most popular
method, Annual Deprecn
=
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡(𝐶)−𝑆𝑎𝑙𝑣𝑎𝑔𝑒 𝑣𝑎𝑙𝑢𝑒(𝑠)
𝑙𝑖𝑓𝑒 𝑜𝑓 𝑠𝑡𝑟𝑢𝑐𝑡𝑢𝑟𝑒(𝑦𝑟𝑠)
2. Constant percent Depreciation
method:=> p= 1 − (
𝑠
𝑐
)
1
𝑛 %
3. Sinking Fund Method=> Annual
deprecn
= S*Ic where, s= total sinking
fund
4. Depreciation from life of structure:
period(yrs) % deprecn
per year
Total
deprecn
0-5 nil nil
5-10 0.5 % 2.5%
10-20 0.75 % 7.5%
20-40 1% 20%
40-80 1.5% 60%
Total =90% and remaining 10% will be
scrap/salvage value

14 | P a g e
*Freehole Property=> nfnk"hf{ ePsf] ;Dklt nfO{
Free hole property
* Leased property:=> The property taken in
rent for some years for lease. Leaser can do
anything in it except selling and has to return
to the owner after leased period is over.
* Easement right=> Right to people regarding
placement of windows, older roads not to be
closed etc.
# Various methods of Valuation:
1. Cost based method => Value =
Original cost- Total depreciation+
value of land
2. Plinth area method=> Value =(Total
plinth/builtup area)*prevailing rate of
plinth per m2
– total depreciation +
value of land
3. Depreciation method=> Depreciated
value = P(1-rd/100)n
, where P= cost of
building at present market rate=
plinth area * prevailing market rate,
rd= fix rate of depreceiation, n= age of
property, i.e.
Life of structure(n) Value of rd
100 yrs 1
75 1.3
50 2
25 4
20 5
4. Rental method or Profit based
method=> value =capitalized value of
property = net rent * years
purchase(yp)
5. Capital value comparision method=>
value= compared value of similar
property in sorrouding
6. Development method=> Developers
do plotting in a large land leaving 40-
45 % of land for road/other facilities
and then sells by valuating the rate
#Specification:
 It is the written instruction
limiting and describing in
detail about the construction
works to be undertaken.
 It Describes: 1. Construction
to be done 2. The quality of
materials and workmanship,
3. Method of construction to
be adopted, 4. Tools and
plants used. 5. Methods of
testing, inspection etc
*Purposes of Estimation:
 It acts as legal document for the
contract document between owner
and contractor
 Guide to site
engineer/contractor/supervisor etc.
during construction
 Guide to the bidders/tenderers at a
time of bidding/tendering to quote
reasonable tender rate
 Guide to the manufacturing agencies
for their products
*TYPES OF SPECIFICATION:
1. General Specification=> It gives the
general idea of the whole works giving the
brief description of quality of materials,
workmanship etc. eg. B/W in soling with
handmade bricks, PCC(1:2:4), it is given by
designer, it is used for preparing cost
estimates , but it is not a part of
contract/legal document.
2. Detail Specification=> It gives the
detailed info regarding the quality of
materials and workmanship
Classes:
I) General proposition=> Are
general condition of contract and
are applicable to work as whole
eg. water supply for construction

15 | P a g e
and drinking purpose, sign board,
lab etc.
II) Technical Proposition=>
Describes in detail about the
desired quality of work, also
describes the method of
testings/inspection
 Specifications for
materials and
workmanship
 Specification for
performance
 Specification for
Proprietary Commodities.
III) Describes for item of work,
materials standards are made by
Nepal Bureau of Standard NS, IS
etc
# Importance of Specification:
 The cost of unit quantity of work
is governed by its specification
 Specification is an essential
contract document and is
required for court cases and
arbitration
 any changes in the specifications
of work, changes the tender rates
 In the event of conflict between
specifications of work and the
drawings, specification shall
govern
 Any Tender/Contract without
specification of work is
incomplete, baseless and govern
invalid etc.
#Some Extra Notes:
 Minimum days for curing of concrete
= 7 Days
 Rolling on road is always done from
edge to center
 minimum coat in wood = 1 coat
primer + 2 coat enamel
 In filling and compaction of E/W 20
cm layer is prepared then compacted
for further processing
 Shower holes = 245+- 10% variation

 Grade of
concrete
 C:S:A
ratio
 M25  1:1:2
 M20  1:1.5:3
 M15  1:2:4
 M10  1:3:6
 M7.5  1:4:8
 M5  1:5:10
*Q. DPC stands for=> Damp proof course
*Q. In RCC works, the proportion of mix is
1:1.5:3 then the volume of cement in 1 m3
concrete is :
a. 0.2
b. 0.3
c. 0.4
d. o.5
*Q. The skilled labour required in sanitary
pipe for 3 m is:
a. 2 nos
b. 3 nos
c. 1 nos
d. 4 nos
*Q. Specification Of any project forms part in
a.cost estimate
b. construction document
c. working drawing
d. rate analysis
*Q. Specification is the:

16 | P a g e
a. Basis for carrying out engineering works
b. basis for ascertaining quality of
construction works
c. Basis for execution of contract
d. all of above
*Q. Working out exact quantity of various
items of work is called:
a. Estimate
b. Mensuration
c. Quantity
d. Valuation
ESTIMATING and COSTING Multiple Choice
Practice Questions
Q No: 01
The rate of payment is made for m3
in
case of
A. Earth work in excavation
B. Rock cutting
C. Excavation in trenches for foundation
D. All the above
ANS: D
Q No: 02
The rate of an item of work depends on
A. Specifications of works
B. Specifications of materials
C. Proportion of mortar
D. All the above
ANS: D
Q No: 03
The main factor to be considered while
preparing a
detailed estimate, is
A. Quantity of the materials
B. Availability of materials
C. Transportation of materials
D. All the above
ANS: D
Q No: 04
Pick up the correct statement from the
following:
A. The estimated value of the work excluding
the amount for
contingencies, work charged establishment,
tool and plants, is
called work value
B. The actual expenditure involved to
complete a work including
incidental, establishment and travelling
charges, is called actual
cost
C. The formal acceptance by the
administrative department for
incurring an expenditure on the work, is called
administrative
approval
D. All the above
ANS: D
Q No: 05
Brick walls are measured in sq. m if the
thickness of the
wall is
A. 10 cm
B. 15 cm
C. 20 cm
D. None of these
ANS: A
Q No: 06
The Overhead Of Contractor is:
A. 5 %
B. 10%
C. 15%
D.None
ANS: A
Q No: 7
The brick work is not measured in cu m in
case of
A. One or more than one brick wall
B. Brick work in arches
C. Reinforced brick work
D. Half brick wall
ANS: D
Q.no. 8
According to Indian Standards Institute, the
actual size of
modular bricks is
A. 23 cm × 11.5 cm × 7.5 cm
B. 25 cm × 13 cm × 7.5 cm

17 | P a g e
C. 19 cm × 9 cm × 9 cm
D. 20 cm × 10 cm × 10 cm
ANS: C
Q No: 9
The following item of earth work is not
measured separately.
A. Setting out of works
B. Site clearance
C. Steps in deep excavation
D. All the above
ANS: D
Q No: 10
The measurement is made in square metre in
case of
A. Cement concrete in foundation
B. R.C.C. structure
C. Hollow concrete block wall
D. None of these
ANS: D
Q No: 11
Cost of fittings and their fixing is specified for
the following sanitary
fittings
A. Water closets
B. Flushing pipes
C. Lavatory basins
D. All the above
ANS: D
Q No: 12
The excavation exceeding 1.5 m in width and
10 sq.m in plan area
with a depth not exceeding 30 cm, is termed
as
A. Excavation
B. Surface dressing
C. Cutting
D. Surface excavation
ANS: D
Q No: 13
For the construction of buildings, the
subheads of the estimate are
A. Earthwork, Concrete work, Brick work
B. Brickwork, Stone work, Roofing
C. Brickwork Flooring, Wood work, Steel work
D. All the above
ANS: D
Q No: 14
following:
A. Pointing is measured in sq.m
B. Plastering is measured in sq.m
C. Glazing is measured in sq.m
D. All the above
ANS: D
Q.no. 15
Pick up the incorrect statement from the
following:
A. No deduction is made for the volume
occupied by reinforcement
B. No deduction is made for the openings
upto 0.1 sq.m
C. No deduction is made for volumes occupied
by pipes, not
exceeding 100 sq.cm in cross-section
D. None of these
ANS: D
Q No: 16
Pick up the excavation where measurements
are made in square
metres for payment.
A. Ordinary cuttings up to 1 m
B. Surface dressing up to 15 cm depths
C. Surface excavation up to 30 cm depths
D. Both B. and C.
ANS: D
Q No: 17
In long and short wall method of estimation,
the length of long wall
is the centre to centre distance between the
walls and
A. Breadth of the wall
B. Half breadth of wall on each side
C. One fourth breadth of wall on each side
D. None of these
ANS: B
Q No: 18
The expected out turn of cement concrete 1 :
2 : 4 per mason per
day is
A. 1.5 m 3
B. 2.5 m3

18 | P a g e
C. 3.5 m3
D. 5.0 m3
ANS: D
Q No: 19
The area is measured correct to the nearest
A. 0.01 sqm
B. 0.02 sqm
C. 0.03 sqm
D. 0.04 sqm
ANS: A
Q No: 20
The measurement is not made in square
metres in case of
A. D.P.C. (Damp proof course)
B. Form works
C. Concrete Jeffries
D. R.C. Chhajja
ANS: D
Q No: 21
Due to change in price level, a revised
estimate is prepared if the
sanctioned estimate exceeds
A. 2.0 %
B. 2.5 %
C. 4.0 %
D. 5.0 %
ANS: D
Q No: 22
The expected out turn of 2.5 cm cement
concrete floor per mansion
per day
A. 2.5 sqm
B. 5.0 sqm
C. 7.5 sqm
D. 10 sqm
ANS: C
Q No: 23
While preparing a detailed estimate
A. Dimension should be measured correct to
0.01 m
B. Area should be measured correct to 0.01
sqm
C. Volume should be measured correct to 0.01
cum
D. All the above
ANS: D
Q No: 24
The item of the brick structure measured in
sq.m, is
A. Reinforced brick work
B. Broken glass coping
C. Brick edging
D. Brick work in arches
ANS: B
Q No: 25
The most reliable estimate is
A. Detailed estimate
B. Preliminary estimate
C. Plinth area estimate
D. Cube rate estimate
ANS: A
Q No: 26
According to NS method of measurement, the
order of the sequence
is
A. Length, breadth, height
B. Breadth, length, height
C. Height, length, breadth
D. None of these
ANS: A
Q.no. 27
following:
A. Bricks are paid per thousand
B. Cement is paid per 50 kg bag
C. Lime is paid per quintal
D. All the above
ANS: D
Q No: 28
The concrete work for the following part of
the building of specified
thickness is measured in square metres
A. Root slabs
B. Floors
C. Wall panels
D. All the above
ANS: D
Q No: 29
The expected out turn of 12 mm plastering
with cement mortar is
A. 2.5 sq m
B. 4.0 sq m

19 | P a g e
C. 6.0 sq m
D. 8.0 sq m
ANS: D
Q No: 30
The measurement is made for stone work in
square metre in case of
A. Wall facing
B. Columns, lintels, copings
C. Building work
D. A. and D. of the above
ANS: D
Q No: 31
Carpet area does not include the area of
A. The walls along with doors and other
openings
B. Bath room and lavatory
C. Kitchen and pantry
D. All the above
ANS: D
Q No: 32
following:
A. The incidental expenses of a miscellaneous
character which could
not be predicted during preparation of the
estimate, is called
contingencies
B. Additional supervising staff engaged at
work site, is called work
charged establishment
C. Detailed specifications specify qualities,
quantities and the
proportions of materials to be used for a
particular item
D. All the above
ANS: D
Q No: 33
Pick up the incorrect statement from the
following:
A. Dimensions are measured to the nearest
0.01 m
B. Areas are measured to the nearest 0.01
sq.m
C. Cubic contents are measured to the nearest
0.1 cum
D. Weights are measured to the nearest 0.001
tonnes ANS: C
Q No: 34
The ‘centre line method’ is specially adopted
for estimating
A. Circular buildings
B. Hexagonal buildings
C. Octagonal buildings
D. All the above
ANS: D
Q No: 35
The unit of measurement is per quintal for the
following:
A. Collapsible gates with rails
B. Rolling shutters
C. Expanded metal wire netting
D. M.S. reinforcement of R.C.C. works
ANS: D
Q No: 36
The order of booking dimensions is
A. Length, breadth, height
B. Breadth, length, height
C. Height, breadth, length
D. None of these
ANS: A
Q No: 37
Pick up the item of work not included in the
plinth area estimate
A. Wall thickness
B. Room area
C. W.C. area
D. Courtyard area
ANS: D
Q.no. 38
The expected out turn for earth work in
excavation in ordinary soil
per workman per day is
A. 1.00 cum
B. 2.00 cum
C. 3.00 cum
D. 4.00 cum
ANS: C

20 | P a g e
Q No: 39
The expected out turn of brick work in cement
mortar in foundation
and plinth per mason per day,
is A. 1.00 m3
B. 1.25 m3
C. 1.50 m3
D. 1.75 m3 ANS: B
Q No: 40
The brick work is measured in sq metre, in
case of
A. Honey comb brick work
B. Brick flat soling
C. Half brick walls or the partition
D. All the above
ANS: D
Q No: 41
For 12 mm thick cement plastering 1 : 6 on
100 sq.m new brick
work, the quantity of cement required, is
A. 0.200 m3
B. 0.247 m3
C. 0.274 m3
D. 0.295 m3
ANS: C
Q No: 42
The item of steel work which is measured in
sq.m, is
A. Collapsible gates
B. Rolling shutters
C. Ventilators and glazing
D. All the above
ANS: D
Q No: 43
The damp proof course (D.P.C.) is measured in
A. Cub. m
B. Sq. m
C. Metres
D. None of these
ANS: B
Q No: 44
The volume is measured correct to the
nearest
A. 0.01 cum
B. 0.02 cum
C. 0.03 cum
D. 0.04 cum
ANS: A
For 100 sq. m cement concrete (1 : 2: 4) 4 cm
thick floor, the
quantity of cement required, is
A. 0.90 m3
B. 0.94 m3
C. 0.98 m3
D. 1.00 m3
ANS: B
Q No: 46
The expected out turn of half brick partition
wall per mason per day
is
A. 1.5 m 3
B. 2.0 m3
C. 4.0 m2
D. 5.0 m2
ANS: B
Q No: 47
The floor area includes the area of the
balcony up to
A. 100 %
B. 75 %
C. 50 %
D. 25 %
ANS: C
Q No: 48
The weight of an item is measured correct to
nearest
A. 0.25 kg
B. 0.50 kg
C. 0.75 kg
D. 1.00 kg
ANS: D

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