Tendering and Estimating

Assignment 2

Lecturer Dr. Nirodha fernando

U. I. B. Daswatta CSCT2011214

HND In Quantity Surveying and Construction Economics

Content
Content ................................................................................................................................... 2 Acknowledgement ................................................................................................................. 3 Introduction ............................................................................................................................ 4 Scenario.............................................................................................................................. 5 Task 01 ....................................................................................................................................... 5 Three major factors related to build up unit cost ............................................................... 5 Material .......................................................................................................................... 5 Labour ............................................................................................................................ 6 Plant ............................................................................................................................... 6 Overhead ........................................................................................................................ 7 Task 02 ....................................................................................................................................... 8 Material cost................................................................................................................... 8 Plant and Equipments .................................................................................................... 9 Labour ............................................................................................................................ 9 Method Statement ............................................................................................................ 12 Task 3 ....................................................................................................................................... 15 Trench Excavation ........................................................................................................... 15 Labour .......................................................................................................................... 16 Reinforcement Beam ....................................................................................................... 16 Material cost................................................................................................................. 17 Labour .......................................................................................................................... 18 Cement lime and sand plaster .......................................................................................... 19 Material ........................................................................................................................ 20 Labour .......................................................................................................................... 21 PVC Gutter....................................................................................................................... 22 Materials ...................................................................................................................... 22 Labour .......................................................................................................................... 23 Conclusion ........................................................................................................................... 25 References ............................................................................................................................ 26

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Acknowledgement
To become a professional Quantity Surveyor we need theoretical knowledge as well as better knowledge on practical applications. Therefore, I would like to offer my sincere thanks to Colombo School of Construction Technology staff and grateful to all those who supported us in any respect during the completion of this assignment. I would like to offer my grateful thanks to our lecture Dr. Nirodha Fernando, and all the lectures guiding me toward valuable Assignment report. My special regards with very great attitude to my parents.

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Introduction
In this assignment, calculate the unit cost using operational method pricing and unit rate pricing. In the first task, describe the factor that related with the build up unit cost in the BOQ. The material, plant and labour are a main three factors according with unit cost.

In the second task there are calculation unit rate for the work item using the operational method. In this task, use Building Schedule of Rates for pricing.

In the third task describe the how to build up unit rate several work items using the Building Schedule of Rates.

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Scenario
The Government of Sri Lanka has proposed to implement an industrial zone in Northern Province as a part of rehabilitation program. The project includes infrastructure development (land development, water supply and drainage, electricity,

telecommunication, road network, etc) and buildings such as factories, accommodation buildings, offices, stores, etc by different investors.

Task 01 In order to build up tender for the given project, collect data required to build up unit costs. (P4)

Tender is a main document of new proposed project. To order to build up tender firstly client want make up the BOQ. To prepare BOQ for entire project the Quantity surveyor must need source of many data. Whoever prepare a BOQ they need gathered accurate data for prepare accurate BOQ. The overestimated and underestimated cost should bad result for contractor, rejecting tender or loses from the project. To built up unit price in BOQ based on several factors. In those factors material, labour and plant is became three major factors. Every unit rate in BOQ based on these three factors. When these factors changed the unit rate is also changed.

Three major factors related to build up unit cost

Material
A material is something used to make things. When we speak about material, we mean physical substances. In a construction industry we used different types of materials. cement, sand, metal, steel and bricks normally used construction industry. The prices of material is based on its purchase price with allowances for delivery, offloading, storage and placing and wastage.

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HND In Quantity Surveying and Construction Economics To calculate the material cost and build up unit rate for entire item the Quantity surveyor must gathered data related with the material cost, quality and etc... if the quantity surveyor can gathered information about the suppliers surrounding area of the project located that is grate opportunity for the contractor. Because when they get material from another area contractor should pay large sum of money for that than the material get entire area. To increase the material cost from another area the main situation is the transportation charges is very high. If the materials can get surrounding the project area transportation cost is very low. If the materials can find in the area there is another advantage because no need lot of space to keep unloading materials on site. If material supply from another area always contractor must keep the stock on site for emergency cases. If the Quantity Surveyor can collect all above details and build up unit cost that is an applicable and profitable for the project.

Labour
Labour also became major factor as a material. Every construction project need labour force for carry on the works. In modern world there are many of new machinery for doing various works with out large number of workers. But there is some works cannot do with out labour force. Normally unit cost changed the result of the labour. A day by day the labour rate will increasing accordance with the economy of entire country. If can select the labour in the same area that project located that is can reason for low unit cost. Because the contractor get the labours from another area every month they leaving from site after getting monthly salary. Some times in those days the project works should stopped. That make large impact for the contractor. When the labours are selected in same area contractor did not face that kind of difficulties. Quantity surveyor can get the details of labours in same area and analyzed there are enough labours in the area. Therefore if hire labour from another area contractor must pay high salary from the allowances. Another important point is if there are labours in pay special rate for their skills.

Plant
Generally plant is pricing in same method use for pricing in labour. Now a days mostly use plants and equipments for the construction projects to minimize to labour cost. The project Quantity Surveyor must identify the needed plant and equipment need for the project and he want to arrange whether if plants and equipment hire or brought. He want found the sources of plant where they can purchase or hire in law cost. CSCT 2011214 Page 6

HND In Quantity Surveying and Construction Economics

Another factor is when they purchase or hire some plants can that plant and equipment transport to the site in safely of with out any barriers. Because the project is in ruler area, sometimes there road network is not in good condition. Therefore, the plant and machinery can damage or brake down within transport to the site.

Overhead
Every contractor looking for cover their overheads and get more profits from the project. Overhead and profit added to the cost of all work items to cover. The amount added for overheads and profit is normally given as a percentage and the percentage decided by the contractor. They want to look above factors and difficulties they can face during the project.

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Task 02 Build up unit rate for following work item using operational pricing method. Answer shall include method statement for the work item. (P6) Description Qty Unit m

Concrete, G20, in 150mm thick ground slab, poured against earth 90

Assume that for concreting ground slab use ready mix concrete and placing with the pump machine and labours.

According to the ICC Ready mix concrete rates, cost of 1m3 is Rs. 11,000/=. Pumping rate is Rs. 600/= for 1m3. (All transportation and other cost including above rates).

Material cost
Total Concrete volume = 90 m3 = 90 m3 x Rs. 11,000 = Rs. 990,000

Cost for 1m3 of ready mix concrete = Rs. 11,000 Cost for total concrete volume

Water (Curing) 90 gal for 1.42 m3 Total gal = 90/1.42 x 90 m3 = 5704.23 gal Cost for 1 gal Total cost for vibrator = Rs. 0.50 = Rs. 0.50 x 5704.23 gal = Rs. 2852.11

Total cost for material

= Rs. 990,000 + Rs. 2852.11 = Rs. 992,852.11

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Plant and Equipments

Pumping rate for 1m3 Total cost for pumping = Rs. 600 = Rs. 600 x 90 m3 = Rs. 54,000 According to BSR 0.5 day for 1.42 m3 Total days = 0.5/1.42 x 90 m3 = 31.69 days Cost for 1 day Total cost for vibrator = Rs. 1500 = Rs. 1500 x 31.69 days = Rs. 47,535

Total cost for plant

= Rs. 54,000 + Rs. 47,535 = Rs. 101,535

Labour
Labour for placing concrete (SK labour) 0.5 days for 1.42 m3 Total days for concreting = 0.5/ 1.42 x 90 = 31.69 days Rate foe 1 day Total cost for mason = Rs. 1200 = Rs.1200 x 31.69 days = Rs. 38,028.17

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HND In Quantity Surveying and Construction Economics U/SK Labour 1 days for 1.42 m3 Total days for concreting = 1.5/ 1.42 x 90 = 95.07 days Rate foe 1 day Total cost for mason = Rs. 800 = Rs.800 x 95.07 days = Rs. 76,056.34

SK Labour for Vibrator 0.5 days for 1.42 m3 Total days for concreting = 0.5/1.42 x 90 = 31.69 days Rate foe 1 day Total cost for mason = Rs. 1200 = Rs.1200 x 31.69 days = Rs. 38,028

U/SK Labour for Curing 0.5 day for 1.42 m3 Total days for concreting = 0.5/1.42 x 90 = 31.69 days Rate foe 1 day Total cost for mason = Rs. 800 = Rs. 800 x 31.69 days = Rs. 25,352

Total cost for Labour

= Rs.38,028.17 + Rs.76,056.34 + Rs.38,028 + Rs.25,352 = Rs. 177,464.51

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Cost for Concreting

= Rs. 992,852.11 + Rs. 101,535 + Rs. 177,464.51 = Rs. 1,271,851.62

Add 30% for overhead and profit

= 30/100 x Rs. 1,271,851.62 = Rs. 381,555.49

Total cost for concreting slab

= Rs. 1,271,851.62 + Rs. 381,555.49 = Rs. 1,653,407.11

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Method Statement

Purpose:The purpose of this method statement is to describe the construction procedures for the concreting ground slab.

Scope:The works will incorporate the procedures necessary to execute the following items. Responsibilities of client and Contractor Attending personals Health and safety Plant, Machinery and equipment Preparing of work Work Methodology

Project Detail:Contractor Project Name and Address Client : ICC (Pvt) Ltd : Concreting Ground slab at Dental institute : Ministry of Health and Nutrition

Responsibilities of client and contractors

Provide and maintain access roads, hard standing for the machineries (a, level hard standing, capable of carrying the outrigger loads as specified in the Lifting Plan) and stacking area / off-loading area. Provide and maintain scaffolding of the working area, together with handrails, guardrails, platforms or staging required for safe access and to prevent operatives from falling. Welfare facilities shall be made available to the flooring sub-contractor.

Attending personals
Appointed person: Name the appointed person to control of the lifting operations.

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HND In Quantity Surveying and Construction Economics Safety Officer: Appointed person who will be control and inspect the safety at site. QA / QC Engineer: person who appointed check the performance of the works in relation to the method statement, approved drawings and material specifications. Site Engineer: Responsible for all activities carried on site and inspection all of works. Foreman: The foreman, will identify himself to the site management on arrival at site.

Health and Safety

Personal protective equipment: All workers will wear the following: - safety helmet, high visibility vest, gloves and safety footwear. Safety glasses/goggles; ear defenders; dust mask. All operatives and workers will comply with any other specific site requirements. Site rules: All operatives and workers will be informed of the contractors site rules and obey with them. Specific site hazards: Any specific site hazards must be identified and deal with prior to placing operations commencing on site. E.g., provide suitable protection to up-standing steel reinforcing starter bars or provide adequate bearing for props. Access to the work area: Access to the work area is the responsibility of the contractor / client. Work at heights: The contractor / client must provide and maintain scaffolding of the working area, together with handrails, guardrails, platforms or staging required for safe access and to prevent operatives from falling. Welfare facilities: The contractor / client must provide access to welfare facilities. The flooring subcontractor will make a first aid box available.

Plant, Machinery and Equipment

Tower crane / Mobile Crane Concrete Pumps Concreting Buckets Vibrators Wheelbarrows, etc. as applicable

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Preparing for Works

Request for design mix based the concrete grades specified on structural drawings from the Ready Mixed Concrete Supplier. Submit the proposed design mix to client / clients representative for approval. Before the ending all setting out works and excavations, formwork and laying polythene works are not commence. Compacting ground slab bottom using 10-ton vibrating rammer. Laying gauge 1200 polythene on the concreting surface clearly. Arrange the formwork around the edge of ground slab area using 15mm thk plywood and 2x2 timbers. After finishing all polythene, laying and forming formwork clear the surface. Arrange the all reinforced according to the drawing and maintain the cover blocks correctly. Inspection of structural members must do with client / clients representative.

Work Methodology
Take concrete cube samples from the truck for quantity specified. Mark the location of pour for concrete received on the site as reference and identification. Provide sufficient equipment, machinery and labour to carry out the concreting works. Place concrete on selected locations using concrete pumps and / or crane assisted concrete buckets. Start concreting from a fresh location and continue continuous to completion. Place concrete from the lowest point to the final concrete level in one operation in horizontal layers. Compact concrete by mechanical vibrators. Certify that concrete is worked into the corners of the structural members. After the concrete has set, carry out curing works by applying curing compound.

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HND In Quantity Surveying and Construction Economics Task 3 Build up unit rates for following work items. (P7)
Item 2.A.2 Description Trench excavation depth exc. 1.0m and n.e. 2.0 m Unit m Rate

3.B.5

Tor steel bar reinforcement, 16mm dia in beams at roof level

Tonne

3.G.2 16mm thick 1:1:5 cement, lime and sand plaster finish smooth with lime putty on internal walls 3.E.5 150mm dia half round PVC eaves gutter fixed o timber valance board including gutter joiner, brackets, gutter head, mitres and end caps

Trench Excavation
Assumptions; Firm soil excavation 100% hand excavation

Excavation quantity

= 1.5 m x 0.6 m x 1 m = 0.90 m3

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Labour
According to BSR labour out put 0.71 m3 per day Excavation quantity Total days for excavation = 0.90 m3 = 1 / 0.71 m3x 0.90 m3 = 1.27 days Rate for U/SK labour Cost for excavation = Rs. 800 per day = Rs. 800 x 1.27 day = Rs. 1014.08

Allow 4% for tools

= 4/100 x Rs. 1014.08 = Rs. 40.56

Total cost for excavation

= Rs. 1014.08 + Rs. 40.56 = Rs. 1054.64

Add 30% for overhead and profit Unit rate for 1m3

= 30/100 x Rs.1054.64 = Rs. 316.39 = Rs. 1054.64 + Rs. 316.39 = Rs. 1371.03

Reinforcement Beam
Assumptions; 10 m long beam Transport and unloading cost include the reinforcement rate Binding and bending cost include the labour rate

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Length of bars 10000 60 9940 384 10324 Add lap 40/16 640 10964

Ddt 2/30 Add hook 2/12/16

Material cost
Length of bar Nr of bars in beam Total length of bars Unit weight of 16 mm bar Total weight of bars = 10.96 m =6 = 65.78 m = 1.58 kg = 65.78 m x 1.58 kg = 103.94 kg

16 mm dia reinforcement 1tonne is Rs. 130,000 Cost of bars = Rs. 130,000/ 1000 kg x 103.94 kg = Rs. 13512.20

Add 1.5% spaces

= 1.5/100 x 13512.20 = Rs. 202.68

Add 3% tools

= 3/100 x 13512.20 = Rs. 405.37 = Rs. 13512.20 + Rs. 202.68 + Rs. 405.37 = Rs. 14120.25

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According BSR binding wire 1.5 kg per 50 kg Total weight of binding wire = 1.5 kg/50 kg x 103.94 kg = 3.12 kg Cost for binding wire = Rs. 185 x 3.12 kg = Rs. 577.20

Total material cost

= Rs. 14,120.25 + Rs. 577.20 = Rs.14,697.45

Labour
SK labour, binding and bending 50 kg per day Total days work = 1/50 kg x 103.94 kg = 2.08 days Rate for SK labour Cost for SK labour = Rs. 1500 = Rs. 1500 x 2.08 days = Rs. 3118.20

U/SK labour, binding and bending 50 kg per day

Total days work

= 1/50 kg x 103.94 kg = 2.08 days

Rate for SK labour Cost for SK labour

= Rs. 1100 = Rs. 1100 x 2.08 days = Rs. 2288

Total labour cost

= Rs. 3118.20 + Rs. 2288 = Rs. 5406.20

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Cost for 16mm dia reinforcement beam

= Rs. 14,697.45 + Rs. 5406.20 = Rs. 20,103.65

Add 30% over head and profit

= 30/100 x Rs. 20,103.65 = Rs. 6031.10

Add 10% wastage

= 10/100 x Rs. 14,697.45 = Rs.1,469.75

Total cost foe beam

= Rs.20,103.65 + Rs.6031.10 + Rs.14469.75 = Rs. 27,604.50

Unit rate for 1 tonne

= Rs. 27,604.50/ 103.94 kg x 1000 kg = Rs. 265,581.10

Cement lime and sand plaster

Assumptions; Total internal wall length is 100m and height is 3m 1 Sq = 9.29 m2 1 kg = 0.02 Cwt

Total wall area

= 100 m x 3 m = 300 m2

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Material
Cement According BSR 0.8 bag for 1 sq Nr of cement bags = 0.8/ 9.29 m2 x 300 m2 = 25.83 bags = 26 bags Cost for cement = 26 x Rs. 940 = Rs. 24,440

Sand According BSR 0.07 cub per 1 Sq Volume of sand = 0.07/9.29 m2 x 300 m2 = 2.26 cub Cost for sand = 2.26 cub x Rs. 9000 = Rs. 20,344.46

Slaked lime According BSR 0.66 Cwt per 1 Sq = 1 kg/0.02 Cwt x 0.66 Cwt = 33 kg = 33 kg/ 9.29 m2 x 300 m2 = 1065.66 kg Cost for slaked lime = Rs. 300/50 kg x 1065.66 kg = Rs. 6,393.96

Volume of slaked lime

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HND In Quantity Surveying and Construction Economics Water According BSR 10 gal per 1 Sq = 10 gal/ 9.29 m2 x 300 m2 = 322.93 gal Cost for water = 322.93 gal x Rs. 5 = Rs. 1,614.64

Volume of water

Total cost for material

= Rs.24,440 + Rs.20,344.46 + Rs.6393.96 + Rs.1614.64 = Rs. 52,753.06

Labour
According BSR SK labour 1.5 days for 1 Sq Total days of SK labour worked = 1.5 days/9.29 m2 x 300 m2 = 48.44 days Cost for SK labour = 48.44 days x Rs. 1200 = Rs. 58,127.02

According BSR U/SK labour 1.5 days per 1 Sq Total days of SK labour worked = 1.5 days/9.29 m2 x 300 m2 = 48.44 days Cost for SK labour = 48.44 days x Rs. 900 = Rs. 43,596

labour cost

= Rs. 58127.02 + Rs. 43,596 = Rs. 101,723.02

Add 4% for tools and scaffoldings CSCT 2011214

= 4/100 x Rs. 101,723.02 Page 21

HND In Quantity Surveying and Construction Economics = Rs.4068.92 Total labour cost = Rs. 101,723.02 + Rs. 4068.92 = Rs. 105,791.94

Cost for plastering

= Rs. 52,753.06 + Rs. 105,791.94 = Rs. 158,545

Add 30% overhead and profit

= 30/100 x Rs. 158,545 = Rs. 47,563.50

Add 5% wastage

= 5/100 x 52,753.06 = Rs. 2637.65

Total cost for plastering

= Rs.158,545 + Rs.47,563.50 + Rs. 2637.65 = Rs. 208,746.15

Unit rate for 1 m2

= Rs.208,746.15/300 m2 x 1 m2
=

Rs. 695.82

PVC Gutter
Materials
According BSR all Quantities for 8m length 150 mm thk gutter (4m length) Cost for gutter = 2 Nos = Rs. 800.00 x 2 = Rs. 1600.00

Gutter brackets Cost for brackets

= 17 Nos = Rs.15.00 x 17 = Rs. 255.00

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Gutter joiner Cost for gutter joiner

= 1 Nos = Rs. 300.00 x1 = Rs.300.00

End caps Cost for end caps

= 2 Nos = Rs. 85.00 x 2 = Rs.170.00

Gutter head Cost for gutter head

= 1 Nos = Rs. 650.00 x 1 = Rs. 650.00

9mm brass screws Cost for screws

= 34 Nos = Rs. 2.50 x 34 = Rs. 85.00

Solvent cement Cost for solvent cement

= 20 gms = Rs. 1.50 x 20 = Rs. 30.00

Total material cost

= Rs.3090.00

Labour
SK labour Cost for SK labour = 0.5 days = Rs.1000.00 x 0.5 = Rs.500.00

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HND In Quantity Surveying and Construction Economics U/SK labour Cost for U/SK labour = 0.5 days = Rs. 800.00 x 0.5 = Rs. 400.00

Labour cost

= Rs. 500.00 + Rs. 400.00 = Rs. 900.00

Add 5% for plant and scaffolding

= 5/100 x Rs. 900.00 = Rs. 45.00

Add 3% for tools

= 3/100 x Rs. 900.00 = Rs.27.00

Total labour cost

= Rs. 900.00 + Rs. 45.00 + Rs. 27.00 = Rs. 972.00

Cost for gutter fixing

= Rs. 3090.00 + Rs. 972.00 = Rs. 4062.00

Add 27% overhead and profit

= 27/100 x Rs. 4062.00 = Rs. 1096.74

Total cost for fixing gutter

= Rs. 4062.00 + Rs. 1096.74 = Rs. 5158.74

Unit rate for 1m

= Rs. 5158.74/8 m = Rs. 644.84

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Conclusion
The project Quantity surveyor is the main character in tender process. He wants to prepare BOQ and pricing it. Before the build up unit rate he want gathered several data according with the unit rate. Build up unit rate without any information that must harm to contractor. Because the overestimated and underestimated cost should, bad result for contractor, rejecting tender or loses from the project. To build up unit price in BOQ based on several factors. In those factors there are three main factors called material, labour and plant. Collecting data above those three factors much needed is in Sri Lanka day by day there are price fluctuation in the market. Therefore that directly accordance with unit rate. Building Schedule of Rate is suitable for pricing in every workstation.

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References
Building Schedule of Rates www.safetyculture.com.au/...method-statements/.../concrete_preparati.

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