Cost Estimation - Problem Solving Tutorial

18CEM10I Construction Quantity Surveying, Estimation and S2 –2018/2019
Specifications
Cost Estimation-Tutorial
 Problem Set # 1
 A bill of quantity of a project includes 2800 m2 of masonry work. The work will be done by one
crew with a production rate of 70 m2 /day and consists of:
Crew member No. Cost /Day/One

Brick layer 3 200
Assistant 2 150
Labor 1 110
 Vendor price of 1000 bricks = LE 650. Each 80 bricks are estimated to make one square meter of
masonry. Each one cubic meter of mortar is used to join brick area of 50 m2 and consists of:
Quantity Material Primary quotation from vendor

One cubic meter Sand 75
7 sacks (50 kg each) Cement 1200
 As a contractor, it is required to estimate the item Total Direct Cost and the Unit Direct Cost.
Assume all material waste as 22.5 %.
Answer
Duration of Masonry works = 2800 m2 / 70 m2 per day = 40 days
Material Costs
Number of Masonry bricks required = 80 brick x 2800 = 224,000 Masonry Brick
Consider material waste as 22.5 %, then Number of Masonry bricks required = 224,000 x1.225= 274,400
brick
Total cost of bricks = (274,400 /1000) x 650 = 178,360 EGP
Total cost of mortar:
Sand = 75 EGP/m3 x (2800/50) = 4,200 EGP*1.225 = 5,145 EGP
Cement = 1,200 EGP/ton x (7 / 20) x 56 = 23,520 EGP*1.225 = 28,812 EGP
Total cost of materials = 178,360+ 5,145+28,812 = 212,317 EGP

Specifications
Manpower Costs
Bricks layer = 3 x 200 x 40 = 24,000 EGP
Assistant cost = 2 x 150 x 40 = 12,000 EGP
Labor cost = 1 x 110 x 40 = 4,400 EGP
Total cost of Manpower = 24,000 + 12,000 +4,400 = 40,400 EGP
Total Direct Cost = 212,317 + 40,400 = 252,717 EGP
Unit Direct Cost = 252,717 EGP / 2800 m2 = 91 EGP / m2
 Problem Set # 2
 A crew of four carpenters and three semi-skilled labors is used to install the formwork for a concrete
structure. Work is scheduled for 12 hr/day on Sunday through Wednesday and 10 hr on Thursday.
A base salary is paid for all straight-time work, 8 hr/day, 4 day/week (Sunday to Wednesday).
Overtime at a rate of one and one-half will be paid for all hours over 8 hr/day during the week and
double time for all Thursday work. The base wage, taxes and insurance rates are given in the table
1 below. Calculate the average hourly cost of the carpenter crew.
Table 1
Item 4 Carpenters 3 Semi Skilled Labors Notes
Base wage LE 30 /hr LE 22/ hr
Worker’s
LE 32/LE100 LE 20/LE100 of base wage
compensation
Social security 16.5 % 12.5 % of actual wage
Unemployment
7% 4.6 % of actual wage
insurance
Actual working
Benefits LE 4/ hr LE 5/ hr
hour
Answer
 Actual working hours = (12× 4)+(10x1) = 58 hr/week

 Pay hours = weekly straight time + weekly overtime + Thursday overtime = (4 × 8 × 1 ) + (4 × 4 ×
1.5) + (10× 2) = 76 hr
 4 Carpenters
 Average hourly pay = (76/58) × 30 LE = 39.3 LE/hr
 Work Compensation = 32/100 × 30 = 9.6 LE/hr
Specifications
 Social Security = 39.3 x 0.165 = 6.5 LE/hr

 Unemployment = 39.3 x 0.07 = 2.75 LE/hr
Then, the average hourly cost = LE 58.15/hr + LE 4/hr = LE 62.15/hr
 3 Semi Skilled Labors

 Average hourly pay = (76/58) × 22 LE = 28.8 LE/hr
 Work Compensation = 20/100 × 22 = 4.4 LE/hr
 Social Security = 28.8 x 0.125 = 3.6 LE/hr
 Unemployment = 28.8 x 0.046 = 1.3 LE/hr
Then, the average hourly cost = LE 38 /hr + LE 5/hr = LE 43/hr
The average hourly cost of the steel fixer crew= 43+62.15= 105 LE/hr
 Problem Set # 3
 A subcontractor is currently preparing an estimate for a new concreting job in which he

has to pour 1350 cubic meter of concrete using concrete pumps. A normal working day is
8 hr/day. The rate for the labor overtime per hour is considered to be 1.85 X normal rate.
The crew production during an overtime hour is 83% of their production in a regular hour.
The subcontractor has to use Md2 method of construction.
 It is required to calculate the total cost and duration.
Labor
Code Description Rate/hr
L1 General Labor 25
L4 Concrete Worker 45
Equipment
Code Description Rental / hr Operation/hr
E2 Tran mixer 60 20
E14 Pump 120 12
Crews
Code Description Unit Composition
C16 Concrete Crew M3 2 L1+3 L4+1
E2+1 E14
Materials
Code Description Unit Cost/unit
M12 Ready Mix Concrete M3 350
Specifications
Code Description Unit Resource Production/ Notes

day
Md-1 Concreting by M3 C16+M12 165 Normal
pump (8hr/day) Hours
Md-2 Concreting by M3 C16+M12 ? 8 hr Over
pump (16 Time
hr/day)
Answer
 One of crew C16 and one of M12 are used under a 16-hour day (8 overtime hours). The
daily costs relate to the crew hourly rates and the amount of material needed for the
production
 Production per day = 165 for normal working hours + (0.83 x 165 / 8) x 8 for overtime =
301.95 m3 /day
 Duration = Quantity / Production per day = 1350 / 301.95 = 4.47= 5 days.
Total Cost = Duration (days) x Cost per day
 = 5 days x (daily cost of crew C16 + cost of 301.95 M12 material)

 = 2L1 x L.E 25 (8 + 1.85 x 8) = (L.E 1,140) + 3L4 x L.E 45 (8 + 1.85 x 8) = L.E 3,078 =
4,218 / day
 1E2 x (L.E 60 + 20) x 16 = L.E 1,280 /day
 1E14 x (L.E120 + 12) x 16 = L.E 2,112/day
 301.95 (M12) x L.E 350 = L.E 105,683
= 5 x (4,218+ 3,392 + 105,683) = L.E 566,465
 Problem Set # 4
 Use the time and location indices shown below in tables1, and 2 to estimate the cost of a
building that includes 42500 m2 of floor area. The building is to be constructed 2 years
from now in City A. The cost of a similar type of building that included 48300 m2 was
completed last year in City C for a cost of LE 3,308,500.
Table 1. Construction economic trends

Year Index
3 years ago 358
2 years ago 359
1 years ago 367
Current year 378
Specifications
Table 2. Locations cost indices

Location Index
City A 1.025
City B 1.170
City C 1.260
City D 1.105
City E 1.240
Answer
The equivalent interest rate can be calculated based on the change in the cost index during the 3-
year period as follow:
(378/358) = (1+i) n = (1 + i)3, then i = 1.83%
Proposed cost = Previous cost × Time adjustment × Location adjustment × Size adjustment
= 3,308,500 LE × (1 + 0.0183)3 × (1.025 / 1.260) × (42,500 / 48,300) = 2,500,652 LE

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How is the total direct cost calculated for masonry work?

How is the total direct cost calculated for masonry work?

How is the average hourly cost calculated for installing formwork?

How is the average hourly cost calculated for installing formwork?

18CEM10I Construction Quantity Surveying, Estimation and S2 –2018/2019

Crew member No. Cost /Day/One

Quantity Material Primary quotation from vendor

Duration of Masonry works = 2800 m2 / 70 m2 per day = 40 days

Number of Masonry bricks required = 80 brick x 2800 = 224,000 Masonry Brick

Total cost of bricks = (274,400 /1000) x 650 = 178,360 EGP

Total cost of mortar:

Sand = 75 EGP/m3 x (2800/50) = 4,200 EGP*1.225 = 5,145 EGP

Cement = 1,200 EGP/ton x (7 / 20) x 56 = 23,520 EGP*1.225 = 28,812 EGP

Total cost of materials = 178,360+ 5,145+28,812 = 212,317 EGP

Bricks layer = 3 x 200 x 40 = 24,000 EGP

Assistant cost = 2 x 150 x 40 = 12,000 EGP

Labor cost = 1 x 110 x 40 = 4,400 EGP

Total cost of Manpower = 24,000 + 12,000 +4,400 = 40,400 EGP

Total Direct Cost = 212,317 + 40,400 = 252,717 EGP

Unit Direct Cost = 252,717 EGP / 2800 m2 = 91 EGP / m2

 Actual working hours = (12× 4)+(10x1) = 58 hr/week

 Social Security = 39.3 x 0.165 = 6.5 LE/hr

 3 Semi Skilled Labors

 A subcontractor is currently preparing an estimate for a new concreting job in which he

Code Description Unit Resource Production/ Notes

 = 5 days x (daily cost of crew C16 + cost of 301.95 M12 material)

Table 1. Construction economic trends

Table 2. Locations cost indices

(378/358) = (1+i) n = (1 + i)3, then i = 1.83%

= 3,308,500 LE × (1 + 0.0183)3 × (1.025 / 1.260) × (42,500 / 48,300) = 2,500,652 LE

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