Specification Estimation and Valuation
Specification Estimation and Valuation
Specification Estimation and Valuation
Valuation
What is estimation, costing and valuation?
• Estimating” is done before executing any project or job. “Costing” is
done after execution of any project or job.
• It is an art of calculating the quantities of various items of work that is
required to be executed for completion of any work and finding
the cost of each items.
• It gives detail information regarding expenditure, equipment n man
power required for particular project
• Valuation is the process of finding the value of a property or
machineries and equipment based on many factors(demand,
obsolescence, age, design, location, etc)
Why?
• It helps us to decide whether rate of proposed project match meets
our funds available for the project
• It helps us to get the quantity of the item
• Helps to know figure, approximately what will be spend.
• Helps in controlling cost, optimization can be done accordingly.
• Gives an idea about time and its schedule of work required for
completion of project.
• Helps in inviting tender and quotation to arrange contract
• Helps in controlling thefts and corruptions as everything can be
verified with the estimate.
• Avoids unwanted loss incurred in project
• To ascertain the necessary amount of money required by the
owner/contractor to complete the proposed work.
• To obtain administrative approval, allotment of funds and technical
sanction.
• To ascertain quantities of materials required in order to program their
timely procurement. (Supply Chain)
• To calculate the number of different categories of workers that are to be
employed to complete the work within the scheduled time of completion.
• To assess the requirements of Tools, Plants and equipment required to
complete the work according to the program.
• To draw up a planning and scheduling to fix the completion period from the
volume of works involved (Work Break Down Structure, WBS) and also to
arrange the funds required according to the schedule (Cash Flow).
Requirements for Estimation
•Final plan or drawings of the project. (DRAWING)
•Exact details about workmanship and materials to be
used in project. (SPECIFICATION)
•Standard schedule of rates for the present
Year.(RATES)
✔Materials
✔Manpower
✔Machineries, etc
Scope of learning
•For Engineers
• Quantity Surveyor in Big Firms
• Billing Engineer
• Valuation firms (Banks, Personal valuation, etc – IOV registered)
• Projects/ Tendering Contract manager
•For Architects
• Individual Projects (customer job interviews)
• Valuation firms (Banks, Personal valuation, etc – IOV registered)
• Projects/ Tendering Contract manager
Role of Quantity surveyor
• Preparation of RA Bills.
• Preparation of Rate Analysis, Cost Estimations, BOQ's, Bar Bending
Schedules (BBS).
• Involved into planning and Monitoring activities.
• Preparation of Work orders and rate analysis for Sub-contractor.
• Preparation of Sub contractors billing & Payments.
• Client/contractor management.
• Preparation of materials reconciliation monthly.
• Preparation of Price escalation bill.
• Time to Time resource Management according to the requirement for the
works and sending Material Indents.
• Maintaining Daily Progress Report.
• Inputs for the planning of the entire project
• Estimates of Material /labour/ equipments
• Scheduling & Monitoring of the projects
• Arranging the cash flow
• Organizing material purchase flow
• Finding Material quantities / requirements
• Preparing budgeting [ Preliminary /detailed ]
• Rate analysis for various items of execution
• Tender rates justification
• Arriving at Extra items rates for items not covered in tender
• Preparation /verification of bills
• Reconciliation of materials [ Issues/consumption account]
• Preparing variance analysis during /after work execution
• Recording the as-built dimensions of the buildings for purpose of :
• Settling final bills
• Preparing As-built drawings
Types of estimates
• Preliminary estimate
• Plinth area estimate
• Cube rate estimate
• Approximate quantity method estimate
• Detailed estimate
• Revised estimate
• Supplementary estimate
• Annual repair and maintenance estimate
• Preliminary Cost Estimate
• The preliminary cost estimate is also called an abstract cost estimate or
approximate cost estimate or budget estimate. This estimate is generally
prepared in initial stages to know the approximate cost of the project. By
this estimate, the competent sanctioning authority can decide the financial
position and policy for the administration section.
• Preliminary estimates are prepared with reference to the cost of similar
type projects in a practical manner. In this estimate, the approximate cost
of each important item of work is displayed individually to know the
necessity and utility of each item of work. The items of work include the
cost of lands, cost of roads, electrification, water supply costs, cost of each
building, etc.
• Plinth Area Cost Estimate
• Plinth area cost estimate is prepared on the basis of plinth area of building
which is the area covered by external dimensions of building at the floor
level and plinth area rate of building which is the cost of similar building
with specifications in that locality.
• Plinth area estimate is obtained by multiplying plinth area of building with
plinth area rate. For example if we require plinth area estimate of 100 sq.m
in a particular locality and plinth area rate of a building in same locality is
2000 per sq.m then plinth area estimate is 100 X 2000 = 200000.
• Open areas, courtyards, etc. are not included in the plinth area. If the
building is multi-storied, the plinth area estimate is prepared separately for
each floor level.
• Cube Rate Cost Estimate
• Cube rate cost estimate of a building is obtained by multiplying plinth
area with the height of building. Height of building should be
considered from floor level to the top of the roof level. It is more
suitable for multi storied buildings.
• This method of estimation is accurate than plinth area method. The
rate per cubic meter is taken into consideration based on the costs of
similar type of buildings situated in that location. Foundation, plinth
and parapet above the roof level are not considered in this type of
estimate.
• Approximate Quantity Method Cost Estimate
• In approximate quantity method cost estimate, the total wall length
of the structure is measured and this length is multiplied by the rate
per running meter which gives the cost of the building. The rate per
running meter is calculated separately for the foundation and
superstructure.
• In case of foundation, rate per running meter is decided by
considering quantities such as excavation cost, brick work cost up to
plinth. While in case of superstructure quantities like brickwork for
wall, wood works, floor finishing etc. are considered for deciding rate
per running meter.
• Detailed Cost Estimate
• Detailed cost estimate is prepared when competent administrative
authority approved the preliminary estimates. This is very accurate
type of estimate. Quantities of items of work are measured and the
cost of each item of work is calculated separately.
• The rates of different items are provided according to the current
workable rates and total estimated cost is calculated. 3 to 5 % of
estimated cost is added to this for contingencies as miscellaneous
expenditure.
• The detailed Estimated should consist following details and
documents
• Report
• General Specifications
• Detailed Specifications
• Drawings/plans – layout plans, elevation, sectional views, detailed
drawings etc.
• Designs and calculations – In case of buildings design of foundations,
beams, slab etc.
• Schedule of rates
• Revised Cost Estimate
• Revised cost estimate is a detailed estimate and it is prepared when
the original sanctioned estimate value is exceeded by 5% or more.
• The increase may be due to sudden increase in cost of materials, cost
of transportation etc. The reason behind the revision of estimate
should be mentioned on the last page of revised estimate.
• Supplementary Cost Estimate
• Supplementary cost estimate is a detailed estimate and it is prepared
freshly when there is a requirement of additional works during the
progress of original work. The estimate sheet should consists of cost of
original estimate as well as the total cost of work including supplementary
cost of work for which sanction is required.
• Annual Repair Cost Estimate
• The annual repair cost estimate is also called as annual maintenance
estimate which is prepared to know the maintenance costs of the building
which will keep the structure in safe condition. Whitewashing, painting,
minor repairs, etc. are taken into consideration while preparing annual
repair estimate for a building.
Unit I Specifications and Specification
writing
• A specification is a specific description of a particular subject. An
engineering specification contains detailed description of all workmanship
and materials which are required to complete an engineering project in
accordance with its drawings and details
• For architectural projects, the specifications are art of the Contract
Documents included with the bidding and construction requirements and
the drawings
• It is not possible to furnish the information on the drawings, regarding the
quality of materials to be used and the quality of workmanship to be
achieved during construction, due to shortage of space.
• This data regarding the materials and workmanship is conveyed in a
separate contract document which is known as the specifications for the
work.
• SPECIFICATION - ‘statement of needs’
• Specification specifies or describes the nature and the class of the work,
materials to be used in the work, workmanship, etc., and is very important for
the execution of the work.
• The cost of a work depends much on the specifications.
• Specifications should be clear, and there should not be any ambiguity
anywhere. From the study of the specifications one can easily understand the
nature of the work and what the work shall be.
• Drawings and specifications form important parts of contract document.
• Drawings do not furnish the details of different items of work, the quantity of
materials, proportion of mortar and workmanship which are described in
specifications. Thus the combinations of drawings and specifications define
completely the structure.
•During writing specification attempts should be made to express all
the requirements of the work clearly and in a concise form avoiding
repetition.
•As far as possible, the clauses of the specification should be
arranged in the same order in which the work will be carried out.
•The specifications are written in a language so that they indicate
what the work should be, and words "shall be" or "should be" are
used.
•Specifications explains the factors such as nature of the work, the
purpose for which the work is required, strength of the material,
availability of material, quality of materials, etc.
NECESSITY OF SPECIFICATION
• The cost of a unit quantity of work is governed by its specification.
• Specifications of a work are required to describe the quality and
quantity of different materials required for a construction work and is
one of the essential contract documents.
• This also specifies the workmanship and the method of doing the
work.
• A work is carried out according to its specification and the contractor
is paid for the same.
• As the rate of a work is based on specification a contractor can
calculate the rates of various items of work in a tender with his
procurement rates of materials and labours.
• Specification is necessary to specify the equipment’s, tools and plants
to be engaged for a work and thus enables to procure beforehand.
• The necessity of specification is to verify and check the strength of
materials for a work involved in a project.
• Specification is an essential contract document and is required for
arbitration and court cases.
Types of Specifications
• General Specifications.
• Detailed specifications.
• Open Specifications
• Closed Specifications
General Specifications.
• In general specifications, nature and class of works names of
materials and proportion that should be used in the various items of
works are described.
• Only a brief description of each and every item is given. It is useful for
estimating the project. But they do not form the part of the contract
document.
• They would describe the general classifications of the construction
work of the project.
• These specifications are used to establish the standards of the
construction work that will help in establishing a Detailed Estimate.
Detailed Specifications
• Detailed Specifications shows, in the detailed description,
characteristics, quantity, ratio and formation method of the material
used in construction work.
• Each component of the constructional work is described in details
separately with the help of Detailed Specifications.
• Therefore, all features establishing standards and quality of the
construction work are disclosed.
• Which will be used later in Detailed Estimate.
• Detailed Specifications of the items used in ordinary projects are
printed that are used for contracts.
Detailed Specifications have two major types as follow.
• a) Standard Specifications.
• b) Special Specifications.
• a) Standard Specifications.
• This type of Specification of constructional work is written down and
published in departments of engineering that will eliminate the need of
writing Specifications in details.
• These Specifications are merely referenced when required.
• So, these are known as Standard Specifications that are published in the
form of books and generals.
• Whenever tender is required for constructional work, then these
Specifications are merely referenced in the tender that will ease the
preparation of tender documents.
• And possible mistakes can be avoided occurred during frequent
writing of same Specifications.
• Standard Specifications have to be written and published by Public
Works Department (PWD), Military Engineering Services (MES) and
Irrigation Departments.
• However, other departments can reference Standard Specifications
that are organized and published by mentioned departments and
organizations.
• Standard Specifications subject to change as changes and evolution
occurs in science and engineering with the passage of time.
• These changes and evolution must be reflected in Standard
Specification to reflect the best practices in work.
• b. Special Specification.
• Some specifications of the construction work are of the special form,
and they are not officially written and published in Standard
Specifications.
• These specifications are known as Special Specifications.
• Special Specifications are written by the in-charge engineer of the
constructional project which will usually be a divisional officer.
• These specifications are included in tender documents and captioned
as Special Specifications.
• A closed specification names, describes, and lists a single product or system.
• The specification may list only one manufacturer or a product by one
manufacturer, or it could list the single manufacturer or product and provide
a list of other manufacturers or products that are option.
• It is to be noted that this method limits competition, which may result in
increased cost or long lead times.
• Additionally, the number of bidders with the required experience or
certification to install the system may be limited.
• Also note that this method requires the engineer to specify the exact product
that the owner wants, and any mistakes made when specifying the product
are typically directly attributed to the engineer.
• An open specification (or) Manufacturers specification that allows
alternate products is similar to a closed specification in that it
describes a very specific product and may name only a single product
or manufacturer.
• However, open specifications include provisions that encourage the
bidder to submit alternate or substitute products.
• If alternate products are requested, a list of the approved alternate
products is included in the specification.
• The bidder chooses to submit pricing for either the named or base bid
products or any products that the bidder feels would meet the
requirements of the named product.
• A product that is submitted as a substitute product must have the
same functionality and the bidder must include pricing information.
Selecting a Method of Specifying
The following questions are helpful to consider when deciding which
method of specifying is most appropriate.
– What does the Owner require?
– What method best describes the design intent?
– What method is most appropriate for the project size and complexity?
– What method will result in the best quality of work?
– What method will result in the best price for the work?
HOW TO WRITE SPECIFICATON
• While writing the specification the following principles shall be adopted.
• Description of materials: The quality and size of materials required to do
an item of work shall be fully described for checking up at site according to
the bindings provided in the specification. The proportion of mixing or
treatment of materials if required before use shall be clearly described.
• Workmanship: Complete description of workmanship, the method of
mixing to the proportion, the method of laying, preparation of base or
surface, compaction, finishing and curing etc. specifically applicable to the
item of work shall be clearly stated in different clauses.
• Tools and plants: The tools and plants to be engaged to carry out a work
shall be described. The method of operation and by whom to be supplied
shall be stated.
• Protection of new work: The method of protection of new work against
damage or the method of curing if required, the test of completed work if
necessary shall be described in separate clauses.
• Expression: While writing a specification endeavor shall be made to
express the requirements of the specifications clearly and in concise form
avoiding repetition and unusual words. The style of tense shall remain
same throughout. The sentences shall be short and concise. Words having
more than one meaning shall be avoided.
• Clauses of specifications: As far as possible, the clauses shall be arranged in
the order in which work shall be carried out. This does not mean to follow
the works according to the order of arrangements, but if facilitates
reference.
DESIGN OF SPECIFICATION:
• The specification if it has to serve its purpose adequately, should be
designed rather than simply written or copied .
• Any engineering work such as a bridge, a tunnel, a dam, etc., is
designed to its specific requirements.
• A simple procedure should be followed in the design of a specification
• In fact, the specification is a complex and lengthy document and its
requires considerable skill and wide technical knowledge in its
preparation.
IMPORTANT ASPECT OF THE DESIGN OF
SPECIFICATION
• Charge: The designer of a specification should be given an
opportunity to observe the field application of his specification. Such
a procedure will help in increasing the knowledge of the designer and
he may utilize this knowledge, if found necessary, to charge, to
expand, to improve, to modify or to strengthen his specification for
future works.
• Clearness: The design of a specification should be such that it bring
the limits of misunderstanding and misinterpretation to a minimum.
Such a design will naturally minimize the change of disputes.
• Cost: The initial cost of a well-designed specification may prove to be
more. But it forms a small fraction of the cost incurred in extra claims,
delays, disputes and bad workmanship due to poorly designed
specification.
• Designer: The specification should be designed by competent person,
possessing wide experience and high ability. This is a very important
factor influencing the achievement of goal of a specification. If the
work of writing the specification is entrusted to a professional man, it
simply result into the copying of paragraphs from the exiting
specification.
• Flexibility: The specification should not be rigid. But they should be dynamic
in nature and should be adaptable to new invention, to new ideas and to
new method of construction.
• Fairness:
The specification should be fair and they should not be framed in such a
way so as to throw all the risk on the shoulder of contractor. Also all likely
hazards, difficulties, etc. Should be specified in the specification so as to give
a clear picture of the work to the contractor. The unfair specification are not
desirable and sometimes they prove to be expensive in the sense that a
contractor will assume all risk and will put a higher price in his tender to
accommodate all such risks in case they come up.
• Clarity and Brevity
• A successful specification is both clear and brief. Information that is
not essential to the directions and commitments that will be a part of
the contract only serves to confuse those applying
the specification in the field. Short sentences with simple, direct
language should be used.
Specification Language
• Specification language should be precise. Vague and ambiguous text
can be open to multiple interpretations.
• Four important sections for specification writing
1. Be Clear
2. Be Correct
3. Be Complete
4. Be Concise
• 1. Be Clear:
• Use proper grammar.
• Chose precise words to convey the message.
• 2. Be Correct:
• Present information accurately.
• precisely using proper terminology.
• 3. Be Complete:
• Do not out important or necessary information.
• Brevity at the expense of completeness should be avoided.
• 4. Be Concise:
• Eliminate unnecessary words but at the expense of clarity, correctness,
completeness or grammar.
Sentence Structure
• Imperative mood puts the verb that defines the action as the first
word in the sentence.
• It is the recommended method for specifications covering installation
of products and equipment. It is easily understandable and concise.
• Examples:
– Spread adhesive with notched trowel.
– Install equipment plumb and level.
– Apply two coats of paint to each exposed surface.
• Indicative mood uses the passive voice with the use of the word shall
in nearly every sentence.
• Sometimes this can create unnecessary wordiness and monotony.
• Examples:
– Adhesive shall be spread with notched trowel.
– Equipment shall be installed plumb and level.
– Two coats of paint shall be applied to each exposed surface.
• Streamlined Writing
• This technique uses a colon (:) to mean shall or shall be. Streamlined
specifications are very concise and clear to read. The subject before
the colon is helpful when scanning the specifications for keywords.
Examples:
– Adhesive: Spread with notched trowel.
– Equipment: Install plumb and level.
– Portland Cement: ASTM C 150, Type 1
• Words to Avoid
• Typically the articles a, an and the are not necessary and can be
deleted where clarity is not diminished. Avoid making an article or
pronoun out of the following words;
– such, said, and same.
– The use of the word all is usually unnecessary.
• Avoid: Install the equipment plumb and level.
– Such accessories shall be silver plated.
– Polish same floor with wax.
– Store all millwork under shelter.
It is not necessary to dwell on each of these steps in detail. Advice,
however, that applies in particular to specifications is:
• Be positive. Omit statements that indicate lack of knowledge or
uncertainty.
• Exclude requirements that cannot be enforced.
• Give direction, not suggestions.
• Give specific numerical data: values, maximum and minimum
tolerances.
• Don't be vague with the use of such phrases as 'Good workmanship',
'easily cleaned', 'readily accessible' .
• Specify the contractor's responsibilities to subcontractors and third
parties.
• Check and re-check alpha-numeric references to specifications and
standards quoted.
• Be realistic and do not specify the unattainable.
• Write in the imperative style: 'Conduct the following tests ... etc.' in
preference to the passive 'The following tests shall be conducted ...
etc.‘
• Be precise in the use of language and avoid:
• Vague adjectives: good, fine, smooth, rough, high, low, large, small.
• Adjectival strings: 'main circuit control switch', which could mean 'Control
switch in the main circuit'; 'Main switch in the control circuit'; or 'A switch in
the main control circuit.'
st nd
Brief Specifications of 1 class, 2
rd
class and 3 class buildings
General Specifications of a First Class
Building
• Foundation and plinth - Foundation and plinth shall be of l-class
brickwork in lime mortar of 1:6 cement mortar over lime concrete or
1:4:8 cement concrete.
• Damp proof course - D.P.C shall be 2.5 cm (1") thick cement concrete
1:1.5:3. mixed with one kg of Impermo per bag of cement or other
standard water proofing materials as specified and painted with two
coats of bitumen.
• Superstructure - Superstructure shall be of l-class brickwork with lime
mortar or 1:6 cement mortar. Lintels over doors and windows shall
be of R.C.C.
• Roofing- Roof shall be of R.C.C stab with an insulation layer and lime
concrete terracing above, supported over R.S. Joists or R.C.C. beams as
required. Height of rooms shall not be less than 3.7 m (12 feet).