ESTIMATION BASICS & TERMS

ESTIMATION : done to find out the anticipated cost of work before the construction starts 

VALUATION : done after the construction 

ESTIMATE : Probable cost calculated based on drawings , specification , current rate

TYPES OF ESTIMATES

PRELIMINARY ESTIMATE 

• PLINTH AREA : only plinth area is considered. ( L x B ) (less accurate) 

• CUBIC RATE : height is also considered (L X B X H ) 

• APPROXIMATE QTY : running meter

DETAILED ESTIMATE 

• REVISED : made if amount exceeds > 5% of sanctioned estimate > 10% during construction material deviation occurs 

• SUPPLIMENTARY ESTIMATE : if extra additional works occurs 

• SUPPLIMENTARY & REVICED : work completed within 95 % of sanctioned amount. 



TERMS 

I. CONTIGENCIES : expenses for unexpected work 3 - 5 % 

II. ANNUAL REPAIR & MAINTANANCE : 1 - 1.5 % 

III. TOOLS AND PLANTS : for big projects separate estimate for tools and plants required 1 - 1.5% 

IV. WORK CHARGE ESTABLISHMENTS - salary for supervisors , watchman etc. 1.5 - 2% 

V. ELECTRIFICATION, SANITARY, WATER SUPPLY FITTINGS : 20 % 
• Electrification - 8 % 
• Sanitary - 8 % 
• Water supply fittings - 4 % 

VI. CENTIAGE CHARGES : engineering department takes up the work of other department. 10 - 15 % 

VII. CONTRACTORS PROFIT : 10 % 

VIII. OVERHEAD COST : all indirect costs 

• General overhead : establishment charges , stationary, postage, travel, printing , rent , tax 
• Job overhead : supervision, workman compensation, amenities of labor, handling of materials 

IX. SHEDULE OF RATE : list of various item of work , prepared and maintained by engineering department, also has wages of labor , transport etc. ( schedule of rate book ) 

X. DAY WORK : costing of work based on actual labor and materials required 

XI. M BOOK : payment to the contractor is done on the basis of m book 


AREAS 

I. PLINTH AREA 
• total built up area at floor level of any stories 
• Courtyard, car porch, verandah, balcony, cantilever projections, open areas are not included 
• Exterior dimension of a building excluding plinth offset 

II. FLOOR AREA 
• Plinth area - wall area 

III. CIRCULATION AREA 
• Horizontal circulation area - 10-15%
• Vertical circulation area - 4-5% 

IV. CARPET AREA 
• Usable / livable / lettable area 
• Floor area - ( circulation area, verandah, bathroom, kitchen, corridor, passage, lift, staircase etc 
• For private buildings 50-65% 
• For public building 60-75%

PREVIOUS YEAR QUESTIONS BASED ON BASICS & TERMS 


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