What is project? How is building project estimated

A project is a temporary undertaking with a definite objective, scope, time and budget to create a unique product - for example, a building.

Preparing a building project estimate

1. Collect the data: architectural and structural drawings, specifications, soil report, site visit, and the District Rate list.
2. Decide the method of estimate: the preliminary estimate may use the plinth-area rate; the detailed estimate uses item-wise quantities (long-wall and short-wall or centre-line method).
3. Take out quantities: list the items in the order of work - earthwork, foundation (PCC, masonry), plinth, superstructure (RCC, brickwork), roof, plaster, flooring, doors and windows, painting, sanitary and electrical works. Each item is entered with its number, length, breadth and height, and its quantity in the proper unit.
4. Prepare the abstract of quantities (bill of quantities) by combining the same items.
5. Rate analysis: calculate the rate for each item from material, labour, equipment and overhead.
6. Abstract of cost: quantity × rate for every item; then add contingency (about 5%), supervision, work-charged establishment and VAT 13% to find the total.
7. Prepare the report: include a description, drawings, specifications, quantities, rate analysis and the abstract of cost for approval.