--- title: "Estimating, purpose and data required" subject: "Estimating and Costing" chapter: 1 key: "semester_7/estimating_and_costing:estimating-purpose-data-required" source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/estimating-purpose-data-required site: BCT Engineering --- # Estimating, purpose and data required Estimating and Costing · Chapter 1: Introduction - Asked in: 2082 Bhadra, 1+1+4 marks; 2076 Asoj, 1+3+2 marks; 2075 Chaitra, 3+3 marks; 2073 Shrawan, 2+2+2 marks; 2070 Chaitra, 3+5 marks; 2065 Shrawan (old course), 5 marks (asked 6 times) - Video: [Estimating & Costing Lecture # 2. (Data Required for Preparation of Estimate)](https://www.youtube.com/watch?v=GTcI2b0noEo) — Practical Civil Engineer - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/estimating-purpose-data-required - Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-1 ## Question What is estimating? Why should an estimate be prepared before construction work? Describe the data required for the preparation of an estimate. ## Short answer Estimating is the process of calculating probable quantities and cost before construction. It is prepared to know project cost, obtain approval, plan materials and labour, and serve as basis for tendering and cost control. Data required include drawings, specifications, prevailing rates, site conditions, and quantities. ## Answer #### What is estimating? Estimating is the process of calculating, in advance, the quantities of the various items of work and the likely cost of a project from its drawings, specifications and current rates. The result, the **estimate**, is the expected cost before the work is done. #### Why an estimate is prepared before construction 1. To know the **probable cost**, so the client can decide whether the project is affordable and worth doing. 2. To obtain **administrative and financial approval** and a budget. In Nepal, public work cannot start without an approved estimate and budget allocation (Public Procurement Act and Regulation). 3. To fix the **cost estimate for tendering**; bids are compared against it, and it helps judge abnormally low or high bids. 4. To prepare the **bill of quantities** and the quantities of materials, so purchase and storage can be planned. 5. To estimate the **labour, equipment and time** required, and prepare the work programme. 6. To control cost during the work and compare with the actual expenditure. 7. To decide the **payment and fund flow**, and to compare design alternatives. #### Data required for an estimate - **Drawings:** plans, elevations, sections, foundation and structural details, and schedules of doors, windows and finishes. Without complete drawings, quantities cannot be taken out. - **Specifications:** the quality of materials and workmanship (for example cement mortar 1:4, M20 concrete, Fe 500 steel), so that the correct rate can be applied. - **Rates:** the District Rate (published yearly by the District Rate Fixation Committee), the DUDBC norms for labour and material consumption, and local market rates for items not covered. Rates of materials, labour, transport (lead), and the contractor's overhead and profit are needed. - **Site data:** site conditions, soil type, water table, distance of material sources (lead), and access. - **Quantities:** the work quantities taken out item by item, using the units of IS 1200 / the Nepal standard methods of measurement. - **Other data:** the applicable taxes (VAT 13%), contingency, price-adjustment and the contract conditions. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What is estimating? A. Calculating in advance the quantities of work and the likely cost from drawings, specifications and current rates B. Recording the money actually spent after the work is finished C. Measuring the completed work for the final payment D. Fixing the tender price after bids are received Answer: A. Estimating is a forecast made before the work from drawings, specifications and rates. (Key point: Definition) 2. Why must an estimate exist before public work in Nepal starts? A. It replaces the need for drawings B. Approval and budget allocation are given on the basis of the approved estimate C. It fixes the actual final cost exactly D. It is needed only to pay the contractor's VAT Answer: B. Public work cannot begin without an approved estimate and budget allocation. (Key point: Approval and budget) 3. How does the estimate help in tendering? A. It is handed to bidders as the contract price they must accept B. It removes the need for a bill of quantities C. Bids are compared against it, helping judge abnormally low or high bids D. It is used to select the site Answer: C. The cost estimate is the reference against which bids are checked. (Key point: Use for tendering) 4. Which sources of rates are needed for an estimate? A. Only the contractor's quoted lump sum B. Only the actual bills of a previous project C. Only the bank interest rate D. District Rate, DUDBC norms and local market rates for items not covered Answer: D. Rates come from the District Rate, DUDBC consumption norms and local market rates. 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