---
title: "What is project? How is building project estimated"
subject: "Estimating and Costing"
chapter: 5
key: "semester_7/estimating_and_costing:project-building-estimate-how"
source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/project-building-estimate-how
site: BCT Engineering
---

# What is project? How is building project estimated

Estimating and Costing · Chapter 5: Project Estimate

- Asked in: 2076 Chaitra, 6 marks
- Video: [Construction Estimations and Costing - Basic Concept (QS Quantity Surveyor vs. Billing Engineer)](https://www.youtube.com/watch?v=Ko9Gyv0WLXE) — Factual Civil Engineering
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/project-building-estimate-how
- Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-5

## Question

What is Project? How is a building project estimate prepared?

## Short answer

A project is a temporary undertaking to create a unique product. A building estimate is prepared by collecting drawings and specifications, taking out item-wise quantities, preparing a bill of quantities, analysing rates, preparing the abstract of cost with contingency and VAT, and writing the report.

## Answer

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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which method is used for the preliminary estimate and which for the detailed?
   A. Item-wise for preliminary; plinth-area for detailed
   B. Both use only plinth area
   C. Both use only tender rates
   D. Plinth-area rate for preliminary; item-wise quantities (long/short wall or centre-line) for detailed
   Answer: D. Detailed estimates are item-wise. (Key point: Methods)

2. What is the abstract of quantities?
   A. Combining the same items into a bill of quantities
   B. The final tender price
   C. A list of the contractor's machines
   D. A report of completed work
   Answer: A. It groups the same items from different parts. (Key point: Abstract of quantities)

3. How is the abstract of cost made?
   A. Total quantity divided by rate
   B. Quantity x rate for every item, then add contingency (about 5%), supervision, work-charged establishment and VAT 13%
   C. Add only labour
   D. Subtract contingency from the total
   Answer: B. This gives the total project cost. (Key point: Abstract of cost)

## Related in Estimating and Costing

- [Tasks in preparing building project estimate](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aworks-considered-building-project-estimate) — Estimating and Costing, chapter 5, asked 2×
- [Estimate, quantity survey, estimated vs actual](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aestimate-quantity-survey-actual) — Estimating and Costing, chapter 1
- [Requisites of project estimate; factors](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arequisites-project-estimate-factors) — Estimating and Costing, chapter 5
- [Preparing a detailed estimate of a building](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aprepare-detailed-estimate-building) — Estimating and Costing, chapter 2, asked 4×
- [Procedure of preliminary estimate (office building)](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aprelim-estimate-procedure-office) — Estimating and Costing, chapter 3, asked 2×
- [Define project; irrigation project estimate](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aproject-irrigation-estimate) — Estimating and Costing, chapter 5, asked 4×

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