Project Estimate

Project

A project is a temporary, one-time undertaking with a defined objective, scope, budget, schedule and a clear start and end, carried out to create a unique product or facility. An irrigation project, for example, aims to bring water to a command area through a diversion weir, canals and structures.

Data required for an irrigation project estimate

1. Topographic and survey data: contour map, longitudinal profile and cross-sections of canal alignment, command area map.
2. Hydrological data: river discharge records, flood levels, rainfall, water requirement of crops (duty/delta).
3. Geological and soil data: bed material at weir site, soil type along canal, seepage, bearing capacity.
4. Design drawings: layout plan, weir and canal designs, drawings of all structures.
5. Quantities: earthwork, concrete, masonry, gabion, steel, etc., from the drawings.
6. Rates: District Rates, rate analysis and norms of DUDBC/Department of Irrigation, lead and lift for materials, transport, taxes.
7. Land and social data: land to be acquired, compensation, crops, forest and environmental clearance, resettlement.
8. Specifications and time: construction method, season, work programme.

Sub-heads of the detailed estimation report

The report contains an introduction, abstract of cost, detailed estimate sheets, rate analysis, specifications, drawings and a construction programme.

An estimator turns drawings and specifications into a complete cost by taking into account every work that is needed to complete and hand over the building, not only the visible main work.

Works and tasks to be considered

1. Study of drawings, specifications and site: read plans, sections, structural and service drawings; visit the site for access, soil, water and power.
2. Preliminary and site works: site clearance, setting out, temporary shed and store, fencing, water and electricity for construction, soil test.
3. Substructure: excavation, PCC, foundation (footing, plinth beam), masonry in substructure, DPC, backfilling, plinth filling.
4. Superstructure: columns, beams, slabs, brick or block walls, lintels, staircases, parapet, formwork and reinforcement.
5. Finishing works: plaster, flooring, tiles, skirting, doors and windows, painting, whitewash, ceilings, railings.
6. Roofing: truss or slab, CGI sheet, waterproofing, rain-water pipes.
7. Services: sanitary and plumbing, drainage and septic tank, water tank, electrical wiring, fittings, earthing, fire safety, lift (if provided).
8. External works: boundary wall, gate, paving, drains, landscaping.
9. Rates and taxes: rate analysis from District Rates, overhead and profit, VAT 13%, insurance, contingencies (usually 5%), supervision charges, price adjustment.
10. Bill of quantities and abstract: measure each item, group them into a BOQ, and prepare the abstract of cost.

Items such as seismic details (NBC 105, NBC 201/202), approval fees and the municipality's requirements are also included.

A sewerage project collects and carries the wastewater of a town through a network of pipes to a treatment unit and a safe disposal point. Its detailed estimate is prepared after the survey and design are complete.

Data required

1. Survey: topographic map, road network, levels and slopes, location of outfall and treatment site.
2. Population and flow data: present and design-year population (usually 20 years), per-capita water supply (typically 100–135 lpcd in towns), sewage flow = 80% of water supply, peak factor.
3. Hydraulic design: pipe diameters, gradients (self-cleansing velocity not below 0.6–0.75 m/s, not above about 3 m/s), manhole spacing (30–50 m), depth of cover.
4. Soil and groundwater data for trench excavation, shoring and dewatering.
5. Drawings and specifications: layout, longitudinal sections, manhole details, treatment plant design.
6. Rates: District Rates for excavation, pipes, concrete, brickwork, labour, transport; land and wayleave data; environmental and social data.

Sub-heads of sanitary works

• Preliminary: survey, investigation, design, supervision.
• Land and compensation (treatment site, wayleave).
• Excavation, shoring, dewatering, bedding and backfilling of trenches.
• Supply, laying, jointing and testing of sewer pipes (trunk, main, lateral).
• Manholes, drop manholes, inspection chambers, flushing and ventilating arrangements.
• House connections and gully traps.
• Pumping station (if gravity flow is not possible) and electromechanical works.
• Treatment plant (screen, grit chamber, sedimentation, stabilisation pond or similar) and outfall.
• Restoration of road surface, miscellaneous and contingencies, supervision, VAT.

Specimen detailed estimate report for a small sewerage scheme

Report headings: (1) introduction and project description, (2) design basis, (3) abstract of cost, (4) detailed quantities and rate analysis, (5) specifications, (6) drawings, (7) work programme. Illustrative abstract of cost (quantities and rates are assumed):

Total estimated cost = NPR 25,042,608.

A project is a set of planned, interrelated activities with a clear objective, definite scope, limited time and a fixed budget. A road project is the construction (or upgrading) of a road of a defined standard between two points.

Estimation of a road project

1. Survey and design data: reconnaissance and detailed survey, centre line, longitudinal section, cross-sections, traffic and soil (CBR) data, design standard (Nepal Road Standard 2070), drainage and structure design.
2. Quantities are taken out from the drawings:
   • Earthwork in cutting and filling from cross-sections (mean-area or prismoidal method); rock excavation separately.
   • Sub-base, base course, wearing course (bituminous or concrete).
   • Drainage: side drains, culverts, causeways, bridges.
   • Protection works: retaining and breast walls, gabion, bio-engineering.
   • Road furniture: signs, kilometre stones, guard stones, markings.
3. Rates from the District Rates and norms, with lead and lift for materials and plant (roller, grader, paver, tipper).
4. Abstract of cost: the cost of all items is totalled; overhead and profit, physical contingency (5%), supervision and administration, environmental mitigation, price adjustment and VAT 13% are added.
5. Report: introduction, design standards, quantities and rate analysis, abstract, specifications, drawings and construction programme.

Land acquisition and utility shifting are included as separate heads.

Project

A project is a one-time, temporary undertaking carried out by a team with limited resources to create a unique product, service or facility (for example a road, bridge, building or water supply scheme).

Characteristics of a project

1. Definite objective: it is done to achieve a clear goal.
2. Unique: each project differs in location, design and conditions.
3. Temporary: it has a start date and an end date.
4. Limited resources: budget, labour, materials, equipment and time are fixed.
5. Complexity: several disciplines and organisations (owner, designer, contractor, consultant) work together.
6. Risk and uncertainty: weather, geology, price change and delay affect it.
7. Life cycle: it passes through conception, planning, execution and closing.

Stages of estimating a project

A project estimate is prepared in steps, each making the cost more accurate than the last.

1. Identification (preliminary/approximate estimate): the need of the project is established and a rough cost is obtained from plinth-area rate, cost per km, or cost of a similar project. This is used for a feasibility decision and budget allocation.
2. Survey and investigation: topography, soil, geology, hydrology and traffic data are collected to decide the layout.
3. Design and drawings: the project is designed and detailed drawings and specifications are prepared.
4. Quantity calculation: the quantity of each item is measured from drawings and placed in a bill of quantities.
5. Rate analysis: rates of items are fixed from norms, material and labour rates, lead and lift, transport, overhead and profit.
6. Detailed estimate and abstract of cost: cost of each item is calculated and added; contingency, supervision, escalation and VAT are included.
7. Preparation of the report: the estimate report with drawings, specifications, calculations and rate analysis is written.
8. Approval and tendering: competent authority approves the estimate; it becomes the basis for tender evaluation. Later, revised or supplementary estimates cover changes during construction.

A technical report is a formal document that records the facts, calculations, findings and recommendations of a technical work, so that a decision-maker can act on it. For a project (estimate) report, the main characteristics are:

1. Accuracy: facts, quantities, rates and calculations are correct and checked.
2. Clarity and simplicity: plain language, short sentences, defined technical terms, tables and figures instead of long text.
3. Conciseness and completeness: only the necessary information, but nothing important is missing (scope, data, method, results).
4. Logical organisation: standard order - title page, summary, introduction, data and method, results, discussion/abstract of cost, conclusions and recommendations, appendices.
5. Objectivity: based on facts and measurement, not opinion or bias.
6. Audience orientation: matched to the reader (owner, engineer, financing agency, approving authority).
7. Proper presentation: numbered headings, tables, drawings, references and units, consistent format.
8. Documentation: source of data, standards (NBC, DUDBC norms, NRS), assumptions and calculations are listed.
9. Usefulness: gives clear conclusions and recommendations for approval, tendering and construction.

Requisites for a project estimate

An estimate can be prepared properly only when the following are available:

1. Drawings: plans, elevations, sections and detailed drawings of all items, to scale and dimensioned.
2. Specifications: the quality of materials and workmanship for every item.
3. Rates: current District Rates for materials, labour and equipment, with rate analysis of non-scheduled items.
4. Site data: survey, soil and geological reports, access, lead and lift of materials.
5. Norms and standards: DUDBC norms, Nepal Building Code, Nepal Road Standard, units of measurement.
6. Policy data: provisions for contingency, overhead, profit, VAT and supervision as per the Public Procurement Act and Rules.

Factors considered in a building project estimate

• Type and purpose of the building (residential, school, hospital) and its quality of finish.
• Location and site condition: soil, water table, slope, access, local availability of materials and labour.
• Seismic zone and structural system - load-bearing or RCC frame, as per NBC.
• Cost of materials, labour and transport: changes in market rates and seasons.
• Time: shorter completion time needs more machinery and overtime cost.
• Construction method and equipment: mixers, lifts, scaffolding.
• Services and external works: sanitary, electrical, water supply, fire safety, boundary wall.
• Taxes, overhead, profit, contingency (5%), escalation and supervision cost.

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 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 order of work - earthwork, foundation (PCC, masonry), plinth, superstructure (RCC, brickwork), roof, plaster, flooring, doors and windows, painting, sanitary and electrical works. Each has its dimensions, number, length, breadth, height, and quantity in proper units.
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, specification, quantities, rate analysis and the abstract of cost for approval.

Project estimate

A project estimate is the calculated cost of completing a project, found from the quantities of all works, their rates and the other charges. It is used to get approval, fix the budget and decide the tender price.

Preparing a project estimate

1. Study the project needs and collect the survey, design, drawings and specifications.
2. Prepare a preliminary (approximate) estimate to check feasibility.
3. Take out quantities of all items from the drawings.
4. Analyse rates using norms and District Rates.
5. Calculate the cost of each item (quantity × rate) and prepare the abstract of cost.
6. Add contingency (about 5%), supervision, price escalation and VAT 13%.
7. Write the report and send it for approval.

Reports on estimate

1. Preliminary report - the need and feasibility of the project with a rough cost.
2. Detailed estimate report - quantities, rate analysis, specification, drawings and abstract of cost.
3. Revised report - when the estimate is exceeded by more than a permissible limit or the plan is changed.
4. Supplementary report - for additional work not in the original estimate.
5. Completion report - after completion, comparing actual cost with the estimate.

The detailed estimate report of a road project tells the approving authority what is to be built, how much it costs and on what basis. It has the following components.

Format of the abstract of cost:

The estimate of a water supply project is prepared by finding the quantities of all works from the design, applying rates, and adding the other charges.

Steps

1. Data: population (design year, 20 years ahead), demand (about 45–135 lpcd depending on the scheme), source discharge, topographic survey, pipe-network design and drawings.
2. Components to be estimated: intake and source protection; transmission main; sedimentation/filtration and chlorination; reservoir tank; distribution network; valve and break-pressure chambers; tap stands or house connections; land and compensation; survey, design and supervision.
3. Quantities of excavation, pipe, masonry, concrete, backfilling and fittings are measured from the drawings.
4. Rates from District Rates and DUDBC norms, with lead and lift for pipes and materials.
5. Abstract of cost with contingency 5%, supervision, VAT 13% (and price escalation if the period is long).

Illustrative estimate for a small gravity scheme

Assumptions: 25 public taps for about 1,000 people, quantities and rates are illustrative.

Total estimated cost = NPR 18,842,976 (about NPR 18,843 per person).