ESTIMATION – WORKED EXAMPLES

EXAMPLE 1: Estimating of excavation works for soft soil (manually)

Estimate the cost of excavating 1 m³ soft soil if the cost of unskilled labour is RM
50 per day and allowing 15% for profit.

Data given:

Labour time involved in excavating 1 m³ of soft soil = 1.5 hrs

Labour time involved in cart-away 1 m³ of soft soil = 1.5 hrs

Solution:

Total labour time involved = 1.5 hrs + 1.5 hrs = 3.0 hrs

1 day = 8 hours working

Given, labour cost = RM 50 per day

= RM 50/8 hrs
= RM 6.25 per hour

For 3.0 hours = 3.0 hours x RM 6.25/hour

= RM 18.75

Allow 15% profit margin,

= 15/100 x RM 18.75
= RM 2.81

The cost of excavating 1 m³,

= RM (18.75+2.81)
= RM 21.56

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EXAMPLE 2 : Estimating of excavation works for rock (manually)

Estimate the cost of excavating 1 m³ rock if the cost of unskilled labour is RM 30

per day and allowing 15% for profit.

Data given:

Labour time involved in excavating 1 m³ of soft soil = 8.0 hrs

Labour time involved in cart-away 1 m³ of soft soil = 2.0 hrs

Solution:

Total labour time involved = 8.0 hrs + 2.0 hrs = 10.0 hrs

1 day = 8 hours working

Given, labour cost = RM 30 per day

= RM 30/8 hrs
= RM 3.75 per hour

For 10.0 hours = 10.0 hours x RM 3.75/hour

= RM 37.50

Allow 15% profit margin,

= 15/100 x RM 37.50
= RM 5.625

The cost of excavating 1 M³ rock,

= RM 37.50 + RM 5.625
= RM 43.125 or
= RM 43.15

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EXAMPLE 3 : Estimating of excavation works (by machine)

Estimate the cost of excavating 1 m³ of soft soil using CAT 300, capacity
Output per hour is 8 m³
Data given:

Cost of excavator = RM 120,000.00

Interest rate = 10% per annum
Installment period = 5 years
Life span of excavator = 5 years
Diesel = RM 1.00/liter
Lubricating oil = RM 5.00/liter
Driver = RM 50/day
Unskilled labourer = RM 20/day
Assume repair & maintenance = 2% per years
Assume cost of transportation to site = 1% per year
Assume excavator can work = 200 days/year & 8 hours/ day
Allow 15% profit margin

Solution:

Cost of owning excavator

Cost of excavator = RM 120,000.00

Interest cost over 5 years = RM 120,000.00 x 10/100 x 5

= RM 60,000.00

Repair & maintenance cost = 2/100 x RM 120,000.00 x 5

(life span) = RM 12,000.00

Cost of transportation to site = 1/100 x RM 120,000.00 x5

(life span) = RM 6,000.00

Cost of owning excavator over 5 years = RM 120,000 + RM 60,000 +

(life span) RM 12,000 + RM 6,000
= RM 198,000.00

Therefore,
Cost of owning excavator for 1 hour = RM 198,000
200 day x 5 years x 8 hours

= RM 24.75

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Operating cost of excavation per day

Driver = RM 50
Unskilled labour = RM 20
Diesel (assume 36 liter/day) = RM 1/liter x 36 liter
= RM 36
Lubricating oil (assume 2 liter/day) = RM 5/liter x 2 liter
= RM 10

Therefore, operating cost per day = RM 50 + RM 20 + RM 36 +

RM 10
= RM 116.00

Therefore, operating cost/ hour = RM 116/8 hours

= RM 14.50

Cost of owning &

operating cost per hour = RM 24.75 + RM 14.50
= RM 39.25/hour

Output excavator per hour = 8 m³

Therefore, cost of excavating 1 m³ of soft soil including 15% profit margin

= RM 39.25/hour x 115
8 m³ x 100

= RM 5.64 or RM 5.65

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EXAMPLE 4 : Estimating of backfilling

Estimate backfilling works if the unskilled labours cost RM 50/day and the cost of
1 m³ of imported soil to site is RM 6. Allow for profit margin 15% and
consolidation is 20%.

Solution:

Imported soil = RM 6 /m3

Labour output for backfilling = 0.75 hr/m3

Labour Cost for backfilling = 0.75 hr/m3 x RM 50/8 hr

= RM 4.69

Material cost for 1 m3 = RM 6 x 1.2 (including 20% consolidation)

= RM 7.20

Allowing 15% profit margin,

Cost for backfilling = Labour + material

= RM (4.69 + 7.20) x 1.15

= RM 13.67

##incase of using machineries- just add machineries cost of rental with the
consideration of their output and operating cost

EXAMPLE 5 : Estimating of backfilling of hardcore using compactor

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Filling hardcore average level of 100mm thick with hardcore - m2
Aggregate for hardcore = RM 35/m3
Rental of compactor = RM 60/day (inclusive of fuel)
Compactor output = 15m2/hr
Output for labour to spread hardcore = 0.15 hr/m2
Labour cost = RM 40/day

100 mm thick hardcore /m2 = RM 35 /m3 x 0.1 m / 1 x 1 m

= RM 3.50 /m2

25% consolidation = 25% x RM3.50

= RM 0.88 /m2

Labour cost to spread hardcore= 0.15 hr x RM 40/8 Hr = RM 0.75 /m2

Labour cost per hour

Labour cost to compact using compactor = RM 40/8 hr = RM 5.00

Compactor cost per hour = RM 60/8 hr = RM 7.50

Total = rm 5.00 + rm 7.50 = 12.50

Output Compactor = 15 m2/hr RM 12.50/ 15m2 = RM 0.83 /m2

# Cost compaction /m2 inclusive of 15 % profit

= RM (3.50 + 0.88 + 0.75 + 0.83 )x 1.15
= RM 6.85 /m2

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EXAMPLE 6 : Estimating of concrete work (by machine & manually)

Estimate the cost 1 m³ of thick [Link] concrete mix slab based on the following
data:

Cement = RM 9/bag
Sand = RM 6/m³
Aggregate = RM 15/m³
Skilled labour = RM 50/person/day
Unskilled labour = RM 20/person/day
Cost of mixer = RM 15,000.00
Interest rate = 10% per annum
Installment period = 5 years
Life span of mixer = 5 years
Diesel = RM 1.00/liter
Lubricating oil = RM 5.00/liter
Assume repair & maintenance = 2% per years
Assume cost of transportation to site = 1% per year
Assume mixer can work = 200 days/year & 8 hours/ day
Allow = 15% profit margin
Allow = 50% shrinkage for concrete
Output of mixer per hour = 2.5 m³/hour

a. Mixing by concrete mixer

b. Mixing by manually

Solution: 1. Mixing by machine

a. Cost of owning mixer

Cost of mixer = RM 15,000.00

Interest of mixer over 5 years = RM 15,000 x 10 x 5

100
= RM 7,500.00

Cost of repair & maintenance = RM 15,000 x 2 x 5

(life span 5 years) 100
= RM 1,500.00

Cost of transportation to site = RM 15,000 x 1 x 5

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(life span 5 years) 100
= RM 750.00

Cost of owning mixer over 5 years = RM 15,000 + RM 7,500 +

RM 1,500 + RM 750
= RM 24,750.00

Therefore, cost of owning mixer/day = RM 24,750

5 x 200

= RM 24.75

b. Operating cost mixer per day

1 Skilled labour = RM 50
4 Unskilled labour = RM 20 x 4
= RM 80

Diesel (assume 10 liter/day) = RM 1/liter x 10 liter

= RM 10
Lubricating oil (assume 1/2 liter/day) = RM 5/liter x 1/2 liter
= RM 2.50

Cost of operating mixer per day = RM 50 + RM 80 + RM 10 +

RM 2.50
= RM 142.50

Therefore, cost of mixing concrete per day (owning cost + operating cost)

= RM 24.75 + RM 142.50
= RM 167.25

But output of mixer per hour is 2.5 m³/hour

Therefore, output of mixer per day = 2.5 m³/hr x 8 hr

= 20 m³

Therefore, cost of mixing 1 m³ of concrete

= RM 167.25x1.15/20
= RM 9.62

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c. Material cost

For [Link] concrete mix, assuming that

• 1 m³ of cement, 28 bag of cement is used
• 2 m³ of sand is used
• 4 m³ of aggregate is used

1 m³ of cement = RM 9/bag x 28 bag

= RM 252.00

2 m³ of sand = RM 6/m³ x 2
= RM 12.00

4 m³ of aggregate = RM 15/m³ x 4
= RM 60.00

Cost for 7 m³ of concrete (material cost) = RM 252 + RM 12 + RM 60

= RM 324.00

Add for 50% shrinkage for 7 m³ of concrete = RM 324 x 50/100

(material cost) = RM 162.00

Total cost for 7 m³ of concrete (material cost) = RM 324 + RM 162

= RM 486.00

Therefore, cost of 1 m³ of [Link] concrete (material cost)

= RM 486/7
= RM 69.43 or RM 69.45

Therefore, cost of 1 m³ of [Link] concrete inclusive 15% profit margin

= cost of material + cost of machine

= RM (69.45 x 1.15) + 9.62

= RM 89.49 (ready mix)

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Cost of pouring

Output of the pouring at slab = 6.5hr /m3

Output for pouring at beam or column = 8 hr/m3

Labour cost for pouring = 6.5 hr x RM 20/8 Hr = RM 16.25 x1.15

= RM 18.69

Therefore cost of material + mixing and pouring = RM 89.49+ RM 18.69

= RM 108.18 /m3

Therefore, cost 1 m³ of 0.25 m thick concrete slab of [Link] mix inclusive 15%
profit margin

= [ RM 108.18 x 1 m x 1 m x 0.25 m ]

= RM 27.045

Solution: 2. Mixing by hand

Labour cost of mixing

Cost of mixing

Output for mixing = 2 Hr /m3

Skill Labour cost = 2 hr x RM 50/8hr = RM 12.50 (mixing)

Labour cost for pouring = 6.5 hr x RM 20/8 Hr = RM 16.25 (pouring)

Therefore, cost of 1 m³ of [Link] concrete inclusive 15% profit margin

= [cost of mixing + pouring 1 m³ + cost of material ] x 1.15

= [RM 12.50+16.25 + 69.45] x 1.15

= RM 112.93

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additional

Reinforce concrete G25-ready mix concrete or – to pour the concrete

crane rental = RM 400/day

crane output pouring concrete = 15m3/day
5 labour pouring concrete each labour RM40

Solution

Material cost = RM 69.45

Mixing using machine = RM 9.62

Crane rental = RM 400/day

Labour = RM 200/day

Cost for pouring/m3= RM 600/ 15m3

= RM 40 /m3

Therefore cost of mixing, and pour concrete using rental crane per m3 =
RM (69.45 + 9.62 + 40 )x 1.15

= RM 136.93 /m3

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