A Laboratory Manual for

Engineering Economics, Estimation

and Costing (3170615)

B.E. Semester 7 (Civil)

Government Engineering College, Valsad

Directorate of Technical Education

Gandhinagar, Gujarat
 Government Engineering College, Valsad

Certificate
This is to certify that Mr./Ms. ___________________________________
________ Enrollment No. _______________ of B.E. Semester _____Civil
Engineering of this Institute (GTU Code: _____ ) has satisfactorily completed
the Practical / Tutorial work for the subject Engineering Economics,
Estimation and Costing (3170615) for the academic year 2023-24.

Place: __________
Date: __________

Name and Sign of Faculty member

Head of the Department

 Preface

The basic aim of laboratory/practical/field work is to enhance the required skills as well as
creating ability amongst students to solve real time problem by developing relevant competencies
in psychomotor domain. By keeping this in view, GTU has designed competency focused
outcome-based curriculum for engineering degree programs where sufficient focus is given to the
practical work. It shows importance of enhancement of skills amongst the students and pays
attention to utilize every second of time allotted for practical amongst students, instructors and
faculty members to achieve relevant outcomes by performing the experiments rather than having
merely study type experiments. It is must for effective implementation of competency focused
outcome-based curriculum that every practical is keenly designed to serve as a tool to develop
and enhance relevant competency required by the various industry among every student. These
psychomotor skills are very difficult to develop through traditional chalk and board content
delivery method in the classroom. Accordingly, this lab manual is designed to focus on the
industry defined relevant outcomes, rather than old practice of conducting practical to prove
concept and theory.

By using this lab manual students can go through the relevant theory and procedure in advance
before the actual performance which creates interest and students can have basic idea prior to
performance. This in turn enhances pre-determined outcomes amongst students. Each experiment
in this manual begins with competency, industry relevant skills, course outcomes as well as
practical outcomes (objectives). The students will also achieve safety and necessary precautions
to be taken while performing practical.

This manual also provides guidelines to faculty members to facilitate student centric lab activities
through each experiment by arranging and managing necessary resources in order that the
students follow the procedures with required safety and necessary precautions to achieve the
outcomes. It also gives an idea that how students will be assessed by providing rubrics.

Engineering Economics, Estimation and Costing is the fundamental course which helps in taking
out quantities of materials and estimating. It provides a platform for students to apply the basic
principles of Estimation and Costing to solve real life problems.

Utmost care has been taken while preparing this lab manual however always there are chances of
improvement. Therefore, we welcome constructive suggestions for improvement and removal of
errors if any.
 Practical – Course Outcome matrix

Course Outcomes (COs):

CO1: Apply the basics of economics and cost analysis to engineering and take economically sound
decision making.
CO2: Prepare rate analysis, specifications, tenders and contract of different civil work.
CO3: Prepare approximate and detailed estimate of a civil engineering work.
CO4: Utilise software for working out quantities of items of civil works.
CO5: Solve examples on valuation of properties/ buildings.
Sr. CO CO CO CO CO
Objective(s) of Experiment
No. 1 2 3 4 5

1. Introduction to engineering economics. √

2. Introduction to estimate √

3. Unit and mode of measurement √

Detailed Estimates of Residential Building and R.C.C. works

4. √

Detailed Estimates of Road works & Irrigation Works

5. √

6. Specifications and Rate Analysis √

7. Tenders and contracts √

8. Valuation of land and buildings √

9. Use of Software for Calculation of Quantity √

10.

11.

12.

13.

14.
Industry Relevant Skills

The following industry relevant competencies are expected to be developed in the student by
undertaking the practical work of this laboratory.
1.
2.

Guidelines for the Faculty members

1. Teacher should provide the guideline with demonstration of practical to the students
with all features.
2. Teacher shall explain basic concepts/theory related to the experiment to the students before
starting of each practical.
3. Involve all the students in performance of each experiment.
4. Teacher is expected to share the skills and competencies to be developed in the
students and ensure that the respective skills and competencies are developed in the
students after the completion of the experimentation.
5. Teachers should give opportunity to students for hands-on experience after the
demonstration.
6. Teacher may provide additional knowledge and skills to the students even though not
covered in the manual but are expected from the students by concerned industry.
7. Give practical assignment and assess the performance of students based on task
assigned to check whether it is as per the instructions or not.
8. Teacher is expected to refer complete curriculum of the course and follow the
guidelines for implementation.

Instructions for Students

1. Students are expected to carefully listen to all the theory classes delivered by the faculty
members and understand the COs, content of the course, teaching and examination scheme,
skill set to be developed etc.
2. Students shall organize the work in the group and make record of all observations.
3. Students shall develop maintenance skill as expected by industries.
4. Student shall attempt to develop related hand-on skills and build confidence.
5. Student shall develop the habits of evolving more ideas, innovations, skills etc. apart from
those included in scope of manual.
6. Student shall refer technical magazines and data books.
7. Student should develop a habit of submitting the experimentation work as per the schedule
and s/he should be well prepared for the same.

Common Safety Instructions

Write safety instructions here if applicable
 Index
(Progressive Assessment Sheet)

Sr. Objective(s) of Experiment Page Date of Date of Assessme Sign. of Remar

No. No. perform submiss nt Teacher ks
ance ion Marks with date

Total
Engineering Economics, Estimation and Costing

Experiment No: 01

Introduction to Engineering Economics

Date:

Competency and Practical Skills:

Relevant CO: Apply the basics of economics and cost analysis to engineering and
take economically sound decision making.
Objectives: (a) To understand technical and economic efficiency.
(b) To carryout break even analysis.
(c) To take decision among various alternatives.
.

Q.1 Define Economics. Also discuss the flow of goods, services, resources and
money payments in a simple economy with the help of diagram.
Q.2 Differentiate between technical efficiency and economic efficiency by giving
examples.
Q.3 Define break-even point. Draw a break-even chart and explain its components.
Q.4 Write short note on
(i) Law of Supply and demand
(ii) Concept of Engineering Economics
(iii) Scope of Engineering Economics
(iv) Benefit-Cost Ratio
(v) Cash flow diagram
Q.5 The construction company has the following details:
• Fixed Cost = Rs. 30,00,000/-
• Variable cost per unit = Rs. 150/-
• Selling price per unit = Rs. 300/-

Find:
(i) The break-even sales quantity
(ii) The break-even sales
(iii) If the actual production quantity is 90,000, find (i) contribution and
(ii) margin of safety by all method.
Q.6 A builder is considering three methods of acquiring pick-up trucks, the
alternatives are,
• Purchase the truck for Rs. 16,80,0000/- each and sell after 4 years for an
estimated amount of Rs. 5,00,000/-

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Engineering Economics, Estimation and Costing

• Lease the trucks for 4 years for Rs. 4,10,000/- per year paid in advance at
the beginning of each year. The builder pays all operating, maintenance
cost for the trucks, and leasing company retains ownership.
• Purchase the truck on special time payment with Rs. 4,00,000/- down
payment now and Rs. 4,50,000/- per year at the end of each year. Assume
the truck will be sold after 4 years at Rs. 5,00,000/-
If the builder’s minimum attractive rate of returns is 8%, which alternative used?
Quiz:(Sufficient space to be provided for the answers)
1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

2
Engineering Economics, Estimation and Costing

Experiment No: 02

Introduction to Estimate
Date:

Competency and Practical Skills:

Relevant CO: Prepare approximate and detailed estimate of a civil engineering

work
Objectives: (a) To understand various methods of estimating
(b) To understand purposes of estimating.
(c)

Q.1 Define estimate and explain various purposes of estimate.

Q.2 Discuss in details various methods of approximate estimate.
Q.3 Define the followings:
i) Technical sanction,
ii) Administrative approval,
iii) Contingencies,
iv) Work charged establishment,
v) Overhead cost,
vi) Schedule of Rate,
vii) Prim cost,
viii) Spot Item,
ix) Day Work,
x) Provisional Sum.

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

3
Engineering Economics, Estimation and Costing

References used by the students:

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

4
Engineering Economics, Estimation and Costing

Experiment No: 03

Unit & Mode of Measurement

Date:

Competency and Practical Skills:

Relevant CO: Prepare approximate and detailed estimate of a civil engineering

work
Objectives: (a) To understand general principles and rules of measurement of
various items of works.

Q.1 What are the general principles for deciding the units of measurements of various
items of work?
Q.2 What are the general rules to be adopted for the measurement of various items
of works?
Q.3 Discuss various mode of measurement and deduction rules as per the provision
of IS:1200 for the followings:
(i) Excavation or Earth Work
(ii) Concrete Work (PCC & RCC)
(iii) Brick Work
(iv) Plastering Work
(v) Steel work

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

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Engineering Economics, Estimation and Costing

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

6
Engineering Economics, Estimation and Costing

Experiment No: 04

Detailed Estimates of Residential Building and R.C.C. works

Date:

Competency and Practical Skills:

Relevant CO: Prepare approximate and detailed estimate of a civil engineering

work
Objectives: (a) To carry out detailed estimating of building.
(b) To carry out estimating of RCC structure.

Q.1 Write short note on:

(1) Long wall short wall method (2) Center line method.
Q.2 Prepare detailed estimate for residential building using Long Wall – Short wall
Method for Figure: 1.

Figure : 1- Residential Building

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Engineering Economics, Estimation and Costing

Q.3 Prepare detailed estimate of a RCC beam with bar bending schedule for
Figure: 2

Figure : 2 – RCC Beam

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

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Engineering Economics, Estimation and Costing

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

9
 Engineering Economics, Estimation and Costing

Experiment No: 05

Detailed Estimates of Road works & Irrigation Works

Date:

Competency and Practical Skills:

Relevant CO: Prepare approximate and detailed estimate of a civil engineering work
Objectives: (a) To carry out detailed estimate of earthwork of road and canal.

Q.1 Work out the quantity of earthwork for a portion of a road by a mean sectional
area method from the following data. Formation width of road is 8.00 m. side
slope 2:1 in banking and 1.5:1 in cutting. The length of chain is 20m. Formation
level at chainage 20 is 70.00m & upward gradient 1:200 throughout.
Chainage 20 21 22 23 24 25 26 27 28 29 30
G.L 71.20 71.25 70.90 71.25 70.80 70.45 70.20 70.35 69.10 69.45 69.70

Q.2 Calculate the quantity of earth work for an irrigation canal from the data given
below:
Chainage in m 0 30 60 90 120 150 180
RL of Ground 600.00 601.00 601.50 600.00 599.00 597.50 598.00
RL of Bed 595.00 594.98 594.96 594.94 594.92 594.90 594.82
The bed width of the canal is 3.0m and the top width of the banks are 2.50m on
either side. The side slopes of excavation and filling are 2:1. Height of banks
from bed is 9.50m throughout. Width beyond toe is 1.50m.
(i) Estimate also the cost of earthwork @ 150/- per cum.
(ii) Calculate area of permanent land also cost @ 60000/- per hectare
(iii) Calculate economical depth of excavation

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

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Engineering Economics, Estimation and Costing

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

11
Engineering Economics, Estimation and Costing

Experiment No: 06

Specifications and Rate Analysis

Date:

Competency and Practical Skills:

Relevant CO: Prepare rate analysis, specifications, tenders and contract of different
civil work
Objectives: (a) To understand importance and principles of writing specifications.
(b) To carry out analysis of rate for various items of works.

Q.1 Define specification. What are the purpose and importance of writing
specification?
Q.2 Discuss the essential principles of writing good specifications.
Q.3 Write detailed specifications for the following:
(1) Earth work in excavation in foundation.
(2) First class brickwork in CM (1:6)
(3) Reinforced Cement Concrete – RCC (1:1.5:3)
(4) 20mm thick sand faced outside plaster

Q.4 Define rate analysis. State factors affecting rate analysis.

Q.5 Carry out rate analysis for the following items
1) Cement concrete 1:4:8 for foundation
2) RCC work in slab and beam (1:2:4)
3) First class brick work in super structure in C.M. 1:6
4) 12mm thick cement plaster in C.M. 1:4

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

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Engineering Economics, Estimation and Costing

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

13
Engineering Economics, Estimation and Costing

Experiment No: 07

Tenders and Contracts

Date:

Competency and Practical Skills:

Relevant CO: Prepare rate analysis, specifications, tenders and contract of different
civil work
Objectives: (a) To understand types and procedure of tendering.
(b) To understand types and conditions of contract.

Q. 1. Define Tender. Give detailed classification of tenders.

Q. 2. Describe the procedure of scrutiny of Tenders.
Q. 3. Write short note on: Liquidated damages and Unliquidated damages.
Q. 4. What is meant by Unbalanced Tender? What are the purpose of filling an
unbalanced tender? Explain giving example of it.
Q. 5. Attach 5 Tender and Contract Notice from Newspaper and bring out
important details from it.
Q. 6. Define the term Contract and explain various types of Contracts.

Q. 7. Explain Earnest Money Deposit and Security Deposit in Detail.

Q. 8. Explain in detail Condition of Contract with its objects and importance.

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

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Engineering Economics, Estimation and Costing

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

15
Engineering Economics, Estimation and Costing

Experiment No: 08

Valuation of land and buildings

Date:

Competency and Practical Skills:

Relevant CO: Solve examples on valuation of properties/ buildings

Objectives: (a) To understand types and methods of valuation of properties.
(b) To determine proper rent and income from the building.

Q. 1. Explain different methods of Valuations for Building and Land.

Q. 2. Define various type of value.
Q. 3. Explain (i) Years purchase (ii) Capitalized value (iii) Sinking Fund
Q. 4. Find out year wise depreciation for the first five years of the building
constructed at the cost of Rs. 15,00,000 and having life 40 years and Salvage
value is Rs. 1,50,000.
Q. 5. Workout the standard rent of newly constructed building with f following
data:
• Construction cost of Building: Rs. 10,00,000
• Land Cost: Rs. 4,00,000/-
• Net return Rs. 7 % on construction and 4 % on land
• Annual repair is 0.5 % of Total Cost of construction
• Municipal taxes and other outgoings excluding sinking fund are 25 % of
gross rent
• Life of Building 60 years
• Scrap value 10 %
• Rate of Interest of redemption of capital 6 %
Q. 7. Details of Residential property are as under
• Cost of Construction: Rs. 12,00,000/-
• Monthly rent available Rs. 10,000/-
• Government taxes 6 % of net income
• Water supply and sanitation charges Rs. 1000 per year
• Repairs and maintenance 1 % of Cost of Construction
• All other remaining outgoings 25 % Of Gross income
• Calculate yearly income of this property
Quiz:(Sufficient space to be provided for the answers)
1.
2.
3.
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Engineering Economics, Estimation and Costing

Suggested Reference:<to be provided by the faculty member>

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

17
Engineering Economics, Estimation and Costing

Experiment No: 09

Use of Software for Calculation of Quantity

Date:

Competency and Practical Skills:

Relevant CO: Utilize software for working out quantities of items of civil works.
Objectives: (a) To understand the use of excel in preparing estimate.

Q. 1. Prepare excel sheet showing calculation of quantity for residential building

shown in Figure-1 (Tutorial-4). Also prepare excel sheet showing abstract
sheet for Figure-1.

Q. 2. Prepare excel sheet showing calculation of quantity for road works and
irrigation works given Tutorial-5.

Quiz:(Sufficient space to be provided for the answers)

1.
2.
3.

Suggested Reference:<to be provided by the faculty member>

18
Engineering Economics, Estimation and Costing

References used by the students: (Sufficient space to be provided)

Rubric wise marks obtained:

Rubrics 1 2 3 4 5 Total
Marks

19