Lecture-1 Jan

Estimating and costing Factors affecting value:

Valuation: 1. Demand and supply: Depends on the number of buyers and availability of
It is a technique of estimating or determining the fair price or value of a seminal property.
property such as a building, a factory, any other engineering structure, land 2. Cost of construction: The present cost construction due to change in price
etc. at a stated time in terms of money. It is called as present value of the index. Variation in prices of material from time to time due to several
property. reasons.
[Link]: It plays a important role in assessing value. Property in the busy
The value of the property depends on the type of structure, age, future life, market area, easily accessible to main parts of city may have higher value.
maintenance, repairs, location, bank interest, legal control etc.
The present value of property may also be decided by its selling price, 4. Rented: The property is tenanted or the rent is controlled by 'Rent control
income (rent) from that property etc. and it primarily depends on purpose of act'
the valuation. 5. Rise in population: Due to the limited resources, the cost will increase

Purpose / Necessity: 6. Amenities: Municipal Water supply, sewage, public transport

7. Rate of interest: Current rate of interest by scheduled banks
1. Buying or selling property: Many a times valuation is done for the 8. Government policy: Many governments advocate having the individuals
purpose of buying or selling a property. their own residential accommodation by waiver in income taxes.
2. Taxation: Valuation is required for the purpose of local body (Municipal) 9. Abnormal situations: Insecure conditions like wars, public riots, civil
tax, wealth tax, estate duty, property tax , capital gains tax. Stamp fee agitations,
3. Rent fixation: Re)nt for government buildings and structures are fixed on •
the certain amount of valuation (generally 6 to 10%, it basically depends Cost: It is the original cost of construction or the price of purchase which
upon the rate of interest) includes all the expenses incurred on it. The cost of old property reduces due
4. Mortgage or security for loans: when loans are taken against the security to its usage (wear and tear)
of a property valuation is required.
[Link] acquisition: Whenever the property has to be acquired by law, Value: Value means its worth or utility, it varies from time to time and
compensation is paid to the owner on the basis of value of the property. depends on demand and supply, utility and events. If it is sold in the open
6 Insurance: The value of insurance amount of many authorised insurance market, the value may have no relation with its cost of procurement.
companies depend upon the value of the property.
7. Betterment: The value of the property increase due to modification or
additional amenities To decide up on the improvement of the osmotic value Price: This includes cost of production, all the expenses, rate of interest and
or to keep the property up to date with the latest trends valuation is needed. reward to the producer for his services and risk. The selling price if a
8. Speculations: In cases of fast growing cities (areas) the people may want to commodity is fixed.
purchase a property for the sake of investment and sell it on a later date. It is
generally lesser than the market value.
9. Partition: For dividing the joint property according to their share.

1 1P a g e Section: C RVR K P r a s a d A-126 KDKCE, Nagpur

 .
Differentiation of cost and value: 6. Loss of rent: The property may not be kept fully occupied;
Cost Value 7. Miscellaneous: These include the common electricity bills, charges for
Definition It is actual cost of It is the present market running lifts and pumps, etc
construction value
Depends It depends on all the It depends on demand and
expenses incurred on it supply Scrap value: It is t he value of the property at the end of its utility period by
Variable It is a constant amount It varies from time to time dismantling. It is the cost accumulated by selling the dismantled materials
like bricks, stones, timber(doors), steel, fittings, rubbish material (malba) etc.
Gross Income: It is the total income from a property. It includes all the The cost of dismantling and removal of rubbish is to be deducted from the
receipts from various sources, and outgoings. amount received. In case of machines, it the cost of metal . It is usually taken
as 10% of the total cost of construction. However sometimes it may be zero
Net income (net return): This the final savings or the amount left after or even negative.
deducting the outgoing including operational and collecting expenses from
the gross income (total receipt); .'. Net income = gross income - out goings. Salvage value: It is t he value of the property at the end of its utility period
without being dismantled. Generally machines after their useful life (or it
The income may be perpetual (receivable over an indefinite period), became uneconomical to operate). The person purchasing it may use it for
terminable income and/ or Differed income (receivable after a lapse of any other purpose. It doesn't include the cost of removal.
certain period)
Differentiation of scrap and salvage vales:
Out goings: These are the expenses which are required to be incurred to Scrap value Salvage value
maintain the revenue and function of the building. Various outgoings are: Mode of It the value after its useful The value after its economic life
1. Taxes: These include Municipal taxes, wealth tax, property tax etc.. sale life by dismantled parts without dismantling
Generally these values are fixed on the annual rental value of the property form Purchaser of it generally It can be treated as sale of an
after deducting for annual repairs etc. uses as raw material asset, if the purchaser uses it
2. Maintenance: These are required to be carried out every year to maintain a after.
property in a fit condition . This is usually 10-15% of the gross income or 1- use It is used in finding out It is used for fining out
l'/2 month's rent. depreciation and sinking depreciation and sinking fund
3. Repairs: These are required to be carried out whenever they require, for the fund
upkeep of the property. Some of them may be avoidable, but many are Quantity It may be positive, zero or It may be positive, or zero value
unavoidable. The repairs are not carried out in the proper time. These are even a negative value
around 1 tol !/•> % of the total construction cost.
4. Management and collection charges: These include the expenses on the Market value: It is the value of a property obtained at any particular time
rent collector, watchman (chaukidar), lift operator, pump attendant, sweeper from the open market, if it is put for sale. It differs from time to time
(Farash) etc. depending upon the demand and supply, changes in trends (fashion), changes
5. Sinking fund: in technology, approachabilily and cost of transport (location) etc.
2 | Page Section: C RVRK Prasad A-126 KDKCE, Nagpur
 .
Book Value: It is the amount shown in the ledges of account books. It is Replacement value: It is the present value of the property or a portion thereof
found from the original cost and deductions are made for the wear and tear if these have to be replaced (rehabilitate) at the current market value as per
(depreciation). Any suitable method for that property is used to determine the the current trends.
depreciation. ( Sinking fund method is best suited for structures and constant .Potential value: It is the value of property, capable of fetching more return
percentage method is suitable for machines) due to its alternative use by development ( cinema hall to a commercial
Rentable value: Rentable value is the net annual letting value of a property, complex)
which is obtained after deduction of outgoings from the gross income. This is
generally required by local authorities to fix the taxes. Monopoly value: Certain properties possess special advantages due to its
location, scarcity etc.
Differentiation of Market value and Book value:
Market value Book value Sentimental value; This may be due to sentiments of the public, seller /
Value This varies according to its This value always reduces as purchaser attachments with the property, ideal for a purchaser,
demand. It may increase or per the usage/ age
decrease. Speculative value: Speculating the current agricultural / barren land may
Increase The value generally increases The value cannot increase in develop in to the urban area at future date due to the facilities going to come
in subsequent years due to subsequent years up in that area.
price index
Evaluation It is determined by the It is determined by its cost Accommodation value: It is the agricultural / barren land surrounding the
purchaser and depreciation urban area in an intension to convert that land after obtaining approval from
Applicability It is applicable for any type It is not applicable to land, the competent authority.
of property metals, especially for Occupation value: If a property is purchased for an intention to occupy for
precious metals like gold the personal use, which is regarded as necessity and no satisfactory substitute
purpose It is generally considered for It is considered for accounts exist, it is known as occupation value.
valuation purposes in the balance sheets
Depends It depends on demand, It doesn't depend upon Distress value: The property sold at lower price than the market value. This
supply and development demand and supply may be due to financial difficulties of the seller, court decree, insufficient
knowledge and advertisement on behalf of seller, quarrel among partners,
Assessed value: Value as it is recorded in municipal registers wars, riots,

Obsolescence: The value of a property suddenly falls due to change in trends Reversionary value: Reversion means right to possess the property at the
in design, style (structure becoming out of fashion) is known as end of the term granted to the tenant or the lessee. This is generally used in
obsolescence. The obsolescence is mainly due to change in the life styles, case of properties like land. The present value of an amount deferred for a
changes in fashion, changes in arts, changes in planning, new inventions, certain period at a fixed rate of interest. The reversion period is from the date
improvements in technology etc. of lease to date of possession after the expiry of the lease. It is important to

3 | Page Section RVR K P r a s a d A-126 KDKCE, Nagpur

note that, for calculating the reversionary value the present value of the land Sinking fund: The fund which is gradually accumulated by way of periodic
is considered and not the apprehended rate at the time of taking possession. (annual) deposits for the replacement of the property at its original capital
(Ex: A lease has been granted to a land for 20 years, the market value of cost at the end of its useful life. This is generally done by taking a sinking
which at present rate is Rs. 1,00,000/-. As the land has been leased the owner fund policy with insurance companies. It is calculated on the amount of
cannot sell the property immediately, he has to wait for 20 years to realize the construction cost after deducting for the scrap/salvage value. In this cost of
amount. However, if he want to sell the property immediately, he receives a land is not taken in to account. This is for the redemption of capital.
revisionary value of Rs. 1,00,0007- at 20 years reversion at a fixed rate of The sinking fund account may also be created for the purpose of paying term
interest compounded annually. Reversionary value = 1,00,000 7(l+i)n loans, if the property is owned from a loan amount.
If I - 8%,-> RV = 1,00,00071.0820 =21,455) Sinking fund/annum, SF = (P — 5) X
'
Annuity: Annuity is an annual periodic payment. It is generally the For SF = (P - S) x fs ; where f is the factor for sinking fund. And S is the
repayment (return) for the capital amount invested. These annual payments Scrap/Salvage value.
are made at the end of year or the beginning of the year. If the annuity
continue for indefinite time , it is known as 'perpetual annuity'. If the If someone wants to cater for inflation in costs, P and S can be suitably
annuity is paid for a definite number of years it is known as 'annuity certain'. replaced, otherwise it is presumed to be calculated on original capital cost.
If the annuity is paid at the beginning of year itself it is known as 'Annuity
due'. If the payments of annuity continue at some future date after a period of Capital recovery factor (CRF):
time, it is known as 'Differed income'
The capital recovery factor, 'fc' is used to find out the uniform annual
Capital cost: It is the total cost of the property including the cost of amount *A' required to be paid for a known capital cost at a given rate of
construction, [Link] etc. It is the original total amount required to possess the interest and period. It is popularly known as EMI, however in this contest it
property. It is the original cost and doesn't change. is important to note that it is yearly payment and not monthly. A = P x fc

Capitalised value: It is the amount of money (value of property in terms of i (i+0 n

Capital recovery factor, fc = — = (1 + i) n x fs
money), such that the annual interest on the capitalized value should be equal
to the net income.
Capitalised value = Net annual income x Years purchase
CV-NIxyp
Years Purchase: It is the ration of capitalized value and net annual income.
This idea can be conceived as the number of years of (net) income required to
be invested to purchase the property. Or it the number of annuities to required
to procure a property.
As; A = P x I (P/A)-(l/i) /. y p = l / i
i
If the property is not perpetual, yp =—7 where fs factor for sinking fund
i+A

4 1P a g e Section R VR K Prasad A-126 KDKCE, Nagpur

Depreciation: It represents the reduction in market value of an asset due to 2. Double Declining balance (DDB) depreciation method
age, wear and tear and obsolescence. The physical deterioration of the asset
occurs due to wear and tear with passage of time. Obsolescence occurs to due In this method, the ratio of depreciation amount in a given year to the book value
to availability of new technology or new product in the market that is at the beginning of that year is constant for all the years of useful life of the asset
superior to the old one and the new one replaces the old even though the old As this ratio is twice (200%)the straight-line depreciation rate i.e., the method is
one is still in working condition. The examples of tangible assets for which known as double-declining balance (DDB) method.
the depreciation analysis is carried out are construction equipment, buildings,
machinery, vehicles, etc. Double-declining balance (DDB) method is the most commonly used declining
balance method. Another declining balance method that uses depreciation rate
Depreciation is considered as expenditure in the cash flow of the asset, equal to 150% of the straight-line depreciation rate
although there is no physical cash outflow. Depreciation affects the income
In double-declining balance (DDB) method, d = 2/n. The depreciation during the
tax by allowing deduction in the taxable income..
early years is more as compared to that in later years of the asset's useful life.
Methods for calculating Depreciation:
In case of declining balance method, It is important to ensure that, the asset is not
1 Straight-line (SL) depreciation method:-
depreciated below the estimated salvage value. If the book value of the asset
2 Double-declining balance method
reaches its estimated salvage value before the end of useful life, then the asset is
3 Constant (fixed Jpercentage method (Declining balance depreciation method)
not depreciated further.
4. Sum-of-years-digits (SOYD) depreciation method
5. Sinking fund (SF) depreciation method
[Link] (fixed Jpercentage method Declining balance (DB) depreciation
method):-
1. Straight-line (SL) depreciation method:-
It is the simplest method of depreciation. In this method it is assumed that the
It is an accelerated depreciation method. In this method the annual depreciation is
book value of an asset will decrease by same amount every year over the useful life
expressed as a fixed percentage of the book value at the beginning of the year and
till its salvage value is reached. In other words the book value of the asset
is calculated by multiplying the book value at the beginning of each year with a
decreases at a linear rate with the time period.
(P-S) fixed percentage. The ratio of depreciation in a given year to the book value at the
The depreciation/year, D = D = beginning of that year is constant for all the years of useful life of the asset.
P -^-Capital cost, S-> Scrap/salvage value, (P-S) -»the total amount of depreciation
n -^ usuful/ depreciable life in years over which the asset is depreciated Thus this method is also sometimes known as declining balance method of
The book value at the end of 1st year is equal to initial cost less the depreciation in depreciation. Here the rate of percentage is found in such a way that the book
the 1st year and is given by; Bl = P - D value of the asset reaches its estimated salvage value at the end of useful life.
Book value at the end of at the end of 2nd year; B2 = Bl - D or B2 = P - 2xD
.-. The generalized expression for book value at the end of any given years' m ' can Bm = & D - d)m-l d
be written as follows; Bm = P - m x D
For the book value at the end of useful life is theoretically equal to the salvage
ss\/n
value of the asset. S = P(l - d~)n or d = 1 - [~\K P r a s a d A-12

5 | Pa ge Section: C
Example -1 iii) Constant percentage method:
The initial cost of a piece of construction equipment is Rs.3,50,000. It has useful life 1/10
The percentage of depreciation ,d = l — (-} = 1 — [—'• } =0.17683
of 10 years. The estimated salvage value of the equipment at the end of useful life \pj V3,50,ooo/
is Rs.50,000. Calculate the annual depreciation and book value of the construction i..e.; 17.683%
equipment using (i) straight-line method (ii) double-declining balance method. Depreciation for the 1st year, Dl = P x d = 3,50,000 x 0.17683 = 61,890
And (iii) Constant percentage method Book value at the end of 1st year,Bl = P - Dl = 3,50,000 -61,890 = 2,88,110
Depreciation for the 2nd year, D2 = Bl x d - 2,88,110 x 0.17683 - 50,947
Solution: Book value at the end of 2nd year,B2 = 61-02=2,88,110 -50,947 = 2,37,163

i) For straight-line method, Depreciation for the mth year, Dm - Bm_1 x d = P(l - d}m~l d
3,50,000-50,000 Depreciation for the 2nd year,D 2 = 3,50,000(1 - 0.17683)2-1 0.17683 = 50947
the depreciation amount ,D = D1=D2= 10
= 30,000
Total Depreciation at the end of myears,,r_Dm = P[l - (1 - d)m]
Total Depreciation at the end of 2 years,,T_ D2 = 3,50,000[1 - (1 - 0.17683)2]
The book value at the end of a given year is calculated by subtracting the annual
= 1,12,837
depreciation amount from previous year's book value.
Book value at the end of mth year, Bm = P(l - d)m
Book value at the end of I5t year,Bl = P - Dl = 3,50,000 -30,000 = 3,20,000
Book value at the end of 2nd year, B2 = 3,50,000(1 - 0.17683)2 = 2,37,163
Book value at the end of 2nd year,B2 = B1-D2=3,20,000 -30,000 - 2,90,000
— See the table for the remaining values
Book value at the end of 3rd year,B3 = B2-D3=2,90,000 -30,000 = 2,60,000
Or Book value at the end of 3rd year,B3 =p-m xD = 3,50,000-3x30,000 = 2,60,000 0
— See the table for the remaining values
J
"Iduie ;
ii) For double-declining balance method ,
Yr Straight line method Double decline method Constant % method
the constant annual depreciation rate 'dm1 is given by; d =2/n = 2/10 = 0.2
Deprecia Book Deprecia Book Deprecia Book
Dm = 6m-1 x d tion (Rs) Value(Rs) tion (Rs) Value(Rs) tion (Rs) Value(Rs)
Depreciation for the 1st year, Dl = P x d = 3,50,000 x 0.2 = 70,000 —
0 — 3,50,000 3,50,000 — 3,50,000
Book value at the end of 1st year,Bl = P - Dl = 3,50,000 -70,000 = 2,80,000
1 30,000 3,20,000 70,000 2,80,000 61890.06 288109.9
Depreciation for the 2,nd
nc year, D2 = Bl x d - 2,80,000 x 0.2 = 56,000
2 30,000 2,90,000 56,000 2,24,000 50946.12 237163.8
Book value at the end of 2no year,B2 = B1-D2=2,80,000 -56,000 = 2,24,000
3 30,000 2,60,000 44,800 1,79,200 41937.38 195226.4
Depreciation for the 3rd year, D3 = B2 x d = 2,24,000 x 0.2 = 44,800
4 30,000 2,30,000 35,840 1,43,360 34521.65 160704.8
Book value at the end of 2nd year,B3 = B2-D3=2,24,000 -44,800 = 1,79,200
5 30,000 2,00,000 28,672 1,14,688 28417.23 132287.6
.-. Book value at the end of m years, Bm = P(l - d)m
6 30,000 1,70,000 22,938 91,750 23392.24 108895.3
B3 = 3,50,000(1-.02)3 = 1,79,200
Depreciation for the mth year, Dm = Bm_a x d = P(l - d)™"1 d 7 30,000 1,40,000 18,350 73,400 19255.82 89639.5
Depreciation for 3rd year, 03 = B2 x d = P(l - d}2 d 8 30,000 1,10,000 14,680 58,720 15850.84 73788.66
=3,50,000(l-.02) 2 x0.2 = 44,800 9 30,000 80,000 ll,744-» 46,976->
Total Depreciation at the end of m years,,T_ Dm = P[l - (1 - d)m] 8,720 50,000 13047.96 60740.7
— See the table for the remaining values 10 30,000 50,000 0 50,000 10740.7 50000

6 I Pa g e Section:C RVRK Prasad A-l26 KDKCE, Nagpur

**
 ,
4. Sum-of-years-digits (SOYD) depreciation method:-
It is also an accelerated depreciation method. In this method the annual For this purpose, first the uniform depreciation amount (i.e. fixed amount
depreciation rate for any year is calculated by dividing the number of years left deposited in sinking fund) at the end of each year is calculated by multiplying the
(from the beginning of that year for which the depreciation is calculated) in the total depreciation amount (i.e. initial cost less salvage value) over the useful life by/
useful life of the asset by the sum of years over the useful life. sinking fund factor. After that the interest earned on the accumulated amount is
The depreciation rate 'dm' for any year 'm' is given by; d=(n-m+l)/(SOY) calculated. The calculations are shown below.
Illustration: for 10 years
During the Yr No. of useful life Depreciation for that year on the The first component of depreciation i.e. uniform depreciation amount 'SF' at the ,
year Remaining (incl. that yr) total amount of depreciation end of each year is given by; Sinking fund/annum, SF = (P — 5) X -———
First year 1 10 10/55
Where i = rate of interest per year on the redemption of capital
Second year 2 9 9/55
Third year 3 8 8/55
The generalized expression for depreciation in any given year 'm ' can be written as
Fourth year 4 7 7/55
Fifth year 5 6 6/55 -i- nm-1 = (p — <n v /
T L I \ J f A I

Sixth year 6 5 5/55 The generalized expression for Total depreciation up to the year 'm
Seventh year 7 4 4/55 (i + 0' m - i
Eighth year 8 3 3/55
Ninth year 9 2 2/55 The generalized expression for book value at the end of any year 'm' is given by
Tenth year 10 1 1/55
Sum of the years, SOY = n(n+l)/2 = 55
n-m+l
SOY In this method, the depreciation during later years is more as compared to that in
'" SOY
early years of the asset's useful life.

5. Sinking fund (SF) depreciation method:-

In this method it is assumed that money is deposited in a sinking fund over the
useful life that will enable to replace the asset at the end of its useful life. For this
purpose, a fixed amount is set aside every year from the revenue generated and
this fixed sum is considered to earn interest at an interest rate compounded
annually over the useful life of the asset, so that the total amount accumulated at
the end of useful life is equal to the total depreciation amount i.e. initial cost less
salvage value of the asset.

Thus the annual depreciation in any year has two components. The first component
is the fixed sum that is deposited into the sinking fund and the second component
is the interest earned on the amount accumulated in sinking fund till that year.
*
7 | Pa g e / -. ' ^f ""- Se c t i o n : C RVRK Prasad A-126 KDKCE, Nagpur
 Example -2 1.082 - 1
= 3,OQ,QOOx, _ in - - 43,704
The initial cost of a piece of construction equipment is Rs.3,50,000. It has useful life 1.0810-1
nd
of 10 years. The estimated salvage value of the equipment at the end of useful life Book value at the end of 2 year,
is Rs.50,000. Calculate the annual depreciation and book value of the construction ?
••> .
equipment using (i) sum-of-years-digits method and ii) sinking fund method. The
interest rate on redemption of capital is 8% per year.
Solution: •; / [(1.08)2 - 1]
i) For sum-of-years-digits method B2 = 3,50,000 - (3,50,000 - 50,000)x( ' _ = 3,06,926
SOY = sum of years' digits over the useful life , SOY = 10 x 11/2 =55 ' .
_ ( n - m + 1) Depreciation amount for 3 r year:
m ~ 50K (P~ ' 1.08 3-1
Depreciation for 1st year Dl — (3,50,000 - 50,000) = 54,545 D3 = 3,00,000*0.08x- = 24,155
jj 1.0810 - 1
Book value at the end of 1st year: 61=3,50,000-54,545 = 2,95,455 Total amount of depreciation till that year,
Depreciation for 2nd year D2 ~ (3,50,000 - 50,000) = 49,090 1.083 - 1
55 T_D3 = 3.00,OOOx i o 8 l Q _ i = 67,229
Book value at the end of 2nd year: B2 = 2,95,455-49,090 =2,46,365 ,nd
(P-5) m(m-l) Book value at the end of 2 year,
SOY L
mn — 2 [(1.08)3 - 1]
_ (3,50,000-50,000) 2x1 B3 = 3,50,000 - (3,50,000 - 50,000)x = 2,82,770
= 2,46,365 [(1.08)10-!]
x (2X10-
~ 55 V 2 — See the table for the remaining values
— See the table for the remaining values

ii) For sinking fund method, Yr Sum of year digit method Sinking fund method
0.08
Factor for sinking fund, fs = = 0.069029 Depreciation (Rs) BookValue(Rs) Depreciation (Rs) Book Value(Rs)
0 — 3,50,000 — 3,50,000
Sinking fund, SF = (P - 5) x = 3,00,000x0.069029 = 20,709
U+On-i 1 54,546 2,95,454 20,709 3,29,291
Depreciation amount for 1st year: 2 49,091 2,46,363 22,366 3,06,925
Dl = SF = 20,709; .'. Bl = 3,50,000 -20,709 =3,29,291 3 43,636 2,02,727 24,155 2,82,770
4 38,182 1,64,545 26,087 2,56,683
Depreciation amount for 2 nd year:
5 32,727 1,31,818 28,174 2,28,509
Dm = SF(1 + i)"1'1 = (P - 5) x ( x
[(i + O1"-1] 6 27,273 1,04,545 30,428 1,98,081
7 21,818 82,727 32,862 1,65,219
LOS2'1 8 16,364 66,363 1,29,728
- 3,00,000*0.08*-—^—- 35.491
Q 8 1 0 _ 1 = 22,366
9 10,909 55,454 38,331 91,397
m- Total amount of depreciation till that year,
10 5,454 50,000 41,397 50,000
T_Om=SF

8 P a e Section: C RVRK Prasad A-126 KDKCE, Nagpur

 .
Or Sinking fund method may be solved Step by step Switching: Switching is carried out from one depreciation method to another to
interest Deposit Total Depreciation BV accelerate the depreciation of book value of the asset and thus to have income tax
0 0 0 0 0 3,50,000 benefits. Switching takes place when depreciation amount of an asset for a given
1 0 20708.8 20708.85 20708.85 329291.2 year in the present depreciation method is less than that in the new depreciation
2 1656.71 20708.8 43074.4 22365.55 306925.6 method.
3 3445.95 20708.8 67229.2 24154.8 282770.8 The most commonly used switching is from double-declining balance (DDB)
4 5378.34 20708.8 93316.38 26087.18 256683.6 method to straight-line (SL) method. In double-declining balance method, the book
5 7465.31 20708.8 121490.5 28174.16 . 228509.5 value never reaches zero. In addition the calculated book value at the end of useful
6 9719.24 20708.8 151918.6 30428.09 198081.4 life does not match with the salvage value. Switching from double-declining
7 12153.5 20708.8 184781 32862.34 165219 balance method to straight-line method ensures that the book value does not fall
220272.3 35491.32 below the estimated salvage value of the asset.
8 14782.5 20708.8 129727.7
9 17621.8 20708.8 258602.9 38330.63 91397.08
10 20688.2 20708.8 300000 41397.08 50000

_Dec1
Const %

Snk Fund

0 8 10 12

Fig. Book value of the using different depreciation methods

9|Page Section:C RVR K P r a s ; A-126 KDKCE, Nag pur

 1
Sinking Fund: Ex3. Ex: 2 Estimate the standard rent of a lease hold property using 'Rental
Exl: Find the amount of sinking fund to be deposited at the end of every year, f o r a Method of Valuation. The present value a property is Rs.2,64,000/-. Allow 12% of
property purchased at a cost of Rs. 70,0007-. The property is an old building and the gross rent for repair and maintenance of the property. The present rate of
the bifurcation of cost is as follows: the cost of land is Rs. 30,000/- and the cost of interest on capital is 10% and rate of interest on redemption of capital is 5%.
building is Rs.40,000/- The useful life is 30 years..it is estimated that the scrap value i) Assuming the rent to be realized for a very long time
of the building structure is 10% and the rate of interest on redemption of capital by ii) useful life of the property is 25 years.
an insurance company with which the owner opened an sinking fund account is 5%. Solution:
Solution: i) The life is very long n^-co ; No sinking fund .'. yp = 1/i
Only the cost of building component needs the sinking fund and nol: the land value. yp.= 1/0.1 = 10
P = 40,000/- and S - 10% of 40,000 = 4,000 Net Income p.a. = CV/yp - 2,64,000/10 - 26,400/-
The sinking fund is requied for an amount of P-S = 36,000/- Gl = Nl + outgoings; HERE: however, Gl =NI+0.12 Gl;
0.05
Factor for sinking fund, fs =
l (1.05)30-1
= 0.01505 Gl = Nl/(l-0.12) = 26,400/0.88 = 30,000 pa or Rs.2,500/- pm

Sinking fund, SF = (P - 5) x fs = 36,000x0.01505 = fis.541.80ps

ii) Terminable income:
0.05
Ex: 2 Estimate the present value of the property using 'Rental Method of Valuation. VD = -—7 where - 0.02095
The gross rent accruing to a property is Rs.30,000/- p.a. Allow 12% of the gross
rent for repair and maintenance of the property. The present rate of interest on
yp i+/s 0.1 + 0.02095
= 8.2677
capital is 10% and rate of interest on redemption of capital is 5%. Nl =2,64,000 / 8.2677 -31,931.50/- ''
i) Assuming the rent to be realized for a very long time Gl'= 31,931.50/(1-0.12) =36,285/-
ii) useful life of the property is 25 years. [Sifli<ing fund ? SF= Px fs =2,64,000 x 0.02095=5530.8/- ] £
Solution: What he is doing with 31,931.5-26,400 =5535.5] '
Round-off error
CV = Nl x yp & yp Ex 4: The owner of a building gets a net annual rent of Rs 3,600/- The estimated
i) The life-»co ; No need for sinking fund or yp=l/i future life of the building is 12yrs.
Net income = Gross income - outgoings = 30,000 - 3,600 =26,400 If a repair worth Rs. 15,000/- is carried out immediately, the useful life of that
yp = 1/0.1 = 10 building is going to extend by another 15 years (making total life = 27yrs)
The value of the property = 26,400 x 10 = 2,64,000/- What will be your recommendation? ( ° ° ) Is it worth carrying out?
ii) Useful life of the property is limited or terminable use/income Take the prevailing rate of interest as S^rfor both capital and redemption of capital
i , i is 0.05 Solution:
yp = — whe (i.05) 25 -i
= 0.02095
• rp i+fs Present value o f t h e property: " . • . . -
i i
yp l+fs 0.1 + 0.02095
= 8.2677 i) Before repairs:
The value of the property = 26,400 x 8.2677 = 2,18,268/-
i 0.08
[Sinking fund ? SF= Px fs =2,18,268 x 0.02095-4573/- ] = °-052695
(What is the present value of 4573/- paid at the end of every yr. for 25 years) 1
= 7.536
fs 0.08 + 0.052695
10 | P a g e Section RVRK Prasad A-l 26 K D K C E , Nagpur
 Gross Income: 99,680+28,920 = l,28,600/-p.a.
r,nr
OR For same rate of*•„*
interest, yp = Q Q8 (1 Q8)12 = ~,c?r
7.536
Capitalised value, CV =7.536 x3,600 =27,130/- OR finding out Sinking fund separately
ii) If repairs were carried out . f~":
(i) from plot : yp =1/0.09 =11.111
0.08 NI = CV/yp = 6,00,000/11.111=54,0007-
•:\» ,
F — n 011448
/s (1.08)27-1 u - uil44y
ii) from building: yp = l/.ll =9.0909
1 NI = CV/yp = 4,00,000/9.0909=44,000/-
yP~ 0.08 + 0.011448 ~ 10'93 Total net income = 98,000/-
OR For same rate of interest, yp = - = 10.935
Capitalised value, CV -10.935 x3,600 =39,366/- Sinking fund = 4,00,000x 0.0042018 =1681/-
Out goings: Repairs=0.01 x4,00,000=4,000/-
The appreciation of the capitalized value after the repairs are carried out = Other outgoings=0. 25x98,000 =24,500/-
39,366-27,130=12,236 Total outgoings:- 28,500/-
Gross Income: 98,000+1681+28,500 =l,28,181/-p.a.
/. It is not economical tcucarry out the recommended repairs. (difference is due to out goings as a function of net income -> 0.25 x!681 =420/-
( (ll) it is only mathematical / academic)
Ex5. Calculate the standard rent , for a Building is constructed at a cost of
Rs.4,00,000/- on a plot of land costing Rs.6,00,000/-. For the following data; Ex.6. Determine the present value of a property comprising of a building with an
1. Assuming the useful life of the building as 60 years. useful life of 60 years on a land of 150 sq.m. The present value of land is Rs.4,000/-
2. Annual repairs at 1% of the construction cost. per sq.m. The present net rent from the property is 98,000/- p.a. Assume the
3. rate of interest on redemption of capital is 4% current rates of interest as 11% and 4% on redemption of capital. ,, f '
4. the other outgoings at 25% of the total net income Here we are having two components that differ by period of income ',:'
[Link] owner expects a return of 11% on building and 9% on the land. CV = (CV)Building + (CV)Plot
Solution: [ CV = NI x yp i) for CV of plot: one should use the reversionary method. :
Here we are having two components that differ by period of income Present cost of land = 150 x 4000 =6,00,0007-
NI = (NI)Building + (NI)Plot Factor of reversionary value, fr = l/(l+i)n = 1/1.II60 =0.0019
(i) from plot : yp =1/0.09 =11.111 CV of land = fr x cost = 0.0019 x 6,00,000 =1145/-
NI = CV/yp = 6,00,000/11. lll=54,000/~
ii) for CV of building;: fs = ^^ = 0.0042
ii) from building: fs = (10°4)°640_1 = 0.0042
yp = 1/(0.11+0.0042) =8.7564 .,
yp = 1/(0.11+0.0042) =8.7564 CV = 98,000 x 8.7564 =8,58,127/- ' . . .
NI - CV/yp = 4,00,000/8. 7564=45,680/-
Total Net Income = 54,000+45680=99,680 «: v
Total capitalized value of the property,CV = 8758,127 + 1145 =8,59,272/-
Out goings: Repairs=0.01 x4,00,000=4,OOOA
Other outgoings=0.25x99,680 =24,920/-
Total outgoings:- 28,920/-

11 I Pa e e Section: C RVR K P r a s a d A-126 KDKCE, Nagpur

 ' .

Additional nomenclature: Municipal taxes: In order 10 undertake and maintain the public uliity services, 1

Sinking Fund: It is an amount which has to be set aside at fixed intervals of time municipal authorities collects tax. The main utility works are roads, drains,
out of the gross income so that at the end of the useful life of the property, the water supply, public transport etc
fund should accumulate to the initial value of the property. After the useful life of
the properties like machines, buildings, they became useless and wit! not fetch any Differed income: It will commence after lapse of certain period. It may be
return there afterwards. Hence it is necessary to accumulate some amount with an receivable perpetually or for a limited period
intention to rebuild the property or replace the article provided that the value
remains unchanged (hypothetical) due to any inflation etc. This is for redemption Ex: Find the present value of a net income of Rs.26,0007- pa receivable only
of capital cost. for a period of 20 years, however it will commence until 5 years. The rate of
interest on capital and sinking fund as 7%
Interest on gilt edged securities Certificates of Government loans are known as Gilt
edged securities as originally they were printed on gilt edged papers. An investor • I I I I5 25
expects more safety and security for his investment. LLUJ
L
Free hold property: It is in absolute possession of owner, for an indefinite period of
time. He has the right to use that property at his free will, subjected to the
ttttttrm
jurisdiction of [Link]/She is the absolute owner of the property, no need to pay
the rent, and may sell, divide, develop, donate, lease. If he grants his property on Js ~ yp = or yp iff i = is
lease, he is called 'lessor'
- W for 25 years; yp = ^& = 11-654
Lease hold property: A property in a physical possession for a definite period under
;•
terms and conditions specified. A lease holder is known as 'lessee'. The lessee will •J&

pay rent .'. YP for 25 yrs differed by 5 years - 11.654 - 4.1 =7.554
The lease may be of:
1. Building lease: A freehold open plot of land is let out for erection of a building for
Present value, Capitalized value, CV = Nl x yp - 26,000 x 7.554 =1,96,400/-
a specified period. It is usually for longer periods: 50, 99, 999 years so on. The lease
holder pays the ground rent.
2. Occupational lease: The lease granted against the premium or rent. The
structure is already built in it, the lease holder is not required to do any
construction. It is generally for shorter periods. 7,14,21 ..years so on . The lease
holder has to maintain the property according to the terms and conditions. It is a
standard practice to incorporate a rent revision.

Sub-lease: a lease holder may render sub-lease

Life lease: till the death of a person/persons
Perpetual lease: The lease is renewable from time to time.

12 | Pa Section RVRK Prasad A-126 KDKCE, Nagpur

 NIK/KW/15 - 7520
v Chainage (rM.f " *••* ' i^. L. proposed. Bed
: ;".-.. ; (m) level (mis.) Seventh Semester B. E. (Civil) Examination
,;";',: 0 '".,.;. : .;; : '<- [Link] •••'. 242.00 ... ESTIMATING ANT) COSTING
. 0\ 500 .-'•'..VV 241.6
'* " ' ' ' ,-.
Time : Four Hours] [Max. Marks : 80
•:;;V-.;.; 1000 5v;M 241.4
- •" . . • ' " - ' - ' •- " " "' *- : '.
N. B. : (1) All questions carry marks ;is indicated.
r •/':/; 1500 ^•'"": = 24U (2) Due credit will he given t° neatness find
;idcquatc dimensions.
: ;:-;V- 2000 -.'?•'"' 241.0 (3) Assume suitable data wherever necessary.
(4) Diagrams should be given wherever neces-
OR sary. . .
(3) Illustrate your answers wherever necessary
(a) Prepare a preliminary estimate of a multistoried
with the help of ncac sketches.
office building having caipet area of 2200 sq.m. ((?) Use of non-programmable calculator is
- 35% of the carpet over will be taken up by permitted.
corridors, verandahs, lavatories, stair cases etc.
and 10% of the plinth area will be occupied by
walls. Assume plinth area rate is 3000/- per sq.m 1. (a) State the methods of preparing approximate
and 30% of total cosl for water supply, sanitary estimates for residential buildings. Explain any
fntinc and clcciric installation. Contingencies and two. 6
other services arc 107 nl' the total cost. 6 (b) Calculate the quantity of earthwork; of an irrigation
( h j [JAtimaie the quantity of earthwork for :i section channel with the following data :—
of road 120 in long and 12 m wide at crest with (i) Bed width = 4 m
'-.;dc --.Sorx: of 1.50:1. The ccniral lieiglitv from 0
(ii) Side slope is : 1 in 1 in cutting and 1 in
[Link].r;;':.- '.o 120 m ill an interval (if 2" ill arc
1.5 in banking.
070 m. 1 - i f ) m. 1.7S ID. 2.00 m. 1 .no m.
\ .'.:,:\ 20 ni itM- Mul Hv::n:;al ARM (iii) Bank Width - 2 m (either side)..
;:rf'i.-*! 7 (iv) Full supply depth = 0.80 ifi
(v) Free board is 0.40 m
(vi) Bed slope is ! in 5000 •••

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'
 . i .

OR 00 23 cm thick brick. masonry in cm 1:6

superstructure.
4.. -(a) Estimate the quantities for the following items of
(iii) Inside cement plaster in C.M. 1:5 to walls.
*/ work for the given Building Plan and section as
shown in fig. 1 8-
: (i) RCC work in slab. (b) Prepare an estimate for R.C.C. slab with the
following data :—
(ii) RCC in columns and footings. 8
* O f
(i) Room size (inside)-4.0 m(length) x 3.0m
.;;..: (b) Workout the quantity of cement concrete ([Link]) (width). ..;...• - .
^ and reinforcement in a RCC Beam with following -.( . . '. • • ' . • ' .
data :— (ii) Slab thickness-150 m. \ ,

Clear span = 3.60 m (iii) Slab is resting over the supports of columns
230 mm X 230 mm and projecting 150 mm
. Bearing = 0.30 m on either side throughout all the sides,
: '; Section of the beam = 25 cm x 35 cm (overall) (iv) Slab Reinforcement. . .:
Reinforcement = 4 bars (main) 20 mm dia out of (a) Along width : ', ^V\ r; ;
which two bars are bent up at 45°
(i) 12 mm $ M.- S. bars @ 150 mm
Anchor bars = 2 nos, 12 mm dia. JV c/c (straight).
'•f- •'
Vertical stirrups 6 mm dia @-150 mm c/c. *;' ;r '"' ' (ii) 12 mm (j) M.S. bars @ 150 mm
Also write the bar bending schedule. Assume f c/c (cranked)
suitable data if necessary. 6 - ' . ' (b) Along length :—6 mm 0 M.S bars @
180 mm c/c.
5. (a) Define tender. Explain Earnest money and security (v) The main bars are cranked alternately at a
deposit. 6 distance of 600 mm from the supports, ;,
j(b) What do you mean by contract ? Explain briefly (vi) Top and Bottom cover-15 mm. - / • -;
different types of contract with advantages and (vii)Side covcrs-20 mm.
disadvantages of any two. 7
Calculate the quantities of :— • * . • . . . . •'
•".' •" * -
Steel Reinforcement with schedule of Bars.

..
lix,/ e
. . . . .,.-/'• ' • • "

NTK/KW/15- 7520
NTK/KW/I5-7520 Contd. Contd.

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 -•,'/::-.•"•; • OR •'•" ' • " :
shutering and centering in slab.
1 ; rA; (a) State and explain the essential requirements of a
(Hi) First class -Brick [Link] CM 1:6 in , : Vulkl Contract. ^
•; ;.-•;; :, super structure. : -.;.•, ;S; (to Explain in detail the ARBITRATION. .-• 7
(Brick size 19 cm X 9 cm X 9 cm) 8

OR 7. (a) Write a detailed specification of (he following

items (any two) :—
10. (a) Explain purposes and principles of Current
(i) Second class brick masonry in CM !:6m
Schedule of Rates in detail. 6
superstructure.
(b) Give rate analysis of the following (any two)
(ii) Laying PCC [Link] mix in foundation,
Assuming the rates of materials and labours from
Nagpur city and Labour guidlines from NBO :— (iii) Excavation in foundation. 7

(i) 7.5 cm thick cement concrete flooring ([Link]) (b) State and explain various methods of cost
account tan.
(ii) P.C.C. [Link] in foundation trenches.
OR
(iii) 15 mm thick cement plaster in cm 1:4 with
2% water proofing compound. 8
8. (a) What are., objects of specification ? Explain the
different types of specifications. 7
(b) Explain MATERIALS AT SITE ACCOUNT in
11. (a) State all the methods of valuation of a building. ^ detail. 6
Explain any two. 6
(b) A building having two flats constructed with a 9. (a) Explain the various factors affecting the rate
cost of Rs. 85 lakh on a plot of land costing Rs. analysis of any terns. 6
45 lakhs. The owner expects 8% net return on
cost of construction and 5% net return on cost of (b) Give rate analysis of the following (any two).
Assuming the rates of materials- and labour from
land.
Nagpur city and Labour guidelines from XBO : —
Calculate the standard rent for each of flat of the
(i) 12 mm thick cement plaster In CM 1:4.
. -.. building assuming : .. •
(i) Expected life of building is 70 years. (ii) R.C.C. ([Link]) with 2% steel excluding

NTK/KW/15-7520 -5 Contd.

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 (ii) Outgoings are 30% of net income.
(iii) Rate .of interest for sinking fund is 9.75%.
(iv) [Link] charges @ 1.5% of the cost
of construction. ., 7

OR
12, (a) Explain the purpose of Valuation. 6
(b) Concrete vibrator was purchased at Rs. 1,50,0007
- Assuming salvage value at the end of 5th year
SPECIFICATION be Rs. 30000/-, calculate Annual depreciation,
D - 1.2 X 2 . 1 W - 1.5 X 1.2
total depreciation and book value for each year
ii—u Dl 0.9X2.1

DJ-0.7SXI.1
WL1BK06

v ~ :-° * 0 7 - using constant percentage method. 7

KITCHEN . . o 23 m in BWCKIKC.H !•**

^H, 4 - 0 * 3 - 50 FDR PARTITION [Link]. P

2! PLASTER -lUSiDf HOUGH CITE \ "lAiTtH-r f., .
tniRNAL-OOJBLf COAT S»HU '*CFC PL*.' n {..-
3) iSirr, R.C.C. LJUTH. SAND T*I(,O^(;I^...I
«! CHAJW 600 m-r. wlDf *TTh :X -- . t". fi
I W mm Of^St"

PCC orr »c! i j X

:L 6J SUro'Pllnth 3«i

8) Hoono( Stot i; of-'K "moio

•fV. 6-nm Oj nc"1! i*i [Link]-.f-w-'
at I SO "« £,•( &OP- "iw (»s > -n^f -y* • j
~t o u
rZroi! 9) Pllnt/i twim* »'t -*?. p^irto*; JT*- o»trtj-
Hoof bcairl are r>V. prefer: £tjf».|if tt»-

,
- .

3*vI *™*. •
1

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.

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 .
B.E. (Civil Engineering) Seventh Semester (C.B.S.)
Estimating and Costing
b) A RCC slab overall size 3300 mm x 6800 mm x 130mm is provided with 16mm § as main 6
P>fages : 4 TKN/KS/16/7520
steel reinforcement bent up alternately and placed @ 140 mm c/c. Alternate bars are bent
Up at 540mm from the outer edge of the slab. Distribution steel bars are of 6mm $ @ ISO Time : Four Hours 0 9 0 O * Max. Marks: 80
c/c. Assume cover as 20 mm throughout. Calculate the quantities of steel reinforcement in
bar bending schedule. (All steel bars are of mild steel) Notes : 1. AH questions carry marks as indicated.
2. Due credit will be given to nearness and adequate dimensions.
3. Assume suitable data whenever necessary.
4. Diagrams should be given whenever necessary.
c c sot _ ,j l-v— /-I fn *,j.-2_ 5. Illustrate your answers whenever necessary with the help of neat sketches.
6. Use of non programmable calculator is permitted.

1. a) Explain with suitable examples. The various methods of Calculating Approximate

Estimates.
b) The following table is an extract from the longitudinal section of a road earthwork survey.
Calculate the quantity of earthwork from the following data,
i) Formation width : 12 m
ii) Side Slopes : a) Banking-2 : 1 b) Cutting-1.5 : 1
Chainage 0 30 60 90 120 150 180
RLof Ground 99.70 99.80 100.30 100.50 100.80 100.90 100.60
RLof Formation 100.50 1 in 300(+)r--+l-—t i n 15 OR — -
OR
Prepare a preliminary estimate of a double storeyed building having carpet area of 1800m2.
It may be assumed that 30% of the built up area will be considered for corridors and
verandahs and 10% of the area to be occupied by walls
Given :
Plinth Area Rate : Rs. 1500 per m2
Water Supply and
Sanitary works ; 5% of building cost
Electrical Installation : 12.5% of building cost.
Contingencies : 10%
b) The ground levels at various chainages along centre line of a proposed road are
Chainage 21 22 23 24 25
Distance, m 0 30 60 90 120
RL of Ground 180.50 183.36 185.52 187.10 186.50

The ground has uniform cross slope of 1 in 8. The length of chain is 30m. The road
formation is proposed at uniform gradient passing through G.L. at the end chainagss with
formation width as 8 m and side slope in cutting is 1 : 1. Estimate the quantity of earthwork
for Lhc proposed road section in a tabular form.
3. a) Fig. 1 (Enclosed) shows a building plan and a section of footing of RCC frame structure
building Estimate the quantities of following items of work (any two)
i) Earthwork in excavation in footing.
ii) RCC work in column and column footing upto ground level.
iii) Brickwork in superstructure.

OR TKN/KS/16/7520 P.T.O

TKN/KS/16/7520
 .
7. a) What is specification? Explain the various types of specification. 7 4. a) Estimate the quantities of following items of work (Any Two) from the given drawing in 8
fig. 1.
b) Write a short note on 'Direct and Indirect charges'. 6 i) Filling in Plinth,
ii) RCC work in slab,
OR iii) Internal plaster to walls and ceiling.
8. a) Write a detailed specification of the following (any two) 8 -
b) Fig. 2 (Enclosed) shows the details of reinforcement of column and column footing. Assume 6
i) Earthwork in Excavation in foundation trench, cover as 25mm throughout in column and column footing both. Prepare an estimate with
bar bending schedule and calculate the quantity of steel reinforcement.
ii) Laying P.C.C. in foundation trench (Mix 1 : 4 : 8 )

iii) Second Class Brick Masonry in Superstructure,

b) Write a short note on 'MAS Accounts'. 5

9. a) Define Rate Analysis. Explain the major and minor factors affecting rate analysis. 6

b) Calculate the rate per unit item of following items (any two) 8

i) PCC([Link]) '
ii) Brick Masonry in Superstructure in C.M. 1 : 6 (Brick Size 19 cm x 9 cm x 9 cm)

iii) 20 mm thick Cement plaster in C. M. 1 : 4.

OR
10. a) What do you understand by Task work of a labourer? Explain the factors affecting 6
taskwork.

b) Calculate the rate per unit item of the following (any two) 8
i) RCC work (1 : 2 : 4) in slab (Assume 1% steel Reinforcement)
ii) Brick Masonry in superstructure in C.M. I : 4 {Brick size 23 cm x 11 cm x 7 cm)
iii) 10 cm thick cement concrete flooring ( 1 : 3 : 6 )

11. a) What is valuation? Explain in brief the various purposes of valuation. 7

b) A person has purchased an old building at the cost of Rs. 90 Lakhs on the basis thai the cost 6
of land is Rs. 50 Lakhs and the cost of building structure is Rs. 40 Lakhs. Considering the
future life of a building as 20 years. Calculate the amount of sinking fund at 4% interest,
when scrap value is 10% of the building structure.
OR
12. a) Enlist the various types of valve. Explain any two. 7
5. a) Explain the methods of carrying out Civil Engg. works in Govt. Departments,
b) A leasehold property is to produce a net annual income of Rs. 12,000 for the next 20 years. 6
b) Enlist the various types of contract and explain any two of them.
The owner expects a return of 8% on his capital and also sets apart a sinking fund to
accumulate at 6% annually to replace the capital. Determine the capitalized value of the
property.
OR

6. a) Enlist an information to be included while drafting Tender Notice. 6

********
b) Differentiate clearly between Earnest Money Deposits and Security Deposits. ' 7

TKN/KS/16/7520 TKN/KS/16/7520 3 P.T.O

.
 Estimate the quantities for the following items of work for the given building plan and B.E. (Civil Engineering) Seventh Semester (C.B.S.)
typical wail section of figure (I). Estimating and Costing
P. Pages : 3 NRJ/KW/17/4572
i) Earthwork in excavation in foundation Frenches. Max. Marks: 80
Time : Four Hours
ii) ird class brick masonry in cm 1:6 in foundation and plinth.
Notes 1. All questions carry marks as indicated.
2. Solve Question 1 OR Questions No. 2.
3. Solve Question 3 OR Questions No. 4.
[Link]> 4.5m w 4. Solve Question 5 OR Questions No. 6.
BEDE OOM 5. Solve Question 7 OR Questions No. 8.
4.2m \m 6. Solve Question 9 OR Questions No. 10.
H) D, KITCHEN I] 7. Solve Question 11 OR Questions No. 12.
E 4.2*2m Dl
WC cum f
| BATH J ),
CUM
DINING
U
8.
9-
Due credit will be given to neatness and adequate dimensions.
Assume suitable data whenever necessary.
n r
10. Illustrate your answers whenever necessary with the help of neat sketches.
DRAWING HALL
11. Use of non programmable calculator is permitted.
w, 7.5m x 1.6m f
Discuss the various method for approximate estimate of a residential structure.
1 1
1
The ground level at various stations along the centrel line of a proposed road are as under:
D,= l . 2 x 2 . J m . D = I . S x l l m ,
D = !.[Link] ation Distance R.L. Of
W= 1.2 x [Link] (m) Ground at centre(m)
W,= I x 1.5m
V=0.25*0.25m (Figurc 11 0 150.50
12 30 153.36
I , 13 60 155.52
Section x-x ([Link]) 14 90 157.10
15 •» . 120 156.50
Workout the quantity of steel reinforcement in bar bending schedule for RCC beam of size
230mm x 350mm x 4800mm. It has 2 NOS of 16mm ij> straight and 2 No's 12 mm ij) bent up The ground has uniform cross slope of lin 8 the chain is 30m long. The road
at bottom and 2 No's 1 Omm§ at top M.S. Reinforcement with 6mmif stirrups @200mm c/c. formation is proposed at uniform gradient passing through the G.L. at end chainage with
formation width as 8m and side slope in cutting as 1:1.
Assume cover as 25mm throughout (top, bottom& side)
Estimate the quantity of earthwork for the proposed road section.
OR
OR
The accompanying decurring (Q. 3.a) Shows building plan and typical wall section
prepare centre line plan and estimate the quantities of the following item of work,
i) Brick work in super structure, Prepare a preliminary estimate of a double stareycd building having carpet area of
ii) Internal plaster of wall surface. 2000m2. It may be assumed that 30% of the built up area will be considered for corridors
and verandahs and 10% of the area to occupied by walls.
b) A RCC slab overall size 3500mm x 7000mm x 125mm is provided with 12mm $ as main
i) Plinth area rale : Rs. 1700perm .
steel reinforcement bent up alternately placed @150mm c/c. Alternate bare arc bent up at
560 mm from the outer edge of the slab. Distribution steel bars are of 6mm <ji @200mm c/c. : 5% of building cost.
ii) Water supply and sanitary work
Assume cover as 20mm throughout. Calculate the quantities of steel reinforcement in bar
bending schedule. iii) Electrical installation : 12.5% of building cost.
a) Enlist the objectives of preliminary estimate and enlist methods for preparing the iv) Contingencies : 10%
preliminary estimate.
b) What arc various method of calculating Detailed estimated? Explain centre line method.

NRJ/KVWl 7/4572 NRJ/KW/17/4572 P.T.O

\) Define the term "Contract"
and disadvantages of any two.
1

OR

6. a) Explain the method of carrying out civil Engg. Works in Govt. Departments.
t
b) Enlist an information to be include while drafting lender notice.

7. a) What do you understand by specification. Explain the points and principles to be consider
while drafting the detailed specification.

b) Draft detailed specification for the following items any two.

i) Brick Masonry in CM 1:6 in superstructure,
ii) 12 mm thick internal cement Plaster to wall surface,
iii) Laying ! :4:8 pec in foundation trenches.

OR

8. a) Enlist the different types of specification. What are the object of specification,

b) Explain 'direct and indirect charges'.

9. a) Define Rate analysis. Explain factor affecting it.

-•
b) Work out the rate analysis for the following items.

OR

10. a) What is task work ? Explain the factor affecting a task work of labour.

b) Calculate the rate per unit item of work for any two item of work.
i) Brick work Jn superstructure in CM 1:6 (Brick size 23 Cm x 11 cm x 7cm)
ii) R.C.C. ([Link]) work with 2% steel in beam,
iii) 10 Cm thick cement concrete flooring ([Link])

11. a) What is valuation? Explain in brief, the purpose of valuation.

b) An RCC framed structure building having estimated future life 80 years, fetches gross
annual rent of Rs. 3200/- per month work out it's capitalized value on the basis of 6% rate
of interest on capital and rate of interest for sinking fund as 4%.

OR

12. Write a short note on any three. 13

i) Earnest money deposit and security deposit.
ii) Book value and Market value.
iii) Rent Fixation.
iv) Depreciation & obsolescence.
v) Types of value.

*************

NRJ/KW/17/4572
 .
3. < -a) ) Estimate the Quantities for the following items of work for the given Building plan & [Link] Engineering) Semester Seventh (C.B.S.)
typical wall section in figure (I) Estimating and Costing
i) Earthwork in excavation in foundation trenches,
ii) IInd class brick masonry in cm 1 : 6 in foundation & plinth.
P. Pages : 3 |||il|||lllll|[|||||| KNT/KW/ 16/7433
Time : Four Hours IPIIIIII11MIIII ^^ Marks . go

Notes : 1. Ali questions carry marks as indicated.

2. Due credit will be given to neatness and adequate dimensions.
3. Assume suitable data whenever necessary.
4. Illustrate your answers whenever necessary with the help of neat sketches.
5. Use of non programmable calculator is permitted.

1. a) Discuss the various methods for approximate estimate of a residential building. 6

b) The following is an extract from the longitudinal section of a road alignment. The top 7
width of earthwork is 7 meters. The side slopes in banking is 2 : 1 & cutting is 1 : 1.
Calculate the earthwork in Road.

Chainage Ground level Formation level

120 100.30 100.80
150 100.90 t
180 101.40 (+)(!: 120)
210 [Link]
I
240 101.50 I
270 101.00 ( - ) ( ! : 200)
300 100.60 1
330 100.00 —i

OR

2. a) What are various methods of calculating Detailed Estimate? Explain centre line method
comment on accuracy, compared to other methods.

b) Estimate the Quantify of earthwork for an embankment of 180 m long and 10 m wide at
Section jgjx-x crest & where side slopes is 2 : 1. The central height from 0 to at 30 m chainage are 0.70,
1.40,[Link],1.60 m, 1.5 m & 1.2 m using Trapezoidal formula.
A R.C.C. simply supported slab of clear size 3.1m x 6.3mis Reinforced with
10mm4>@120mmc/c alternately bent up. Distribution bars are 6mm<t>@130mmc/c.
Thickness of slab is 130 mm. Bearing of slab is 15 cm. Calculate total Quantity of
Reinforcement. Also prepare schedule of bar. . ..:
OR .
4. a) As per figure (I) showing plan & section. Calculate '
i) II1"1 class brick masonry in cm 1 : 5 in super structure.
ii) 12 mm thick internal cement plaster in cm 1 : 4 for ceiling & walls.

KNT/KW/16/7433 KNT/KW/16/7433 P.T.O

 b) A R.C.C. simply spportcd beam of size 295 mm x 645 mm is reinforced with 4 Nos. of 20 6
mm diameter. Main bars are placed in one row & two bent up. Two anchor bars of 12 mm
diameter are provided at top 8 mm diameter stirrups are provided at 140 mm/cc. The overall
beam length is 6rn. Calculate the tota! quantity of sleel required show bar bending schedule.

5. a) Define the term "Contract". What are the various types of contracts? Explain advantages 6
& disadvantages of any two.
b) Explain the terms "Administrative Approval" & Technical Sanction. 7
OR
6. a) i) Explain the types of Tender. 6
ii) Enlist an information to be included in tender notice.

b) i) Explain the contract documents. 7

ii) Explain the reasons for rejection of the lowest tender.

7. a) Define specification. Describe in brief the objects and types of specification. 6

b) Write a detailed specification of the following items 7

i) Second day brick masonry in cm 1 : 6 in super structure,
ii) Laying PCC 1 : 4 : 8 mix in foundation.
OR
8. a) Explain the points to be kept in mind while draftinii specification. 7
••
b) Explain 'Direct and Indirect charges'. . 6

9. a) Define Rate Analysis. Explain factor affecting it. 6

b) Work - out the rate analysis for the following items 8
i) Brick - masonry in c.m. 1 : 6 in superstructure with brick size 23cmx 11 cm* 7 cm.
ii) Plain cement concrete 1 : 4 : 8 mix.
OR
10. a) Explain in detail the task work of labourer and the factor affecting it. 6
b) Do the rale Analysis for following items in tabular form. 8
i) 12 mm thick internal cement plaster is c.m. 1 : 4.
ii) R.C.C. Beam 1 : 2 : 4 with 2% steel excluding shuttering work.
i
11. a) State the methods of valuation of a building. Explain any two. 6

b) A leasehold property is to produce a net annual income of Rs. 12,000 for the next 30 year. 7
The owner expects a return of 8% on his capital & also sell apart a sinking find instalment
to accurate 6% annually to replace the capital. Determine the capitalized value of property.
OR
12. Write notes on any three. 13
i) Capilatised Value.
ii) Rent Fixation
iii) Depreciation & Obsolescence
iv) Types of value.
**********

KNT/KW/l 6/7433

1
 b) Workout the quantity of steel reinforcement in bar bending schedule for a RCC Beam of .E. Seventh Semester (Civil Engineering) (C.B.S.)
size 230mm x300 mm x4000 mm. It has 2Nos. of 12mm <p straight and 2 nos. 12 mm Estimating and Costing
cp bent up al bottom and 2nos. 8 mm (p at top M. S. Reinforcement with 6 mm 9 stirrups P. Pages ! 4 _ NKT/KS/1 7/7433
@ 200 mm c/c. Assume cover as 25 mm throughout (top, bottom, side). Time : Four Hours Illli IIJI Max. Marks : 80
OR
Notes : 1 . All questions carry marks as indicated.
4. aj The accompanying drawing (Q. 3 (a)) shows a building plan and atypical wall section. . . 2. Solve Question 1 OR Questions No. 2.
Prepare centre line plan and estimate the quantities of the following items of work in ."-•>'' 3. Solve Question 3 OR Questions No. 4. •" ',
standard proforma. : , - . 4. Solve Question 5 OR Questions No. 6. . . .
1) Brickwork in superstructure. ; '.;; '• 5. Solve Question 7 OR Questions No. 8. . .'. ..'
2) Internal plaster to walls. • " - " . ' - , . • .6. Solve Question 9 OR Questions No. 10. •; •'.
•..;/'; '_-• 1- Solve Question 11 OR. Questions No. 12.
b) A RCC Slab, overall size 3300 mm x 6800 mm x 130 mm is provided with 16 mm * as a - ' . : ; ' ' . . . 8. Assume suitable data whenever necessary.
main steel reinforcement bent up alternately and placed @ 140 c/c. Alternate bars are bent '. - , . •".-'- . 9. Illustrate your answers whenever necessary with the help af neat sketches.
up at 540 mm from outer edge of slab. Distribution steel bars are of 6 mm * @ 180 c/c. • ' " - 10. Use of nonprogrammable calculator is permitted.
Assume cover as 20 mm throughout. (All steel bars are of Mild steel) Calculate the
quantities of Steel Reinforcement ;;1. a) What is the principle of units? Enlist the units of measurement for ome important 6
materials and items of building work.
5. a) Explain in brief, various methods of carrying out Civil Engineering works in government
departments, b) Enlist the various methods of calculating earthworks in roads. Exp ain any one with a 7
tabular Pro form a.
The following table is an extract from the longitudinal section of a road earthwork survey.
b) What are the various conditions of valid contracts. Calculate the volume of earth work.
a) Formation width of a road: 12m
OR b) Side slopes i) In banking-2:1 ii) In cutting-1.5:1
Chainage 200 230 260 290 320 350 380
6. a) Enlist the various documents to be submitted along with tender form while submitting R.L. of Ground (m) 98.70 98.80 99.30 99.50 99.80 99.90 99.60
them as tender documents in government department. R. L. of Formation (m) 99.50 (+) (lin 300) —->I< (-) (1 in 150) -—->1 /
b) Write short notes on any two.
i) Earnest Money Deposits OR --/
ii) Security Deposits a) Prepare a preliminary estimate of a multistoried office building having carpet area of 2200
iii) Arbitration sq.m. 35% of total built up area will be taken up by corridors, verandah, lavatory, and
iv) Defect Liability Period staircase etc. 10% of total built up area is occupied by walls. Assume plinth area rate as
Rs.3000.00 per square metre. Consider 8% of building cost for water supply and sanitation
7. a) What is specification? What are the objects of specification? fitting. 10% for electrical fitting, 8% for other services and 2% for architectural treatment.

b) Write a detailed specification for the following any two. b) The^ground levels at various chainages along centre line of a proposed road are
i) Earthwork in excavation in soft soil Chainage 21 22 23 24 25
ii) Brick Masonry in Superstructure, Distance 0 30 60 90 120
iii) Cement Plastering. RL Ground 180.50 183.36 185.52 187.10 186.50
OR The ground has uniform cross slope of 1 in 8. The length of chain is 30m. The road
formation is proposed at uniform gradient passing through the G.L. at the end chainages
8. a) Enlist the different types of specifications. Explain the points to be considered while with formation width as 8 m and side slope in cutting is 1:1. Estimate the quantity of
drafting specification. earthwork for the proposed road section in a tabular form.
b) Write short notes on the following any two. 3. a) The accompanying drawing shows a building plan and a typical wall section. Prepare
i) Classification of Cost, centre line plan and estimate the quantities of the following items of work in standard
ii) Direct and Indirect charges perform.
iii) MAS Account. 1) Earthwork in Excavation in foundation.
2) Brickwork in foundation up to plinth level.

NKT/KS/17/7433 NKT/KS/17/7433 P.T.O

 9. a) What do you mean by rate analysis? Explain the major and minor factors affecting it.

b) Analyse the rate for any two of following items in standard format
7.3 in * 4.5 m
i) RCC work (1:2;4) in slab with 1% steel reinforcement.
DRESSING i l~
CUM BED ROOM p
ii) Brick Masonry' (Brick size 190 mm x 90 mm x 90 mm) in C. M. 1:4
!D, KITCHEN
CUM -IL iii) 15mm thick cement plaster in C. M. 1:2.
DINING
I WC CUM
OR

'•W TT 10. a) Write short notes on:

i) Overhead costs.
.

-M ii) Taskwork of a labourer

D, \
b) Calculate the rate per unit item of the following any two.
D^tr i .00 K 2. I M
i) R. C. C. work (1: 1 '/j: 3) in column with 5% steel reinforcement including
WINDOW: W -* 12 » 1,5 M
W, -t 1.0 • I.S M . shuttering in column.
V-.0.25 M »0.75 M.
ii) 15 cm thick Cement concrete flooring ([Link])
FIB- *<A)

iii) Stone masonry in super structure in C.M. 1:3

11. a) Differentiate clearly with suitable examples between Cost, Value and Price,

b) What is valuation? Explain in brief, the purposes of valuation.

OR

0.30 in 12. a) What are the factors affecting the value of property?

rvTTfTYTT^
^44-^4^^ ^- b<"'lder
-l 30mfiiiiiia b) Write short notes on anv two.
'
1
i) Types of value
. -
ii) Sinking fund

iii) Depreciation and obsolescence.

0.90 m

Sec'.ton -i* X—-X

-

********

NKT/KS/17/7433 NKT/KS/17/7433 P.T.O