Question 1

Here are five estimating methods commonly used in construction:

1. Preliminary Estimate (Conceptual Estimate)

2. Detailed Estimate

3. Unit Rate Estimate

4. Parametric Estimate

5. Analogous Estimate

Explanation of Two Estimating Methods:

1. Detailed Estimate

A detailed estimate is the most accurate form of cost estimation. It involves breaking down
all the components of a project into smaller elements, such as materials, labor, and
equipment. Each component is measured, and the cost is calculated based on standard rates.
This method is typically used for final budgeting and contract bidding.

Advantages:

High accuracy

Helps in securing funding and contracts

Reduces risk of cost overruns

Disadvantages:

Time-consuming

Requires expert knowledge

2. Parametric Estimate

This method relies on historical data and mathematical models to estimate costs based on key
project parameters. For example, if a previous project cost $1,000 per square meter, a new
project with 500 square meters would be estimated at $500,000.
Advantages:

Faster than detailed estimates

Useful for early-stage budgeting

Disadvantages:

Less accurate if historical data is outdated

Does not account for unique project conditions

Here are detailed answers to your questions:

(b) Problems Encountered When Using Rates of an Analysis Building (4)

When using analyzed rates in construction cost estimation, several issues can arise:

1. Market Fluctuations – The cost of materials, labor, and equipment can change over time
due to inflation, supply chain disruptions, or economic conditions, making past rate analyses
outdated.

2. Regional Variations – Building costs vary based on location due to factors like labor
availability, transportation costs, and material sourcing. Using a generic analysis rate may not
reflect local conditions.

3. Design Complexity – Some buildings have unique structural requirements, finishes, or

mechanical systems that standard rate analysis may not capture accurately.

4. Omissions and Errors – If the rate analysis is based on incomplete data or incorrect
assumptions, it can lead to inaccurate cost estimates, resulting in budget overruns.

(c) Methods of Approximate Estimates in Civil Construction Industry (4)

Approximate estimates are used when detailed designs are not yet available. Here are four
common methods:

1. Plinth Area Method – The total built-up area (including walls) is multiplied by a standard
cost per square meter based on previous projects.
Advantage: Quick and simple.

Disadvantage: Does not consider design complexity.

2. Cube Rate Method – Similar to the plinth area method, but considers the building’s volume
(length × width × height) instead of area.

Advantage: Accounts for multi-story buildings.

Disadvantage: May not be accurate for buildings with varying heights.

3. Bay Method (Column-Grid Method) – The building is divided into structural bays
(sections between columns), and the cost is estimated per bay.

Advantage: Useful for repetitive structures like factories.

Disadvantage: Does not account for variations in finishes.

4. Unit Method – The cost is estimated based on functional units, such as cost per hospital
bed, cost per classroom, or cost per apartment.

Advantage: Useful for projects with defined functions.

Disadvantage: Less detailed than full estimation methods.

(d) Explanation of the Following Estimation Terms

1. Analysis of Building

This involves breaking down the entire cost of a building into its individual components, such
as foundation, walls, roofing, and finishing. Each section is analyzed in terms of materials,
labor, and equipment required. This method is crucial for determining the total cost and
identifying areas where cost savings can be made.

2. Analysis of Rates

This refers to the detailed breakdown of costs for specific construction tasks, such as
bricklaying, plastering, or concrete work. It considers factors like labor wages, material costs,
overheads, and profit margins. Contractors and estimators use this to create accurate project
budgets.

3. Unit Rate
This is the cost per unit of a particular work item, such as cost per cubic meter of concrete or
cost per square meter of tiling. It simplifies cost estimation by allowing estimators to multiply
unit rates by the required quantity.

Question 2: Bills of Quantities (BOQ)

(a) Types of Bills (5)

1. Firm Bill of Quantities – A complete and detailed BOQ with all quantities measured and
priced before tendering.

Use: Provides accurate cost estimation for tendering.

2. Approximate Bill of Quantities – Contains approximate quantities instead of exact

measurements.

Use: Used for early-stage budgeting when full designs are not available.

3. Elemental Bill of Quantities – Items are grouped by construction elements (e.g.,

foundations, walls, roofs).

Use: Useful for cost control and cost planning.

4. Provisional Bill of Quantities – Includes provisional sums for work that cannot be
accurately measured at the time of tendering.

Use: Allows flexibility in pricing work with uncertain quantities.

5. Schedule of Rates – Lists work items without fixed quantities, and payment is based on
actual work done.

Use: Suitable for projects where the scope may change over time.

(b) Why It Is Not Advisable to Order Materials Using the Bill of Quantities (5)

1. BOQ Quantities Are Estimates – The BOQ provides estimated quantities, which may not
be the exact quantities required on-site, leading to excess or shortages.

2. Does Not Consider Wastage – Material wastage due to handling, cutting, and site
conditions is not accounted for in BOQ estimates.
3. Site Conditions Vary – Changes in the design, site constraints, or unforeseen circumstances
may alter material requirements.

4. Supplier-Specific Issues – Suppliers may have different unit sizes or packaging than what
is specified in the BOQ, leading to ordering inconsistencies.

5. Procurement Planning Is Needed – Material procurement should be based on detailed

material schedules prepared by site engineers, considering delivery schedules and storage
constraints

(c) Explanation of the Term Bill of Quantities (BOQ) (5)

A Bill of Quantities (BOQ) is a document used in construction projects that lists all the
materials, labor, and work items required for a project along with their quantities and
estimated costs. It serves as a basis for cost estimation, tendering, and project cost control.

Key Features of BOQ:

Prepared by a quantity surveyor.

Based on project drawings and specifications.

Helps in fair contractor bidding.

Used for cost monitoring and project valuation.

(d) Procedure for the Preparation of a Bill of Quantities (5)

1. Collection of Project Information – Obtain architectural and structural drawings,

specifications, and project requirements.

2. Measurement and Takeoff – Quantify materials and work items based on standard
measurement rules (e.g., SMM7, NRM2).

3. Classification and Grouping – Organize items into sections such as excavation, concrete
works, brickwork, etc.

4. Description and Pricing – Describe each work item in detail and assign unit rates based on
labor, materials, equipment, and overheads.
5. Compilation and Review – Check for errors, omissions, and consistency before finalizing
the BOQ for tendering or cost control.

(e) Identification and Explanation of Uses of a Bill of Quantities (5)

1. Cost Estimation – BOQ helps in determining the total project cost before construction
begins.

2. Tendering and Contractor Selection – Contractors use the BOQ to submit competitive bids
for a project.

3. Project Cost Control – Helps in tracking actual costs against estimated costs during
construction.

4. Payment Valuation – Used for preparing interim payment certificates based on completed
work.

5. Dispute Resolution – Provides a reference in case of cost-related disagreements between

clients and contractors.

Question 3: Tendering and Related Documents

(a) Tendering Methods and Their Merits (5)

Tendering is the process of inviting contractors to submit bids for a construction project. The
most common tendering methods include:

1. Open Tendering – Any contractor can submit a bid after an open advertisement.

Merits: Encourages competition, leads to fair pricing, and provides equal opportunities.

2. Selective Tendering – Only pre-qualified contractors are invited to bid.

Merits: Ensures quality work, reduces risks of non-performance, and saves time in evaluating
unqualified bidders.

3. Negotiated Tendering – The client negotiates directly with a selected contractor.

Merits: Faster process, allows for early contractor involvement, and may lead to cost savings
through direct negotiation.
4. Serial Tendering – A contractor is selected for a series of similar projects based on agreed
rates.

Merits: Saves time in procurement, ensures consistency in pricing, and simplifies contract
administration.

5. Two-Stage Tendering – A preliminary bid is submitted first, followed by a final bid with
detailed cost breakdowns.

Merits: Helps in early contractor engagement, improves design collaboration, and leads to
more accurate cost estimates.

(b) Five Tender Documents and Their Explanations (10)

1. Bill of Quantities (BOQ) – A document listing all materials, labor, and work items needed
for a project with estimated quantities and costs. It helps contractors prepare accurate bids.

2. Specifications – Detailed descriptions of the materials, workmanship, and quality standards

required for the project. Ensures contractors follow required guidelines.

3. Tender Drawings – Architectural and engineering drawings that provide visual details of
the project. Help contractors understand the design and scope of work.

4. Conditions of Contract – Legal terms and conditions that outline the obligations of the
client and contractor, payment terms, dispute resolution, and project completion conditions.

5. Form of Tender – A formal document that contractors sign to confirm their bid submission
and commitment to the project terms if selected.

(c) Brief Descriptions

(i) Bill of Quantities (BOQ)

A document that outlines the quantities of work and materials required for a construction
project. It helps in cost estimation, tendering, and contract administration.

(ii) Specifications

A written document detailing the quality, materials, and standards that must be followed in
construction. Specifications ensure consistency and compliance with industry regulations.
(d) Types of Tendering (2) and Brief Descriptions (4)

1. Open Tendering – This allows any contractor to submit a bid after public advertisement. It
ensures competitive pricing but may attract unqualified bidders.

2. Selective Tendering – Only pre-qualified contractors are invited to submit bids. This
method ensures quality and reliability but may limit competition.

Question 4: Cost Analysis and Cost Control in Construction

(a) Cost Analysis: Definition, Purpose, and Items Required for Manual Preparation (20)

1. What is Cost Analysis?

Cost analysis in construction involves examining and evaluating the costs associated with a
project. It includes breaking down all expenses related to labor, materials, equipment,
overhead, and profit margins. This process helps in determining the overall cost of a project
and identifying areas where cost savings can be made.

2. Purpose of Cost Analysis

The key purposes of cost analysis in construction are:

1. Budgeting and Cost Estimation – Helps in setting a realistic budget for the project before
execution.

2. Tender Preparation – Ensures that contractors submit competitive bids based on accurate
cost breakdowns.

3. Cost Control – Identifies areas where expenses can be optimized to prevent budget
overruns.

4. Profitability Assessment – Ensures that the contractor makes a reasonable profit while
maintaining quality.

5. Project Feasibility Analysis – Determines whether the project is financially viable.

6. Resource Planning – Helps in efficient allocation of labor, materials, and machinery.

7. Risk Management – Identifies potential financial risks and enables corrective actions.
8. Dispute Resolution – Provides a clear breakdown of costs, which can be useful in case of
disputes between stakeholders.

3. Items Required for Manual Cost Analysis

When preparing a cost analysis manually, the following items are generally required:

A. Direct Costs

These are costs directly related to the construction work:

1. Materials Costs – Includes all raw materials (cement, steel, bricks, sand, timber, etc.)
required for construction.

2. Labor Costs – Wages paid to skilled and unskilled workers such as masons, carpenters, and
electricians.

3. Equipment Costs – Costs of machinery such as excavators, concrete mixers, and cranes.

B. Indirect Costs

These costs are not directly tied to a specific construction activity but are necessary for
project completion:

4. Site Overheads – Costs of site office, utilities, security, and temporary structures.

5. General Overheads – Administrative expenses such as salaries of office staff, insurance,

and office rent.

6. Contingency Allowances – A buffer amount set aside to cover unforeseen expenses.

C. Other Considerations

7. Subcontractor Costs – Payment for specialized tasks such as electrical and plumbing work.

8. Transportation Costs – Expenses for moving materials and equipment to the site.

9. Profit Margin – The percentage added to cover contractor’s earnings.

10. Taxes and Legal Fees – Government levies and compliance costs.

4. Manual Methods for Cost Analysis

In manual cost analysis, estimators:

Use historical data from past projects to estimate costs.

Prepare unit rate analysis for each work item (e.g., cost per cubic meter of concrete).

Break down the project into work packages and estimate costs separately.

Apply cost indices to adjust for inflation and market conditions.

Use rate analysis tables from standard references (e.g., government guidelines or industry
handbooks).

(b) Methods Used by a Quantity Surveyor (QS) to Control Costs at a Civil Construction Site
(5)

A Quantity Surveyor (QS) plays a vital role in ensuring that construction projects stay within
budget. Below are four methods used for cost control:

1. Cost Planning and Budgeting

The QS prepares a detailed cost plan at the start of the project.

Monitors costs at different project phases to prevent overruns.

Uses cost forecasting techniques to predict future expenses.

2. Regular Cost Monitoring and Reporting

Tracks actual vs. estimated costs during construction.

Identifies deviations and recommends corrective actions.

Provides progress reports to clients and contractors.

3. Variation and Change Order Control

Manages design changes and ensures they align with the budget.

Evaluates additional costs before approving variations.

Negotiates with contractors to prevent unnecessary cost increases.

4. Procurement and Material Management

Selects cost-effective materials without compromising quality.

Uses bulk purchasing to secure better prices.

Ensures timely delivery of materials to avoid delays and cost escalation.