UNIVERSITY OF GONDAR

INSTITUTE OF TECHNOLOGY

CONSTRUCTION SPECIFICATION and

QUANTITY SURVEYING (CENG 5101)
MODULE FOR EXIT EXAMINATION
COURSE DESCRIPTION

1. Procurement and contract General introduction, stages in construction

industry,introduction to procurement, and contract management, and contract
delivery systems.
2. Contract: Principles of contract law,types of construction contract, contract
documents,contract management: Contract administration and closing,claims
and dispute management.
3. Specifications: Specification Language, Writing Style, Sentence Structure,
Capitalization, Punctuation, Inappropriate Terms and Streamlining, Methods of
Specifying, Master Guide Specifications and General Provisions of
Specifications
4. Quantity surveying: Materials take off preparation and writing of bill of
quantities
5. Project cost estimation: unit rate analysis and value of work.

COURSE OBJECTIVES

 Understand the basic construction stages, key terms on procurement, and

contract management,and finally about contract delivery systems.

 Understand the main concept behind contract and contract law,types of

construction contract, contract documents,contract management: Contract
administration and closing,claims and dispute management.
 Understand different types of specification, know how to assure and control
quality of construction materials and construction products.
 Prepare specifications and BoQ for construction projects.

 Work out quantity and types of material, manpower, and equipment needed for
construction projects.
 Determine rates for construction activities using detailed cost estimation.

 Advice stake holders on preliminary and final costs of projects.

 Prepare payment certificates and final accounts of projects.

1
CONTENTS

Procurement and contract: Stages in construction industry, introduction to

procurement and contract management, procurement and contract delivery systems.
Contract: Principles of contract law, types of construction contract, contract
documents,contract management: Contract administration and closing,claims and
dispute management.
Specification: (Language. Writing Style, Sentence Structure, Capitalization,
Punctuation, Inappropriate Terms, Methods of Specifying (Descriptive,
Performance, Reference Standard, Proprietary), Master Guide Specifications, and
General Provisions of Specifications)
Quantity Surveying: Standard methods of measurement: Preparation of takeoff sheets
and measurement and specification for Principal items of civil works:- (excavation and
earthwork, masonry works, concrete works, metal and carpentry works, glazing, steel
work, roof and damp proofing works, finishing works, sanitary and electrical
installation works, Demolition and alteration, site works etc.)

2
Cost Estimate: Early estimates, Measurement Rules for Order of Cost Estimating, Cost
Estimate processes, Building cost estimate classification.

Property Valuation: Property valuation methods

T
his course material is presents an approach to quantity
surveying based on the author’s personal experience of
working as an site engineer and contract administrator in
Ethiopia over the course of six years and different literature's. The
author notes that while each of these practices had their own particular
approach to quantity surveying, the differences between them were very
minor and are usually reflected differences in style rather than process.

3
 CHAPTER ONE
PROCUREMENT AND CONTRACT
1.1. Introduction
Construction industry is an industry which is involved in the planning, execution and
evaluation of all types of civil works. Physical infrastructures such as building,
communication and energy related construction works; water supply and sewerage
civil works, etc. Are some of the major projects/programs in the construction industry.
The construction industry can be categorized into three major sectors; namely,
transport and
Communication (road, railway, airway and telecommunication related physical
works), water and energy works, building and other physical infrastructures.
Accordingly, their capital budget
Requirements vary extensively depending on the focus the economical trend requires
for the nation development.
The main players in the construction industry are:
The client: the initiator and owner of the project.
The consultant: transfers the wish of the client into realizable form and makes the
study, design and possibly the supervision.
The contractor: is the one who performs the work.
Insurance companies: a contractor is required to provide bid bonds as a condition of
being allowed to bid, and the they must provide insurance for performance bonds and
payment bond prier to award of the contract. Insurance companies provide bid bonds,
performance and payment bonds and they also service the liability and property
insurance needs of contractors.
Banks: provide the working capital contractors need to build the project. Banks also
provide bonds for bid and performance.
Suppliers: the quantity of construction project is very dependent on the quality of the
suppliers used by individual contractors.
Permitting agencies: represent the interests of public safety. They administer
publicity funded Construction projects and they insure private construction projects
comply with zoning laws and Building codes.
Public: is impacted by every construction activity. Impacts are both good and bad.
Resources for the Construction Industry
For most of the construction projects, the resources to look into are the following;

4
1. Human resources/ labour or workmen
2. Financial resources/ fund
3. Information resources
4. Physical resources, such as materials, equipment and other assets
5. Services and management
From the above resources, physical and service resources require intensive
procurement procedures and are thus worth mentioning.
Physical Resources
Materials: The very large portion of a project cost. As the material cost component of
the Construction industry covers between 55-70% of the total construction cost.
Equipment: These days various plants, equipment's, tools, etc., are used very often in
construction activities. Depending on the types and nature of construction, machinery
at site includes batching plant, mixers, tractors, excavators, dampers, cranes, vibrators,
pumps, etc.
Services and Management:
Services: such as acquisition of land, provisions of water supply, electric power,
communication systems, etc., are very much necessary in the construction industry.
Without acquiring such services, it is too hard to implement construction activities
successfully. Therefore, well thought and due consideration shall be given to services
and shall be considered as one of the resources required for civil works projects.
1.2. Stages in Construction
The following are the common formal stages for a construction project:
1.2.1 Inception and Feasibility
At this stage the owner puts his visions and wishes and with this as a starting point,
the various groups (professionals) try to conceptualize the project and prepare a
conceptual design. At this stage, the owner will hire consultant to formally design and
develop the concept into a practicable project.
1.2.2 Planning and Design Stage
Planning is a function of devising the cause for future with a vision, formulated for
the future state of the organization or project. At this stage, the consultant plans and
designs the project based on the owner’s requirement and the possible constraints.
1.2.3 Tendering stage
At this stage contractors are invited to offer their best technical and financial offers as
per the conditions and specifications depicted in the contract document. Usually a 2%
of bid bond is required so as not let him disappear.

5
1.2.4 Bid Evaluation /Evaluation of Tenders
The bids are evaluated based on:
  Compliance with the contractual terms and conditions
  Correction of bid prices
  Detailed analysis
1.2.5 Award of Contract
After the negotiations have been successful, the contract will be awarded to the
successful
contractor. The formal steps might include;
 Writing a letter of acceptance
 Writing the letter to proceed with the works
 Performance bond: 10% a guarantee that will do the job as per agreed
There are different methods and types of construction contracts. The owner generally
makes the selection. The type selected depends on the type of work being performed
and the conditions under which it is being performed.
1.2.6 Construction stage
Here is where the actual execution of the works takes place as per scheduled.
1.2.7 Commissioning and acceptance
Commissioning a process whereby the contractor makes sure that all installed
mechanical or electrical parts are operational. During commissioning, therefore all
such parts are run in the presence of the client or his representative as per the
conditions agreed. Acceptance has two stages:
A. Provisional acceptance: the client accepts the completed works on provision basis
for a one year period. During this period, all payments except retention are paid. The
other option is to release the retention money and require for a bank or insurance
security.
B. Final acceptance: at this stage the owner completely accepts the works executed
and the retention money is released to the contractor. But, if the client found out some
construction default during this period, he can oblige the contractor to work out that
default or the client himself works it out from the retention money. The contractor is
assumed to have completed
his contractual obligation from this time on.
1.3. Introduction to Procurement
Construction industry involves procurement and contract management systems in
order to ensure fair computation and distribution of obligations and rights among

6
stake holders. Competition helps:
  The project owners‟ to acquire the five rights(counterpart, cost, time, quality and
quantity) he/she entitled to The project financiers‟ and regulators‟ to value market
principles and effective utilization of finance such that lowest qualified bids takes the
project and
  The project providers‟ to get impartial and neutral opportunity for business.
Procurement is a process used to select the lowest competitive and qualified bidder for
procuring services or works or goods from potential competitors based on reasonable
relevant criteria. It can also be expressed as a method used to employ or buy services
or works or goods for the value (in the form of money) which includes reasonable
profit. Essentially, a bid or tender is a binding offer or proposal to furnish certain
specified promises for the amount stated in the tender.
Physical infrastructures are cost extensive and appropriate savings obtained through
competition are the main factor behind the procurement process. An effective and
efficient procurement method ensures the following rights called the „five rights‟.
These are the right quality, the right quantity, the right cost/price, the right counterpart
and the right time.
The right quality: It is indeed wasteful and not necessary to spend time, money and
all the efforts for procuring unqualified services or goods or works. Therefore, it is
essential to ensure whether such procurement's are of the right quality. Right quality is
always based on two major factors. These are, the technical expectation and the
economic consideration, i.e., price and availability. While the technical quality can be
ensured by the provision of specifications and checking their conformance reliability
of the intended job; the economic consideration can be taken into account by the
competition initiated using procurement processes. This implies that a tender
document should, as much as possible, clearly specify the quality requirements and
allow participation of qualified and experienced firms for tendering.
The Right Quantity: The quantity should be computed carefully and included in the
BOQ correctly.This is because it has an effect on the project cost and site organization
which is the basis for offering the right price. If the quantity is found mistakenly small,
it will have consequential effects such as:
 Project budgeting will be affected due to excess quantities
 Construction planning will be affected and cause under stocking
 Tenderer s can manipulate their offer due to it
  On the other hand, if the quantity is mistakenly more, it will cause high stocking,

7
more storing places and risk of spoilage; unhealthy practices due to over budget
provisions; and manipulation in tendering. Therefore provision of the right quantity
resolves the occurrences of the above stated effects. Two major factors that can play
important role in providing the right quantity are take-off sheet measurements and
resources allocation.
The right cost/price: In strict terms the right cost usually relates itself very much to
the quality
expected to accomplish the task. It is clear to say that it is difficult to get the right cost,
however to approach it, is a possibility. That is one of the causes for procurement to
be processed. Tendering together with negotiation and market intelligence techniques
is the only way that ensures the right cost and accomplishing the task successfully.
Competition is the basis for determining the right cost or price.
The Right counterpart: This is to guarantee that the parties agreeing to accomplish
the task shall be fit to the job. That is, the project owner should know what his needs
are as accurately as possible, be competent to act as an employer and should possess
the finance. The consultant shall exercise reasonable skill, care and diligence in the
performance of his obligations. If authorized to certify, decide or exercise discretion,
the engineer do so fairly between the client and the third party not as an arbitrator but
as an independent professional acts by his skill and judgment. The contractor shall be
able to execute and maintain the task successfully with due care, diligence and
provide all labors including supervision thereof, materials, equipment, etc. therefore,
with the help of tendering, it is possible to select the right counterparts.
The right time: The right time for the provision of resources and accomplishment of
obligations of each party shall be set and agreed. This usually relieves the extra cost
incurred on the parties which will make them to suffer. Besides if the project is not
completed at the right time, its effects are devastating. To ensure prevention of such
happenings scheduling with regard to right timing is essential.
1.3.1 Type of Procurement
Procurement types can be classified based on the things to be procured and the way
they are procured. There are six basis for classifying procurement methods. These are:

8
Things to be Procured: Goods Vs services Vs Works
Based on things to be procured, procurement types can be classified into three major
categories; namely, procurement of goods, services and works. Depending on the
delivery system chosen during the contract planning phase, mixed types of
procurement can be adopted.
Procurement of goods: Physical resources used as components for undertaking
consultancy services and/or construction works such as materials and equipment's are
made available using
procurement of goods.
Procurement of services: In the construction industry, procurement of services are
often termed as consultancy services procurement. These include services like
feasibility studies, design and contract administration of projects, construction
management consultancy services, research or study based consultancy services, etc.
Procurement of Works: In the construction industry, procurement of works mean the
procurement of contractors to carry out the actual physical infrastructures. Bidders’
coverage, Competitive Vs negotiated Tendering: classified so when bidders‟ coverage
is taken as a basis for classification.
Competitive Tendering: has objective of acquiring the goods, or works, or services
at the most economic cost to the project owner. This type of tendering is commonly
used for the selection of better and capable winning bidder among the varies eligible
firms. Competitive bidding can either be open or limited competitive bidding in the
form of their invention. As their name implies while open competitive bidding allows
all eligible bidders to participate;
limited competitive bidding allows a number selected firms decided by the project
owners in consultation with concerned parties for qualification. The major difference
between open and limited competitive bidding is the addition of qualified criteria
beyond eligibility imposed on the procurement type for limited competitive bidding.
9
Limited competitive bidding is often used when the nature and urgency of the work
justified to do so. In this case limited numbers of eligible firms are invited to
participate for the bid. Commonly short listing is done based on the firms past
performance, work load at present, presence of a firm in the vicinity of the projects,
knowledge of similar types of works before and financial and technical capabilities of
the firms. Besides, the listing shall take into account the renewal of licenses of the
firm and the specific requirement of the employer. These are some of the qualifying
criteria used for limited competitive bidding. In such tendering, bidders cannot be
rejected as non responsive for being unqualified technically. Usually in such type of
procurement, cost of projects might be higher than expected. To minimize such
effects, capable and competent professionals shall negotiate with the winning firm.
Negotiated tendering: Under certain circumstances, which shall be rare in practice,
direct appointment of an eligible firm can be exercised by project owners. The
nomination of this direct invitation is usually based on good performance,
acquaintance with the project owner, for supplementary agreements, etc. This type of
tendering is exceptionally exercised when the project under construction is very
urgent or needs special skill whereby the required skill is rarely available.
The main disadvantage of this type of tendering is that the price offered can usually be
higher than the competitive bedding.
Geographical coverage: Procurement can be made using any of the four methods
based on geographical coverage: these are, international, Regional, National and
Local tendering. Such types of procurement are generally caused by three major
factors. These are local capacity, financial sources and globalization.
When projects could not be carried out by local capacity, project owners are forced to
make tendering out of their localities. Policies of the financial sources dictate the type
of tendering geographically. For instance, donor financed projects are often practicing
International or regional tendering. The world trend for globalization and the
principles of Free Trade and Trade
Liberalization also encourages international tendering. In practice, Preference margins
in the range of 7% are applied to local, national or regional Tenderers, which imply
tender offers higher than 7% will be given preference to encourage local participation.
Procurement Awareness: To enhance proof of competition and increase accessibility,
projects are recommended to create awareness starting from its initiation. Following
this requirement, general procurement notice is made during projects planning phase
and it is only interests of the bidders are aroused because sufficient tender documents

10
are not available. This approach is used:
1. The project owner to
  Identify interested bidders to issue invitations by letters and save time;
  Identify bidders relevant for the procurement required; and
  Protect loss of cost in preparing lots of tender documents.
2. The bidders to:
  Give sufficient time to assess the cost of the project
  Protect loss of cost only to participate; and
  Encourage competent bidders who worry about law-balling to participate.
General procurement notice (GPN) is of two types based on their purpose why and
when they are
notified. The first type is when the purpose is to create awareness and let bidders‟
prior information about upcoming projects such that they can follow up its
development and include them in their plan. This type of GPN is used for
procurement of works and goods and is often announced as soon as the design
implementation service is started. The second type is when the purpose is to
determine interested bidders who could be invited in the form of limited competitive
tendering. This type of GPN is used for procurement of services and is often
announced after financial sources are determined. GPN covers the employer and its
financiers for its project; description of the project with its probable or planned
implementation time; type of procurement method and address where further
information can be obtained.
Specific procurement notice (SPN) is an invitation for tender or a request for a
proposal when the
project is ready for implementation. SPN can be sent to those interested bidders
identified following GPN directly. Otherwise, it should be advertised on the bases of
enlarging opportunities.
Procurement steps:
Single or two staged tendering: They are related with whether tender packaging for
submission separately and their evaluations are staged for a single or two steps when
invitations are made. Often two staged bidding's are made for submission of technical
and financial proposals separately and their evaluations one after the other.
Pre or post Qualification Tendering:
Pre qualification is an internationally accepted practice in procurement management.
It would normally be required for civil works contract of which its nature and cost is

11
large and complex. It is a procedure in which eligible bidders are invited to provide
evidence of their ability to perform the services required by the employer. Pre-
qualification is desirable because it enables the employer to establish the competence
of companies subsequently evaluated. It is also in the interest of contractors since, if
pres qualified, they will know that they are competing against a limited number of
other firms all of whom possess the required competence and capability.
Pres-qualification can be of two types. The first is when companies are already
considered qualified during their licensing requirements which entitled them for a
single stage tendering process. For such types of tendering, the most important tender
evaluation criteria become the low priced bid.The second is when two staged
tendering is used to pre-qualifying tenders‟ for their technical
competency. Once bidders qualify for the tender, either the lowest priced bidder or the
lowest evaluated bidder based on the weighted average of the technical and financial
scores will be recommended for award.
The advantage of per-qualification in procurement are:
To the Employer To the Bidder

Pr-qualification should be based entirely on the ability of the bidder to carry out the
required works satisfactory. The following criteria are often used in determining this
ability of the bidder:
 Experience and past performance,
 Health, safety and environmental records, if only,
 Organizational arrangement and facilities
 Financial status, and Schedule of commitments
According FIDIC, 1994 recommended a procedural flowchart for procurement for
pres qualification; however, it is presented here with little modification to suit the
current practices (figure 1.2). Post qualification is a tendering type where financial
evaluation is carried out first and rank bidders on the basis of their offer for tender
price. That is, technical evaluation will be done after the financial evaluation.

12
However, technical evaluation is performed step by step starting from the lowest
financially evaluated bidder until technically or cumulatively qualified bidder is
determined. The advantage of this approach is not to lose the lowest financially
evaluated bidder and to save time during technical evaluations. However, post
qualification approaches often cause to fix evaluators on financial results and be
locked and biased for successive technical evaluations.
1.4. Procurement and Contract Management
Procurement and contract management involves three major principles: contract
planning, procurement management and contract management.
1.4.1 Contract planning
Construction projects are components of a certain business or development demands.
That is, they are formulated if and only if such businesses or development demands
acknowledge their contribution and it is a must to involve them. This requirement is
dealt during the basic/strategic
planning phase of the overall business. This phase often pass through the
identification, feasibility and financing stages of programs or projects. Contract is a
customary tool used to implement formulated programs or projects. As a result,
contract planning becomes part of this basic/strategic phase.
Contract planning includes decisions on proposed delivery systems, procurement
methods and contract types to be followed and used together with its provisions for
alterations. This is because such decisions are related to regularly requirements such
as:
 Ethical (Neutrality, formality and impartiality)
 Economical (proof of competition, least qualified and evaluated bidder)
 Accountable (Obligations and rights)
 HSE (Health, safety and environment) and
 Transparent (Accessibility and notice of advertisement)
Procurement and contract management processes shall be based upon the approved
contract planning provisions; that is, the contract delivery system, the procurement
method and contract types decided upon. The approved contract provisions can only
be changed following the change process stated in the contract planning document
and only if and only if:
 The environment and context considered are not correctly analyzed or
changed
 Their application can remarkably affect the objective of the project, and

13
  Procurement management process justifies change of the contract types.
Once the validity of the contract provision are checked once again and taken for
granted or other provisions are devised; procurement management followed by
contract management can be initiated, planned, implemented, monitored and closed.
1.4.2 Procurement Management
Procurement Management is a process of selecting individuals or organizations to
carry out the intended services and/or works. Procurement Management is carried out
based on the provisions made during the contract planning phase of the procurement
and contract process.
It involves preparation of procurement documents, their invitation and submission of
tender proposals, and opening and evaluation of tenders. On the basis of results from
tender evaluations, the procurement team will recommend the lowest responsive
bidder for contract management phase.
The following are necessary for a successful Procurement Management phase:
Knowing and ensuring the implementation of procurement related national and
international laws, rules and regulations, Establishment of a flexible procurement
team, and Adhering to the principles of proof of competition, impartiality, neutrality,
accessibility and formality.
1.4.3 Contract Management
Contract Management is a process of reaching contractual agreement for
implementation, its administration and finally including the contract. Similar to the
procurement management process, it shall be based upon the provisions decided
during the contract planning phase. It involves negotiation based on tender evaluation
recommendations and signing of contractual agreement followed by its administration
for contractual implementation, progress tracking, and changes, claim and disputes
administration.
The following issues are necessary for a successful Contract Management phase:
Knowing and ensuring the implementation of contract related national and
international laws, rules and regulations. Adherence to the provisions made during the
contract planning phase including their change processes, that is, with respect to
delivery systems, procurement methods and contract types.
Identifying, recognizing & involving all potential or key stakeholders to form a
contract team Understanding, mapping and monitoring all contract conditions agreed
upon, and Ability to administer changes, claims and disputes.
1.5. Procurement and Contract Delivery Systems

14
Procurement and Contract Delivery System is the way project owners together with
project regulators and financiers determine the assignment of responsibilities to
project stakeholders along the construction process. Procurement and Contract
Delivery System is often determined during the basic planning phase of construction
project.
Generally, there are six types of Procurement and Contract Delivery System. These
are:
 Force account
 Design bid build (DBB)
 Design build (DB) or Turnkey
 Finance/Build Operate system (BOT)
 Construction/Facility Management Consultancy and
 Alliance and outsourcing
Such procurement and contract delivery systems are developed overtime. The
development was based on problem solving for the previous type and the
development of the construction industry
technologically and management wise.
1.5.1 Force Account
When the project owners engage themselves to undertake the project, it is called a
force account delivery system. Often such a system is promoted if the project owners
believe that there is a competitive advantage in cost, time and quality issues. Besides,
when there is a lack of capacity from the private sector to undertake very large and
technologically new projects, public companies, do undertake such projects using
force account delivery systems. These days this type of delivery system is often used
when projects are small and places are remote such that reaching them is difficult and
in general they are not attractive enough to call the attention of bidders. Besides, when
projects are specially scattered and maintenance are to be done for schools, colleges,
health centers, etc., such cases can be applied.
1.5.2 Design Bid Build (DBB)
This is the most practiced type of delivery system in the construction industry of
Ethiopia since 1987. After project owners did prepare the basic planning that
identifies construction project programs, they call upon the participation of design
and/or supervision consultants either by tender or by negotiated contracts. This
consultant will carry out the design together with the necessary tender documents
which will be the bases for tendering to select contractors.

15
In this type of delivery system, projects are divided into different packages interfacing
to each other. Though the design and supervision consultant will be the prime
professional on behalf of the owner and largely the administrator of the construction
contract; the employer takes the responsibility of coordinating the various project
packages and their respecting interfaces. Besides, designers have not been required to
guarantee results but rather methods. That is, they are held accountable on the basis of
their superior knowledge and sufficient competency and ability to design with a
reasonable degree of technical skills. As a result, contracts and courts focused on
professional duty of care, not results or project goals. Contractors are also responsible
to construct works with due care and diligence and complete them in accordance with
the contract, but they are not responsible for design deficiencies. Since 1980s the
traditional approaches becomes less popular due to the following factors: Severe
adversarial relations between the design and contract administration consultant and
the contractor Fragmented contract for the project owner Project owner responsibility
for risks associated with the design and contract administration Non impartiality of
the design and contract administration services.
The inability of design and contract administration consultants to cope with new
construction technologies and construct ability issues of their designs Severe
adversarial relationships between urban planners and architects on the one hand; and
architects and engineers on the other hand on building projects
The indirect contractual obligation assigned for the design and contract administration
consultants The incapability of consultancy fee to the desired activities they are
require to provide, etc. The following standard forms of DBB conditions of contract
are known for use for such delivery system
FIDIC White Book for consultancy service (Design and supervision) and Red Book
for construction works Standard conditions of contract for construction of civil works,
1994.
1.5.3 Design Build (DB)/Turnkey
Design Build delivery system is a response to problems associated to the last two
types of delivery system. These were promoting privatization and its businesslike
approach to enhance the force account system and reducing fragmentation, adversarial
relations and project Owners‟ risk which are recurrent manifestations in the DBB
delivery system. Design build or turnkey by principle reduces number of procurement
processes engaged in the
fragmented process and employ only one procurement process and a single contractor

16
to provide the entire construction implementation process (Design and Construction
Implementation). In the 1970s, large firms began to offer both design and construction
services in order to provide project owners with a single source for project delivery.
At the beginning, this delivery system was limited to complex projects such as
industrial, big plants and big infrastructural constructions. DB delivery system is
common worldwide specifically for private projects. This led lead contracting firms to
form a team or consortium of designers and specially contractors who work together
to meet the entire demand. Such services are initiated after the project owner built the
project concept during the basic planning phase and brought to the DB contracting
phases. The project concept should clearly define the performance criteria such as
output, input, waste and any other performances the employer may desire. This makes
an additional responsibility to the contractor which is „fitness to purpose‟ according
to the orange book of FIDIC. Fitness to purpose is beyond the professional duty of
care and places liability on the contractor for any failure of the design to perform the
standard required.
Typical advantages of this system include:
Reducing fragmentation and adversarial relations between designers and constructors
Minimizing project owners‟ risk transferable due to designers‟ faults
Accountability and entire responsibility for both design and construction which entitle
the employer to receive completed project is onto a single contractor
Employers‟ responsibility to coordinate interfaces between different project elements
is Avoided Single point responsibility minimizes the opportunity to claims to the
contractor due to design related issues Coordination between design and construction
processes will also be enhanced (Both in communication for construct ability as well
as in fast tracking) and The client budget or financial requirement is defined early
enough in the development process. For this type of delivery systems, either joint
ventures or firms with large design and construction capabilities were able to
participate.The disadvantage of this delivery system is loss of control, cost of tender
and cost of risks. Since limited supervisory role by the employer representative is
practiced; which is relatively flexible and makes the employer distanced from the
whole process, the employer has little chance to understand what is developed and
entertain variations in requirements implying loss of control.
Contractors in order to provide reasonable offer, their tender cost is higher than in the
case for DBB delivery system. This is because they need to carry out acceptable
design for project cost offers. Though it is not practiced often, employers who shared

17
costs related to tendering are informed to get seriously considered offers. World Bank
suggested a two staged procurement method based first on technical merit and
followed by financial competition and not for more than six bidders.
The increase in risk transferred onto the contractor will be counter balanced by the
increase in contract prices which can be taken to include these costs of risks.
Projects carried out using DB delivery system are often called turnkey Projects
because a single contractor is reasonable to hand over the completed facility and let
the project owner to turn the key and get in. Often turnkey projects use lump sum
contract type.
1.5.4 Finance/Build Operate Transfer (BOT)
Build Operate Transfer is a form of procurement and contract delivery system that
promotes public private partnership (PPP) in which a private company is contracted to
finance, design, construct and operate for a certain period (usually for 10 years) and
transfer. BOT contractors look to project finances for the realization of projects
through equity contributions or credits. Such provisions are different from budgeted
finances such that they involve no or limited re-course which means the project owner
is not responsible for any liability other than force majeure and agreed upon claim
adjustments. This obligates that projects should first be viable for revenue generation
in order to payback its debts.
The typical BOT contract is the process whereby a government grants a concession to
a project development company to develop and operate what would normally be a
public sector project, for a given period of time known as the concession period. BOT
project involves a potentially complex contractual structure. The operation period
between completion and transfer gives the contractor an opportunity to verify the
quality of the output of the services and works, and train the employer personnel on
how to manage the facility afterwards. In some BOT contracts, defect liability period
will be included in order to ensure the quality of the facility during transfer. This is
because, operators in attempt to save costs, may decrease operating and maintenance
expenditures towards the end of the conception period.
This delivery system is advantageous because of three major factors:
 It minimizes owners‟ scarcity of financial resources
 It devoid of considerable risks from the project owners and lesson regularly
activities and The facility is well operated and transferred with free of charge
or minimum compensations to project owners.
 Such delivery system requires appropriate packaging of projects and their

18
 definition clearly.
 It is advisable to start with small projects and tries to develop experience and
expertise to make such delivery system successful.
Most BOT projects failed because of their built up and engagement in very large
projects which is an extremely risky business for contractors. Consortium of
contractors is used to carry out such projects. The increasing popularity of BOT
project is largely due to a shortage of public funding and the opinion that the facility
will be more efficiently managed by a private entity.
The following standard forms of BOT conditions of contract are known for use for
such delivery systems: FIDIC Yellow Book.
1.5.5 Construction/Facility Management Consultancy
Construction Management Consultancy delivery system is a response to problems
associated with DB and BOT where the project owner was not well represented for its
benefit and the problem of fragmentation between planning and implementation. As a
result, construction management consultancy firm is used to coordinate all activities
from concept inception through acceptance of the facility. Facility management
consultancy adds operation of facility during operation to construction management
consultancy.
Construction management service in such delivery system include the management
activities related to a construction program carried out during the basic planning,
design and construction implementation and its completion process that contributes
for the successful completion of projects. The main difference of this delivery system
is that, while all the others involve only during the implementation phase after major
decisions were made during the basic planning phase of the construction process, it is
involved in the whole construction processes. Construction management consultancy
service are particularly attractive to organizations that involve in construction of
physical infrastructures such as MoE, MoH, Real state Organizations, MoWE,
MoT&C, etc. Construction management consultants then represent project owner to
carry out the following
services:
 Feasibility studies of construction related services
 Plan and monitor the triple constraints of project performances
 Lead and organize regulatory systems of the construction industry
 Valuation, Quantity surveying, and procurement and contract management
services.

19
1.5.6 Partnering, alliances, Outsourcing (running and Specialized Delivery systems)
The need for constructing quicker, cheaper and to a higher quality of physical
infrastructure by clients and at the same time with very minimized or no dispute
questioned fragmentation of packaging, costs related to wastes and overheads, single
staged procurement systems, involving in less competitive and comparative advantage
for services and works and existing stakeholders relationships. As a result, Running
delivery system using partnering and alliances Specialized delivery system using
outsourcing Fast tracking, parallel and coordinated implementation using concurrent
engineering and Just in Time principles And focuses most on management of
relationships and value adding to ensure quicker, cheaper and quality services and
products with less disputes are recent developments. These systems require
overcoming cultural and behavioral barriers among interest groups and control
motivated performance based management. These types of delivery systems are often
the basis behind DB, BOT, FM/CM consultancy delivery systems but they are at most
and recent developments.
1.6 Procurement management
Procurement management process can be idealized into three major processes. These
include preparation, tendering, and evaluation (including award recommendation)
processes.
Procurement Preparation Phase: is meant for the formation of a procurement team;
the preparation of tender documents and their approval for procurement
implementations. Procurement Team: Ethiopian procurement regulation states that a
procurement team consisting of a minimum of five members shall be established. As
tender evaluation is a joint technical and commercial exercise, the project owner shall
consider that the necessary experts shall be composed in the procurement team.
Tender documents are prepared to: Instruct bidders in the procedures for the
preparation and submissions of bids Inform perspective bidders about the nature of
things to be procured Inform bidders about the criteria for evaluation and selection of
the successful bidder Lay down the contract conditions, delivery system, procurement
methods and contract types of the project. Tender document includes:
 Form of invitation to tender or request for proposals
 Instruction to Tenders (standard and/or particular information) or terms of
references
 Pres-qualification documents if necessary-refer procurement methods based
on stages

20
  Forms of tender – refer contract documents
 Forms of contract agreement – Refer contract documents
 General and particular conditions of contract – refer contract documents
 Bill of quantities and drawings – Refer contract documents
 Technical specifications and methods of measurement
 Other forms, formats and schedules
Approval of tender documents: Regulatory requirements enforced for:
Budgeting, Credit, assistance and grant policies
Health, safety and environmental requirements
Professional, ethical, and legal requirements
And demand checking, renewal and approvals of tender documents. Check list for
review is the best practice used for tender documents approval.
Tendering Phase includes invitation, clarification, submission and opening of tenders.
Normally open tenders are floated for a period between 30 and 45 days. Limited and
negotiated tenders can be invited between 7 and 15 days. Invitation shall widen
opportunities to the project owner by reaching all potential and eligible competitors.
The invitation to tender shall clearly state:
 The owner and his desirous service or works
 Eligibility requirements
 Place to get further information
 Where to purchase and submit tender documents
 How long the tender will be floated
 How should the tender offer be packed, and
 When and where submission and opening of tender will take place
Clarifications can either be requested by interested bidder or carried out using a pre-
tender clarification meeting. In both cases, issues clarified shall be sent (written) to all
bidders participating for the intended services or works. The bidders shall submit their
offer on or before the submission date and time. Late bids are automatically rejected.
Tender Opening: Bids shall be opened in public on the date, at the time and place
mentioned in the invitation to tender and stipulated in the tender documents. Ethiopian
practice in tender opening for public construction projects is that, two representatives
from MWUD in addition to the project owner, consultant (if available) and
contractors(who wish to attend) representatives shall attend during the tender opening
ceremony.The following will be carried out during tender opening:
 Tender attendee members shall take their place and be registered

21
  Tender box opened and checked for faulty things
 Check the tender is the right one
 Bids will be opened one after the other
All necessary data which deem useful such as project name, name of bidder, bid bond
amount, tender price, etc. will be read aloud and recorded at the opening of bids
Bidders representative shall sign a register to attest their presence during opening
Tender committee members shall sign on the tender documents.
Tender Evaluation Phase: is made to determine and make award recommendation for
the least evaluated bidder using preliminary and detail evaluations. The recommended
winner may or may not necessarily be the lowest bidder. Factors such as technical
qualification, completion time, commercial terms of the offer, etc are used in
determining the least evaluated bidder.
Preliminary evaluations are made for eligibility and arithmetic review requirements.
Before commencing the actual evaluation, it is useful and recommended to complete
the Basic Data Sheet for each tender to record key information and enable coding.
Eligibility Requirements: Tenders are subjected to eligibility qualification before they
enter to bid and their respective evaluations. Most often cited issues considered in
eligibility requirements are:
 Valid and up-to-date trade and professional license
 Valid and up-to-date membership to financier organization
 Valid provision of bid security or bond
 Completeness and submittals of all required documents
 Turnover requirements fulfilled
 Power of attorney, signature and sealing requirements
 Appropriate invitation, packaging, and submission requirements
These eligibility requirements together with basic alterations of the conditions of the
tender will be considered for responsiveness or not. If the bidder offer provided
weighs a major deviation from th tender condition, the tender will be considered non-
responsive and could not be further considered. But it it is minor deviation, either the
procurement team use their discretionary power to request clarification or the case
will be recorded and taken up during negotiation if the respective winner become the
least evaluated tender. When the first approach is chosen, the bidder is not allowed to
change any information that can substantially affect the tender evaluation. For
guideline during tender evaluation:

22
Arithmetic Review: Most tenders are often submitted hastily. As a result, tenders are
not arithmetic error free. If tenders are processes without arithmetic checks, on the
first place tenders are not evaluated on the basis of equal merits and if they become
binding contracts being over-sighted, they will be the cause for potential disputes.
Therefore, it is formal evaluation process to review arithmetic before carrying out
detail evaluations. Arithmetic can be done if and only when financial proposals are
open. Detail Evaluations include technical, commercial and financial qualification
requirements.
Evaluation at this stage should first and foremost critically see the technical and
commercial offers and establish system that can ensure common bases for comparison.
Finally, the financial offer will be updated using absolute results from commercial
comparisons.Technical Requirements: see per-qualification
Commercial evaluation: This includes benefits foregone due to completion time;
additional costs due to differences in foreign currency exchange, and advance
payment requirements; and provision of domestic or regional preference margins.
Benefits forgone due to completion time: When tenders are offered with different
completion times, comparisons are made to determine the benefit forgone taking into
account the least acceptable completion time as a basis for competitions.
Additional cost due to foreign currency exchange requirements: When tenders have
provisions to quote different currencies, their comparison will be made based on
determining their effects due to the additional cost incurred for variations in currency
exchange requirements. It is then recommended to convert all tender prices into one
currency; often the financiers‟ or other widely used and accepted currency called
common currency. For currency conversion, selling rate of bank published by an
official source and applicable for transactions shall be used.
Additional cost due to foreign currency exchange requirements can then be
determined using selling rates at
 15 days prior to tender submission date
 Tender opening date
 Decision for award or expiry of tender validity date.
23
Advance Payment: When different amounts of advance payment are requested as
part of the tender offer, one could not directly evaluate the tender price and determine
the lowest
evaluated bidder. This violates the principle of competition on the same bases.
Therefore, the evaluation should take minimum advance payment request as a basis
and consider others for additional cost incurred due to different mobilization advance
requirements.
Domestic and/or Regional Preference: domestic or regional preference margin is a
provision to give preference to local companies even if their bid offer is not over by a
percentage often equals 7.5 – 10 % for construction works. This implies that domestic
or regional companies can be awarded the tender even if they are not lowest in tender
price of the evaluation bidders using all the other criteria.A contractor can be eligible
for such performance margin if and only if; Its legal constitution is in accordance with
the employers‟ country/region It is registered according to rules and regulations of the
employers‟ country or region It has proof that its majority of works are undertaken in
the employers‟ country or region
Its majority of capital shares are held by the employers; country/region nationals
Its majority of the board of directors members are the employers‟ country/region
nations Its 50% key personnel are nationals of the employers‟ country/region
Its arrangement to execute the work should not involve major part of its work or net
profit other than the employers‟ country/region nationals or co-companies.
Financial offer comparison: After all commercial comparisons are considered on the
same bases; the tender offer will be adjusted based on the cost-benefit principle which
involves adding costs and benefits foregone. Besides, the preference margin will also
be deducted and least evaluated bidder is determined.
Besides, financial offers per groups of trades of works are compared in order to
evaluate whether tenders are front loaded or not. Front loading often cause disruption
of projects or overzealous contractual negotiations. Rejection of All tenders: though is
solely the power of the employer to decide, for the sake of fairness. It is recommended
that such rights shall be exercised in the following cases:
 All tenders are found non-responsive during the preliminary evaluation
 Evidences of lack of competitions such as collusion among bidders,
monopoly, etc.

 Lower responsive offer is found unreasonably high

24
 CHAPTER TWO
CONTRACT
2.1 Principles of Contract Law
Contracts are governed /administered with conditions, which are legally binding parts
of the contract.
 Legal Definition of Contract
According to the Civil code of Ethiopia, Art. 1675:
 A contract is an agreement whereby two or more persons as between
themselves create, vary or extinguish obligations of a proprietary nature.
 An agreement that affects the legal relationship between two or more parties.
Or Contract means:- The agreement between two parties creating rights and duties,
which is enforceable by law to undertake certain work for the payment of a sum of
money is known as contract. The contract inevitably follows a proposal from one
party and its acceptance by the other. Such contract legally binds the two parties to
undertake the works on the one hand and to pay for the work on the other hand.
What is an Agreement?
Agreement is defined as “every promise and every set of promises forming the
consideration for each other is an agreement.”
Two main characteristics of an Agreement
Plurality of persons: - Two or more persons
Consensus in idea: - Identity of minds
What is a Promise?
“When the person to whom the proposal is made signifies his assent there to, the
proposal is said to be accepted thus a proposal when accepted becomes a promise.”
Difference between Agreement and Contract
 Agreement = offer + acceptance
 Contract = agreement + enforce ability
OBJECTIVES OF A CONTRACT
The purposes (reason for existence) of a contract are to:
 Enforce law or bind conditions between or among the parties.
 To show clearly
 the Terms and Conditions of contracts
 the Rights, Obligations and remedial rights of performances from the contracting parties
 The handling provisions for price, completion time, requirement variations adjustment systems,
Changes in cost and legislation's and dispute resolution mechanisms.

25
  To describe scope of work
 To establish time frame
 To establish cost and payment provisions
 To set forth obligations and relationships
 To manage multiple risks
 To establish control mechanisms
 To minimize disputes
 To improve economic return on investment

CONTENTS OF A CONTRACT
There are basic contents of contract which contracting parties are expected to
understand. They are:
 Formation of Contract;
 Terms of Contract;
 Variation of Contract;
 Privily of Contract;
 Discharge of Contract; and
 Invalidation of Contract.
Formation of A Contract (continued)
To have valid contract agreement the following requirement of formalities must be
satisfied
 Offer and Acceptance(agreement)
 Consideration
 Competent parties(Legal capacity)
 Legality of the object
 Formalities
As per Art. 1678 Civil Code of Ethiopia, 1960 A Contract is valid if
 The parties are capable of contracting
 Contracting and give their consent suitable at law
 The object of the contract is sufficiently defined and is possible and
lawful
1. Offer and acceptance (agreement)
OFFER
 An offer is an expression that one party is willing to be bound by specific terms which are
set out in the contract.
26
  An offer remains open unless it is terminated. Termination can occur in the following
ways:
 A refusal (Rejection) or counter offer but not just a request for further
information;
 Death of offeror or offeree;
 None acceptance within the offer time or after reasonable length of time;
 Failure of a condition subject to which the offer was made; and
 Revocation of the offer (withdrawal of offer).
Acceptance
 A contract does not exist until the offer is accepted by the other party.
 This acceptance must be:
 absolute - i.e. accepting all the terms of the offer;
 There must be an indication of consent - i.e. silence does not indicate acceptance;
 The acceptance must be communicated to the offeror; and
 It must be the offeree or his agent which communicates the acceptance.
When the processes of offer and acceptance are accomplished, there is an agreement.
2. Considerations
Consideration is the price for the promise i.e. What one party to a contract can get
from the other party in return for performing contract obligations. If one party makes
a promise and the other party offers nothing in return for that promise, the promise is
unenforceable due to lack of consideration.
3. Legal Capacity
The legal competence of the parties to enter into legally binding contract. The person
are incompetent to enter into a contract minors (under the age of 18), those considered
legally incompetent, mentally ill and under the influence of alcohol and other drugs
4. Legality of the object
A valid contract must be legally enforceable. Illegal contract are agreement to commit
crimes or civil wrongs which may injure the state promotion of corruption which limit
a person’s ability to carry out his/her trade.
5. Formalities
Any contract required to be in writing shall be supported by a special document
signed by all parties bound by the contract. Failure to execute a contract in a required
form makes the contract invalid. Examples of contract requiring written evidence are
contract related to immovable made with a public administration of guarantee,
insurance it shall be of no effect unless it is attested by two witnesses.

27
Terms of A Contract
Are provisions or stipulations in a valid contract describing some aspects of the
agreements between the parties to contract. Define the rights and obligations of the
parties in accordance with their agreement. Can either be
 Express terms: are words expressly agreed by parties to
contract and by which they intend to be bound.
 Implied terms: are contract terms which are not written
down in a contract or openly expressed at the time the
contract is made, but which the law implies.
 Statutory terms: are terms which are imparted into contracts
by legislation. The Civil Code of Ethiopia, procurement law
and other pertinent legislation are example of these.
Contract terms can be also be either:
 Conditions: are fundamental to the contract. Failure to adhere
to a condition may result in a breach and/or damages.
 Warranties: are subsidiary to the main contract. A breach of
warranty will only result in the injured party suing for
damages.
Privitiy of A Contract: Only parties who enter into a contractual agreement will have
the right to sue or a liability to be sued due to a contract.
Discharge of A Contract: There are four ways in which a contract may be discharged.
 By performance: A construction contract will be discharged
by performance on the part of the contractor when all the
works has been completed including maintenance during
defects liability period, and when the Engineer has issued all
the required certificates and on the part of the employer
when he has paid all the payments due.
N.B. The contractor is liable to employer if latent defects are discovered during the
period limited by law. (i.e. 10 years limitation period by Ethiopian Civil code and
MOWUD 1994)
 By agreement: A contractual obligation may be discharged
by a subsequent binding contract.
A. By mutual agreement
B. Notation (i.e. substituting the existing contract
with the new one)

28
 C. By accord and satisfaction
 By Frustration : Occurs when the contract was executable at
time of agreement but subsequent events, over which the
contracting parties have no control, make it impossible to
fulfill the contract obligations. The Ethiopian civil code
deals with frustration under force majuere. Example
Destruction of the specific items essential to the
performance of the contract Action by government which
prohibit performance of a contract for a long period. War
Natural catastrophe such as earthquake, lightning or floods
 By Acceptance of breach:Breach of a contract occurs where,
with out justification, a party either fails to perform its
contractual obligation expressly or by implication.
 Invalidation of A Contract:
 Invalidated contract is a contract which is not
binding.
 The two main factors that can invalidate a contract
are:-
 Mistake: the situation in which an ‘offer’
made by one party and its ‘acceptance’ by
the other do not actually corresponds.
 Misrepresentation (False statement):
the making of an untrue statement relating
to fact which includes another party to
enter into contract.

2.2 Types of Construction Contracts

Contracts for the execution of civil engineering works are of following type:
(a) Lump sum contract
(b) Unit rate contract
(c) Lump sum and schedule contract
(d) Cost plus fixed fee contract
(e) Cost plus percentage of cost contract
A. Lump sum fixed price contract
 The contractor agrees to execute the project based on a fixed lump sum

29
 price which is not subject to any variations unless the drawings and
specifications are altered beyond the maximum limit stated in the contract
conditions by the owner.
 The contractor is fully responsible to quantify the volume of works based
on the given specifications and drawings.
 Overestimating the volume of works will result in loosing the job, if it is
on competitive basis and underestimating the volume of works will result
irreversible loss, which can not be corrected during the execution of the
contract at any level.
 Moreover, the contractor must be in a position to estimate the influence of
cost escalation in the future during the execution of the project and these
anticipated additional costs should be incorporated in the tender prices.
A lump sum contract is more suitable for works for which contractors have prior
construction experience. The experience enables the contractors to submit a more
realistic bid.
Advantages of Lump sum fixed price contract
 The owner decided whether to start or shelve the project knowing the total
lump sum price quoted by different contractors.
 The contractor can earn more profit by in-depth planning and effective
management at site.
Disadvantages of Lump sum fixed price contract
 All competing contractors are required to carry out enormous take off
works where only one contractor will be successful. It consumes excessive
time of the contractors.
 All bidding documents such as the technical specifications and drawings
have to be clearly prepared and delivered during tendering stage to the
contractor.
 Claims and variation works are very difficult to handle in this kind of
construction contracts due to the absence of agreed unit rates.
 Contractors tend to include higher percentages of contingencies in their
tender prices to cover price escalation, take off errors, clarity of drawings
and specifications which inevitably raises the tender prices.
 Unless the bidding documents are sound and sufficient enough to define
the intended projects, contractors may not compete on the same ground.
B. Unit Rate Contract

30
  The unit rate contract is also called item rate contract.
 In this case, the construction contract is based on priced bill of quantities
whereby estimated quantities of certain well defined work items and fixed
unit prices of each of these defined work items are agreed upon.
 The estimated quantities may increase or decrease during the execution of
the project and the contractor is obliged to accept these variations without
additional costs as far as these variations in quantity are within the agreed
limits with the owner.
 The unit rate contract is the most commonly used for all public and
governmental projects whereby the estimated quantities and specifications
of works are well known in advance.
Advantages of Unit Rate Contract
 There is no need for detailed drawings as in the case of lump sum
contracts and these detailed drawings can be prepared after the award of
the contract.
 Changes in drawings and quantities can be made as required by the owner
within the agreed limits.
 Additional works and claims can be handled in a better way especially
when the priced bill of quantities includes these additional work items and
claims. It gives a better opportunity to compete on the same ground.
Disadvantages of Unit Rate Contract
 The total cost of the project can only be known upon completion of the
project.
 The contract doesn’t contain provision for price escalation and the
contractor may increase his construction cost estimates.
 Clearly defined work specifications shall be prepared in advance and
issued with the bidding documents to contractors participating in the
tender.
 The preparation of technical specifications and estimated bill of quantities
may take longer time, which will affect the overall completion of the
intended project.

C. Lump sum fixed price and schedule rate contract

 This is another extension of lump sum fixed price contract but it

31
 incorporates unit prices of different activities which will help to manage
variation works and claims during execution of the project.
 Moreover, the contractor shall not account contingencies for additional
works and claims but contingencies for price escalation of materials, labor
and equipment's shall be considered in the tender prices.
D. Cost Plus Percentage of Cost Contract
In this kind of contract, it is very important to have a common understanding
regarding the accounting methods to be followed during execution of the project.

Advantages of Cost Plus Percentage of Cost Contract

 The contractor executes works to the best interest of the owner resulting in
good quality of works.
 The project can commence as early as possible even before detailed
drawings and specifications are finalized.
 Changes in design and method of constructions, if required, can easily be
carried out by the contractor without disputes.
 The progress of works can be speed up to the maximum possible
shortening the overall completion time of the project.
 Disadvantages of Cost Plus Percentage of Cost Contract
 The total cost of the project is unknown until completion of the project
putting the owner in financial difficulties.
 It encourages the contractor to increase the actual direct costs of the
project unnecessarily as the contractor‟s profit increases with the
increment of these costs.
 In the cost plus percentage of cost contract, the contractor shall focus
mainly on identification of company head office overhead costs, site
overhead costs and relevant income tax laws as well as anticipated profit.
 Moreover, it is also very important to estimate the total scope of work,
which is very important in fixing the percentage of cost.
E. Cost Plus Fixed Fee Contract
 One of the major shortcomings of the cost plus percentage of cost contract
is the tendency of the contractor to increase the cost of the project and cost
plus fixed fee contract discourages this tendency of the contractor.
 In this case, the contract is based on actual direct costs plus fixed fee and
the amount of fixed fee covers the overhead costs, profit and income tax

32
 of the contractor.
 However, cost plus fixed fee contract has also the following disadvantages
as compared to the cost plus percentage of cost contract:
 The scope of works shall be properly defined in advance to reach an
agreement on the fixed fee with the contractor.
 Claims and disputes may occur when major changes are required by the
owner during execution of the project.
 The contractor will insist higher fixed fee depending on the clarity of the
defined scope of works.
 In this type of contract, the contractor has to be very careful in identifying
all other anticipated costs other than the direct costs to fix the amount of
fixed fee.
 Moreover, the time for completion of the project has to be predicted based
on the defined scope of works as most of overhead costs are time related
costs to the contractor.
2.3. Contract Documents
Contract documents are the documents in which the scope and the requirements of a
project are comprehensively laid down. In these documents the obligations and
responsibilities of the parties to the Contract as well as the Engineer’s powers, duties
and functions which flow from such a Contract are defined.
The Contract Documents adopted for Civil Engineering construction comprises the
following elements:
The main contract documents are:
 Invitation to tender,
 Instruction to tender,
 Form of tender,
 The Agreement,
 Condition of contract( General and Particular),
 Specification (General and Particular),
 Bill of Quantities,
 Drawings,
 Addenda and
 Appendix to Tender.
Instruction to Tenderers
The instructions to Tenders are usually the first section included in the bound volume

33
of the tender Documents. And it consists:
(a) Instructions on filling in tender form
(b) Data to accompany tenders:
(c) Delivery of Tenders:
(d) Letter of Capacity
(e) Validity and Price Variations:
(f) Special Conditions
(g) Instructions on completion of the Bill of Quantities, Schedule of Rates,
Day work Schedule
Form of Tender
The Form of Tender is the part of the document that Tenders is required to fill in to
make an offer to execute the works. The Form of Tender is accompanied by an
Appendix which forms part of the Tender. In the Appendix, figures which need to be
inserted under the various clauses in the Conditions of Contract are filled in.
Form of Agreement
The Form of Agreement is the formal document conforming the existence of a
Contract between the Employer and the Contractor. Parties in government
construction contracts are required to execute the agreement with signatures and their
seal.
Agreement:
 is the document that reflects the legal contract between owner &
contractor, owner & designer, and general contractor (GC) & sub-
contractors and supplies for those contracts.
 Simply a letter that constitutes legal evidence that a contract exists, and
forms the basis for its enforcement.
Conditions of Contract
 States the obligations of the parties and detail the conditions under which
the contract is to be carried out.
 It states to what extent should be the relation among the engineer,
contractor and client.
 It includes general and supplementary special/particular conditions of
contract.
A) General Condition
 This document is an essential part of the contract. Called boilerplate,
implying that the same documents are standard to all contracts.

34
  It defines the responsibilities of the parties involved in the contract –the
owner and the general contractor.
 It describes the guidelines that will be used in the administration of the
contract.
B) Supplementary Conditions
 Also known as special provisions or special/particular conditions.
 Is extension of the general provisions of the contract to fit the specific
project at hand.
 They serve as amendments or augmentations to the general one.
Items included in the supplementary conditions are entirely subject to the judgment of
the owner, and may include topics such as:
–The number of copies of contract documents to be received by the contractor
–Survey information to be provided by the owner
–Materials provided by the owner
–Site visit
–Start date of the construction
–Requirements for security and temporary facility
–Procedures for submittals and processing of shop drawings
–Cost and schedule reporting requirements
–Traffic control and street cleaning requirements
–Responsibilities for testing of materials
–Actions to be taken in the event of discovery of artifacts or items of historical value
Specifications
 Also known as technical provisions.
 They are written instruments to be used in conjunction with the drawings.
 Fully describe and define the requirements of the contract, to include the
quality that is to be achieved.
 They supplement the drawings and provide information that cannot be
shown in graphic form, or too lengthy to be placed within the drawings.
 They guide bidders in the preparation of cost proposals as well as field
execution of the work.
 They also guide the contractor through the processing of ordering
materials and construction and installation of the facility.
Bill of Quantities
 Describe the expected amount of work (measured); units of measurement,

35
 the unit price and the total cost of the works.
Drawings
 Are the means by which the designer conveys the physical, quantitative,
and visual description of the project to the contractor.
 Two dimensional representation . Also known as plans or blueprints.
Addenda
 Any change to the bid documents after they are released for bidding but
before bids are actually received requires issuance of an addendum.
 It changes the original bid documents and becomes a part of the bid
package.
 At the time of bid opening, bidders must in their bid documents,
acknowledge all addenda.
 Technically addenda may be issued to change the bid opening date, to
modify the original design, to delete or add items, or to correct errors.
 May not be issued within about five days of bid opening unless the bid
date…
2.4 Contract Management :
2.4.1 Contract Administration and Closing
 is management of its processes, stakeholders & their performances along
planning, implementation and monitoring.
 Contract Management Process is idealized into:

Contract Administration
Process of insuring successful completion of project with substantial compliance of

36
the terms of the contract.
Tasks for contract administration are:
 Identifying contractual responsibilities of Stakeholders.
 Reviewing the Terms of Contract Documents
 Extract Monitoring Responsibilities
 Preparing Monitoring Responsibility Summary Sheets
Determining and understanding the construction components of the project.
 Reviewing the Contract Drawings and Technical Specifications
 Extract the Construction Methods and Sequences
 Prepare Construction Methods and Over all Sequences Sheets
 Review submitted (Integrated) Schedules and Breakdowns for operations such as
Organizational Breakdowns, Resources Breakdowns & Schedules and Time
Schedules.
 Record, Monitor and Evaluate Progress of Mobilizations, Works and
Completions.
 Report Project Status daily and / or periodically and Completions.
 Certify qualities of materials, shop drawings, samples, workmanship's and
works.
 Measure Works, Record Site Potentials and Certify Payments and
Completions
 Take off sheet and Bending Schedules are used for Measurement of
Works
 Method of Measurement is according to standard practices
 Site Potentials such as material, equipment and Manpower on site together
with appropriate site organization is recorded
 Advance, Interim and Final Payments are certified
Contract Closing
Closing of Contract looks into issues:
Maintenance Period and Remedial works (Usually 1 yr.): to reveal quality problems
like sanitary and roof leakages, poor quality door and window handles and locks,
electrical fittings, structural damages, cracks, pavement subsidence, settlement, etc.
 Left Over Claims and Disputes, if any: not settled before provisional
certificate of completion, they are dealt during this phase.
 Closing of Accounts: release of remaining retention money and
performance securities and final payment certificate is issued.

37
  Completion Certificates: entitle that the contractor is no longer responsible
afterwards if satisfactory performance is proved by maintenance period,
outstanding claims and disputes are settled, and closing of accounts are
made.
2.4.2 Claims and Dispute Management
Dispute in simple terms is a difference in a line of thought.
Claim is mostly concerned with entitlements and liabilities arising under, or as a result
of, a legally valid contract.
A construction claim therefore can be a demand for payment of additional
compensation, adjustment of the parties respective contractual obligations, extension
of Time or compensating delay damages, or any other change with regard to the
contractual conditions or terms. Claim in practice can also be understood in different
ways based on the perceptions held by contractual stakeholders.
 A claim is a disguised form of blackmail,
 A claim is the last chance to bail out of a losing job, and
 A claim is an assertion to a contractual right.
Three different types of claims:
 Time Related Claims: Claims associated with delay or in time completion of
projects where either of the following six Entitlements or Penalties are
subjected to:
 Time Extension only
 Liquidated Damages only
 Time Extension and Cost Compensation
 Bonus
 Reliving of Obligation
 Cost Related Claims: Claims associated with monetary compensation where
either of the following entitlements or penalties are entertained:
 Additions requiring rate adjustments
 Provisional sum adjustments

 Default by Contracting Parties: Claims associated with non performances of

contractual obligations such as:
 Delay in Payment Certificates
 Suspensions and Terminations
Major Causes for Claims

38
Levy, 2000 outlined 11 reasons why claims can be initiated. They are related to
 poor or unclear tender and/or contract documents,
 poor or inadequate administration of responsibilities by stakeholders,
and
 Unforeseen or uncertain situations during execution
•Wideman, 2001 has also identified claim causes into three main categories:
 Changed conditions
 Additional works, and
 Delay for cost overruns and time extension.
Alternative Dispute Resolution System
ADR –includes
 Preventive Dispute Resolution System ‐Partnering, Use of dispute
resolution advisors and Use of Facilitators.
 Friendly Dispute Resolution System ‐Negotiation, Mediation,
Conciliation and use of Mini‐Trials to administer the claim in a less
formal, simple procedure, more flexible, less adversarial and strictly
confidential mode so as to avoid the time and cost implication of claim
processing.
 Judgmental Dispute Resolution System -including Adjudication or use
of Dispute review board, Arbitration and Litigation where the formal
adjudicatory or common law system is applicable to bring the closure of
claim processing.
Alternative Dispute Resolution System Preventive Dispute Resolution System
ALLIANCING
Alliance is generally a tender arrangement where all the principal tenders organize
into groups with common aims, prior to submitting the tender.
•STANDING NEUTRALS
•DISPUTE REVIEW BOARDS
DRB ‐ a representative from the owner, one from the contractor and a third, selected
by these two representatives. The third member chairs the board.
The members usually have experience in the kind of construction work being
undertaken and are also familiar and experienced in dispute resolution. It is important
that all the board members are independent of any of the contracting parties, although
they are paid by them.
Alternative Dispute Resolution System Amicable (friendly) Dispute Resolution

39
System
MEDIATION
“a process in which the parties to a dispute, with the assistance of a neutral third party
(the mediator), identify the disputed issues, develop options, consider alternatives and
endeavour to reach an agreement. The mediator has no advisory or determination role
in regard to the content of the dispute or the outcome of its resolution, but may advise
on or determine the process of mediation whereby resolution is attempted”.
WHY USE MEDIATION?
 Save money
 Preserve relationships
 Maintain confidentiality and privacy
Dispute Resolution
Judgmental Dispute Resolution System
Litigation
 Litigation takes place at the court of law having jurisdiction over the
case.
 The courts play here their dispute resolution role.
 Litigation is the most serious & adversarial method of dispute resolution.
 The procedure before the court is so rigid & not tailor made to the
construction dispute resolution.
 The courts are following the standard procedure established under the
civil procedure code, which applies for all types of disputes brought to
them.

40
 CHAPTER THREE
SPECIFICATION PRACTICE

3.1. Introduction

Construction has a history of several thousand years. The first shelters were built from
stone or mud and the materials were collected from the forests to provide protection
against cold, wind, rain, and snow. Creativity, ingenuity, and tenacity were the drivers
to realize such extraordinary building achievements. A craft motivated by necessity
(shelter from the elements) gradually turned into building science motivated by
curiosity, intrigue, and genius. The building challenges of today are just as complex as
in the past, and even more sophisticated, inspiring the same attributes exhibited by the
early master builders [1].

Classification of construction industry includes [2]:

 General construction and demolition work

 Construction and repair of buildings: improvement and repair of both residential
and nonresidential buildings, including specialists engaged in sections of
construction and repair work such as bricklaying and the erection of steel and
concrete structures, etc.
 Civil engineering: construction of roads, railways, airport, runways, bridges,
tunnels, pipelines, dams, etc.
 Installation of fixtures and fittings: installation of fixtures and fittings including;
gas fittings, plumbing, electrical fixtures and fittings, etc.
 Building completion work: work such as painting and decorating, plastering,
onsite joinery, etc.

Construction projects are mainly capital investment projects. They are executed based
on a predetermined set of goals and objectives. They are customized and non- repetitive
in nature. Construction projects have become more complex and technical, and the
relationships and the contractual grouping of those who are involved are also more
complex and contractually varied.

A construction project involves many participants comprising the owner (Client),

designer (Consultant), Contractor (builder)-3C’s, and many other professionals from
the construction-related industries. These participants influenced by one another in the

41
construction process. Therefore, the construction projects have become more complex
and technical, and extensive efforts are required to reduce the rework and costs
associated with time, materials, and engineering.

Scope, Time (schedule), Cost (budget) are the three key attributes in a construction
project that the construction/project manager has to manage effectively and efficiently
to achieve a successful project. From the quality perspective, these three elements are
known as “quality trilogy,” whereas when considered from project/ construction
management perspective, these are known as “triple constraints” [4]

Building construction estimation is the determination of probable construction costs of

any given project. Many items influence and contribute to the cost of a project; each
item must be analyzed, quantified, and priced. Because the estimate is prepared before
the actual construction, much study and thought must be put into the construction
documents. The estimator who can visualize the project and accurately determine its
cost will become one of the most important persons in any construction company. The
working drawings usually contain information relative to the design, location,
dimensions, and construction of the project, while the project manual is a written
supplement to the drawings and includes information pertaining to materials and
workmanship, as well as information about the bidding process. The working drawings
and the project manual constitute the majority of the contract documents, define the
scope of work, and must be considered together when preparing an estimate [5].

A wide range of economic factors influences the extent of activity in the industry, and
these include the general economic climate, interest rates, rate of inflation, credit
availability and extent of control of public sector spending. It is generally believed that
housing tends to reflect the general position of the industry.

3.2. Specification

Specifications are important tool for communicating with sufficient detail how, where,
and when a particular item or project is to be manufactured or constructed to meet an
owner’s needs. On civil engineering projects, the contract documents (body), the
drawings (skeleton) and the specifications are part of the contract documents (body
parts as muscle, sinew, and skin), which together add up to the whole. It is the
qualitative requirements for products, materials, workmanship, and administrative

42
requirements upon which the project is based. Simple definitions of the word specify is
to describe or define in detail. A specification is a precise statement describing the
characteristics of the work.

The term specifications is often used to describe a portion of the contract documents
that include the bid documents, agreement between owner and contractor, general
provisions, special provisions, and technical specifications.

I. Language

The language must use the four principles of effective communication:

Clear: Use proper grammar and simple sentence construction to avoid
ambiguity
Concise: Eliminate unnecessary words, but not at the expense of clarity,
correctness, or completeness.
Correct: Present information accurately and precisely. Carefully select words
that convey exact meanings.
Complete: Do not leave out important information.
II. Writing Style

Good writing style is characterized by accuracy, brevity, and clarity. Avoid long,
complex sentences. Follow these simple rules for good style:

 Use simple sentences.

 Maintain sentence structure in simple declarative or imperative statements.
 Avoid complicated sentences in which inadvertent omission or insertion of
punctuation could change meaning or create ambiguity.
 Choose words and terms that are simple and clearly understood.

The imperative mood should generally be maintained throughout a specification.

Consistent use of terminology and language contributes to better communication.
Avoid duplicating or contradicting requirements contained elsewhere in the
specification (specs.).

III. Sentence Structure

Two basic grammatical sentence moods can be used to clearly convey specification
requirements:

43
  Imperative mood
 Indicative mood

Imperative Mood: recommended method for instructions covering the installation of

products and equipment. The verb that clearly defines the action becomes the first word
in the sentence. The imperative sentence is concise and readily understandable:

 Spread adhesive with notched trowel.

 Install equipment plumb and level.
 Apply two coats of paint to each exposed surface.

Indicative Mood: passive voice requires the use of shall in nearly every statement. This
sentence structure can cause unnecessary wordiness and monotony:

 Adhesive shall be spread with notched trowel.

 Equipment shall be installed plumb and level.
 Two coats of paint shall be applied to each exposed surfa
IV. Capitalization

Capitalization should be consistent throughout the contract documents. Capitalization

of the initial letter of certain specific nouns and of proper names defined in the
conditions of the contract is appropriate. Following are some examples of words that
should be capitalized:

Agreement: the specific form signed to execute the contract.

Architect: the architect who is a party to the owner-architect agreement.
Article: an article in the specifications or conditions of the contract.
Change Order: When issued as a modification to a contract.
Contract: the specific contract for which the specifications are written.
Drawings: graphic portions of the contract documents.
Engineer: the engineer who is a party to the owner-engineer agreement.
General Conditions: the specific general conditions of a contract.

I. Punctuation

Because specifications are legal documents, the formal rules of punctuation must be
observed. Sentences should be constructed so that the misplacement or elimination of
a punctuation mark will not change the meaning. Commas should be used after each

44
item in a series, including the item preceding a conjunction, and in other locations
where the clarity of the statement will be improved.

II. Inappropriate Terms

Avoid using phrases that have missing objects:

 As allowed  As indicated
 As appropriate  As necessary
 As approved  As required
 As directed
Avoid these adverbs:
 Hereinafter  Herewith
 Hereinbefore  Wherein

Avoid these articles: any, all and such

Avoid these words and expressions:
 Etc.
 As per
 In a workmanlike manner
 To the satisfaction of the architect/engineer
 Shall function as intended
 Also

3.3. Methods of Specification

There are four methods of specifying: descriptive, performance, reference

standard, and proprietary.

3.3.1. Descriptive Specification

It specifies properties of materials and methods of installation without using

proprietary names. A descriptive specification is a detailed description of the
characteristics, physical properties, and workmanship required for the
installation of a product or material. It generally requires technical knowledge
and experience on the part of the architect/engineer (A/E).

There are five basic steps for preparing descriptive specifications:

45
 1. Research available products.
2. Research important features required. Analyze and compare
requirements with available products.
3. Determine which features are best specified and which are best shown
on the drawings.
4. Describe important features. State the requirements and ascertain that
they can be met. Selecting and specifying unique features from the
products of several manufacturers may result in the description of a
nonexistent product. Avoid specifying unnecessary features.
5. Specify only information about submittals, testing, and other procedures
necessary to ensure that acceptable products will be provided. Do not
require extensive shop drawings if catalog information is adequate. Do
not require tests if product certification will suffice.

EXAMPLE 3.1: Surface-mounted, projecting 25 mm (1 inch) maximum from

finished surface and mounting screws spaced 300 mm (12 inches) apart
maximum.

3.3.2. Performance Specification

Specifies the required results, the criteria by which the performance will be
judged, and the method by which it can be verified. The contractor is free to
choose materials and methods complying with the performance criteria. A
performance specification is a description of the required end result of a product
or system and includes the criteria to be used for verification of proper
installation. It is generally written to encourage the use of innovative techniques.
It is defined as a statement of required results with criteria for verifying
compliance, but without unnecessary limitations on the methods for achieving
the required results.

The owner’s needs may make performance specifications feasible for several
reasons to:
 expedite construction and access a wide range of options using
existing technology and systems techniques
 utilize technology that has not yet become standardized within
the construction industry

46
  develop new technology
 delegate technical design responsibilities to industry specialists

EXAMPLE 3.2: A requirement of 20,684 kPa (3000 psi) concrete strength is

a performance specification.

3.3.3.Reference Standard Specification

Specifies product or processes by established standards. A reference standard

specification uses recognized industry standards rather than individually written
product or installation criteria. Standards must be reviewed carefully to avoid
duplication's, optional requirements, and contradictions.
Reference standards include the following types:
 Basic materials standards such as American Society for Testing and
Materials (ASTM) B 211, Standard Specifications for Aluminum
and Aluminum-Alloy Bar, Rod, and Wire
 Design standards such as American Concrete Institute International
(ACI) ACI 318, Building Code Requirements for Structural
Concrete
 Workmanship standards such as ASTM E 2112, Standard Practice
for Installation of Exterior Windows, Doors and Skylights
 Test method standards such as ASTM E 119, Standard Test
Methods for Fire Tests of Building Construction and Materials
 Codes such as American National Standards Institute/American
Society of Mechanical Engineers (ANSI/ASME) A17.1, Safety
Code for Elevators and Escalators
 Installation standards such as National Fire Protection Association
International (NFPA) 13, Standard for the Installation of Sprinkler
Systems
 Performance standards such as ASTM F 1487, Standard Consumer
Safety Performance Specification for Playground Equipment for
Public Use
 Life safety codes and standards produced by organizations such as
International Code Council, Inc. (ICC), NFPA, and Underwriters
Laboratories, Inc. (UL)

47
Reference standards are incorporated into the specifications by referring to a
number, title, or other designation.

EXAMPLE 3.3: “During the installation of drywall tape, the building

temperature shall be maintained at not less than 10 degrees C (50 degrees F).”

3.3.4. Proprietary Specification

It specifies actual brand names, model numbers, and other proprietary

information. A proprietary specification describes products and materials by
manufacturer’s name, brand name, model number, or unique characteristic.
Closed proprietary specifications do not allow for substitutions, but open
proprietary specifications allow for alternative products.

I. Closed and Open Proprietary Specifications

The fundamental distinction between closed and open proprietary
specifications concerns substitutions. Closed proprietary specifications
generally prohibit substitutions, whereas open specifications permit
them. Different specifying objectives are served by each method. In the
closed specification, the A/E is certain that the named products will be
provided. In open specifications, the named product serves only to
indicate the desired properties and acceptable level of requirements.
Closed Proprietary Specifications: - The closed proprietary
specification permits the design to be completed to a high level of detail.
This reduces variables and promotes accurate pricing; however, it does
not offer protection against possible higher costs.
Open Proprietary Specifications: - Open proprietary specifications
may alleviate the problem of overpriced sole-source items.
Requested Alternates: -
Proposed Substitutions: -
Controlled Substitutions: -
Substitution requests from bidders are in writing and requests
from manufacturers and suppliers are not considered.
A definite deadline for the submittal of requests for
substitutions is established.

48
 Submittals of supporting data by the bidders/proposers is
required.
A written acceptance of substitutions is issued to all
bidders/proposers by an addendum.
II. Nonrestrictive Specifications

The federal government and some other public authorities restrict the use of
proprietary or exclusionary specifications except under special circumstances.
A typical public law in this case, the one providing for federal participation in
the financing of wastewater treatment plants-includes the following language:

Reference in the specifications to equipment, material, articles, or

patented processes by trade name, make, or catalog number shall be
regarded as establishing a standard of quality and shall not be
construed as limiting competition. The Contractor may, at its option, use
any equipment, material, article, or process that, in the judgment of the
Contracting Officer, is equal to that named in the specifications, unless
otherwise specifically provided in this contract.

Nonrestrictive specifications may be developed from descriptive, performance,

reference standard, or proprietary specifications, or from a combination of these
four methods.

EXAMPLE 3.4: Water reducing agent shall be used in all concrete, in strict
accordance with the manufacturer's printed instructions. Total air entrained shall
be 5.0% plus or minus 1.0% of volume of concrete with required strengths
maintained

3.4. General Provisions of Specifications

The general provisions set forth the rights and responsibilities of the parties to the
construction contract (owner and contractor) and the surety, the requirements governing
their business and legal relationships, and the authority and responsibilities of the
engineer. These articles are often miscalled “the legals” or the “boilerplate.” When a
contracting agency maintains published standard specifications, the specifications for a
project comprise these standards and, in addition, the modifications and additions

49
 necessary for the particular requirements of the project, generally called the special
provisions.

The general provisions may be set forth in detail under the following subsections [7]:

 Definitions and Abbreviations

 Bidding Requirements
 Contract and Subcontract Procedure
 Scope of the Work
 Control of the work
 Legal and Public Relations
 Damage Claims
 Workmen’s Compensation  Commencement and
Insurance Prosecution of the Work
 Contractor’s Comprehensive  Time of Completion
General Liability  Suspension of Work
 Comprehensive Automobile  Unavoidable Delays
Liability  Annulment and Default of
 Builder’s Risk Contract
 Owner’s Protective Public Liability  Liquidated Damages
and Property Damage Insurance  Extension of Time
 Protection and Indemnity Insurance  Measurement and Payment
 Laws, Ordinances, and Regulations  Measurement of Quantities
 Responsibility for Work  Scope of Payment
 Explosives  Change of Plans
 Sanitary Provisions  Payment
 Public Safety and  Termination of Contractor
Convenience Responsibility
 Accident Prevention  Guaranty against
 Property Damage Defective Work
 Public Utilities  Dispute Resolution
 Abatement of Soil Erosion,
Water Pollution, and Air
Pollution
 Prosecution and Progress

[10]
50
3.5. Materials and Workmanship Specifications

It is comprehensive in its coverage of the principal factors entering into the prosecution
and completion of the work covered by the contract. These factors include the general
and special conditions affecting the performance of the work, material requirements,
construction details, measurement of quantities under the scheduled items of work, and
basis of payment for these items. The principal properties to be considered in the
preparation of specifications of materials for construction are:

1. Physical properties, such as strength, durability, hardness, and elasticity

2. Chemical composition
3. Electrical, thermal, and acoustical properties
4. Appearance, including color, texture, pattern, and finishes
These specifications are used on projects of considerable magnitude requiring many
separate general construction contracts, usually in simultaneous operation and under
which the types of construction are similar.
Developing Specification Consideration during Development
Gathering Information: Economic Implication of each choice: be
{information regarding the specific aware of the economic impact of the
project requirements + reference requirements stated in the specifications.
material pertaining to products and Avoid elaborate and expensive
construction methods applicable to the requirements for items that are not critical
particular specification section} to the success of the project.
Product Selection Decision: Work Results Structure: understand that
{functionality and aesthetics + neither the section titles nor their
manufacturer must be reputable + arrangement are organized by work results
Consider availability of skilled and don’t control how the work of the
workers and complexity of installation project is to be assigned to various
+ Initial cost, maintenance and construction trades and subcontractors.
operational costs.} Industry Condition & Availability of
Products: A product available today may
not be available some months later when
the project is under construction.

[10]
51
3.6. Ethiopian Building and Transport Construction Design Authority
(BaTCoDA)

BaTCoDA is the current implemented specification in Ethiopia that guides all the
measurement process.
The four main contents of the standard are listed below.
GENERAL REQUIREMENTS
01. GENERAL REQUIREMENTS CONCRETE WORK
011 General 03. CONCRETE WORK
012 Site Description 031 Cast in Place Concrete
013 Quality Assurance 032 Concrete Formwork
014 Project Records 033 Reinforcement
015 Site Facilities 034 Precast Concrete
016 Cleaning up 035 Concrete Ancillaries
17 Insurance and Bonds MASONRY WORKS
18 Abbreviations & Notations 04. MASONRY WORKS
019 Unit of Measurement 041 Definitions
EXCAVATION AND EARTHWORK 042 General Requirement
02. EXCAVATION AND 043 Products
EARTHWORK 044 Execution
021 Definition 045 Masonry Work Ancillaries
022 General Requirements 046 Methods of Measurement
023 Excavation

References

[1] B. J. Jackson, Construction Management Jump Start™, London: SYBEX, 2004.

[2] D. C. FRICS, Quantity Surveyor’s Pocket Book, AMSTERDAM: Elsevier Ltd.,
2009.
[3] I. H. Seeley, Quantity Surveying Practice, London: MACMILLAN PRESS LTD,
1997.
[4] A. R. Rumane, HANDBOOK OF CONSTRUCTION MANAGEMENT: Scope,
Schedule, and Cost Control, Boca Raton: CRC Press- Taylor & Francis Group,
2017.
[5] F. R. D. a. S. J. Peterson, Estimating in Building Construction, New Jersey:
Pearson Education, Inc, 2011.
[6] J. T.Ricketts, "Construction Management," in Standard Hand Book For Civil
Engineers, New York, McGraw Hill, 1999.
[7] Construction Specifications Institute, Construction Specifications Practice Guide,
Hoboken, New Jersey: John Wiley & Sons, Inc., , 2011.

[11]
52
 CHAPTER FOUR
QUANTITY SURVEYING

4.0. Introduction

The need for quantity surveyors became evident as building work increased in volume
and building clients became dissatisfied with the method adopted for settling the cost
of the work.

The need for measurement and valuation of work in progress and for cost planning led
to the emergence of quantity surveying. In addition, the need to measure work in
progress for the purposes of paying contractors and the need to prepare documentation
for tendering purposes was increasing. The technicians who dealt with these aspects
were becoming increasingly dominant in the process of construction. As a result the
profession of quantity surveying was born.

Quantity survey is the decomposition of the project into tasks with quantities at the
beginning of the estimating process. It starts with the calculation of the quantity of all
materials, labor, and equipment for each item of work, coincidentally called a task. This
process is called the quantity survey.

The challenge for construction management is to bring together all the required
resources (material, manpower, and equipment) in the correct quantity at the correct
time. Quantity breeds quality, so that quantity survey is the backbone for any project.

There is a need for measurement of a proposed construction project at various stages

from the feasibility stage through to the final account. This could be in order to establish
a budget price, give a pre-tender estimate, provide a contract tender sum or evaluate the
amount to be paid to a contractor.

Measurement is used by various stakeholders and construction professionals

throughout the development process to calculate the quantity of work to be done. It has
two basic essential activities; description and quantification. Description usually
involves ‘translating’ information contained on drawings, specifications and technical
reports and communicating that information accurately and concisely so that another
person will completely understand the writer’s intentions. In practical terms this means

53
that the description must be clear enough to enable an estimator or valuer to visualize
the detail without having to refer to the drawing. The description will only be adequate
if the estimator is capable of fully pricing the original detail. Designers and quantity
surveyors must be aware that others will rely on their descriptions when pricing
building works. Descriptions must therefore be accurate, clear, concise and
unambiguous.

A measurement is an observation that identifies or describes reality and is expressed as

a quantity. Measurement is a relationship or mapping between the thing being measured
and numbers. ‘’If It Can Be Measured, It Can Be Managed’’. Hence, measurement is
the stage to start for management [1].

Quantification on the other hand is reasonably straightforward. Accuracy, again, is the

objective, however the level of accuracy which is to be expected depends on the degree
to which the design has been developed and the purpose for which the measurements
have been taken. The accuracy required usually increases in tandem with the detail of
the design.

Quantity surveying practices now produce bills of quantities using pen-and-paper

approach and various software packages.

4.1. Importance of Quantity Survey

Ordinarily, increases in quantities that resulted in increase of cost are often the issue in
project implementation. To address this issue, project management has to employ
strategy to avoid increase in project cost by instituting Quantity Control using quantity
survey. Quantity Control and Cost Control are measures and strategy in Project
Implementation Process that provide check points and filter unnecessary and
unwarranted works. These measures regulate and or prevent increase in cost.

The following are the importance of quantity survey but not limited to:

 estimate before the construction starts the probable cost of construction

 estimate the quantities of the various materials required and the labor involved
 check the works done by contractors during and after the execution
 provide useful advice to clients on:

54
 (i) Valuation of properties (land and building) for sale, purchase and
mortgage etc.
(ii) Fixation of standard rent
(iii) Insurance and claim for damages in a building
(iv) The process of resolving disputes by referring to a third party

4.2. Principles of Quantity Surveying

The following are list of the basic principles of quantity surveying, applicable to all
items of work.

1. Each work section of a bill shall contain a brief description of the nature and
location of work.
2. Measure the full work area and adjust deductions later.
3. Items which are to be measured by area shall state the thickness or such other
information as may be appropriate.
4. Items which are to be measured by length or depth shall state the cross-sectional
size and shape.
5. Items which are to be measured by weight shall state the material thickness and
unit weight if appropriate
6. Piece of work shall be taken in numbers.
7. For items of pipe work it shall be stated whether the diameter is internal or
external.
8. Mass voluminous and thick works shall be measured in volume (cubic meter).
9. Thin, shallow and surface work shall be measured in area (meter square)
specifying the thickness.
10. Long and thin work shall be measured in length (linear measure, running meter)
11. Bills are deemed to include labor, materials, goods and plant and all associated
costs for fixing, assembling, etc.

4.3. General Rules Governing the Preparation of Bills of Quantities

'Quantities' = the amounts of the different types of work fixed in position which
collectively give the total requirements of the building contract.

The first step to be undertaken when preparing a Bill of Quantities is the measurement
process or "taking off, scaling or transferring of critical dimensions of construction

[9]
55
components from drawings to paper or software that are quantified as units of
measurement and the second step also 'Working up' squaring the dimensions [3].

The estimator takes material quantities directly off the drawings. The take-off process
is one of the most time-consuming building blocks in the estimating process and is a
critical step towards preparing the final total estimate value and takeoff is the starting
point for any estimate.

The quantity take-off process starts with the work items that will be constructed first:
the sub-structure (foundations). This will accomplish several tasks. Then the
superstructure will follow. Organization of the estimate in this fashion will later assist
with the schedule development and will aid with the development of the project cost
control systems.

‘Takeoff’ = the scaling or transferring of critical dimensions of construction

components from drawings to paper or software that are quantified as units of
measurement. The takeoff is the decomposition of the work shown on the plans and
specifications into units of measure that can be priced.

Data required for the preparation of quantity survey (takeoff) includes:

Drawings: Complete and fully dimension-ed drawings (i.e. Architectural, Structural,

Electrical, and Sanitary drawings) of the building or work in question are required.

Specifications: A specification can be considered to be a detailed description of a given

material, enabling parties on either side of a commercial transaction to understand what
can be expected in performance terms at the point of transfer of ownership. In the
context of building material specifications, the specification should address properties
that are relevant to the end use for construction products in which they are used. Or a
specification is a technical document prepared by a consultant that details project
requirements and standards which encompass materials, workmanship and the level of
service expected from the products. It is an important document because it defines the
quality and standards expected so that a completed building is suitable for the intended
purpose [4].

Detailed specifications, giving the nature, quality and class of work, materials to be
used, quality of the material, their proportions, and method of preparation are required.

56
4.4. Quantity-From-Quantity Goods

Quantity-from-quantity goods are estimated based upon the quantity of another item.
For example, the number of gallons of paint may be estimated by dividing the area of
the surface to be painted by the coverage rate for a gallon of paint.

Quantity-from-quantity estimates are performed using one of the following equations:

Quantity=qunatity base/coverage
Where,
Quantity = Quantity of Material Needed
Quantity Base = Quantity of the Item that the Estimate is Based Upon
Coverage = Coverage of the Material Needed
Quantity = (Quantity Base) (Average Quantity Required)------------------------------Eqn.2
Where,
Quantity = Quantity of Material Needed
Quantity Base = Quantity of the Item that the Estimate is Based Upon
Average Quantity Required = Average Quantity Needed to Cover One Unit of Base
Material

The coverage and average quantity required may be obtained from historical data,
manufactures’ data, or reference books.
Estimating the quantity from quantity is shown in the following two examples:

EXAMPLE 4.4:- Determine the quantity of paint needed to paint 500 square meter of
wall. One gallon of paint will cover 5 square meter of wall.

Solution: Using Eqn. 1, we get the follow quantity:

Quantity = 500m2
= 100 gallons
5m2/gallon

57
 

4.4.1. Wastage

Ordering the foregoing quantities may not provide the quantities necessary to complete
the construction project because some of the materials are lost because of waste.
Unavoidable waste is waste that is the result of not being able to use scrap materials.
Avoidable waste is waste that is due to improper use of materials, lost or damaged
materials, and the difference between the actual dimensions and the design dimensions.
Where possible, unavoidable waste should be included in the original quantity takeoff
of the materials; this is necessary to accurately track and control avoidable waste. A
waste factor is often added to the quantities to account for avoidable waste, as well as
unavoidable waste that has not already been included. The waste factor is expressed as
a percentage of the calculated quantity [5]. {Currently WASTE is a global challenge that
has social, economic and political aspects => Research Idea}

Table 2.1: Material waste factor [7]

Common waste factors for cost estimating
Concrete 5–7% for most work; 3% for large placements
Wire mesh 10% for lapping of mesh
Reinforcement steel 10% for lap and bends or 40% times bar diameter
Building paper 10% for lapping of paper and waste
Vapor barrier 10% for lapping of material and waste
Gravel 10 to 20% for additional volume due to compaction
Earth fill 20 to 30% for volume increase due to compaction
Framing lumber 10% for waste and backing and blocking
Plywood 10% for waste
Siding and roofing 20–30% for lap

58
4.4.2. Quantity Takeoff

Guidelines to effectively, efficiently, and accurately perform the takeoff:

Step 1: Write Clear Task Descriptions

Step 2: Use Industry‐Accepted Units
Step 3: Follow a Logical Order
Step 4: Review Scales, Notes, Abbreviations, Symbols, and Definitions
Step 5: Verify Dimensions
Step 6: Be Consistent
Step 7: Number Takeoff Sheets
Step 8: Use Decimals
Step 9: Verify Appropriate Level of Accuracy
Step 10: Calculate Net versus Gross Quantities
Step 11: Check the Takeoff
Step 12: Mark up the Drawings as Bid Documents
Step 13: Maintain Concentration
Step 14: Organize the Documentation
Step 15: Rounding

Generally, BoQ preparation includes:

Measuring dimensions from drawings

Recording them on a paper in systematic way

Calculating the contents of the dimensions

Multiplying contents with rates (to get priced BOQ)

Figure 4.1: Steps in takeoff preparation

The quantification process involves recording dimensions and is referred to as taking

off because it involves reading or scaling (taking off) dimensions from a drawing and
entering this information in a standard manner on purpose ruled paper called dimension
paper or take off paper (takeoff sheet format).

59
 The quantity takeoff breaks the project down into its elemental parts, called tasks or
activities. (For the purpose of estimating, these terms are interchangeable.) The quantity
takeoff is not a list of materials required, but a series of tasks that are required to
complete the contractual obligations. Tasks are actual units of work to be performed.

Table 2.2: Blank sheet of typical dimension paper

1 2 3 4 1 2 3 4

The traditional dimension sheet is divided vertically into two identical halves each
comprising a set of four columns. In effect, the rulings on the right half of the sheet
may be considered to be a continuation of those on the left side of the sheet.

Columns 1 – are the timesing columns; these columns are used to enter multipliers when
there is more than one of the particular item being measured. It is useful on occasions
where there are identical or repeat items.

Columns 2 – are the dimension columns; where the dimensions of the item being
measured are recorded. It is known as ‘Squaring’.

Columns 3 – are the squaring columns; these columns are used to calculate the
quantities which are produced by multiplying the timesing factor in column 1 by the
dimensions in column 2. The results are then totaled to derive the final quantity of work.

Columns 4 – are the description columns; these wider columns are used for
descriptive content such as location references and explanatory notes called
annotations.

Table 2.3: Rulings of dimension paper

1 2 3 `4 1 2 3 4
A.SUBSTRUCTURE 1.7/Fill around foundation
1/Excavation & Earthwork Externally
1.1/ Clear of the Site 20cm 20.9 Axis A,B,D,E,1’,1,3’ & 4
22.8 L= 20.4+ 1.2*2=22.8m 0.25 L=20.4+0.25*2=20.9m
1/ 15.5 353.4m2 W= 13.1+1.2*2= 15.5m 1/ 0.4 4.18m3 W= 0.25m D= 0.40m
Deduct 4.18m3 Total
(30) A = 1*5.2*2+9*2*2= 30
323.4m2 Total

60
 Preliminary calculations, called waste calculations may also be carried out in these
columns. This description will appear in the final bills of quantities. In the Ethiopia
these columns contain the written description, often abbreviated, of the item being
measured. The double lined column on the extreme left of the sheet is a binding margin
and it is not used in the taking off process. The division of the dimension paper into two
halves permits a number of items to be measured on a single sheet.

Abstracting: the squared dimensions are transferred to abstract sheets and all similar
dimensions are collected in the same category to obtain the total quantity of each item.

4.4.3. Bar-Schedule

A separate sheet (Bar Schedule) is used to prepare reinforcement quantities as shown

below.

Table 2.4: Bar schedule

Location Type Bar dia. Bar Bar Number of Total  L for each diameter (ø 6 –
(Bar No) (mm) Shape Length ø n)
member Bar Ø8 -- Ø14 Øn

Column  14 5.15 19 4 391.4 391.

Stirrup  8 1.15 19 (4.15/0.2) 480.7 480.7

+1= 22

Total Length (m) 480.7 391.

2
Unit Weight(Kg/m) or (dia ) 0.395 0.888
162

Total Weight (Kg) or ( W) 189.88 347.563

4.4.3.1. Stirrup

The simplest way to determine the quantity of an item is to count the number of items.
There are shortcut methods that may be used when the counted items are repetitive
members such as stirrups in column and beam. The most common unit for the quantity
takeoff of counted items is each (number) and converted to weight. When counted items
are repetitive, as with stirrups in column and beam, time is saved by using a

61
 mathematical equation to count the number of studs needed. The following equation is
used to calculate the number of respective members over a specified distance and
includes a repetitive member at both ends:length of span divided by spacing plus one.

No of stirups=(span length/spacing)+1 note both span length and spacing should be

simillar unit,

EXAMPLE:- Determine the number of stirrups needed for a 80cm lintel beam where
the stirrups are spaced at 20 cm on center.

Solution: The number of studs is calculated using Eqn. 5 as follows:


Number = 80 +1=5

20

Five stirrups allows for one stirrup at the left end, one at 20 cm from the end, one at 40
cm from the end, one at 60 cm from the end, and one at the right end.

Work Unit of Measures

The five principal units of measurement in construction sector are: meter, kilogram
(kg), Square meter (m2), pcs or No and cubic meter (m3).

62
 Table: Quantities with their units

Quantity may be Unit

Length or width or depth (height) or mm, cm, ml
thickness
Weight g, kg, ton
Length x Width (mm x mm) mm2, (cm x cm) cm2, (m x m) m2
Number of Units No. or pcs
Length x Width x (Height or Thickness) or (mm x mm x mm) mm3, (cm x cm x cm) cm3,
Area of cross-section x (Height or Thickness) (m x m x m) m3

Before going any further, it is necessary to understand the dimensions as set down by
the taker-off. All dimensions are in one of five forms:

(i) Cubic measurements (iii) Linear measurements

(ii) Square or superficial (iv) Enumerated items
measurements (v) Items

These are expressed in the first three cases by setting down the measurements
immediately under each other in the dimension column, with each separate item being
divided from the next by a line, for

EXAMPLE

1 2 3 4 1 2 3 4
5.00 indicating a cubic 4 indicating four in
4.50 measurement 5.00m Nr.4 number (item
4.00 long, 4.50m wide and 4/ 1 can be enumerated in
4.00m deep one of the ways)
5.00 indicating a superficial
4.00 measurement 5.00m
long and 4.00m wide
4.00 indicating a linear
measurement 4.00m

It is usual to set down the dimensions in the following order:

(1) Horizontal length (Horizontal at right angles to the line of sight)

(2) Horizontal width or breadth (Horizontal parallel to the line of sight)
(3) Vertical depth or height

63
 EXAMPLE 2.3:

1 2 3 4 1 2 3 4
4/ 5.00 indicating a cubic 4⁄ 5.00 indicating a cubic
3/
4.50 measurement to be 4.50 measurement to be
4.00 multiplied by 4 4.00
multiplied by 3, the result
is to be multiplied by 4, i.e.
the original measurement is
multiplied by 12
3/ 5.00 indicating a superficial 2⁄
4⁄ 5.00 indicating a superficial
4.00 measurement to be 3 4.00 measurement to be
multiplied by 3 multiplied by 24
4.00 indicating a linear
measurement 4.00m
Dotting on
.3 5.00 indicating a cubic .3 5.00 indicating a cubic
2 4.50 measurement is to be 2 4.50 measurement is to be
4.00 multiplied by 2+3=5, 3 4.00 multiplied by 3*(2+3) =15
i.e. by 5

Types of Taking off Quantities

Mensuration is concerned with the measurement of areas and volumes of triangles,

rectangles, circles, and other figures (Drawings).

Girth (perimeter) computation –linear measurement: - There are various methods

of taking off quantities for computation of girth.

In- to- in and out- to-out method:– some wall lengths are taken out to out and others
in to in (offsets are added to out to out lengths) and same are deducted from in -to-in
lengths; used for any type of measurement irrespective of condition of symmetry.

 Long Wall (Out – to - Out ) = Inner Length + 2 Times Thickness of the Wall
 Short Wall (In – to – In ) = Inner Length - 2 Times Thickness of the Wall
Centre line method: – suitable only when the cross sections of all walls are
symmetrical. In this method Centre line length is found and same is used for taking off
quantities (all dimensions are taken center to center).

64
 Building Construction Operations

DRAWING

SETTING -OUT WORKS

Site Clearance

Pit Excavation

Trench ExcaN
Excavation and

Excavation
A. SUBSTRUCTURE

Bulk
Earthwork

Concrete Work Plain Concrete RC

Masonry Work Below NGL Above NGL

Concrete Work Finishing Glazing

B. SUPERSTRUCTURE
Plastering Painting
Block Work and Pointing
Plumbing
Roofing Work (Sanitary)
Steel Structures

Carpentry Work Metal Electrical Site Work

/Aluminum Installation
Works
VALUATION
BUILDING

65
 A. Substructure Work
1. Excavation and Earth Work
This incorporates all works related with the earth or the soil. Based on BaTCoDA,
the work includes [9].

1.1. Site Clearance

Clear the construction site from debris, dirt collections, trees, bushes & organic
materials to all 20 – 30cm from the natural ground level. This is called site excavation
or top soil clearance or site clearance. The main purpose of this work is:

 To remove organic materials away from the construction site that may harm
fully react with the cement. Site clearance is made over the entire plinth area of
the building by giving a minimum of 1m clearance gap around the perimeter of
the building plinth area is area of contact b/n the building & the ground. Unit
for site excavation (Clearance) is (m2) and shall be understood as including trees
up to 80mm in diameter.
Key
WS = Working Space
LPF = Largest Peripheral Footing (take half the largest peripheral footing)
WSP = Working Space for Pit (You can take from 0.25-0.5m)
WSSC = Working Space for Site Clearance in one side (take 1.0m)

WS WS

WS=LPF/2+(0.25 upto 0.5)WSP+1.0(WSSC)

Figure . Floor plan

66
A = L x W = (L + 2*1.25m) (W+ 2*1.25m) = (L+2.5m) (W+2.5m)--------------Eqn. 9
Where, A = the area of site excavation, L = external to external length, W = external
to external width

Generally, dimension of cleared area is total built up area plus half the larger peripheral
footing size plus 250mm working space on both sides plus 1m or L= External to
External (Out-to- Out) dimension + pavement (if any) + ditch (if any) +1m (working
space)

1.2. Bulk Excavation

This excavation is made in larger horizontal size than its vertical depth with cubic meter
(m3) unit. According to BaTCoDA, the limits shall be, the surface area covered by the
permanent structure resting on the area of bulk excavation plus the working space
allowed for trench or pit excavations for the foundations of the permanent structure. In
the instance of no limits being established or no permanent structure, the working space
shall be determined by the Engineer but shall not exceed 500mm on either side of the
limits of the area to be excavated. It is usually made for:

 Removal of poor soil from the site to replace with selected material
 Mat foundations
 Allowing hard core and the ground floor slab itself.

Excavation shall be measured in successive stages of 1500mm from starting level [9].

This method can only be used when the levels are spaced the same distance apart in
both directions [11].

𝑆𝑢𝑚 𝑜𝑓 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑠 𝑜𝑓 𝑑𝑒𝑝𝑡ℎ 𝑥 𝑊𝑒𝑖𝑔ℎ𝑡

Average Depth =
𝑆𝑢𝑚 𝑜𝑓 𝑊𝑒𝑖𝑔ℎ𝑡𝑠

67
EXAMPLE 2.9:-

8m 8m

2.50 2.70 3.00

8m
3.00 3.25 3.50

8m
3.50 3.75 4.00

Figure 2.3: Sloping site excavation

The volume in this example is now calculated:

Corner depths 2.500
3.000
4.000
3.500
Depths at intermediate 2/2.750 = 5.500
points on boundary 2/3.000 = 6.000
2/3.500 = 7.000
2/3.750 = 7.500
Depth at centre point 4/3.250 = 13.000
Sum of weighted depths 16 x 52.000
Average total depth 3.250
Less reduced level excavation
and topsoil (2.000 + 0.200) 2.200
Average adjusted depth 1.050
Three sets of levels will be required before foundation work can be measured: (1)
bottom of foundations, (2) ground levels and (3) finished floor levels.

1.1. Pit Excavation

Pit excavation shall be measured by adding 250-500mm to each side of the dimension
giving the surface area of the volume to be excavated.

𝐸𝑥𝑐𝑎𝑣𝑎𝑡𝑖𝑜𝑛 = 𝐿𝑒𝑛𝑔𝑡ℎ × 𝑊𝑖𝑑𝑡ℎ × 𝐷𝑒𝑝𝑡ℎ = 𝐿𝑥 × 𝐿𝑦 × 𝐷

68
 EXAMPLE: Determine the amount of earthwork required for the foundation portion
of the building shown in the above Figure.

1 (Timesing) Dimension (2) Squaring (3) Description (4)

1.3. Pit Excavation
2.0 F1 (Number of member = 3pcs)
3/ 2.0 L= W= 1.5m =>L=W= 1.5+0.25*2=2.0m
2.5 30m3 Assume Depth (Height) of footing = 2.5m
30.0m3 Total

1.3. Trench Excavation

Like pit excavation, trench excavation shall be measured by adding 250mm to each side
of the dimension giving the surface area of the volume to be excavated.

69
 – L= 2 (L1 + L2) = Ltotal-Footing pad with working space to the trench excavation
side
– Width = Width of Masonry + 2 x Working Space (0.2 up to 0.25)
– Depth = Depth of masonry- bulk depth -height above NGL masonry + 5cm
for lean concrete
Volume = Cross-Sectional Area x Length------------------------------Eqn.18

Working Space
Pad Pad
C L1 W
C

Length1
Length2

Working Space W
L2
Pad Pad
C
C

Length total

Figure 2.4: Trench excavation between two footing pads

1.1. Fill
Excess volume formed in excavation shall be filled with selected excavated or
borrowed material (suitable material) approved by the Engineer and capable of being
compacted.

According to BaTCoDA Fill material shall be classified as: -

Backfill to excavation- Suitable material arising from excavation and capable of being
compacted to form a stable filling having side slopes as indicated on drawing or directed
by the Engineer.

Selected excavated fill- Suitable non expansive material approved by the Engineer
arising for excavation and capable of being compacted to form a stable filling having
side slopes as indicated on drawings or directed by the Engineer.

70
Selected borrowed fill- Suitable non- expansive well graded soil or granular material
with no rock lumps imported from outside.

Foundation Column & Masonry around Footing Pad

NB: The sides of the excavation should be sloped or battered back to a safe angle of
repose (measured from the horizontal plane), usually 45° when the excavation is less
than 1.2 m deep, otherwise, be supported by timbering or other suitable means to
prevent a collapse. The type of support necessary will depend upon the type of
excavation, the nature of the ground and the groundwater conditions. In this case Area3
will be calculated for payment.

Footing column = Pit excavation depth – FFL from existing profile – GB depth – Lean
concrete – Pad depth

1.1. Cart away

Remove surplus excavated materials from site is called cart-away or going out. To find
the volume of soil to be disposed of the site, deduct the back fill from the total volume
of soil excavated. This is true only when the soil excavated is not expansive soil we
have soil from site excavation deep excavation & bulk excavation. All these soils
should be changed to volume by multiplying by their respective thickness

C.A = T.S – B.F = [(S.C x Depth) + B. E + T. E + P. E) – Back Fill] →Where

C.A= Cart Away, T.S =Total Soil, B.F = Back Fill S.C =Site Clearance,
B.E =Bulk Excavation, T.E = Trench Excavation, P.E = Pit Excavation

71
 1.1. Hardcore

Provide and lay hardcore beds under all concrete beds, paving, etc., to the thickness as
shown on the drawings. Finished blinded with 20mm crushed aggregate.
Mostly150mm-250mm hardcore bed is required below the ground floor slab and is
classified as making up levels and is measured in m2 stating the average thickness as
exceeding or not exceeding 250mm thick. Hardcore descriptions must specify the kind
and quality of the materials and any treatments such as compacting. The measurements
are taken within the walls producing a value which is often referred to as the ‘gross
internal floor area’.

The term 'hardcore' refers to the mass of solid materials used as a make-up, formation
material to raise levels, fill irregularities in excavations and create a firm and level
working base that finished blinded with 20mm crushed aggregate onto which heavy
load-bearing surfaces such as stone or concrete can be laid. The hardcore then helps
evenly spread imposed loads.

Hard core shall be measured by: - m2 if the finished thickness ≤ 300mm and m3 if stone
filling thickness ≥ 300mm

2. Concrete Work
Concrete work consists of two major components, structural and nonstructural.

Concrete works comprises of both plain concrete (PC) and reinforced concrete (RC).

Plain concrete (PC):

 Measured in m2 (area) if thickness < 20 cm.

Measured in m3 (volume) if thickness ≥ 20 cm.
 Average thickness should be mentioned when measurement is done by area.

72
 Reinforced concrete (RC):

 All RC elements measured by volume (m3) except hollow block slabs measured
by area (m2). In Ethiopian case slabs mostly measured by area.
 Domes, cylindrical roofs and shells measured by area in the horizontal
projection.

2.1. Estimating Concrete

Concrete is estimated and measured by the cubic meter (cum).

Volume (m3) = Length (m) x Width (m) x Height or Depth (m)

Roof and floor slabs, slabs on grade, pavements, and sidewalks are most commonly
measured and taken off in length and width.

When estimating footings, columns, beams, and girders, their volume is determined by
taking the linear depth of each item times its cross-sectional area.

A typical waste factor for beams, columns, walls, and other members that have a small
area of contact with the ground is 5%. And waste factor for slabs, curbs, footings, and
other members that have a high area of contact with the ground is 10%.

Concrete is basically a mixture of cement, water, and aggregates. Cement usually

contains, by volume, from 10 to 15% of the total concrete mix.

The amount of water in the mixture compared with the amount of cement is called the
water to cement ratio (water–cement ratio, w/c). The water–cement ratio ranges from
0.40 to 0.75 depending upon a needed concrete strength, a required slump, and desired
concrete material properties. To obtain 1 m3 of wet concrete, a total volume of 1.4-1.6
m3 of dry materials is normally required (mostly 1.54m3 is used).

The procedure that should be used to estimate the concrete on a project is as follows:

1. Review the specifications to determine the requirements for each area in which
concrete is used separately (such as footings, floor slabs, and walkways) and list the
following:
a. Type of concrete

73
 b. Strength of concrete
c. Color of concrete
d. Any special curing or testing
2. Review the drawings to be certain that all concrete items shown
on the drawings are covered in the specifications. If not, a call
will have to be made to the architect-engineer so that an
addendum can be issued.
3. List each of the concrete items required on the project.
4. Determine the quantities required from the working drawings.
Footing sizes are checked on the wall sections and foundation
plans. Watch for different size footings under different walls.

Essentially, concrete estimate is the takeoff of the following (with material, labor,
and equipment):
 Formwork (m2)
 Concrete (m3)
 Reinforcing (kg or ton)
 Curing and finishing (m2)
 Miscellaneous items (e.g., layout, fine grading, insulation, damp
proofing, soil treatment, slab
 vapor barrier, caulking of saw-cut joints)
2.2. Form Work

Formwork shall mean temporary support construction for in-situ concrete, designed and
constructed in timber or metal and capable of withstanding the live and dead loads
imposed on it and fully preventing leakage of concrete.

Formwork Area = 2 (Length + Breadth) x Depth

2.2.1. Shoring System

Shoring, also called false-work, is a supporting system of forms carrying both the
weights of building elements and the live loads on the elements during construction.

[41]
74
 2.3. Reinforcing Steel

Reinforcement work shall be understood as the supply and fixing of reinforcement bars,
including ties and chairs. Reinforcement shall be measured by the net weight of the bars
& set in position without allowance for ties and spacers. Allowance shall be made for
overlaps only if indicated on drawings.

The bar weight per meter is calculated using the following formula:
2 2
Reinforcement bar Weight/meter = 0.222D = D
36 162.16

Where D = Diameter of bar

Reinforcing bars are taken off by linear meter.

Bars purchased at smaller local warehouses are generally bought in 12meter lengths
(1berga) and cut and bent in the field.

EXAMPLE:

Determine the volume of concrete in cubic meter, the forms, and the rebar needed to
complete 10 of the footings shown in Figure 2.29. Provide 5cm of cover for the rebar
in the footings and 5 cm of cover for the rebar in the columns. Include 10% waste in
the calculated volume of concrete, and express the volume of concrete in quarter-meter
increments.

75
Solution: The volume of the concrete is determined as follows:

Volume = (No. of Footings) (Width 1) (Width 2) (Thickness) → 10(1) (1) (0.45) =

4.5m3

Add the waste:

Volume with Waste = (4.5) (1+ 10 /100 ) = 4.95m3 , and rounding up to quarter-meter

increments, we get 6.20 cubic meters.

The lineal meters of forms are calculated as follows:

Length = (No. of Footings) (Width1 + Width2 + Width1 + Width2) → (No. of

Footings)

(2) (Width1+ Width 2)

= (10) (2) (1+1) = 40 meter →Area = (10) (2) (1+1) (0.45) = 18m2

Each footing will require 4 Ǿ10 horizontal bars for a total of 80 bars (10 footings x 8

bars/footing). The length of the bars needs to be 180cm on both ends of the bar of the

footings. Each footing will require 6 Ǿ12 dowels for a total of 80 dowels.

Horizontal rebar Weight (kg) = 80 x 102 /162.2

8 (1 Berga = 12m)

Dowels (Footing column bars) = 80 x 122 /162.2

166.9064kg=14 berga
EXAMPLE: For a given Step‐footing find
1. Volume of concrete
2. Area of Formwork
F = step‐1: 1.50m x 1.50m x 0.30m

F = step‐2: 1.30m x 1.30m x 0.30m

F = step‐3: 1.10m x 1.10m x 0.30m

C = 0.40m x 0.40m

76
Solution:
1. Volume of Concrete = Area x Depth = L x B x D
step‐1 = 1.50 x 1.50 x 0.30 = 0.675 m3
step‐2 = 1.30 x 1.30 x 0.30 = 0.507 m3
step‐3 = 1.10 x 1.10 x 0.30 = 0.363 m3
Total Volume = 1.545 m3
2. Formwork Area = Peripheral Length x Depth = (L + B) x 2 x D
step‐1 = (1.50 + 1.50) x 2 x 0.30 = 1.80 m2
step‐2 = (1.30 + 1.30) x 2 x 0.30 = 1.56 m2
step‐3 = (1.10 + 1.10) x 2 x 0.30 = 1.32 m2
Total Area = 4.68 m2

2.4. Stair

The concrete in all members of staircase like waist slabs, steps, cantilever steps, stringer
beams etc. shall be measured for their length, breadth and depth, limiting dimensions
to those specified on drawings. Primary Function of stair is to provide a safe and easy
means of circulation, travel between floor levels.

Stair case, for estimation purpose is classified in to three ports as steps, slab & landings.
The volume of concrete for the steps the slab & the landing is calculated separately &
finally summed up together.

77
 a. Steps – the steps 1st made to resemble identical triangles & the total volume of
concrete for all steps is calculated at once.
R = Riser of the steps, G = Going of the steps n = no of steps
and L = span of the steps
V = n (½ (R x G x W))
b. Landing- the volume of concrete for the landing is calculated just like the slab.
The length of the landing is multiplied with the width & the thickness
In the figure below, assume the thickness of the landing is “T “the volume of concrete
for the landing is V
V=L*W*H=L*W*T
NB: - the beam supporting the landing is categorized in “beam “not in the stair case.
c. Slab- is the soffit of the stair case it is sometimes called the waist of the stair
case is widely calculated b/c it has inclined length Pythagorean theorem is
used to find the actual length of the slab under the steps.
In Figure 57(b), calculate the volume of the slab and steps concrete?
V = volume of concrete to the slab V = L * W * T

78
Using the Pythagoras Theorem

C = √ (B 2 + H2)
Volume = Length (C) x Width (w) x Thickness (T)
1. Assume C = 2.4m, Width (W) = 1.2m, and Thickness = 10cm
Volume = 2.4 x 1.2 x 0.1m = 0.288m3 → The volume of one flight slab concrete is
0.288m3 concrete
2. Assume riser of the stair = 0.15m, the tread = 0.27m, and width = 1.2m
Volume = n [½(riser x tread (Going) x width] → Volume = 8 [½ (0.15 x 0.27 x 1.2)] =
0.162m3

Quantity of stairs = inclined length x width x height + stair section area x stair width x
No. of stairs

Generally, typical breakdown of percentage costs could be as follows:

 Concrete (materials 28%; labor 12%) = 40%.

 Reinforcement (materials 18%; labor 7%) = 25%.
 Formwork (materials 15%; labor 20%) = 35%

2.5. Accessory Works

Expansion Joint Fillers (unit: meter linear): Materials commonly used as fillers are
asphalt, fiber, sponge rubber, cork, and asphalt impregnated fiber.

79
Water-stops (damp proofing): Used to seal construction and expansion joints in
poured concrete structures against leakage caused by hydrostatic pressure, water-stops
are commonly composed of polyvinyl chloride, rubber, and neoprene in a variety of
widths and shapes. The takeoff should be in linear meter, and the estimator must check
the roll size in which the specified water stop is available and add 5 percent for waste.

3. Masonry Work

The term masonry encompasses all the materials used by masons in a project, such as
block (12.5pcs/m2), brick (56pcs/m2), clay, tile, or stone.

Based on their construction stone masonry can be Below Natural Ground Level and
Above Natural Ground Level.

3.1. Block (Concrete) Masonry

Concrete masonry units are utilized for both exterior walls and interior partitions where
easy maintenance and stain resistance are required. Additionally, they are employed for
foundations, backups, fireproofing, load-bearing, and non-load-bearing walls and
partitions.

Number = area/effective area

Where, Number = Number of Pieces Needed, Area = Area to Be Covered

Effective Area = Area Covered by One Piece Including Spacing or Lap

Effective Area = (Length +Lap Length) (Width + Lap Width) or

Effective Area = (Length + Space Length) (Width + Space Width)

80
 Slab Top Level
Top tie beam
Beam bottom level

C Wall height
Plastered Wall
O
L Plastered Wall
U
M
slab top level N
Intermediate Beam
Beam bottom level

Wall height
Plastered Wall Plastered Wall
C
O
L
U
M
Ground beam top level N
Grade Beam
F Ground level
C
Pad

EXAMPLE:-

A 0.53m-high by 1.22m-long wall is constructed of 0.4m long by 0.2m-high block. The

mortar joints between the blocks are 10mm thick. How many blocks are needed to
construct the wall?
Solution: We calculate the effective area of one block as follows:

Effective Area = (0.4m + 0.01m) (0.20m + 0.01m) = 0.086m2 = 861cm2

The area of the wall is calculated as follows: → Area = (Length) (Height) = (1.22m)
(0.53 m) = 0.647m2

81
The number of blocks is calculated using Eqn. 49 as follows:

Number = 0.647 = 7.52 blocks

0.086

Figure 2.5: Block Layout

3.2. Slab HCB

This slab construction system, introduced by the Low-cost Housing Project, avoids
formwork, reduces requirements of skilled manpower and time. The system has two
major components: the pre-cast beam and the slab HCB. The production of the slab

HCB is done in the same way as production of wall HCB.

82
Using the given dimension, number of HCB per m2= 9 pcs

General Procedure

Step 1: Extensively study project specifications and plans to acquire an understanding

of all the important aspects of masonry including types of materials, testing,
construction methods, and other requirements. An estimator needs to consider all
provisions related to masonry including masonry units, mortar, grout, and accessory
materials.

Step 2: Determine take off quantities of masonry products, such as wall areas (m2) or
lengths of bond beams (m).

Step 3: The quantities of masonry units calculated by multiplying wall areas with a
number of units for 1 m2 of wall area.

Masonry walls are taken off separately by various types of walls, thickness, and types
of units, sizes of units, types of mortar, bond patterns, and mortar joints. A waste factor
of 3 to 15% can be employed based upon types of units, quantities of units, and the
quality of unit delivery.

Step 4: Determine the quantities of masonry mortar (m3) by multiplying the wall area
(m2) by the amount needed in 1 m2 of a wall area. Since the mortar joints may vary
from one wall to another, the acquired quantities of mortar can be modified by
multiplying by some factors, such as a waste factor ranging from 10 to 30%; (a database
gathered from an estimator’s own experiences of similar jobs).

Step 5: Discover the quantities of grout and accessory materials needed, such as
flashings, reinforcing, weep-holes, ties, bracing systems, and scaffolding.

83
Step 6: Determine the costs of materials, labor, and equipment for each material.

Step 7: Calculate the total cost of masonry. This can be accomplished by multiplying
quantities of materials by unit costs in order to arrive at a sum for all costs.

4. Roof Work

Roofing refers to all of the materials placed over a structural roof and used for moisture
and/or thermal protection, whereas the roof is the supporting structure over which the
roofing is applied.

Roof structure: Construction, including eaves and verges, plates and ceiling joists,
trusses, gable ends, internal walls and chimneys above plate level, parapet walls and
balustrades.

Roof coverings (m2): Roof screeds and finishing that include Battening, felt, slating,
tiling and the like. (Flashing trim, Insulation, Eaves and verge treatment)

Pitch: the slope of the roof rafters in terms of angle above the horizontal. Roof
pitches vary from 17.5 degrees to 45o.
Lap: the distance by which one tile overlaps another.
Gauge: the distance between battens this can be calculated as:

tile length −lap

Gauge =
2

Roof drainage: Gutters where not integral with roof structure, rainwater heads and roof
outlets. (Rainwater downpipes to be included in ‘Internal drainage’)

Roof cover is measured by area (m2), but items like downpipes, are measured by length
(m)

84
 4.1. Roof Area

Most roofers use rules of thumb to estimate roofing. There is nothing wrong with that
approach if you understand the foundation for the rule of thumb.

Roof areas can be broken down into several basic shapes:

 Rectangle
 Triangle
 Trapezoid (rectangle, triangle, and parallelogram)

85
The length of the rafter is calculated using the following equation [5]:

Length = (Run2 + Rise2)0.5 + (Thickness) (Run ) = (Run) (1 + Slope2)0.5 + (Thickness)

Rise

(Slope)------ Eqn.62

4.2.1. Gable Roofs

Direct Measure

The area of this roof is made up of two rectangles. The area of each rectangle is A x B.
Therefore by measuring A and B directly the area of the gable roof is:

Area = 2 x Length x Width

Number of Truss system = Length (L)

+1
Center−to−Center Spacing

Upper member = Rafter length (c), Lower member = ½ Span

Gutter = 2 x Length (meter)

86
b2 = x2+y2 → z = √ (x2 + y2) Length of fascia board = 4 x b
Actual Roof Area = 2 x (b x Length) Vertical members = V1 +V2+V3
Gutter length = 2 x Length = 2 x L Diagonal members = D1+ D2+ D3
4.2.2. Carpentry & Joinery Work

Doors and windows form an important part of joinery work, which can be defined as
'the art of preparing and fixing the wood finishing of buildings'. Joinery is an important
part of most woodworking and it is found in furniture, cabinetry, windows and doors,
staircases, flooring, and much more to add value, create light, and express creativity.

[34]
87
 5. Metal / Aluminum Work
Structural metal products are typically made of various materials including aluminum,
brass, and bronze, but the most common one on the market is steel. The most common
shapes of steel are wide-flange (W, WF) beams, I-beams, S-beams, H-columns,
channels, bearing plates, and angles.

6. Windows and Doors

6.1. Windows

Window and curtain wall frames may be made of wood, steel, aluminum, bronze,
stainless steel, or plastic. Each material has its particular types of installation and
finishes, but from the estimator’s viewpoint, there are two basic types of windows:
stock and custom-made.

Stock windows are more readily available and, to the estimator, more easily priced as
to the cost per unit. The estimator can count the number of units required and list the
accessories to work up the material cost.

Custom-made frames cannot be accurately estimated.

Example: Storefront Glass

Perform a takeoff of the materials for the storefront glass required for the building
entrance. The north window wall is shown in Figure 2.85. The required tubing and
glass is shown in the table below

[34]
88
Elevation of North Storefront

6.2. Doors

Doors are generally classified as interior or exterior, although exterior doors are often
used in interior spaces. The list of materials of which doors are made includes wood,
aluminum, steel, glass, stainless steel, bronze, copper, plastics, fiberglass, and
hardboard.

6.3. Doors and Windows Take-Off

Generally, quantity take off is simply a counting of all items required for doors and
windows. Pricing provides costs of all items by multiplying each materials quantity by
the unit cost of that item and totaling all materials costs. The five major steps in cost
estimation for doors and windows used to acquire a broad picture of doors and windows
cost estimation [22].

Step 1: Study specifications, drawings, and all contract documents. Most information
for doors and windows can be found in the door and window schedules located in the
specifications or drawings.

89
Step 2: Take off quantities for doors and windows by simply counting the number of
units and accessories required and then determining the total cost of doors and
windows. It is wise to list all needed units by type, materials, size, and associated
accessories. It is common to have a zero waste factor for door and window units. Total
costs for doors and windows can be obtained by totaling all materials, labor, and
equipment costs.

Step 3: Take off for glazing. In this step, the estimator needs to determine the area
(length, height) of glass to be installed, along with its thickness, type, and color, and
the installation process and the installer.

Step 4: Determine the quantity of required accessories and their prices.

Step 5: Add up all costs including overhead, profit, materials, labor, and equipment for
doors, windows, glazing, and their accessories.

7. Finishing Work
7.1. Plaster

In its plastic state, plaster can be troweled to form. When set, it provides a hard covering
for interior surfaces such as walls and ceilings. Plaster is the final step in wet-wall
construction (although other finishes may be applied over it). The type and thickness of
the plaster used will depend on the type of supporting construction, the lath, and the
intended use. Plaster is available in one-coat, two-coat, and three-coat work, and it is
generally classified according to the number of coats required.

The last and final coat applied is called the finish coat, while the coat or combination
of coats, applied before the finish coat is referred to as the base coat. Plastering used to
conceal irregularities in the background and to provide a finish that is smooth, crack
free, hygienic, and resistant to damage and easily decorated.

Estimating Plastering: to determine the amount of material required for pargeting, the
estimator first checks the specifications to determine exactly the type of materials
required. The materials may be blended and mixed on the job, or they may be pre-
blended compounds. Information concerning the specially formulated compounds must
be obtained from the manufacturer.

90
The job-mixed pargeting requires that the mix proportions be determined. The next step
is to determine the number of square meter to be covered and the thickness. With this
information, the cubic meter required can be calculated, or the number of gallons can
be determined if the materials are pre-blended.

The amount of labor will depend on the amount of working space available and the
application technique. Labor costs will be higher when the materials are mixed on the
job, but the material cost will be considerably lower. Equipment required includes a
mixer, trowel or spray accessories, scaffolding, planks, shovels, and pails. Water must
always be available for mixing purposes.

Estimating Areas and Quantities

Plastering for walls and ceilings are estimated by m2, but procedures for deducting for
doors and windows vary with subcontractors. Many contractors do not deduct; others
deduct for 50% of all openings. No deductions should be made for openings less than
0.5 m2. For example, to obtain the total m2 for plastering a room (walls and ceiling) 7.5
x 5.5 x 3.2m, with two windows 1.0 x 1.5 m and one door 1.5 x 2.1 m, the computation
follows [10].

Walls (7.5 + 7.5 + 5.5 + 5.5) x 3.2 = 83.20 m2

Ceilings (7.5 x 5.5) = 41.25 m2
Total = 124.45 m2
Deduct 50% of door and window openings:
Windows, 2 x 1 x 1.5 = 3 m2,
Door 1 1.5 x 2.1 = 3.15 m2 →3+3.15 = 6.20m2
Quantity to be priced: 124.45 – 6.20 x 0.5 = 118.25m2

7.2. Rendering

Rendering to external walls is usually taken with the walls and is measured the area in
contact with the base as a superficial item. The description has to include the thickness;
number of coats, mix and surface treatment, and the work has to be described as
external. Rendering not exceeding 600 mm in width is measured as a linear item, and
work to isolated columns is kept separately.

91
 7.3. Flooring and/or Wall Coverings

In the majority of commercial buildings the use of raised access floors is commonplace
as they allow for services to be installed in the void, which are hidden from view and
allow for flexibility of office layouts.

Floor finishes include [23]:

 ‘Plastic’ floor coverings that are applied as a liquid, such as mastic asphalt or
epoxide resins.
 Concrete floorings, such as terrazzo.
 Sheet-supplied rolled flooring, such as linoleum.
 Boards, such as plywood.
 Timber flooring, such as strip or parquet.
 Clay floorings, such as brick paviors, ceramic floor tiles and mosaic.
 Composition blocks such as marble, granites and slates.
 Carpets and felts in either rolled form or tiles.

All of these are suitable for large floor areas and also for use on concrete staircases

Specifications: The type of tile (material) should be determined for each space for
which it is specified. The type of tile and the finish often vary considerably throughout
the job. The specifications usually provide a group from which a tile will be selected
and a price range (e.g., American Olean, price range A). The groupings and price ranges
vary among manufacturers, so care must be taken in the use of specifications written in
this manner. Other specifications will spell out precisely what is required in each area,
which makes it easier to make an accurate estimate. Each area requiring different types,
sizes, or shapes of tile must be taken off separately.

The methods of installation must be noted, and if the methods vary throughout the job,
they must be kept separate. The type of grout required in each area must also be noted.
The types of trimmers are also included in the specifications. The number of trimmers
required is kept separate from the rest of the tile takeoff because it is more expensive.

Note exactly what is required, because some trimmer shapes are much more expensive
than others. The contractor should bid what is specified, and if the specifications are
not clear, they should contact the architect/engineer.

92
Estimating: Floor and wall tiles are estimated by the square meter. Each area must be
kept separate, according to the size and type being used. It is common to have one type
of tile on the floor and a different type on the walls. The different colors also vary in
cost even if the size of the tile is the same, so caution is advised.

7.4. Painting Work

Paints and varnishes are used to protect metal, timber or plastered surfaces from the
corrosive effect of heat, moisture, gases and changing weather conditions. Paints are
also used to improve the appearance of a structure. It may be internal or external paint.

8. Glazing Work
There are a number of different types of glass in a range of tints and patterns as follows.
Glazing costs are a function of materials, method, and the area to be glazed. Referring
to the drawings, glazing can be taken off by square meters (length x width). The
estimator should carefully check specifications because there are many different glass
grades, sizes, and thicknesses with each type figured separately.

Both materials and labor costs for glazing are generally included under a single item by
the glazing subcontractor. Glazing cost usually depends on the type of frame and the
specified glazing method. For wood frames, glazing compounds are usually needed,
where neoprene gaskets or glazing compounds are required for metal frames. If glazing
is specified for the exterior, the estimator may need to include costs of scaffolding, lifts,
and ladders required

93
 9. Mechanical Works
9.1. Plumbing and Sewage Systems

Plumbing involves three general tasks: bringing water and gas to a building, supplying
and installing fixtures, and conveying the discharged water and waste from the building.
Plumbing materials, fixtures, and associated equipment are usually defined in the
specifications. The materials include various types and sizes of pipes, fittings, valves,
fixtures, and accessories, which are more fully described later. Water usually is
obtained from a water main, whereas the waste is collected from a building and
discharged into a sanitary sewer line. Plumbing can be classified as piping for potable
water purposes, and plumbing for waste disposal purposes.

Plumbing Systems

Classified into five groups: sanitary drainage, waste, and vent system; hot and cold
water system; fire protection system; gas system; and trailer park or sanitary site work
system. The first two are the main systems found in plumbing work.

Sanitary Drainage, Waste, and Vent System (DWV System)

The DWV system involves several types of pipes connecting the fixture to the stacks:
(l) water closets discharge, which connects to soil pipes; (2) sinks and dishwashers,
which connect to waste pipes; and (3) vent pipe, which connects the above fixtures to
permit air to enter the drainage system.

To estimate the DWV system, the estimator should consider its main components,
which are the building drain, building sewer, vent piping, and above grade waste. On a
small job, these four components may be placed on a single quantity sheet. A larger
job, however, requires separate sheets for each component.

At the beginning of the estimate, the estimator can start from a set point on the drawing
and begin measuring the pipe length along each run. Each different size pipe must be
kept separately on the quantity sheet. Once a section of pipe is taken off, the estimator
should mark off the section with a pencil. On a quantity sheet, the estimator can list
each pipe size and its length in linear meters. Fittings taken off the drawings are listed

94
separately from the piping itself. When a fitting is taken off, its location is marked.
Fittings are entered on the quantity sheet by type, size, and quantity.

Hot and Cold Water System

Standard piping materials for this system include type L copper tubing, brass pipe,
galvanized steel pipe for above-ground construction, and polyvinyl chloride (PVC) cold
water, type K soft or hard copper tubing for below-grade construction.

The takeoff procedure for the hot and cold water system is similar to the takeoff
procedure for the DWV system.

Fire Protection Systems

Estimating a fire protection system requires determining the cost of piping, nozzles,
and pumps. Any alternate source of water must be determined.

Gas System

In most buildings, gas is used as fuel for several appliances such as boilers, hot water
generators, laboratories, and kitchen ranges. For medical purposes, gas refers to
oxygen, nitrogen, vacuum, compressed air, and nitrous oxide. The common piping
material for medical gas systems, which is not common in typical housing gas systems,
is the type L or K copper tubing for audio-visual monitoring alarm systems against
pressure drop. One of the most common piping materials for natural gas systems is steel
pipe.

Estimating the cost of a gas system is somewhat different from estimating the cost of a
water distribution system. The estimator is only responsible for the gas piping that lies
within the building. The type of gas used in a system, which ranges from natural gas to
liquefied petroleum gas, will often determine the complexity of the system. The gas
system is sized according to the demand at each appliance outlet and the length of
piping required to reach that outlet.

Sewage Systems

One of the most common sewage systems is the sanitary sewer system which includes
four major parts: sewer pipes and fittings, manholes (to permit access to the sewer for

95
inspection and cleaning), service connections (to provide access to the pipe for future
connections), and cleanout services (for cleaning and flushing purposes). Sewer fittings
include single and double wyes, tees, curves, increasers, decreasers, and stoppers or
plugs.

Materials for Plumbing and Sewage Systems

Plumbing materials are the fundamental basis for estimating plumbing costs because
taking off the required material will result in the final estimate for a job.

Plumbing materials come in various forms, but the main categories for plumbing
material are piping, fittings, valves, and fixtures.

Piping or pipe is the basic material of most plumbing systems, and is priced by its
length.

10. Heating, Ventilating, and Air Conditioning

Systems
Heating, ventilating, and air conditioning systems use mechanical means to cool, heat,
clean, humidify, and replace air within a building. To perform such work, energy
sources of the systems include electrical, natural gas, coal, and/or oil, whereas heating
and cooling media include water, air, steam, or chemical refrigerants. During the system
design, the choices of energy source and heating and cooling media are based on the
climate, building use, and local energy costs. Regardless of the design and its choices,
each HVAC system usually consists of five basic components including heating
equipment, cooling equipment, air handling equipment, exhaust systems, and piping.

Heating equipment is used to generate heat to warm the building. Heating equipment
includes electrical heaters, heat pumps, gas and oil fired unit heaters, and boiler
systems. Boiler systems may use either water or steam as a medium and electricity, gas,
or oil as an energy source. Boiler systems include pumps, piping, expansion tanks,
terminal units, vents, and controls. In addition to heating equipment, HVAC systems
typically include cooling equipment. The primary function of cooling equipment is to
cool a building by removing excess heat. Common cooling equipment includes water-
and air-cooled chillers, water- and air-cooled condensers, cooling towers, coils, piping,

96
pumps, and controls. Cooling systems use water, air, and/or chemical refrigerants as a
medium and electricity as an energy source.

Another component of HVAC systems is air handling equipment. Air handling

equipment moves conditioned air to the areas where it is needed in the building. This
category includes duct work, fan coil units, air handling units, VAV boxes, fans,
dampers, duct heaters, and coils. The next component of HVAC systems is exhaust
systems. Exhaust systems can remove air to help control fumes, odors, and smoke.
Common exhaust systems are duct work, exhaust fans, and ventilators. The last
component of HVAC systems refers to piping. Piping is the means by which water,
steam, and chemical refrigerants are distributed throughout the building. Piping systems
include pipe, coupling, fittings, valves, and hangers.

11. Electrical Works

A modern building needs electricity for lighting, power, operating building services,
and air conditioning. Without electricity, most buildings cannot serve their intended
functions.

Electrical work is a specialized trade and is often subcontracted out to specialized

electrical subcontractors, either through a single contract with the general contractor or
under a separate contract with a specialist. The electrical plans include the electrical
symbol legend, fixtures and devices schedules, various floor plans showing where
different electrical components are required, and may also include drawings of some
electrical details.

Components of Electrical Systems (Components of Electrical Work)

 Raceways
 Cable Tray
 Conduit
 Conduit Fittings
 Wire Duct-Plastic
 Wire Ways
 Grounding
 Boxes and Wiring Devices

97
  Starters, Boards, and Switches
 Circuit Breakers
 Control Stations
 Fuses
 Transformers and Bus Duct
 Transformers
 Bus Duct
 Lighting
 Interior Lighting Fixtures
Lamps for interior lighting fixtures can be incandescent, fluorescent, halogen, light‐
emitting diode (LED), or high‐intensity discharge (HID). HID lamps include mercury
vapor, metal halide, or high‐pressure sodium. (Low‐pressure sodium lamps are used
principally for outdoor applications because of their strong yellow color.)
 Exit and Emergency Lighting ( usually surface mounted)
 Exterior Fixtures
Exterior lighting serves both utilitarian and decorative purposes. Low‐pressure sodium
or LPS lamps are an additional option for exterior fixtures. LPS lamps generate an
almost monochromatic, yellow light. Fluorescent lamps have special concerns when
used outdoors. They are sensitive to low temperatures and require more starting energy
in cold weather.
 Electrical Utilities
 Special Systems
 Clock Systems
 Lightning Protection
 Nurses’ Call Systems
 Closed‐Circuit TV Systems
Residential Wiring
For the majority of this text, the discussion has centered on breaking each electrical task
or system down into its most element parts for accurate estimating.
An alternative method for residential electrical work employs a somewhat different
strategy.
Residential wiring can be broken down into the following categories:

98
  Service  Cable and Internet systems
 Branch circuit wiring  Entertainment systems
 Appliances  Light fixtures
 Heating and air conditioning  Special needs
 Intercom and/or doorbell systems
Units of Measure: Residential wiring devices and outlets are counted on a system basis
and labeled as EA or as a lump sum (LS)

12. Bill of Quantities (BoQ)

BoQ means a list of items giving detailed identifying descriptions and firm quantities
of the work comprised in a contract. Detailed measurement for building works;
describes the types of BoQ; gives guidance on the preparation and composition of BoQ;
and defines the information required to enable a bill of quantity to be prepared. Also
sets out the rules of measurement of building items, and the rules for dealing with
preliminaries, non-measurable works and value added tax. Guidance is also provided
on the codification of BoQ, the use of BoQ for cost control and cost management, and
the analysis of a BoQ to provide cost data.

12.1. Purpose of Bill of Quantities

The primary purposes of BoQ, which becomes a contract document, are:

 to provide a co-ordinated list of items, together with their identifying
descriptions and quantities, that comprise the works to enable contractors to
prepare tenders efficiently and accurately; and
 when a contract has been entered into, to:
– provide a basis for the valuation of work executed for the purpose of
making interim payments to the contractor;
– Provide a basis for the valuation of varied work during the progress of
the work.
 Essentially, a BoQ is a list of the items with detailed identifying descriptions
and quantities, which make up the component parts of a building.
 It enables all contractors tendering for a contract to price on exactly the same
information with a minimum of effort.

99
  It limits the risk element borne by the contractor to the rates he/she enters in the
bill.
 It prompts the client and the design team to finalize most project particulars
before the bill can be prepared, ideally with full production drawings and project
specification.
 It gives an itemized list of the component parts of the building, with a full
description and the quantity of each part, and this may assist the successful
contractor in ordering materials and assessing his labor requirements for the
contract.
 After being priced it provides a good basis for a cost analysis, which
subsequently will be of use on future contracts in cost planning work.

12.2. Types of Bill of Quantities

The use of bill of quantities in support of a contract is the traditional and proven means
of securing a lump-sum price for undertaking building works. Bill of quantities (BQ)
can be:
 Firm (to obtain a lump-sum price for a fully designed building project); or
 Approximate (subject to re - measurement as built).
12.2.1. Firm Bill of Quantities

The reliability of the tender price will increase in relation to the accuracy of the
quantities provided (i.e. the more precisely the work is measured and described). In
theory, were there no design changes, then a firm BoQ would provide a price at tender
stage, which would equal the final cost. In practice there will be changes, and the BoQ
provides a good basis for cost control, since the direct cost of change can be assessed
with reference to the BoQ rates. The firmer the BoQ the better it is as a means of
financial control.
12.2.2. Approximate Bill of Quantities

Approximate BoQ are used when there is insufficient detail to prepare firm BoQ or
where it is decided by the employer that the time or cost of a firm BoQ is not warranted.
Such contracts do not provide a lump-sum price, but rather tender price totals (i.e. a
quantified schedule of rates), since the quantities are subject to re-measurement on
completion by the quantity surveyor/cost manager. These contracts are usually subject

100
to greater variation than lump sum contracts and therefore should only be used where
time is a limiting factor or where there is great uncertainty in respect of certain elements,
such as major excavation and earthworks. The initial resource cost of an approximate
BQ is likely to be lower than for a firm BQ, but the need for re-measurement invariably
results in an overall higher resource cost. Although the quantities are approximate, the
descriptions of work items should be correct.
A Bill of quantities can be presented in a variety of formats based on quantity
breakdown structure.
The processes involved in producing a completed Bill of Quantities require the
following stages:
Taking off →Squaring and checking →Abstracting and checking→ Reducing and
checking→ Writing draft Bill of Quantities→ Editing draft Bill of Quantities and
checking→ Proof reading the Bill of Quantities and checking.
Bill of Quantity (Specification Worksheet): shows the items present for the
construction work with the associated specification and the estimated quantity in the
takeoff sheet with the Unit price for each of the items. It is the format which is used in
a bill of quantity to list a short description of the specification along with its measuring
unit, quantity and unit prices (rate) to determine the total cost for each trade of item.
The potential errors in a bill of quantities you must give attention are [28]:
 incorrect quantity of an item
 erroneous inclusion of an item
 erroneous omission of an item
 Incorrect description of an item.
Setting out of bills of quantities for tendering (contract document)

101
Item Description Unit QTY Rate Amount
no
A- SUBSTRUCTURE
1. EXCAVATION AND EARTHWORK 1 2 3 4=2*3
1.01 Clear and remove top soil to an average depth of m2
200-300mm including trees up to 80mm in
diameter.
1.02 Bulk excavation [measured in successive stages of m3
1500mm from starting level (BaTCoDA-
023133)], working space shall be determined by
the Engineer but shall not exceed 500mm on either
side (practically 250mm)
1.03 Pit excavation shall be measured by adding 250mm m3
to each side of the dimension
1.04 Ditto to Item 1.03 but for trench m3
1.05 Fill to excavations or to make up level shall be m3
made in suitable material approved by the Engineer
1.06 Cart away or dispose or go out surplus excavated m3
material
1.07 Hardcore (thickness does not exceed 300mm) m2
2. CONCRETE WORK
2.01 Lean concrete quality C-5 or C-7 m2
2.02 Reinforced concrete m3or
m2
2.03 Mild steel reinforcement according to structural Kg
drawings
2.04 Formwork- timber or metal (Contact area) m2
2.05 Expansion joint material (Styrofoam or chip Ml
wood) filler between grade beam and floor slab
3. MASONRY WORK
3.01 Masonry below NGL (Buried wall)- Concealed m3
from view or Exposed face
A. SUPERSTRUCTURE
1. CONCRETE WORK
1.01 Reinforced concrete m3or
m2
1.02 Mild steel reinforcement according to structural Kg
drawings
1.03 Formwork - timber or metal (Contact area) m2
2. BLOCK WORK

102
 Class A, B or C with 200mm, 150mm or 100mm m2
2.01 thick HCB wall, bedded in cement mortar (1:3)
with a maximum thickness of 15mm
AA solid block walls (Sub-grade block works) m2
Brick Walls (The mortar for block walling shall m2
have a maximum thickness of 15mm and raked out
to a minimum depth of 10mm and prepared for
cement pointing)
3. ROOFING
3.01 Roof cover m2
3.02 Gutter (with a given development length) Ml
3.03 Ridge cap (with a given development length) Ml
4. CARPENTRY & JOINERY
5. Metal Work or Aluminum Work
6. Plastering and Pointing (but not deep m2
pointing)
7. FINISHING
7.01 Screed, wall and tile flooring m2
7.02 Skirting Ml
8. GLAZING m2
9. PAINTING m2
10.SANITARY INSTALLATION
10.01 Sanitary Equipment (Fixtures) and Valves No.
10.02 Water Supply Pipes Ml
10.03 Waste, Vent and Storm Water Pipes Ml
11. Electrical Installation Works
11.01 Manhole No.
11.02 Conduits and Pipes Ml
11.03 Earthing system No.
11.04 Distribution Boards No.
11.05 Light Points No.
11.06 Switches No.
11.07 Socket Outlet Points No.
11.08 Telephone Outlets No.
11.09 Light Fittings and Lamps No.
11.10 Lightning Protection System No.

According to Australian Standard Ruled Quantity Surveying, the BOQ paper is divided
into six major vertical columns. The first column, "ITEM", is used for the description
reference; the second column, "DESCRIPTION", is used for the billing; the third
column, "UNIT", is used for the billing unit; the fourth column, "QUANTITY", is used

103
 for the billed quantity; the fifth column, "RATE", is used for the estimated unit rate (i.e.
cost per billing unit); and the sixth column is a money column.
Bills of quantities shall fully describe and accurately represent the quantity and quality
of the works to be carried out.
BoQ for interim payment preparation
From Bill of Quantity Executed Quantity Total amount
(Contract Amount) (Actual)
Description
Item

Previous

Executed

Total To
Previous
Contract

Contract

Current
Amount

Amount

Amount
To date

Amount
Current
QTY

Unit
price

Date
Unit

1 2 3 4 5 6 = 4*5 7 8 9= 7+8 10=5*7 11=5*8 12=10+11

13. Road Construction Earthwork

A basic set of plans for a road section between any two fixed points will generally
include the following:
1. Details of the proposed section, such as the chain ages and locations of all pegs;
bearings of tangent lines, and radii and other geometrical data affecting the layout
of all horizontal curves; constraints such as streams, railways, buildings, property
fences, public utility lines, and other structures contained within the right-of-
way; existing and new drainage structures; benchmark locations; and other
details to be considered in the course of construction. Contours showing the
topographical nature of the terrain may also be included.
2. A longitudinal profile showing the required ground surface or formation, and the
natural ground or existing road line; existing and required elevations at marked
pegs; required vertical curve data; grade percentages for gradients; required
culvert, bridge and stream-bed elevations, and other data needed to construct the
vertical alignment.
The determination of earthworks quantities is based on cross-section data gathered in
the field or interpolated from digital ground control models. These cross-section data
normally indicate the extent of the excavation (i.e. cut) from cuttings, and filling (i.e.
fill) for embankments, at regular intervals – say every 15–30 m – and where major
ground irregularities and changes occur along the selected alignment.

104
 13.1. Trapezoids

Another type of irregular area which has to be measured on occasions, particularly with
cuttings and embankments, is the trapezoid, which comprises a quadrilateral (four-sided
figure) with unequal sides but with two opposite sides parallel. The term trapezium is
often used in place of trapezoid.
Area = 1/2 (top + bottom) x height (vertical distance between the top and bottom of the
trapezoid)

EXAMPLE 8000

40000
4000
Area = 1/2 (8.00+24.00) x 4.00=64.00m2
24000
24000

References

[1] H. Kerzner, PROJECT MANAGEMENT METRICS, KPIs, AND DASHBOARDS. A

Guide to Measuring and Monitoring Project Performance, New York: John Wiley &
Sons, Inc., 2013.
[2] I. H. SEELEY, ADVANCED BUILDING MEASUREMENT, London: MACMILLAN
EDUCATION LTD, 1989.
[3] P. K. Marsden, BASIC BUILDING MEASUREMENT, Sydney: Universic ofNew South
Wales Press Ltd, 2005.
[4] D. Towey, Construction Quantity Surveying A Practical Guide for the Contractor’s QS,
Iowa : Wiley-Blackwell: John Wiley & Sons, Limited, 2012.
[5] S. J. Peterson, Construction Estimating Using Excel-2nd edition, New Jersey and
Columbus: Pearson Education, Inc., 2012.
[6] W. J. D. PICO, Electrical Estimating Methods, 4th Edition, New Jersey: John Wiley &
Sons, Inc., 2015.

105
[7] J. E. S. a. L. Holm, Management of Construction Projects A Constructor’s Perspective,
New York: Routledge, 2017.
[8] L. P. T. Joglekar, Practical Information for Quantity Surveyors Property Valuers,
Architects, Engineers and Builders, Pune, 2007.
[9] Ethiopian Building and Transport Construction Design Authority, Building and Transport
Construction Design Authority, Addis Ababa, 2004.
[10] K. P. a. N. O. Calin M.Popescu, Estimating Building Costs, New York: Marcel Dekker,
Inc., 2003.
[11] S. W. NUNNALLY, Construction Methods and Management, New Jersey: Pearson
Prentice Hall, 2007.
[12] M. Haroon, A Practical book for BUILDING ESTIMATIONS, Hyderabad , 2015.
[13] D. C. FRICS, Quantity Surveyor’s Pocket Book, Burlington: Elsevier Ltd, 2009.
[14] The Royal Institution of Chartered Surveyors, The Surveyors' Construction Hand Book,
UK: RICS Business Services Limited , 2003.
[15] J. K. R. M. a. M. P. A.V. Hore, Construction 1 Management Finance Measurement,
London: MACMILLAN PRESS LTD, 1997.
[16] A. Boussabaine, Cost Planning of PFI and PPP Building Projects, New York: Taylor &
Francis Group, 2007.
[17] J. S. A. D. Jaggar, Building Cost Planning for the Design Team, Burlington: Elsevier Ltd,
2007.
[18] D. C. FRICS, Quantity Surveyor’s Pocket Book, Oxford : Elsevier, 2009.
[19] W. T. a. A. W. Sandra Lee, Willis’s Elements of Quantity Surveying, Chichester: John
Wiley & Sons, Ltd., 2014.
[20] T. A. O. S. A. Q. SURVEYORS, Standard System of Measuring Building Work, 1999.
[21] Amhara Building Works Enterprise, Material Breakdown, Bahir Dar, 2017.
[22] F. R. D. a. S. J. Peterson, Estimating in Building Construction, New Jersey: Pearson
Education, Inc., 2011.
[23] M. R. a. A. Cotgrave, Construction technology 2 Industrial and commercial building,
Basingstoke: PALGRAVE MACMILLAN, 2004.
[24] R. K. S. P. a. U. P. Kiran Patki, A Civil Engineers Hand Book On Building Construction,
Pune: Kumar Properties.
[25] I. H. Seeley, Civil Engineering Quantities, 3rd edition, London and Basingstoke: THE
MACMILLAN PRESS LTD, 1977.
[26] Royal Institution of Chartered Surveyors (RICS), RICS NEW RULES OF
MEASUREMENT Detailed measurement for building works, UK: Royal Institution of
Chartered Surveyors, 2012.
[27] G. Goldfayl, Construction Contract Administration, Sydney: University of New South
Wales Press Ltd, 2004.
[28] G. K. M. a. G. K. Mislick, Cost Estimation Methods and Tools, Hoboken: John Wiley &
Sons, Inc., 2015.

106
 CHAPTER FIVE
COST ESTIMATION
5.1. Introduction

Cost estimating is the process of collecting and analyzing historical data and applying
quantitative models, techniques, tools, and databases in order to predict an estimate of
the future cost of an item, product, program or task. Cost estimating is the application
of the art and the technology of approximating the probable worth (or cost), extent, or
character of something based on information available at the time [1].

Importance and Purposes of Cost Estimating

 Long-term planning: Long-term planning is part of strategic planning.
Cost estimating fills the critical role of providing affordability analyses.
 Budgeting: As an intrinsic part of building and refining budgets, cost
estimating supports a series of activities that are aligned with the
budgeting process
 Choosing among alternatives: In support of decision-makers who must
explore options and choose among alternatives, cost estimating supports
the process by providing cost estimates and comparisons among the costs
of alternative options for achieving a particular goal.
 To ascertain the necessary amount of money required by the owner to complete
the proposed work.
 For public construction work, estimates are required in order to obtain
administrative approval, allotment of funds and technical sanction.
 To procure controlled materials, if any, like cement, steel, etc. quantities of such
materials are worked out from the estimate of the work and attached with the
application for verification.
 To calculate the number of different categories of workers that is to be employed
to complete the work within the scheduled time of completion.
 To assess the requirements of tool, plants and equipment required to complete
the work according to the programmed.
 To fix up the completion period from the volume of works involved in the
estimate.
 To justify the investment from benefit cost ratio. (For ideal investment, this ratio
should be more than one)

107
  To invite tenders and prepare bills for payment.
 An estimate for an existing property is required for valuation

Cost and Price: Cost is a quantitative measurement of the resources needed to

produce an item; or rephrased, it is the amount of money needed to actually produce
that item. Price, on the other hand, is what you and I must pay for that item in the
marketplace. There are two primary differences between cost and price. First, there
is profit. Profit can be either negative or positive. A negative profit results in a loss
to the seller, while a positive profit will result in a gain to the seller. Second, the
market’s assessment of the value of a product that determines its ultimate price in
the marketplace may have little to do with the cost of making that product. While
both profit and market value will also influence costs (e.g., for basic materials and
labor), they are less determinative of the final price at which the item is sold. A key
fundamental in the profession of cost estimating is that cost estimating focuses on
costs, not price!

Building Cost Estimates Classification [11]

Project defn % Expected
Estimate Scope (2) A/E complete Beneficiary accuracy Range Methodology
class (1) (3) (4) 1
(%) (5) (6)
Conceptual Feasibility study <10 Owner(s) -25, +50 Historical
estimate Financier information m2
or m3 or units
Engineering Reevaluate 30 Owner(s) -20, +40 m2 or m3 or units
estimate (1) feasibility for Financier
financing
Engineering Reevaluate for 60 Owner(s) -15, +25 Finishing and
estimate (2) construction Financier systems well
financing Defined (m2, m3)
Engineering Budgeting for 90 Owner(s)Fina -10, +15 m2 or m3 or units
estimate (3) construction ncier Systems,
budget evaluate the bids Construction components
estimate Manager (CM)
Contractor Bidding 100 Financier, -5, +10 Detail quantity
detail contractor(s) CM, Owner, takeoff
estimate construction Contractor Detail unit price
budget Sub- estimate (m2,
contractors m3, uni)
final cost may vary from the “estimated” cost.

108
 5.2. Unit Rate Estimating

Two major analytical techniques are in common use. Unit rate estimating uses
predetermined output rates for labor and plant, in conjunction with a price per unit for
materials, to calculate a rate per unit (m, m2, m3, nr etc.) for some measured item of
work, and this unit rate is then set against a total measured quantity. Operational
estimating, on the other hand, aims to calculate the total cost for a complete work
package by determining the total amount of material required together with the overall
length of time that the required labor and plant resources are needed on the site for
completion of the whole operation. The total operational cost may then need to be
broken down into individual unit rates in order to price a bill of quantities.

The Cost of Labor

Labor costs account for a major component of virtually all construction work. Fox and
Gilleard (1992), for example, estimate labor costs as between 22% and 45% of overall
project costs in Hong Kong. It is therefore obvious that a reasonably correct and
accurate assessment of the cost of labor is fundamental to the accuracy of the estimate,
but it is also generally accepted that the labor element is probably the most difficult
component to estimate with any reasonable degree of accuracy.

Estimating the Productivity of Labor: In addition to the 'all-in' hourly labor rate, the
estimated costs for labor must also take into account the time which operatives will take
to complete the various items of work, and it therefore also necessary to make some
estimate of labor productivity. General 'rules of thumb' for estimating labor productivity
have long been used in the construction industry.

The Cost of Materials

Costs for materials will almost always be derived from current quotations obtained
specifically for a particular project.

There are a number of important factors to be considered when estimating costs for
materials.

The units in which materials are bought and the units in which measured items are
measured are sometimes not the same:

109
Because items measured in bills of quantities generally represent the finished work
fixed in place, it is often the case that the units of measure do not correspond with the
units in which the materials are bought.

Work is usually measured net: Under most Standard Methods of Measurement

construction work is measured net fixed in place.

Delivery and handling: Prices are often quoted by suppliers as' ex-works '.This means
that haulage from the supplier's depot to the site is excluded and must be allowed for
separately.

Discounts: A complex system of trade discounts exists within the materials supply
industry, and the 'list price' of materials will usually be considerably higher than the
'net' price the contractor will have to pay.

The Cost of Plant (Equipment)

It is less common nowadays for general contractors in construction to own substantial

items of plant. Large items of plant represent a substantial investment, and most
contractors will not have a sufficiently smooth flow of work to keep the plant working
at peak efficiency.

5.3.Payment Certificate Preparation

One of the most important contract administration functions from the contractor’s
perspective is getting paid on time. This doesn’t just happen automatically. There is a
formal payment request process involved that must be followed to the letter; otherwise,
the payment request may be kicked back to the contractor, delaying receipt of the
payment by a whole billing cycle. Missing even one payment cycle can cause severe
cash flow problems, and can even jeopardize the solvency of a company.

Many construction projects are very, very large and represent millions and even
hundreds of millions of Birr under a single contract with one general contractor. For
this reason, the perception is that all of this money is collected month after month and
just sits around somewhere in a special contractor account, adding to the company
coffers—right? Wrong. The reality is that the money is just passing through the
company accounts—coming in one end, and going out the other. On a monthly basis,
there is actually little or no revenue being retained during construction. The payments

110
made by the owner to the contractor are being passed directly on to the subcontractors
doing the work, and to the vendors and suppliers providing the material on a monthly
basis. Furthermore, the contractor gets paid only for work already completed. So in
truth, most contractors are, in essence, fronting money to the owners, covering as much
as 30 to 60 days of bills and expenses for work completed before receiving even one
payment from the owner. This point is illustrated in the following graph:

111
 References

[1] G. K. M. a. G. K. Mislick, Cost Estimation Methods and Tools, Hoboken: John

Wiley & Sons, Inc., 2015.
[2] J. K. R. M. a. M. P. A.V. Hore, Construction 1 Management Finance
Measurement, London: MACMILLAN PRESS LTD, 1997.
[3] Washington State Department of Transportation, Cost Estimating Manual for
Projects, Washington, 2020.
[4] J. M. Nicholas, Project Management for Business and Engineering Principles and
Practice, Oxford: Elsevier, 2004.
[5] NASA, NASA Cost Estimating Handbook (CEH), 2008.
[6] P. F. Rad, PROJECT ESTIMATING and Cost Management, Vienna:
NAGEMENTCONCEPTS, 2002.
[7] G. G. Ward, Effective Project Management Guidance and Checklists for
Engineering and Construction, Chichester: John Wiley & Sons Ltd, 2018.
[8] A. J. Smith, Estimating, Tendering and Bidding for Construction Theory and
Practice, Basingstok: MACMILLAN PRESS LTD, 1995.
[9] Royal Institution of Chartered Surveyors (RICS), RICS NEW RULES OF
MEASUREMENT Detailed measurement for building works, UK: Royal
Institution of Chartered Surveyors, 2012.
[10] S. J. Peterson, Construction Estimating Using Excel-2nd edition, Boston: Pearson
Education, Inc., 2007.
[11] N. O. a. K. P. Calin M. Popescu, Estimating Building Costs, Switzerland: Marcel
Dekker, Inc, 2003.
[12] B. J. Jackson, Construction Management Jump Start™, London: SYBEX, 2004.
[13] A. R. Rumane, HANDBOOK OF CONSTRUCTION MANAGEMENT: Scope,
Schedule, and Cost Control, Boca Raton: CRC Press- Taylor & Francis Group,
2017.

112
 ILLUSTRATED EXAMPLES
A B D E
C
4000 4000 4000 4000

F1 F1 F1 F1 F1
1

5000

F1 F1 F1 F1 F1
2

5000
5000

F1 F1 F1 F1 F1
3

Ø10-c/c-140, Width of Masonry = 400

113
 Footing (F1=15pcs) Column (15pcs)

1550 1600
Ø12 c/c 200,L= 2300
4ø14, L=2605 4ø14, L=4100
Both ways H=4000
1600
450
Column 200x250

Grade Beam (300x250) on Axis 1, 2 & 3

250 50
A B C D E
50

200

250 3Ø14, L=16,940.00

St. Ø8- c/c 200- L=1000 3Ø14, L=16000.00

114
 Grade Beam on Axis A, B, C, D & E

1 2 3

2Ø12, L=10500.00

2Ø12, L=10000.00

Top Tie Beam (200x200) on Axis 1, 2 & 3

150 50
A B C D E
50

150

150 2Ø14, L=16,940.00

St. Ø8- c/c 200- L=550 2Ø14, L=16000.00

Top Tie Beam on Axis A, C & E

1 2 3

Top 2Ø12, L=10500.00 Bottom 2Ø12, L=10000.00

115
 ILLUSTRATED EXAMPLES
A B D E
C
4000 4000 4000 4000
2000 2000 2000 2000
1

5000

5000
5000

NOTE: The Window starts at +1000 from the FFL, 700 Wide Pavement will be provided around the perimeter

116
650

117
 Solution

Timesing Dimension Squaring Description

A.SUBSTRUCTURE
1.Earth Work And Excavation
1.1.20cm Site Clearance
L= 16-0.125*2=15.75m (in-to-in)
= 15.75+(1.6/2 +0.25+1)*2=20.85m
W= 10-0.25*2= 9.5m (in-to-in_
1/ 20.85 = 9.5+(1.6/2+0.25+1)*2= 13.6m
2
13.6 283.56m
283.56m2 Total
1.2.Bulk Excavation
L= 20.85-2=18.85
18.85 W= 13.6-2=11.6m
1/ 11.6 D = 0.65
0.65 142.13m3
142.13m3 Total
1.3.Pit Excavation
L= 1.6+0.25*2=2.1m
2.1 W= 1.6+0.25*2=2.1m
2.1 D= 1.55+0.45=2.0m
15/ 2.0 132.3m3
132.3m3 Total
1.4.Trench Excavation
On axis 1 & 3
L1= 16-(0.8+0.1)*2-2.1*3=7.9*2=15.8m
On Axis A & E
L2= 10-(0.8+0.1)*2-2.1*1=6.1*2=12.2m
LTotal = 15.8+12.2= 28.0m
28.0 W = 0.4+0.25*2= 0.9m
0.9 Depth =0.65m
1/ 0.65 16.38m3
16.38m3 Total
1.5.Hardcore
b/n axis A-B, D-E/1-3
3.63 L= 4000-(250+125) = 3.63
2/ 4.80 69.70m2 W= 5000-(100+100) = 4.8m
b/n axis B-C, C-D/1-3
3.75
4/ L= 4000-(125+125) = 3.75m
4.8 72.00m2
W= 5000-(100+100) = 4.8m
141.70m2 Total
Timesing Dimension Squaring Description

118
 2.Concrete Work
2.1.Lean Concrete
a/ Under Footing Pad (add 5-10cm extra length
in each side or take the contact area only)
F1= 15pcs
L= 1.6+0.1*2= 1.8m
15/ 1.8 W= 1.6+0.1*2=1.8
1.8 48.6m2
48.6m2 Total
b/ Under Grade Beam
on axis B,C,& D /1-3
3/ L= 5-0.1-0.2=4.7m
4.7 W= 0.25+0.05*2=0.35m
0.35 4.94m2
4.94m2 Total
c/ Under Masonry
2/ on axis 1 & 3
L= 16-3*0.25-0.125*2=15m
15 W= 0.4+0.1*2=0.6m
0.6 18m2 On axis A & E
2/ 9.2 L= 10-0.4*2=9.2
0.6 11.04m2 W= 0.4+0.1*2=0.6
29.04m2 Total
2.2.C-25 Concrete
a/ Footing Pad
L= 1.6m
15/ 1.6
W= 1.6m
1.6
0.4 15.36m2 D=0.4m
15.36m3 Total

119
Timesing Dimension Squaring Description
b/ Footing Column
L=0.25
0.25 W= 0.20
15/ 0.2
H=1.55
1.55 1.16m3
Total
1.16m3
c/ Grade Beam
on axis 1,2 & 3
L= 16m
3/ 16
W= 0.3m
0.3
D= 0.25
0.25 3.6m3
On axis A, B, C,D & E
L=10-0.2*3=9.4m
9.4 W= 0.3m
5/ 0.3 D= 0.25
0.25 3.53m3
7.13m3 Total
2.3.Formwork
a/ For Footing Pad
15/4/ 1.6
0.4 L= W= 1.6
38.4m2
38.4m3 Total
b/ For Footing Column
0.25 L= 0.25m
15/2/
1.55 W= 0.20m
11.63m2 H= 1.55m
0.2
15/2/ 1.55 9.3m2
20.93m2 Total
c/Grade Beam
on axis 1 & 3 Externally
16 L= 16
2/ 8.00m2
0.25 D= 0.25
15 On axis 1,2,3 Internally
4/
0.25 15.00m2 L= 16-0.125*2-0.25*3=15m D= 0.25m
10.00 On axis A & E- Externally
2/
0.25 L = 10. D= 0.25
5.00m2 On axis A,B,C,D & E- Internally
8/
9.4 L= 10-0.2*3=9.4 D= 0.25m
0.25
18.8m2
46.8m2
Total

120
Timesing Dimension Squaring Description
3.Masonry Work
On axis 1 & 3
2/ 16 L= 16m
0.4 W= 0.4m
0.65 8.32m3 D= 0.65m
On axis & E
9.2 L= 10-0.4*2=9.2
2/ 0.4 W= 0.4m
0.65 4.78m3 D = 0.65m
13.10m3 Total masonry below NGL
B.SUPERSTRUCTURE
4. Concrete Work
4.1. Reinforced Concrete
15/ 0.25 a/ Elevation Columns (15pcs)-[C-25 Concrete]
0.20 L=0.25 m
4.00 3.00m3 W= 0.20m
3.00m3 H= 4.00m
3/ 16 b/ Top Tie Beam
0.2 on axis 1,2 & 3
0.2 L= 16m
1.92m3
W= 0.2m
9.4
3/ D= 0.2m
0.2
On axis A,C & E
0.2 1.13m3
L= 10-0.2*3=9.4m
3.05m3 Total
4.2.Formwork
a/ For Elevation Column
0.25
15/2/ L= 0.25m
4.00 2
30.00m W= 0.20m
15/2/ 0.2
H= 4m
4.00 24.00m 2

54.00m2 Total

121
Timesing Dimension Squaring Description
c/Top Tie Beam
2/ 16 on axis 1 & 3 Externally
0.20 6.40m2 L= 16
15
D= 0.25
7/ 0.20 On axis 1,2,3 Internally and Bottom (3 soffit)
21.00m2
L= 16-0.125*2-0.25*3=15m D= 0.25m
2/ 10.00 On axis A & E- Externally
0.20 4.00m2 L = 10. D= 0.25
13/ 9.4 On axis A,B,C,D & E- Internally & (5 Soffit)
0.20 24.44m2 L= 10-0.2*3=9.4 D= 0.25m
55.84m2 Total

Miscellaneous Material Quantity Take-Off

a) The required number of yokes are:-
The number of yokes
= [height of the column /Spacing] +1
Where, the spacing of the yokes is usually not
less than 30cms and also not exceeding 50cms.
Take for this question spacing of yokes =40cm
so the number of yokes
=400/40 +1 =11pieces/sides
The total number of yokes
=11 pieces/sides*2 sides = 22pices
=11 pieces/sides*2 sides = 22pices
Sometimes this pieces of yokes increased two or
three times. Because 2 or 3 yokes are used at
one time to improve their strength.
- The extended parts of the yokes in each side is
minimum 15cm. hence
The length of a single yoke is (column = 20*25)
=25cm + (15cm) 2 =55cm =0.55m/piece (2 side)
=20cm +(15cm)2= 50cm = 0.5m/piece (2 sides)

122
 Timesing Dimension Squaring Description
- The total length is
* L25cm = 0.55m /pieces = 0.55*22=12.1m
* L20cm = 0.5m/pieces = 0.5*22= 11m
* LTotal = 12.1+11 = 23.1m
length is required take 5% wastage
15/ 24.26 363.9m LT =23.1m+5/100 *23.1 = 24.26ml is required
363.9m Total for Yokes
Exercise
1. Calculate ROOF COVER AREA?
2. Calculate GLAZING AREA
3. Calculate PLASTERING QUANTITY
4. Calculate Internal PAINTING QUANTITY & External QUARTZ PAINTING
5. Calculate Required LZT QUANTITY
6. Calculate Required Borrow Fill Material
7. Calculate CART AWAY AMOUNT
8. Calculate quantity of REINFORCEMENT BAR

123
 BILL OF QUANTITY
Item Description Unit QTY Rate Amount
no
A- SUBSTRUCTURE
1. EXCAVATION AND EARTHWORK 1 2 3 4=2*3
1.01 Clear and remove top soil to an average depth of m2 283.56
200-300mm including trees up to 80mm in
diameter.
1.02 Bulk excavation [measured in successive stages of m3 142.13
1500mm from starting level (BaTCoDA-
023133)], working space shall be determined by
the Engineer but shall not exceed 500mm on either
side (practically 250mm)
1.03 Pit excavation shall be measured by adding 250mm m3 132.2
to each side of the dimension
1.04 Trench Excavation m3 16.38
1.05 Fill to excavations or to make up level shall be m3
made in suitable material approved by the Engineer
1.06 Cart away or dispose or go out surplus excavated m3
material
1.07 Hardcore (thickness does not exceed 300mm) m2 141.70
2. CONCRETE WORK
2.01 Lean concrete quality C-5 or C-7
a/ Under Footing Pad m2 48.6
b/ Under Grade Beam m2 4.94
c/ Under Masonry m2 29.04
2.02 Reinforced concrete m3or
m2
a/ For Footing Pad m3 15.36
b/ For Footing Column m3 1.16
c/ For Grade Beam m3 7.13
2.03 Mild steel reinforcement according to structural Kg
drawings
2.04 Formwork- timber or metal (Contact area)
a/ For Footing Pad m2 38.4
b/ For Footing Column m2 20.93
c/ For Grade Beam m2 46.8
2.05 Expansion joint material (Styrofoam or chip Ml
wood) filler between grade beam and floor slab
3. MASONRY WORK
3. 1 Masonry below NGL (Buried wall)- Concealed m3 13.1
from view or Exposed face

124
Item no Description Unit QTY Rate Amount
B. SUPERSTRUCTURE
4. CONCRETE WORK
4.1 Reinforced concrete m3or
m2
a/ For Elevation Column m3 3.00
b/ For Top Tie Beam m3 3.05
4.2 Formwork - timber or metal (Contact area)
a/ For Elevation Column m3 54.00
b/ For Top Tie Beam m3 55.84
Mild steel reinforcement according to structural Kg
drawings

Solved Problems
1. In G+2 Residential Building detail plan, five footings (F3) have dimension of
1700 x 1700 x 405mm C-25 Concrete with 1:1.5:3 mix ration, Calculate the
volume of each ingredient materials?

Solution
x Dimension Squaring Description
(Dim.) (Quantity)
1. Reinforced Concrete
a) For Footing
5/ 1.7 L= 1.7m
1.7 W =1.7m
0.4 5.78m3 D= 0.405-0.05 (Lean Concrete) = 0.4m
5.78m3 Total of Concrete for F3

Quantity of Ingredient Material

Quantity of Cement = (Cement/cement+sand+aggergate)*1.53

OR
Quantity of Cement in bags=(Cement/(cement+sand+aggergate)*50kg)*1.53

Quantity of Sans = (sand/cement+sand+aggergate)*1.53

Quantity of Gravel =(Aggergate/cement+sand+aggergate)*1.53

125
Note: Wet Volume = 1m3
Dry Volume = 1 x 1.53 = 1.53m3

126
 Quantity of Cement = 1
(1.53) = 0.278m3
(1+1.5+3)

1m3 of cement = 1440kg => 0.28*1440 = 403.2kgs or 4qtl or 8 bags

Quantity of Sans = 1.5

(1.53) = 0.417m3
1+1.5+3

1m3 of sand =1600-1800kg assume 1700kg =>0.42*1700= 714kg

Quantity of Gravel = 3
(1.53) = 0.834m3
1+1.5+3

1m3 of gravel =1500-1800kg, assume 1600kg => 0.83*1600= 1328kg

2. The following drawing shows the PPR water supply system of a building from the
main water supply line.

¾’ ½’
¾’ ½’

Identify the fittings used in the supply line?

Solution
PPR (¾’, ½’)
Y-Branch ½’
Elbow ½’
Female and Male Elbow or Adapter
Faucet ½’
3.

20cm Grade C Block H= 2.8m

L = 5.5m

5.5m
Calculate the number of Blocks required and bag of cement needed for the production
of the block?

127
Solution
x Dimension Squaring Description
(Dim.) (Quantity)
4. Reinforced Concrete
b) For Footing
1/ 5.5 L= 5.5m
2.8 15.4m2 H =2.8m
15.4m2 Total of Concrete HCB

No. Blocks per m2 = 12.5pcs

Total No. of blocks = 12.5x15.4= 192.5~ 193pcs of 20cm HCB is required
A bag of cement can produce 24-25pcs 20cm HCB hence
No. of bags cement required = 193/25 = 7.72 ~8 bag of cement is required or
=193/24 = 8.0bag cement is required for the production
5. Using the given data, calculate the Net Sum with VAT entitled to the contractor?
Main contract Birr 150,000,000.00
Advance Payment 25% of the main contract
Interim payments
1st payment 30,000,000.00
2nd payment 25,000,000.00
Current Executed Amount 27,000,000.00
Advance Repayment instalment in each interim payment is 30%
All the given amount given are before VAT

Solution

128
 Amount (Birr)
Main Contract 150,000,000.00
Supplementary Contract -
Variation Order -
15% VAT 22,500,000.00
Total Sum with VAT 172,500,000.00

S/ Amount Amount (Birr)

No. Pay. No W/out VAT With VAT Previous Work 55,000,000.00
Adv.Pay 37,500,000 43,125,000 Current Work 27,000,000.00
1 1st 30,000,000 34,500,000 Total 82,000,000.00
2 2nd 25,000,000 28,750,000 VAT (15%) 12,300,000.00
3 3rd Total work of
Executed with VAT 94,300,000.00
Total 55,000,000 63,250,000
Deductions Amount (Birr)

Previous Payments 63,250,000.00

Rebate 3%

Retention 5%
4,100,000.00
Penalty

Advance Repayment 30% the advance

Others (15% Adv VAT Repayment 8,100,000.00

1,215,000.00

Total 76,665,000.00 (76,665,002.00)

Net Sum with VAT
17,634,998.00

Hence, we state in the following way

ለስራ ተቋራጩ 17,634,998.00 ሊከፈለው መቻሉን እናረጋግጣለን፡፡

We certify that the contractor is now entitled to the sum of Seventeen Million Six Hundred Thirty Four
Thousand Nine Hundred Ninety Eight Ethiopian Birr Only.

6. Using the following Data calculate the Unit Price of C-25 Concrete with a ratio
of cement: sand: gravel. The man power other than the Forman (0.25) have
Utilization Factor of 1. Crews of 18-DL, 2-M, 2-C and a Forman have an output
of 1.4418, Price of water is negligible.
Material Cost Labor Cost Equipment Rent
Cement = Birr 1100/qtl Forman = Birr 20,000/month Mixer=Birr 1500/day
Sand = Birr 600/m3 Mason = Birr 500/day Vibrator=Birr 1000/day
Gravel = Birr 500/m3 Carpenter = Birr 500/day Tools = Birr 40/day
Ratio: 3.6qtl : 0.52m3 : 0.78m3 DL = Birr 160/day Equipment output = 1.4418
Solution
First Calculate the quantity of materials needed based on the mix design

129
Prepared by: Instructor Hunachew Shiferaw

Prepared by: Instructor D aneal Yemane

[73]
130