Estimating, Costing and Valuation Notes for SSC JE Civil
Rahul Kumar
SSC Exam Expert & Content Editor
In this note
- 1.What Is Estimating?
- 2.Types of Estimates
- 3.Methods of Detailed Estimating (Walls)
- 4.Units and Mode of Measurement (IS 1200)
- 5.Quantity of Materials: Standard Calculations
- 6.Rate Analysis
- 7.Specifications and Contracts
- 8.Tenders and Payments
- 9.Valuation and Depreciation
- 10.Earthwork Estimation for Roads and Canals
- 11.Important Questions Explained
- 12.Quick Tips to Remember
- 13.Common Mistakes to Avoid
- 14.Quick Revision Points
- 15.Practice Questions With Answers
- 16.How to Practise This Topic
- 17.Related Notes and Practice
- 18.Frequently Asked Questions
PDF Notes: Estimating, Costing and Valuation Notes for SSC JE Civil
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Estimating, costing and valuation is an easy and scoring subject of the SSC JE Civil paper. The questions are about the types of the estimate, the methods of the estimating, the units of the measurement, the quantity of the materials, the types of the contracts, the tender terms and the valuation of a property. These estimating, costing and valuation notes for SSC JE Civil give the formulas and the standard values in tables, with solved examples and 20 practice questions. Read them with the Concrete Technology Notes for SSC JE, Surveying Notes for SSC JE and Transportation Engineering Notes for SSC JE notes.
What Is Estimating?
Estimating is the work of calculating the quantity of the materials and the labour and the probable cost of a construction work before it is started. An estimate is made for the Government to give the administrative approval and the technical sanction, to fix the budget, to invite the tenders and to control the cost during the work.
- Estimate = quantity x rate. The quantity is found from the drawings by the measurement and the rate from the rate analysis.
- The documents with an estimate: the drawings (plan, section and elevation), the detailed specifications, the abstract of the cost, the rate analysis and the report.
- Administrative approval is given by the department to the proposal; technical sanction is given by the competent engineer after checking the estimate.
Types of Estimates
| Type | Meaning and use |
|---|---|
| Preliminary (approximate) estimate | Made to get an idea of the cost for the sanction of the project; by the plinth area method, the cubic rate method, the unit base method or the bay method |
| Detailed estimate | The most accurate estimate prepared item by item from the detailed drawings; the basis for the tender |
| Revised estimate | Prepared when the original estimate is exceeded by more than 5 percent |
| Supplementary estimate | Prepared for the additional work during the progress of the main work |
| Annual repair and maintenance estimate | For the yearly repair of the buildings and the roads |
| Quantity (bill of quantities) estimate | Gives only the quantities of the items for the tender |
| Plinth area estimate | Cost = plinth area x the plinth area rate (the plinth area rate is for the covered area at the floor level) |
| Cubic rate estimate | Cost = volume of the building (from the floor to the top of the roof) x the cubic rate |
| Unit base estimate | Cost = number of the units (such as the beds in a hospital or the seats in a school) x the cost per unit |
| Bay method | The cost of one bay (the space between two columns) x the number of the bays |
Methods of Detailed Estimating (Walls)
| Method | How it works |
|---|---|
| Long wall and short wall method (out-to-out and in-to-in) | The length of the long wall (out-to-out) = the centre-to-centre length + the width of the wall; the length of the short wall (in-to-in) = the centre-to-centre length - the width of the wall |
| Centre line method | The total centre line length of the walls x the area of the cross-section of the wall; the correction is made for each junction (for the cross walls and the corners): for a corner no extra, for a T-junction subtract half the width, for a cross junction subtract the full width of the wall |
- For a rectangular room the centre line length = the perimeter at the centre line = 2 (L + B) at the centre; each corner adds nothing in the long and short wall method.
- In the centre line method, the total length of the centre line is generally less than the sum of the long wall and the short wall lengths by the width of the wall x the number of the junctions.
- The long and short wall method is more accurate for the walls of different sizes; the centre line method is quicker for the walls of the same size.
Units and Mode of Measurement (IS 1200)
| Work | Unit | Remark |
|---|---|---|
| Earthwork excavation, filling | Cubic metre (cum) | Excavation is measured in the original section; the filling in the finished section |
| Brick masonry, stone masonry | Cubic metre | Deduct the openings above 0.1 square metre; the plaster is not deducted for the openings below 0.5 square metre |
| Plain cement concrete, RCC | Cubic metre | The steel is deducted from the RCC volume only in some practices, but it is not deducted in the usual estimate |
| Reinforcement steel | Kilogram or quintal or tonne | Weight per metre of a bar = d squared / 162 (kg per m, d in mm) |
| Plastering, painting, pointing | Square metre | The width of the opening is added for the reveals |
| Doors, windows, shutters | Square metre (or number) | Door frames in the cubic metre or the running metre |
| Formwork (shuttering) | Square metre | Measured on the contact surface |
| Flooring, tiles, roofing | Square metre | |
| Damp-proof course, skirting | Square metre or running metre | |
| Pipes, wires, rails, fencing | Running metre | |
| Number of the bricks | Number | About 500 standard modular bricks in 1 cubic metre of the brick masonry (with the mortar) |
Mortar: the dry volume of the mortar = 1.27 x the wet volume (the quantity of the cement and the sand is found from this dry volume); for the concrete the dry volume = 1.54 x the wet volume (or 1.52). One bag of cement = 50 kg = 0.035 cubic metre; the density of the cement = 1440 kg per cubic metre.
Quantity of Materials: Standard Calculations
| Item | Calculation |
|---|---|
| Cement mortar 1:6 (cement : sand) for 1 cubic metre of the mortar | The dry volume = 1.27 cubic metre; the cement = 1.27 / 7 = 0.181 cubic metre = about 5.2 bags; the sand = 1.27 x 6 / 7 = 1.09 cubic metre |
| Concrete 1:2:4 for 1 cubic metre of the concrete | The dry volume = 1.54 cubic metre; the cement = 1.54 / 7 = 0.22 cubic metre = 6.3 bags (about 315 kg); the sand = 0.44 cubic metre; the aggregate = 0.88 cubic metre |
| Bricks in a wall | Volume of the wall / the volume of one brick with the mortar (0.2 x 0.1 x 0.1 = 0.002 cubic metre) = 500 bricks per cubic metre |
| Steel in RCC | Weight of the steel = the length of the bar x d squared / 162; the usual steel is 1 to 2 percent of the concrete volume |
| Plaster 12 mm thick, 1:6 | Area x the thickness (0.012 m) = the wet volume; add 20 to 30 percent for the wastage and the dry volume |
| Paint | About 1 litre of the paint covers 10 to 12 square metres for one coat |
Rate Analysis
- The rate of an item = the cost of the materials + the cost of the labour + the cost of the tools and plant + the overheads and the contractor's profit (generally 15 percent: 10 percent as the profit and 5 percent as the overhead; the CPWD uses 15 percent).
- Lead is the horizontal distance of the transport of the material from the source to the site; lift is the vertical distance. The charges for the lead and the lift are added to the rate.
- The Schedule of Rates (SOR) (the CPWD Delhi Schedule of Rates, DSR) gives the rates of the standard items; the market rates are used for the non-scheduled items.
- Task work (outturn) is the quantity of work that a worker or a gang can do in a day, used to find the labour cost.
- The cost of the labour is found from the skilled, the semi-skilled and the unskilled labour at the daily wages.
Specifications and Contracts
| Term | Meaning |
|---|---|
| General specifications | The class of the materials and the quality of the work for the whole project |
| Detailed specifications | The item-wise description of the quality of the material and the method of the work |
| Contract | A legal agreement between the owner (the department) and the contractor |
| Item rate contract | The contractor quotes the rate for each item; the payment is made according to the actual quantities |
| Lump sum contract | A fixed total price for the whole work |
| Percentage rate contract | The contractor quotes a percentage above or below the departmental rates |
| Cost plus contract | The cost of the work plus a fixed fee or a percentage as the profit |
| Labour contract | The contractor supplies only the labour; the materials are supplied by the owner |
| Piece work | A small work given at a fixed price without a detailed agreement |
Tenders and Payments
| Term | Meaning and usual value |
|---|---|
| Tender | An offer by the contractor to do the work at a certain rate; the open (public) tender, the limited tender and the negotiated tender are the types |
| Earnest Money Deposit (EMD) | Deposit with the tender to show the seriousness; usually 2 percent (1 to 3 percent) of the estimated cost |
| Security deposit / performance guarantee | Kept to ensure the proper completion; usually 5 percent of the contract amount (performance guarantee 3 to 5 percent) |
| Retention money | Part of the bill held back (about 5 percent) until the end of the defect liability period |
| Defect liability period | The time (generally 1 year) in which the contractor repairs the defects at his cost |
| Bill of Quantities (BOQ) | The list of the items with the quantities, the rate and the amount |
| Measurement Book (MB) | The official record of the measurements of the work, kept by the engineer; the entries are made in ink and cannot be removed |
| Running account bill (RA bill) | The part payments made as the work progresses |
| Final bill | The last bill after the completion of the work |
| Muster roll | The attendance and the wage record of the daily wage workers |
| Completion certificate | The certificate that the work is finished as per the contract |
| Arbitration | The settlement of a dispute by an arbitrator and not by a court |
| Liquidated damages | The penalty for the delay of the work as per the contract |
Valuation and Depreciation
| Term | Meaning |
|---|---|
| Valuation | The work of finding the present value or the fair price of a property |
| Market value | The price at which a property can be sold in the open market |
| Book value | The original cost minus the depreciation |
| Scrap value | The value of the material of a building at the end of its life (about 10 percent of the cost) |
| Salvage value | The value of the property at the end of its useful life |
| Sinking fund | A fund created by the yearly deposits so that at the end of the life of a building a new one can be built |
| Depreciation | The decrease in the value of a property with the age and the use |
| Obsolescence | The loss of the value because the property is out of date, even if it is in good condition |
| Capitalised value | Net annual income x Years' Purchase (YP) |
| Years' Purchase (YP) | YP = 100 / the rate of the interest percent (for example, 5 percent gives YP = 20) |
| Gross income and net income | Net income = gross rent - the outgoings (taxes, repairs, insurance, management) |
| Standard rent | The rent fixed by the law (rent control) |
- Methods of the depreciation: straight line method (the equal depreciation every year: D = (cost - scrap value) / life), constant percentage (declining balance) method, sinking fund method and the quantity survey method.
- Example of the straight line: a building of Rs 40 lakh with a scrap value of Rs 4 lakh and a life of 60 years: D = (40 - 4) / 60 = Rs 0.6 lakh every year.
- Valuation of a building: the cost of the land + the present cost of the building (after the depreciation); the rental method uses the net income and YP.
- The yield of a property = (net income / the cost) x 100.
Earthwork Estimation for Roads and Canals
- Mean sectional area method: volume = the mean of the end areas x the length = (A1 + A2) / 2 x L.
- Prismoidal formula: volume = (L / 6) (A1 + 4 Am + A2), where Am is the area of the middle section; it is the most accurate.
- Trapezoidal formula: volume = L [(A1 + An) / 2 + A2 + A3 + ... + A(n-1)].
- Area of a trapezoidal cutting = (b + s d) d, where b is the formation width, d the depth and the side slope is s horizontal to 1 vertical.
- Lead and lift are paid extra beyond the free lead (30 m) and the free lift (1.5 m) of the earthwork.
- The swell and the shrinkage of the earth: the excavated earth increases in volume (bulking); the compacted fill shrinks.
Important Questions Explained
Question 1: What are the two parts of the estimate?
Answer: Quantity (from the measurement) and the rate (from the rate analysis); the estimate = quantity x rate.
Question 2: How many standard bricks are required for 1 cubic metre of the brick masonry?
Answer: About 500 bricks.
Question 3: What is the dry volume of the cement mortar for 1 cubic metre of wet mortar?
Answer: About 1.27 cubic metre.
Question 4: What is the weight of a 16 mm diameter steel bar per metre length?
Answer: d squared / 162 = 256 / 162 = 1.58 kg per metre.
Question 5: What is the usual value of the Earnest Money Deposit?
Answer: About 2 percent of the estimated cost of the work.
Question 6: What are the Years' Purchase for an interest rate of 5 percent?
Answer: YP = 100 / 5 = 20.
Question 7: What is the annual depreciation by the straight line method for a building of cost Rs 40 lakh, scrap value Rs 4 lakh and life 60 years?
Answer: Rs (40 - 4) / 60 = Rs 0.6 lakh.
Quick Tips to Remember
- Remember the numbers: 500 bricks per cubic metre, dry volume factors 1.27 (mortar) and 1.54 (concrete), steel d squared / 162.
- Remember that the estimate = quantity x rate and that the rate analysis includes the 15 percent of the profit and the overhead.
- Remember the units of the measurement: cubic metre for the earthwork and the masonry, square metre for the plaster and the paint, running metre for the pipes.
- Remember that EMD is about 2 percent and the security deposit is about 5 percent.
- Remember the formula YP = 100 / rate of the interest.
- Remember that the prismoidal formula is the most accurate for the earthwork volumes.
Common Mistakes to Avoid
- Using the wrong unit (square metre instead of cubic metre) in the measurement.
- Forgetting the dry volume factor in the quantity of the cement and the sand.
- Mixing the lead (horizontal) and the lift (vertical).
- Confusing the administrative approval with the technical sanction.
- Using the market value instead of the book value in the depreciation.
Quick Revision Points
- Estimate = quantity x rate; types: preliminary, detailed, revised, supplementary.
- Methods: long wall and short wall, and the centre line method.
- Units: cum (earthwork, masonry, concrete), sqm (plaster, paint, floor), rm (pipes), kg (steel).
- Bricks: 500 per cubic metre; mortar dry volume 1.27; concrete 1.54; steel d squared / 162.
- EMD about 2 percent; security deposit about 5 percent; contractor profit and overhead 15 percent.
- Valuation: YP = 100 / i; capitalised value = net income x YP; straight line depreciation = (cost - scrap) / life.
Practice Questions With Answers
- What is the full form of MB in the estimating?
Answer: Measurement Book (Record of the measurements). - What is the formula of the estimate?
Answer: Quantity x rate (Cost). - Which estimate is the most accurate?
Answer: Detailed estimate (Item by item). - Which estimate is prepared when the original is exceeded by 5 percent?
Answer: Revised estimate (Revised). - Which method of the estimate uses the plinth area?
Answer: Plinth area method (Approximate estimate). - What is the unit of measurement of the brick masonry?
Answer: Cubic metre (IS 1200). - What is the unit of the measurement of plastering?
Answer: Square metre (IS 1200). - What is the unit of the measurement of the reinforcement?
Answer: Kilogram or tonne (Weight). - What is the number of bricks in 1 cubic metre of masonry?
Answer: About 500 (Standard bricks). - What is the weight of the steel bar per metre?
Answer: d squared / 162 kg (d in mm). - What is the dry volume factor of the concrete?
Answer: 1.54 (1.52 sometimes). - What is the dry volume factor of the mortar?
Answer: 1.27 (Wet to dry). - What is the weight of a cement bag?
Answer: 50 kg (0.035 cubic metre). - What is the profit and the overhead in the rate analysis (CPWD)?
Answer: 15 percent (10 + 5). - What does the term lead mean?
Answer: The horizontal transport distance of the material (Lift is the vertical). - What is the EMD in a tender?
Answer: Earnest Money Deposit (About 2 percent). - What is the contract in which the contractor gives only the labour?
Answer: Labour contract (Materials by the owner). - What is the formula of the Years' Purchase?
Answer: 100 / rate of the interest (YP). - What is the formula of the capitalised value?
Answer: Net annual income x YP (Valuation). - Which formula is the most accurate for the volume of the earthwork?
Answer: Prismoidal formula (L / 6 (A1 + 4Am + A2)).
How to Practise This Topic
- Learn the types of the estimates and the units of the measurement in a table.
- Solve a quantity of the brickwork, plastering and the concrete by yourself.
- Revise the contracts, the tender terms and the valuation formulas the next day.
- Attempt the practice questions without looking at the answers.
- Solve the SSC practice papers and the previous year papers to practise the JE pattern.
Related Notes and Practice
- Concrete Technology Notes for SSC JE
- Surveying Notes for SSC JE
- Transportation Engineering Notes for SSC JE
- Fluid Mechanics and Hydraulics Notes for SSC JE
- Civil Engineering (SSC JE) Notes
- SSC practice papers
Frequently Asked Questions
What is estimating and costing?
Estimating and costing is the work of finding the quantities of the materials and the labour and the probable cost of a construction work before it is started.
What are the types of estimates?
The main types are the preliminary (approximate), detailed, revised, supplementary and the annual maintenance estimates.
What is the centre line method?
The centre line method finds the quantity of a wall by multiplying the total length of the centre line of the walls by the area of the cross-section, with a correction for the junctions.
What is rate analysis?
Rate analysis is the method of finding the cost of one unit of an item of work from the cost of the materials, the labour, the tools and the overheads and the profit.
What are lead and lift?
Lead is the horizontal distance and lift is the vertical distance through which the materials are carried to the work site.
What is the EMD?
The Earnest Money Deposit is the amount that a contractor deposits with the tender to show the seriousness, usually about 2 percent of the estimated cost.
What is a Measurement Book?
The Measurement Book (MB) is the official record in which the engineer notes the measurements of the work done, the basis of the payment to the contractor.
What are the types of contracts?
The main contracts are the item rate, the lump sum, the percentage rate, the cost plus and the labour contracts.
What is the formula of the Years' Purchase?
Years' Purchase = 100 / the rate of the interest (in percent); it is multiplied by the net annual income to get the capitalised value.
What is depreciation?
Depreciation is the decrease in the value of a building or a machine because of its age, wear and tear and the obsolescence.
How many questions come from estimating in the SSC JE exam?
Usually 3 to 5 questions come from estimating, costing and valuation in the SSC JE Civil paper.
How can I prepare estimating for SSC JE?
Learn the types, the units, the quantity factors and the formulas in tables, solve the quantity problems and the previous year questions.
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Rahul Kumar
SSC Exam Expert & Content Editor
Rahul is a senior SSC exam strategist with 8+ years of experience helping aspirants crack CGL, CHSL and MTS exams. He writes in-depth notification breakdowns, exam pattern guides and preparation strategies.