The Cost Esti mati on Process as it evolves to specific stages of project development. Planning Design Procurement Identify and Prepare Feasibility Studies and Preliminary Design Perform Detailed Design Prepare Bidding Documents Receive and Evaluate Bids BBPEE BBDEE Estimate for the ABC Planning Service, PMO- Feasibility Studies Implementing Offices PMOs, ROs and DEOs POCW with the assistance from PMOs, ROs, DEOs Cost Estimation Process Review/Study Design Drawings Data Collection Field Surveys Labor Equipment Materials Materials Sources Labor Evaluation/processing of Data Pay Item Quantity Calculation (Bill of Quantities) Cost Estimate Unit Price Analysis Construction Pay Items Unit Rates Maintenance Unit Rates Maintenance Activities Project Cost Maintenance Cost Project Estimate Components BBPEE BBDEE ABC A. Direct Cost ! ! ! Materials ! ! ! Labor ! ! ! Equipment ! ! ! Dayworks ! Per DO 46 s2007 Provisional Sum ! Per DO 46 s2007 B. Indirect Cost Per DO 57 s2002 Per DO 57 s2002 Per DO 57 s2002 OCM ! ! ! Profit ! ! ! Mobilization/Demobilization ! ! ! C. VAT 12% (A+B) 12% (A+B) 12% (A+B) D. Total Civil Works Cost A+B+C A+B+C A+B+C E. Contingency 10% of D 10% of D 5% of D F. Engineering Costs Per NEDA Per NEDA Detailed Engineering 4-6% (D+E) Construction Supervision* 8-10% (D+E) 8-10% (D+E)* Administrative Cost 3.5% (D+E) 3.5% (D+E) G. Feasibility Cost (Optional for Pre-FS) 1-3% (D+E) H. IROW Acquisition Cost ! ! I. Total Estimated Project Cost D+E+F+G+H D+E+F+G+H D+E Project Estimation Phase *Construction Supervision only applies to foreign-assisted projects Work type proposed improvement works of the project Location of the project includes terrain types and embankment and aggregate material sources Design plans and specification working drawings and DPWH Standard Specifications Vol. II, Ed. 2004 Equipment rental rates ACEL Guidebook, ed. 22, yr. 2003 Labor rates and fringe benefits DOLE, Regional Wage Board, SSS, Philhealth, Pag-Ibig, & bonus Construction Materials List and Material Sources Map DPWH Department Orders DOs relevant to cost estimation NEDA Circular Circular/memo relevant to cost estimation Basic Consideration or Basis of Cost Estimate Unit Price Analysis Two Main Parts: Direct Cost Labor Materials Equipment Indirect Cost (% of Direct Cost as defined in DO 57) OCM (overhead, contingency & miscellaneous) profit Mobilization/Demobilization Unit Price Analysis Elements of the Direct Cost Labor basic wage fringe benefits bonuses social security & other social charges Equipment bare hourly & rental operating cost fuels & lubricants repairs & maintenance labor Materials labor equipment processing & transport Production Rate Unit Price Analysis Labor Categories Labor Category Labor Index 1. Foreman, construction 2. Leadman 3. Operator, Heavy 4. Operator, Light 5. Labor, Highly Skilled 6. Driver 7. Labor, Skilled 8. Labor, Unskilled 1.80 1.65 1.50 1.40 1.40 1.30 1.30 1.00 Basic Labor Rates Calculation Monthly Wages based on 314 days per year, 8 hours per day (Basic Daily Wage x (314/12)) Leave, vacation and sick = Basic Monthly Pay / 12 Bonus, 13th Month Pay = Basic Monthly Pay / 12 SSS, Medicare, Employer's Compensation = Amount Representing Employer's Contribution, Graduated Scale Pag-ibig, Employer's Compensation = Amount Representing Employer's Contribution, (2% of Basic Monthly Wage or P100 max.) Rate per Hour = Total rate per month x (12/314/8) Unit Price Analysis Unit Price Analysis Take the value of non-agricultural sector Unit Price Analysis Take the values under the column of total monthly contributions in reference with range of compensation Unit Price Analysis Take the values under the column of total monthly contributions Unit Price Analysis Equipment Category Sample Equipments Earthmoving equipment Compaction equipment Lifting equipment Excavating equipment Foundation equipment Asphalting equipment Concreting equipment Hauling equipment Air equipment Pumping equipment Power generating equipment Shop equipment Special support equipment Miscellaneous equipment Plants Offshore equipment Cable stringing equipment Others wheel loader, grader, tractor dozer vibratory steel drum, plate compactor cranes, forklifts backhoe, trenchers pile vibratory driver, pile hammer, drill rig asphalt paver/finisher, asphalt distributor paver/finisher, mixer, transit mixer dump truck, cargo truck, trailer compressor, pneumatic breakers handheld submersible pump, diaphragm pump generator set welding machine, shop machine truck water wagon/pump joint sealer, rebar cutter/bender asphalt concrete plant, concrete batching plant dredger, crane barge, tugboat cable tensioner/puller, splicing machine chip spreader, power broom Unit Price Analysis Equipment Unit Rate Analysis Basic Calculation Bare Month Rental Bare monthly rate 200h/mo. Repair & Miscellaneous Repair - 6.3% of Bare Rental Spare Parts 5.1% of Bare Rental Miscellaneous 0.6% of Bare Rental Fuel Fuel Price/lit. x HP x 0.1514 Oil & Lubricant Price/lit. x HP x 0.003 Labor Operator or driver Labor rate/hr Unit Price Analysis Unit Price Analysis Sample calculation of adjusted equipment rates in spreadsheet Materials Category Sample Materials Commercial Materials Contractors processed materials Portland Cement Reinforcing Steel Bars (RSB or Rebars) Lumber Plywood Tie Wire Structural Steel Common Wire Nails (CWN) assorted sizes Emulsified Asphalt (SS-1) Cut-Back Asphalt (MC-70/MC-250) Asphalt Cement Penetration 85/100 Joint Sealer Reflective Paints Metal Beam Guard Rails, Guard End Pieces Reflective Pavement Stud (raised or low profile) Fuel (Diesel/gasoline/premium gasoline Lubricants Reinforced Concrete Pipe Culvert (RCPC) Base/Subbased Courses Unit Price Analysis Unit Price Analysis Sample of contractors process materials Unit Price Analysis Hauling Unit Rate Analysis Basic Consideration Terrain type Road condition Dump truck capacity Selection of loader capacity, output, bucket fill factor and operating factor (to estimate loader production rate) Material type Cycle time Loader Load bucket and shift gears Turn and dump the load Travel distance and time from dumping to loading position and return to the loading position T o t a l
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Hauling Unit Rate Analysis (cont.) Cycle time Dump Truck Average hauling distance Terrain type Loading time Loaded travel time Initial traveled distance during acceleration Succeeding traveled distance at an average speed Final speed at a distance until it stops Unload and maneuver Return empty Same as loaded but at a greater speed Allowance for delay Number of dump truck trips, n Unit Price Analysis T o t a l
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Unit Price Analysis Hauling Unit Rate Analysis (cont.) Number of dump trucks
Average hauling output Total hauling cost per hour Equipment 1 Wheel loader, ___ m 3 /hr -------------- _____ P/hr N Dump trucks, ___ m 3 ------------------ _____ P/hr Labor 1 Leadman, rate --------------------------- _____ P/hr 2 Laborers, rate --------------------------- _____ P/hr Total Cost per hour _____ P/hr Total unit cost per m 3 , (loose volume) Sample of hauling cost analysis using spreadsheet Unit Price Analysis Production Rate Derivation of a Pay Item Unit Price Analysis Unit Price Analysis Elements of the Indirect Cost Profit contractors profit Overhead Expenses Office Expenses (office equipment and supplies) Engineering and Administrative Cost Transportation allowances Contractors All Risk Insurance Premiums on Bid Security and Performance Security Premium/charges/fees on credit lines Contingencies Miscellaneous Expenses Laboratory Tests Other expenses Mobilization/Demobilization Estimated Direct Cost (EDC) Indirect Cost % for OCM and Profit (Maximum Ranges) % Cost for Mob/Demob (Maximum) Total Maximum Indirect Cost % for OCM, Profit and Mob/ Demob OCM (% of EDC) Profit (% of EDC) Up to P1Million 13 15 1 29 Above P1M to P5M 12 14 1 27 Above P5M to P10M 12 13 1 26 Above P10M to P20M 11 12 1 24 Above 20M to P50M 11 11 1 23 Above P50M 10 10 1 21 Unit Price Analysis DO 57 s 2002 Unit Price Analysis Cost Currency Components: Foreign Cost Component imported equipment & spare parts foreign currency component of locally goods & services wages of expatriate personnel foreign overheads & profits Local Cost Component local materials equipment & supplies wages, local supervision transport & freight overhead & profits Tax Component revenue for the government derived from each item Cost Component of Selected Construction Items Unit Price Analysis Description Components Foreign Local Tax (%) (%) (%) Heavy Equipment Light Equipment Reinforcing Steel Structural Steel Lumber Asphalt Cement Diesel fuel Engine oil Tires Imported Miscellaneous Materials Locally Produced Miscellaneous Materials Skilled Foreign Labor Unskilled Labor Royalty 68 65 54 85 33 76 40 60 60 47 64 17 65 0 0 10 15 35 4 57 2 45 13 13 43 7 69 25 90 90 22 20 11 11 10 22 15 27 27 10 29 14 10 10 10 Quantity Calculations for Pay Items Bill of Quantities Pointers in the conduct of quantity calculations: Based on the design plans and specifications Units of measurement are all in metric based on DPWH Standard Specifications. Solid mensuration is extensively used and other mathematical formulae. Used of computer softwares in calculations. Used of calculators (simple or scientific) Conversion factors Rates of application of materials such as, liquified asphalt materials, paints, etc. Unit Price Analysis Unit Price Analysis Sample Formula of Plane Shapes & Figures Area of a Triangle A = " x base x height = " (bh) Perimeter of a Triangle P = side 1 + side 2 + side 3
Area of a Parallelogram A = ! x base x height = ! (bh) Perimeter of a Parallelogram P = 2a + 2b Area of a Rectangle A = width x length = (wl) Perimeter of a Rectangle P = 2(lwidth) + 2(length) = 2(w) + 2(l) Area of a Circle A = !r 2 Circumference of a Circle C = 2!r = !D ! = 3.14 159 Sample Formula of Solid Geometric Figures Unit Price Analysis Volume of Rectangular Solid V = abc Surface Area SA = 2(ab + ac + bc) Volume of Cube V = a 3
Surface Area SA = 6a 2
Volume of Sphere V = 4/3 !r 3 Surface Area SA = 4!r 2 Volume of Circular Cone V = 1/3 !r 2 h
Surface Area SA = !r 2 + !rl Volume of Circular Cylinder V = !r 2 h or !D 2 4
Surface Area SA = 2 !rh + 2!r 2 Unit Price Analysis Sample Typical Road Sections # Estimating the work output of a piece of equipment is determined in 2 ways: Using work output formula based on the cycle of operation and other factors which controlled production. Using tables based on past experiences of average work output under varying conditions for different operations. # To calculate earthmoving equipment consider the volume changes in earth caused by handling. These volume changes have the following terms, to wit: Swell increase in volume of earth that results when it is dug from its natural position. Shrinkage decrease in volume of earth when compacted. Loose yards volume of earth after it has been removed from its natural location and swell has taken place. In-place yards volume of earth in its natural location before handling. Compacted yards volume of earth that has been properly compacted in embankment on fill. # Basis of calculations for excavation and fill Loose yards are used to express the carrying capacity of earth moving equipment. In-place yards are converted to compacted yards to determine the volume of materials in a fill that will be realized from a given amount of materials in its natural location. In-place yards are converted to loose yards to determine the amount of earth moving equipment required to handle the materials. The output of equipment in loose yards must be converted to compacted yards to determine the final volume of fill Methods of Estimating Work Output Unit Price Analysis 1.0 m 3 in natural condition (in-place yards) 1.25 m 3 after digging (loose yards) 0.9 m 3 after compaction (compacted yards) Volume Changes in Common Earth Caused by Handling Bowl Capacity of Dozer Illustrations of Soil Handling Unit Price Analysis Formula for Earthmoving Equipment Work Output where: Q = bowl capacity in loose cubic meters f = soil conversion factor 60 = minutes per hour E = efficiency factor Cm = total cycle time in minutes The working capacity of construction equipment is expressed by the work practically done by the operation of equipment per unit time ( 1 hour or day) Unit Price Analysis Conversion Factors, f Soil Type Present Condition Converted to In-place Loose Compacted Sand Common Earth Clay In-place Loose Compacted In-place Loose Compacted In-place Loose Compacted 1.00 0.90 1.05 1.00 0.80 1.11 1.00 0.70 1.11 1.11 1.00 1.17 1.25 1.00 1.39 1.43 1.00 1.59 0.95 0.86 1.00 0.90 0.72 1.00 0.93 0.63 1.00 Tractor Model Bulldozer Angle Dozer D4 D6 D7 D8 1.25 m 3 1.44 m 3 2.20 m 3 2.40 m 3 1.82 m 3 2.01 m 3 2.58 m 3 2.97 m 3 Bowl Capacity of Dozers (loose yards) Unit Price Analysis Source: Construction Equipment Manual, BRS/DPWH Sample Calculation for Work Output Given: Average haul distance one way 30 m Soil type - common earth Efficiency factor (E) - 80% Speed - 2.5 kph Required: Determine in place cubic meters moved per hour if D7 tractor dozer is to be used. Solution: Step 1. From conversion factor table, the soil conversion factor (f), soil type common earth loose to in-place, f = 0.80 From dozer bowl capacity table, D7 tractor dozer, Q = 2.2 m 3 Step 2. Determine fixed time @ 2 gear shift @ 10 sec. per shift = 20 sec = 0.33 min Step 3. Determine variable time Travel forward 30 m @ 2.5 kph Travel backward 30 m @ 5.0 kph Step 4. Add fixed and variable time Total cycle time, Cm = 0.33 + 0.72 + 0.36 = 1.41 min. Step 5. Substitute in work output formula Unit Price Analysis Unit Price Analysis Sample Typical Cross-Section of Drainage Structures Sample Quantity Calculation for Volume of Excavation: Sample: Given a RCPC 1220mm and a length of 5.0 meters, compute volume of excavation. Solution: Size of excavation as given from the above drawings for 1220mm: width = 1.60m, height = 2.0 m, length = 5.0 m Volume = w x h x l = 1.6 x 2 x 5 = 16 m 3 compacted volume (stated in the plans) Applying the soil conversion factor, common earth from compacted to loose, use factor, f = 1.39 the excavated loose volume = 16 x 1.39 = 22.24 m 3
Volume of Backfill and Bedding Materials: Sample: Using the same sample, calculate backfill and bedding materials Solution: Size of excavation as given from the above drawings for 1220mm: width = 1.60m, height = 2.0 m, length = 5.0 m Volume of trench = w x h x l = 1.6 x 2 x 5 = 16 m 3
Volume of bedding materials at compacted state, using thickness of 15cm = 1.6 x 0.15 x 5 = 1.2 m 3
Using soil conversion factor, compacted to loose, f = 1.17 Volume of bedding materials required to purchase = 1.2 x 1.17 = 1.404m 3
Volume of backfill = Vol trench (Vol RCPC + Vol bedding ) = 16 (7.371+1.2) = 7.429 m 3
Applying conversion factor, compacted to loose, f = 1.39 Volume of backfill required = 7.429 x 1.39 = 10.326 m 3
Sample Quantity Calculation Unit Price Analysis Composition and Strength of Concrete for Use in Structures This composition of concrete is used for concrete batching plant. Unit Price Analysis Mixture Class of Concrete Proportion Cement in Bags Sand cu. m. Gravel cu. m. AA A B C 1:1":3 1:2:4 1:2":5 1:3:6 12.0 9.0 7.5 6.0 0.5 0.5 0.5 0.5 1.0 1.0 1.0 1.0 Concrete Proportion This concrete proportion is used for manual mix. Unit Price Analysis Mixture Class of Concrete Proportion Cement in Bags 40 kgs. Sand cu. m. A B C D 1:2 1:3 1:4 1:5 18.0 12.0 9.0 7.5 1.0 1.0 1.0 1.0 Cement and Sand Proportion for Mortar and Plastering Unit Price Analysis Sample Calculation: Given: Volume = 10 m 3 of mortar, use class A Solution: Refer to the above table Cement = 10 x 18 = 180 bags Sand = 10 x 1.0 = 10 m 3
Sample Calculation for Asphalt Concrete Pavement: Given: Carriageway width = 6.7m, Length = 1 km., thickness = 50cm, use 301(1) - MC-70 Cut-Back Asphalt Solution: Determine Item 301(1) - Bituminous Prime Coat Determine Item 310 Bituminous Concrete Surface Course, Hot-Laid (AC Asphalt Concrete) The derived quantities are then summarized in the bill of quantities and subsequently, manually entered in the estimated construction cost spreadsheet which are multiplied by the unit prices to come up with total cost of that item and summed up all the pay items to calculate the total direct cost. After which, indirect cost is applied to determined the total estimated project cost. Unit Price Analysis Unit Price Analysis Item Number Description Unit Quantity 100(1) 102(1) 102(2) 103(3) 103(6) 104(1) 105(1) 105(3) 200 201 301(1) 310 500(1) Clearing and Grubbing Unsuitable Excavation Surplus Common Excavation Foundation Fill Pipe Culverts and Drainage Excavation Embankment Subgrade Preparation (Common Material) Subgrade Preparation (Unsuitable Material) Aggregate Subbase Course Aggregate Base Course Bituminous Prime (MC-70 Cut-Back Asphalt) Bituminous Concrete Surface Course, Hot-Laid RCPC 610mm ha. m 3 m 3 m 3 m 3 m 3 m 2 m 2 m 3 m 3 ton m 2 l.m. 20 1,000 11,000 2,000 1,858 7,500 3,000 5,000 10,455 12,156 30,780 5,689 3,105 Sample of Bill of Quantities Sample of unit price analysis in spreadsheet Unit Price Analysis Unit Price Analysis Sample of Summary of Construction Pay Items Unit Prices Unit Price Analysis Sample of Total Estimated Project Cost Unit Price Analysis Sample of the Program of Work (POW) Unit Price Analysis Sample of the Approved Budget for the Contract (ABC) Unit Price Analysis Sample of the Minimum Equipment Requirement Maintenance Cost Highway Maintenance - is defined as the act of preserving and keeping each highway type of highway as nearly as possible in its original conditions as constructed or as subsequently improved. It does not include rehabilitation, betterment and improvement Two calculation methods for maintenance cost - EMK (Equivalent Maintenance Kilometrage) - Traffic Dependent Method Two Categories: Routine Maintenance vegetation control cleaning and repairing culverts cleaning ditches cleaning and repairing traffic signs climatic loss of gravel on shoulder Periodic Maintenance road surface repairs resurfacing shoulder repair & resurfacing General Cost Maintenance Cost Maintenance Cost EMK Factors Source: BOM/ DPWH 0 AADT AADT Basic Formula: Road: MC R = EMK budget x F t x F w x Length where: MC R = maintenance cost for road EMK budget = annual allocation F t = factor for surface type F w = factor for carriageway width Length = in kilometer Bridge: MC B = EMK budget x F b x Length where: MC B = maintenance cost for bridge EMK budget = annual allocation F b = factor for bridge type Length = in meter Traffic Dependent Method Traffic volume in terms of vehicle units: Light vehicles ! 0.4 vehicle units Buses ! 2.5 vehicle units Trucks ! 3.0 vehicle units Maintenance Cost Maintenance Cost Basic assumptions in calculating routine maintenance unit rates : Vegetation Control 0.5 ha/km/year 400 m2/crew day 2 - knapsack movers 2 - unskilled laborers Cleaning and Repair of Culverts 1 4 number units/day/km 1 dump truck 3 unskilled laborers Materials Replace, Clean and Repair Traffic Signs 2 5 units repaired, repainted or replace daily 1 pick-up vehicle Materials Clearing Side Ditches 40 1000 l.m./day (half by grader and half by hand or manual) 1 grader 3 unskilled laborers Source: Road Maintenance Manual, BOM-DPWH Maintenance Cost Periodic Maintenance Road Surface Repair Regravelling gravel road and gravel shoulder Grading & reshaping gravel road Joint & crack sealing for PCCP Pothole repair (spot regravel) for gravel road Patch potholes for ACP Crack sealing for ACP Edge break for ACP Resurfacing Asphalt Concrete Overlay Shoulder Repair & Resurfacing Regravelling Grading and reshaping Asphalt Concrete Overlay Maintenance Cost Sample of routine maintenance unit price analysis Maintenance Cost Periodic Maintenance Task Maintenance Cost General Formula for Maintenance Cost Calculations Routine Maintenance (peso/km) Maintenance Task = Qty table x L shoulder x W x 365 days x unit rate activity General Cost Periodic Maintenance (peso-vehicle unit/km) Maintenance Task = (Qty table x L x W x 365 days x unit rate activity ) Frequency vehicle
where: L = length in meters W = width in meters Qty table = Periodic Maintenance Task Table unit rate activity = maintenance unit price analysis Frequency = benchmark of traffic volume in terms of v.u. as shown in Periodic Maintenance Task Table Maintenance Cost Routine Maintenance Unit Cost Road Segment Economic Financial a. Vegetation control b. Cleaning and repair culverts c. Replace, clean and repair traffic signs d. Clearing side ditches P 5,312.58/km 4,880.19/km 5,384.64/km 10,813.92/km P 6,498.57/km 7,055.90/km 6,667.53/km 13,250.68/km Total per annum P 26,391.34/km P 33,472.67/km Routine Maintenance Unit Cost Bridge Segment Economic Financial a. Concrete bridge b. Steel bridge P 568.79/l.m. 3,714.14/l.m. P 721.41/l.m. 4,710.72/l.m. Sample of Summary Routine Maintenance Unit Cost Maintenance Cost Maintenance Tasks Unit Cost Economic Financial 1. Gravel ( Surface ) 2. Regrade and Reshape a. Carriageway b. Shoulder 3. AC Resurfacing ( 3 cm.) 4. AC Overlay ( 5 cm. ) 5. Replacement of Failed Bay a. t = 230 mm b. t = 200 mm 6. Repair of Cracks/Joints 7. Patching and Pothole Repair a. Pothole Repair ( Gravel ) b. Pothole Repair (AC) c. Sealing and Patching (AC) 8. Road Stripping (painted lines) P 481.87/m 3 5.14/m 2 15.41/m 2 94.36/m 2 135.51/m 2 2,527.25/m 2 2,197.69/m 2 18,066.78/m 2 498.56/m 3 494.06/m 2 510.81/m 2 48.53/m P 579.45/m 3 6.29/m 2 18.87/m 2 113.28/m 2 162.25/m 2 3,089.00/m 2 2,686.20/m 2 22,123.42/m 2 598.08/m 3 597.05/m 2 617.50/m 2 57.48/m Sample of Summary of Periodic Maintenance Unit Cost Summary of Maintenance Costs Road Type Maintenance Category Routine Periodic Economic Financial Economic Financial Gravel Roads (5.0m roadway) AC with gravel shoulders a. 0.5+6.1+0.5 b. 1.0+6.1+1.0 c. 1.5+6.1+1.5 d. 3.0+6.7+3.0 PCC with gravel shoulders a. 0.5+6.1+0.5 t = 230 mm t = 200 mm b. 1.0+6.1+1.0 t = 230 mm t = 200 mm c. 1.5+6.1+1.5 t = 230 mm t = 200 mm d. 3.0+6.7+3.0 t = 230 mm t = 200 mm 49,521.08 31,210.03 36,028.73 40,847.42 55,303.51 31,210.03 31,210.03 36,028.73 36,028.73 40,847.42 40,847.42 55,303.51 55,303.51 61,286.05 39,267.13 45,061.58 50,856.03 68,239.39 39,267.13 39,267.13 45,061.58 45,061.58 50,856.03 50,856.03 68,239.39 68,239.39 737.36a 80.05a 100.55a 121.06a 186.01a 62.77a 62.12a 83.27a 82.62a 103.77a 103.12a 166.34a 165.69a 896.59a 96.33a 121.40a 146.47a 225.81a 75.81a 75.01a 100.88a 100.08a 125.95a 125.15a 202.43a 201.63a Maintenance Cost Sample of Summary Maintenance Cost Note: a = vehicle unit, v.u. Sample of Summary of Work Unit Cost used in HDM-4