ESTIMATION WORKED EXAMPLES

EXAMPLE 1 : Estimating of excavation works for soft soil

(manually)
Estimate the cost of excavating 1 M soft soil if the cost of unskilled
labour is RM 20 per day and allowing 15% for profit.
Data given:
Labour time involved in excavating 1 M of soft soil
Labour time involved in cart-away 1 M of soft soil

=
=

1.5 hrs
1.5 hrs

1.5 hrs + 1.5 hrs =

3.0 hrs

Solution:
Total labour time involved
1 day

8 hours working

Given, labour cost

=
=

=
RM 20 per day
RM 20/8 hrs
RM 2.50 per hour

For 3.0 hours

=
3.0 hours x RM 2.50/hour
RM 7.50

Allow 15% profit margin,

=
=

15/100 x RM 7.50
RM 1.125

The cost of excavating 1 M,

=
=
=

Prepared by Ir. Basir

RM 7.50 + RM 1.125
RM 8.625 or
RM 8.65

EXAMPLE 2 : Estimating of excavation works for rock

(manually)
Estimate the cost of excavating 1 M rock if the cost of unskilled labour
is RM 30 per day and allowing 15% for profit.
Data given:
Labour time involved in excavating 1 M of rock
Labour time involved in cart-away 1 M of rock

=
=

8.0 hrs
2.0 hrs

Solution:
Total labour time involved
1 day

8.0 hrs + 2.0 hrs =

10.0 hrs

8 hours working

Given, labour cost

=
=

=
RM 30 per day
RM 30/8 hrs
RM 3.75 per hour

For 10.0 hours

10.0 hours x RM 3.75/hour

RM 37.50

=
=

Allow 15% profit margin,

=
=

15/100 x RM 37.50
RM 5.625

The cost of excavating 1 M rock,

=
=
=

RM 37.50 + RM 5.625
RM 43.125 or
RM 43.15

EXAMPLE 3 : Estimating of excavation works (by machine)

Prepared by Ir. Basir

Estimate the cost of excavating 1 M of soft soil using case (backhoe),

capacity 0.5 m. Output per hour is 8 m
Data given:
Cost of case (backhoe)
=
Interest rate
Installment period
Life span of backhoe
=
Diesel
Lubricating oil
=
Driver
Unskilled labourer
Assume repair & maintenance
Assume cost of transportation to site
Assume backhoe can work
=
Allow 15% profit margin

RM 120,000.00
=
10% per annum
=
5 years
5 years
=
RM 1.00/liter
RM 5.00/liter
=
RM 50/day
=
RM 20/day
=
2% per years
=
1% per year
200 days/year & 8 hours/ day

Solution:
Cost of owning backhoe
Cost of backhoe

Interest cost over 5 years

10/100 x 5

RM 120,000.00
=

RM 120,000.00 x

RM 60,000.00

Repair & maintenance cost

x5
(life span)

2/100 x RM 120,000.00

RM 12,000.00

Cost of transportation to site

(life span)

=
=

1/100 x RM 120,000.00 x5
RM 6,000.00

Cost of owning backhoe over 5 years

=
RM 120,000 + RM
60,000 +
(life span)
RM 12,000 + RM 6,000
=
RM 198,000.00
Therefore,
Cost of owning backhoe for 1 hour =
In operation (work)
hours

Prepared by Ir. Basir

RM 198,000
200 day x 5 years x 8

=
RM 24.75
Operating cost of excavation per day
Driver
Unskilled labour
Diesel (assume 36 liter/day)

=
RM
RM
RM
RM
RM

Therefore, operating cost per day

36 +

=
=
=
Lubricating oil (assume 2 liter/day) =
=

RM 50 + RM 20 + RM

RM 10
RM 116.00

=
RM 116/8 hours
RM 14.50

=
=

RM 24.75 + RM 14.50
RM 39.25/hour

Therefore, operating cost/ hour

Cost of owning &

operating cost per hour

RM 50
20
1/liter x 36 liter
36
5/liter x 2 liter
10

Output excavator per hour

8 m

Therefore, cost of excavating 1 m of soft soil including 15% profit

margin

Prepared by Ir. Basir

RM 39.25/hour x 115
8 m x 100

RM 5.64 or RM 5.65

EXAMPLE 4 : Estimating of laying hardcore

Estimate the cost of laying 0.2 m thick hardcore per m if the unskilled
labours cost RM 20/day and the cost of 1 m of hardcore delivered to
site is RM 6. Allow for profit margin 15% and consolidation is 20%.
Assuming the output for spreading of hardcore is 0.25 hour/m
Solution:
1 m hardcore delivered to site

RM 6.00/m

Therefore, cost of 1 m of 0.2 m thick hardcore

=
RM 6 x 1 x 0.2
=
RM 1.20/m
Allow 20% consolidation
=

=
20/100 x RM 1.20
RM 0.24/m

Total material cost for 1 m of hardcore in 0.2 m

Thickness
=
RM 1.20 + RM 0.24
=
RM 1.44/m
Cost of labour per hour including spreading
hr/m

=
=

RM 20/8hr x 0.25
RM 0.625/m

Total cost of laying (material & labour)

0.625

RM 1.44 + RM

RM 2.065/m

Allowing 15% profit margin,

Cost of 1 m of hardcore laying

=
=

Prepared by Ir. Basir

RM 2.065 x 115
100
RM 2.37 or RM 2.40

EXAMPLE 5 : Estimating of concrete work (by machine &

manually)
Estimate the cost 1 m of 0.25 m thick 1:2:4 concrete mix slab based
on the following data:
Cement
=
Sand
=
Aggregate
=
Skilled labour
Unskilled labour
=
Cost of mixer
Interest rate
Installment period
Life span of mixer
=
Diesel
Lubricating oil
=
Assume repair & maintenance
Assume cost of transportation to site
Assume mixer can work
hours/ day
Allow
=
Allow
=
Output of mixer per hour
a. Mixing by concrete mixer
b. Mixing by manually

Prepared by Ir. Basir

RM 9/bag
RM 6/m
RM 15/m
=
RM 50/person/day
RM 20/person/day
=
RM 15,000.00
=
10% per annum
=
5 years
5 years
=
RM 1.00/liter
RM 5.00/liter
=
2% per years
=
1% per year
=
200 days/year & 8
15% profit margin
50% shrinkage for concrete
=
2.5 m/hour

Solution: 1. Mixing by machine

a. Cost of owning mixer
Cost of mixer
Interest of mixer over 5 years

=
=
=

Cost of repair & maintenance

(life span 5 years)

=
=

Cost of transportation to site

(life span 5 years)

=
=

Cost of owning mixer over 5 years =

=
Therefore, cost of owning mixer/hr =
=

RM 15,000.00

RM 15,000 x 10 x 5
100
RM 7,500.00
RM 15,000 x 2 x 5
100
RM 1,500.00
RM 15,000 x 1 x 5
100
RM 750.00
RM 15,000 + RM 7,500 +
RM 1,500 + RM 750
RM 24,750.00
RM 24,750
5 x 200 x 8
RM 3.09 or RM 3.10

Cost of owning mixer per day

= RM24750/5x200
=RM 24.75

Prepared by Ir. Basir

b. Operating cost mixer per day

1 Skilled labour
4 Unskilled labour

=
=

RM 50
=
RM 20 x 4
RM 80

Diesel (assume 10 liter/day)

=
=
Lubricating oil (assume 1/2 liter/day)
=

RM 1/liter x 10 liter
RM 10
=
RM 5/liter x 1/2 liter
RM 2.50

Cost of operating mixer per day

10 +

RM 50 + RM 80 + RM

RM 2.50
RM 142.50

=
RM 142.50/8 hour
RM 17.82

Cost of operating in 1 hour

Therefore, cost of mixing concrete per hour (owning cost + operating

cost)
=
=
Cost of mixing concrete per day

RM 3.10 + RM 17.82
RM 20.90
= 24.75 + 142.50
=167.25

+15% profit margin

= RM 192.33

But output of mixer per hour is 2.5 m/hour

Therefore, output of mixer per day =
=

2.5 m/hr x 8 hr
20 m

Therefore, cost of mixing 1 m of concrete

= RM 192.33 /20
=RM 9.62 (include 15% profit
margin)

c. Material cost
Prepared by Ir. Basir

For 1:2:4 concrete mix, assuming that

1 m of cement, 28 bag of cement is used
2 m of sand is used
4 m of aggregate is used
1 m of cement

=
=

RM 9/bag x 28 bag
RM 252.00

=
RM 6/m x 2
RM 12.00

=
RM 15/m x 4
RM 60.00

2 m of sand
4 m of aggregate
Cost for 7 m of concrete (material cost)
+ RM 60

=
=

RM 252 + RM 12

RM 324.00

Add for 50% shrinkage for 7 m of concrete

(material cost)
=

=
RM 324 x 50/100
RM 162.00

Total cost for 7 m of concrete (material cost)

162
=

RM 324 + RM

RM 486.00

Therefore, cost of 1 m of 1:2:4 concrete (material cost)

=
=

RM 486/7
RM 69.43 or RM 69.45

Therefore, cost of 1 m of 1:2:4 concrete inclusive 15% profit margin

=

[cost of mixing 1 m + cost of material] x 1.15

{69.45] x 1.15 }+RM 9.62

RM 89.50

Therefore, cost 1 m of 0.25 m thick concrete slab of 1:2:4 mix

inclusive 15% profit margin
=

[ RM 89.50 x 1 m x 1 m x 0.25 m ]

RM 22.40 (by using mixer)

Prepared by Ir. Basir

Solution: 2. Mixing by hand

Labour cost of mixing
1m3/hour

Output of using 5 unskill labour

5 Unskilled labour

=
RM 20/person/day
RM 20/8 hr x 5
RM 12.50 / hour

=
=

Therefore, cost of 1 m of 1:2:4 concrete inclusive 15% profit margin

=

[cost of mixing (labour) 1 m + cost of material ] x 1.15

[RM 12.50 + 69.45] x 1.15

RM 94.24 or RM 94.25

Therefore, cost 1 m of 0.25 m thick concrete slab of 1:2:4 mix

inclusive 15% profit margin
=

[ RM 94.25 x 1 m x 1 m x 0.25 m ]

RM 23.56 (manually)

Prepared by Ir. Basir

10

EXAMPLE 6 : Estimating of formwork

Estimate the cost of 1 m of a 25 mm thick formwork of a floor slab.
The following data given:
Timber
=
RM 2000/m
Nails
=
RM 1/kg
Skilled labour
=
RM 50/day
Unskilled labour
=
RM 20/day
Allow wastage
=
5%
Allow for struts of formwork =
5%
Assuming timber can be used=
over 5 times
Assuming 0.5 kg nail used for 1 m of formwork
Allow 15% profit margin
Assuming output for carpenters (erection& removal) =
Solution:
a. Material cost
Area

=
=

1mx1m
1.0 m

=
5/100 x 1.0 m
0.05 m

Allow wastage 5%
Total area inclusive of wastage
=

=
1.0 + 0.05
1.05 m

Volume of 1 m of formwork
(25 mm thick timber)

=
=

1.05 m x 0.025 m
0.026 m

Allow struts 5%

0.05 m

Therefore, total volume of timber for 1 m of formwork

=
=

0.026 + 0.05
0.076 m

Therefore, cost of formwork for 1 m

=
=

0.076 m x RM 2000/m
RM 152.00

Assuming timber can be used for 5 times

Prepared by Ir. Basir

11

0.75 hr/m

Cost of timber per usage

=

=
RM 152.00/5
RM 30.40

Assuming 0.5 kg nail used for 1 m of formwork

Cost of 0.5 kg of nails

=
=

RM 1 x 0.5
RM 0.50

Total cost of material

=
=

RM 30.40 + RM 0.50
RM 30.90

b. Labour cost
Assuming output for carpenters (erection& removal) =
Carpenters time

=
=

RM 50/8 hr x 0.75
RM 4.69

=
RM 20/8 hr x 0.75
RM 1.88

=
RM 20/8 hr x 0.75
RM 1.88

RM 4.69 + RM 1.88 + RM

RM 8.45

Unskilled labour time (erecting)

Unskilled labour time (removal)
Total labour cost
1.88

Total cost of 1 m formwork inclusive 15% profit margin

=

[cost of material + labour cost] x 1.15

[RM 30.90 + RM 8.45] x 1.15

RM 45.25

Prepared by Ir. Basir

0.75 hr/m

12