Ministry of Education

Infrastructure Service Department

A COMPREHENSIVE REPORT ON THE REVISED

ESTIMATES FOR THE CIVIL WORKS S-M-NCB 1.17, PP-
NCB 12, S-NCB 1.38

Date: 25-Feb-14
Table of the Contents:

1. Background

2. ISD Earlier Methodology for estimation of the projects

3. The ISD Revised Estimates

4. ISD approach for Upcoming designs and Estimates

 1. Background

This report is part of the deliverables in connection to the conclusion made during the VC with
World Bank, it was decided that Infrastructure Service Department would submit a
comprehensive report for the cases under the World Bank review, giving details and reasons for
the revised costs along with a comparative statement for the Old and New Costs.

The need for the report was initiated when the MoE procurement Department submitted the Bid
evaluation reports to world bank, requesting there NoL for Negotiation of Case-1(S-M-NCB
1.17) and award of contracts to Case-2&3 (PP-NCB 12, S-NCB 1.38). For all the three cases the
lowest responsive bidder has quoted considerable high price compare to engineering estimate.
Subsequently the Procurement department emailed the issue of higher proposed cost to ISD for
updating and possible revision of cost estimation that was then revised by ISD and sent back to
PD for the purpose of comparison. At this point the World Bank sought Explanation from the
ISD about the revision of Cost estimation and how the revised estimate is about 30- 50% more
than the original estimate.

2. ISD Earlier Methodology for estimation of the projects

Infrastructure service department has been using a well developed, effective and detail
estimation system for estimating the unit cost and total cost of the projects. All the three cases
mentioned in this report have been estimated using the mentioned format.

The estimation system contains a detail break down for each work item where the material and
labor resources to perform a unit quantity is calculated using the Standards prepared by Ministry
of public Work. However, the system lacked uniform method and systematic approach for
regular update of construction materials prices, which sometime, results in the ambiguous and
unrealistic cost estimates.

The specific information for the earlier estimates of cases unde discussion is as as follow:

Case 1:

Package ID : S-M-NCB 1.17

The civil work named Construction of Boundary Walls, 5 Set Latrine, Bore Well, Garbage
Collection Point and Furniture for 2 Different school of Wardak Province

The project contains the construction of missing components of two schools Sarwar Kayenat
girls school and Haji Mirza school located in jaghato and chack districts respectively. Theses
missing components are termed as annex of the relevant school.

The earlier estimated price for the each annex is mentioned as bellow:
 S.No Components Total Old
Cost(USD)

1 5 set latrine with Burnt Bricks and Steel I Beam roof 10621.03
Burned brick wall without columns surrounding wall.
2 L=320 meters 40182.40

3 furniture 10 class 11000.00

4 Garbage Collection Point 200.00

5 Gate for the schools. 1015.30

6 bore well in Depth of ( 80 ) meter including all services 4200.00

Grand Total 67218.73

The estimated price for Annex-2 ( Haji Mirza school)

S.No Components Total Old

Cost(USD)

1 5set latrine with Burnt Bricks and Steel I Beam roof 10359.08

2 burned brick wall without columns surrounding wall. L=440 meter 52786.80

3 Quantity for furniture 10 class 11000.00

4 Garbage Collection Point 200.00

5 gate for the schools. 988.53

6 bore well in Depth of ( 80 ) meter including all services 4100.00

Grand Total 79434.41

The estimated price for Annex-1 ( Sarwar Kayenat Girls school)

It was then revealed that the prices were estimated in lower side due to the following reasons:

The material and labor rates collected from the local market were not updated, whereas the
rates for materials and labors change due to inflation
Cost associated with Poor Security and Bad transport network was not considered
The material prices were collected from the center of the provinces whereas the material
prices vary by location of provinces and districts across Afghanistan for factors such as
availability of materials in the nearest markets.
 Indirect costs such as mobilization, de-mobilization, Profit, tax, operation were not
carefully judged and estimated on lower side

Case 2:

Package ID : PP-NCB 12

The civil work named Construction of Dormitory with Capacity of 300 Person with Septic Tank
for Babrak High School in Center of Paktia Province

The project is located in the center of the paktia province , gardiz city.The earlier estimated price
is as bellow:

S.No Components Total Old

Cost(USD)

1 3 stories dormitory with 300 person 416161.14

2 electrical equipment for Hostel three floor and300 student. 35083.00

3 typic sepric tank 9843.34

4 water supply system 8337.60

Grand Total 469425.08

The prevailing prices were estimated in lower side due to the following reasons:

The material and labor rates collected from the local market were not updated, whereas the
rates for materials and labors change due to inflation
Indirect costs such as mobilization, de-mobilization, Profit, tax, operation were not
carefully judged and estimated on lower side
Case 3:

Package ID : S-NCB 1.38

The civil work named Construction of 8 classrooms School, with Burnt Brick Wall, RCC
Concrete and Iron Sheet Roof with 268 M Boundary Wall, Bore Wells in depth 60 M and 10 Set
Latrine with Burnt Bricks and Steal I Beam Roof of Bazar High School (Tag 1 Dahana) in Khost
Frank District of Baghlan Province

The project is located in one of the remote Hilly areas of the Baghlan provinces with very bad road
condition

The earlier estimated price is mentioned as bellow:

S.No Description of Work Total Old

Cost(USD)

1 8 Classrooms School With Burnt Bricks Walls,RCC concret and Iran Sheet roof 203900.21

2 bore well in Depth of ( 60 ) meter including all services 3800.00

3 10set latrine with Burnt Bricks and Steel I Beam roof 21102.42

4 brick and railing wall stone foundation surrounding wall. 33004.20

5 Garbage collection point 200.00

7 furniture 10 class 11000

electrical equipment for 10 class room school for solar and network system.

8 4033

9 gate for the schools. 1015.30

Grand Total 262006.83

It was then revealed that the prices were estimated in lower side due to the following reasons:

The material and labor rates collected from the local market were not updated, whereas the
rates for materials and labors change due to inflation
Cost associated with Poor Security and Bad transport network was not considered
The material prices were collected from the center of the provinces whereas the material
prices vary by location of provinces and districts across Afghanistan for factors such as
availability of materials in the nearest markets.
Indirect costs such as mobilization, de-mobilization, Profit, tax, operation were not
carefully judged and estimated on lower side
 3. The ISD Revised Estimates

As mentioned above, the Infrastructre service department has identified the deficiencies and
shortages for each individual case, and revised the estimated price by updating the local material
prices, modifying the indirect costs and taking into account the Poor Security and Bad
transportation network, and the variations in material prices by location of provinces and districts.

The revised estimates for individual cases are mentioned bellow:

Case 1:

Package ID : S-M-NCB 1.17

Total
Revised
S.No Components
Cost
(USD)

1 Bill of Quantity of5set latrine with Burnt Bricks and Steel I Beam roof 13777.58

2 Bill of Quantity burned brick wall without columns surrounding wall. 70206.44

3 Bill of Quantity for furniture 10 class 11000.00

4 Garbage Collection Point 266.00

5 Bill of Quantity gate for the schools. 1314.74

Bill of Quantity for bore well in Depth of ( 80 ) meter including all

6 services 5453.00
Grand Total 102017.76

The revised estimated price for Annex-1 ( Sarwar Kayenat Girls school)
 Total
Revised
S.No Components Remarks
Cost
(USD)

1 Bill of Quantity of5set latrine with Burnt Bricks and Steel I Beam roof 14125.97

2 Bill of Quantity burned brick wall without columns surrounding wall. 53442.59

3 Bill of Quantity for furniture 10 class 11000.00

4 Garbage Collection Point 266.00

5 Bill of Quantity gate for the schools. 1350.35

Bill of Quantity for bore well in Depth of ( 80 ) meter including all

6 services 5586.00
Grand Total 85770.91

The revised estimated price for Annex-2 ( Haji Mirza school)

Case-2

Package ID PP-NCB 12.

Total
Revised
S.No Components Remarks
Cost
(USD)

1 3 stories dormitory with 300 person 524363.04

2 electrical equipment for Hostel three floor and300 student. 44204.58

3 typic sepric tank 12402.61

4 water supply system 10505.38

Grand Total 591475.60
Case-3

Package ID S-NCB 1.38

Total
S.No Description of Work Revised Remarks
Cost
Bill of Quantity of 8 Classrooms School With Burnt Bricks Walls,RCC concret
1 and Iran Sheet roof 278270.92

2 Bill of Quantity for bore well in Depth of ( 60 ) meter including all services 4864.00

3 Bill of Quantity of10set latrine with Burnt Bricks and Steel I Beam roof 27354.85

4 Bill of Quantity brick and railing wall stone foundation surrounding wall. 42602.35

5 Bill of Quanity for Garbage collection point 266.00

7 Bill of Quantity for furniture 10 class 11000

Bill of quantity for electrical equipment for 10 class room school for solar and
network system.
8 5162.24

9 Bill of Quantity gate for the schools. 1350.35

Grand Total 353358.12

4. ISD approach for Upcoming designs and Estimates

To further attain efficiency in preparing the BoQ and cost estimates , the Infrastructure service
department has assigned a combined working group of ISD estimation unit and DAARTT to
jointly prepare a comprehensive Unit rate analysis system, which has already been developed and
currently under testing stage.

The salient features of the system are:

Detail BOQs ,The BOQ is restructured to align with the construction process and re-written in details;
Quantity calculation tool including of steel work, form work, and water, sanitation and electrical works
with an established link to BOQ items;
Cost control market price indices, comprising of a defined policy, systematic procedure and method for
collection and maintaining of market prices data for construction materials and labours;
 Automation in unit cost calculation (rate analysis) using standard norms of the 1957 Layetakhat-E-Kar
(Government of Afghanistan Handbook for norms and standards), and linking with cost control market
price indices and quantity, to enable quick and dynamic update in BOQs and cost estimates possible.
Cost-coefficients that enable determining a realistic project cost, adding indirect cost to the direct cost
calculated using standard norms and real time data for labor wages and materials market prices.

In addition to this, ISD has been working on preparing the Unit analysis system Using MIS system
To ensure quality and timeliness in project preparation (survey, design, and estimation). Within
the system, the construction materials prices will be regularly updated following a systematic
procedure(s) and/or methods by the Estimation Unit in the engineering section.