Professional Documents
Culture Documents
Estimation
It is the art of assessment of quantities of different items and cost thereof to plan the amount required for executing a work before actually carrying out the work It helps in taking right and definite decision while entering into a contract with any firm
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Problems that can arise in the work started without estimation and costing
Interruption may come in continuation of the project as it becomes very difficult to purchase necessary material in the absence of list of materials. The money is misused by purchasing smaller or excess quantities of material, and the shortage of money can cause stoppage of work. Due to above hurdles, the work can take more time for completion and it can affect the other project which is related to the existing project.
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Specification of material
The specification and cost of all necessary material should be known while preparing estimation Without the knowledge of specification purchase of material will be difficult Without detailed specifications ,shopkeeper feels difficult to provide material.
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This is the cost of the material at which it can be purchased. Market survey has to be conducted for estimating the cost of enlisted material so that shop keeper should not overcharge for certain material. Market surveying and purchasing should be done by the experts only.
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Mistake or carelessness in market and purchasing will add to the cost of electrical installation and also time in completion of project. After market survey ,quotations are invited for the enlisted necessary material from related shops. The cost given in quotations of different shops are compared and the material is purchased at the lowest rates offered by supplier
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Price list
By market survey the estimator get the pricelist for the materials from shop keeper in which the retail and the wholesale prices will also be given according to local market rates. Price list should be updated time to time according top market rates
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Net Price
It is the price of an item which includes all taxes such as VAT, sale tax, central sale tax, excise duty and other local taxes. These taxes are not mentioned in a price list. If the discount is given by the factory then shopkeeper will deduct the discount and then will charge the tax. Eg. If price of an item is 100 Rs. And discount given by factory is 10 % ,then Rs. 100-10=90, and the sale tax at the rate of 5% will give net price=90+4.5=94.5
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Sr. Name of item with Required Quantity Rate No full specifications . Quantity unit Rs. Per 1 Double pole, iron clad, main s/w,30Amp, rating,250V 1 No.
Remarks
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electrician may
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Sr No
Total payment
Remarks
Rs.
Skilled labour
Paise Rs Paise .
Unskilled labour
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Remarks
4 30 6 40
20 20 20 20
00 00 00 00
1720 00
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Sr Description of No material 1.
Cost (say)
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Contingencies
Contingencies are: The emergency expenses which cannot be calculated while calculating the material and labor expenses during completion of project. These expenses may be due to natural calamities such as floods, earth quack, storms, etc. emergency expenses may be due to increase in cost of material or increase in labor costs. 3% to 5% of material cost and labor cost is estimated to be on contingency.
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Overhead charges
Overhead charges are:
Other expenses like Govt. taxes and additional expenses on labor in addition to the estimated expenditure.
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Production cost
Production cost = Cost of material + labor charges + overhead expenses (maintenance +administrative +supervision)
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Supervision charges
A contract is given to professionally trained and expert engineers to supervise the project work Supervision charges are: The payment of contract money and other expenses involved on the team. 1% to 1.5% of total cost.
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Profits
Are calculated on the basis of total expenditure involved in the project completion stage. Can be from 10% to 30% or even more if expenditure are controlled and full efficiency is exercised while working on the project. Profit % can fall if: Poor planning Inadequate and insufficient staff Lack of proper supervision Purchase of low quality material at higher rates.
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Storage Charges
The cost involved to: Transport purchased material to store Transport material to Work sites Labor expenses on loading and unloading the material.
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Total Cost
Total of all expenses occurred on the project. Total of material cost, labor charges and overhead charges.
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Total cost
Sr. No . 1. 2. 3. 4 5. 6. 7. Details of expenditure of all types. Expenditure in Lacs 7.00 Material cost 0.75 Labour expenditure 0.21 Contingency-3% material cost 0.85 Overhead expenditure-11% of material cost & labour 8.81 cost.(7.75) 0.13 Total Supervision overhead charges on above all-1.5% 8.94 Total coat Rounded off to Rs. 9.00 Fr.CRIT,Vashi Rema rks
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