Estimating and valuation involves calculating the costs and quantities of materials needed for construction works. The estimated cost is the theoretical cost while the actual cost is the final expenditure after completion. Estimates are prepared for various purposes like providing cost ideas, inviting tenders, and construction scheduling. Valuation is assessing the current fair value of a property based on factors like location, condition, and supply and demand. It is used for activities like buying/selling, loans, taxes, and insurance.

1. Estimating and valuation
Estimate is the process of calculating the quality and cast of various hem required in connection with work
Esitmated cost - It is the theoretical cost of work /probable lost of work.
Actual cost- it is the expenditure of the work after compilation of the work from account register including project.
Estimated cost =actual cost.
Purpose of estimate
I. To give reasonably accurate idea of the cost of work.
II. Estimating various materials required for computing particular area.
III. Tools & plants.
IV. Categories of labors v
V. Time of completion of work.
VI. To trusty the investment from b/c ratio
VII. To invite tenders and prepare bill for payment.
VIII. To draw construction schedule
IX. To estimate exiting properly for valuation etc.
Requirement for Estimating (Data required)
I. Drawings ( hurry dimensioned ) working drawings –
II. Dimensions- quantities of various hems
2.schedule of rates ( list of rates),govt. approved rates
Committee-1) CDO – chairman
2) Chief district Er –member secretary
3) DDC- member
4) CDO- member
5) FNCCI- member
6) CAN-member (contractor’s association of Nepal)
7) Financial controller office”
3. Specifications – general specifications (brief spec)
-detailed specifications
4. Updated mode of measurement (Addition, dedication)
5. Standing circulars (Taxes, insurances)
Principle of unit’s measurement
The unit of measurement merrily depends upon the shape and nature of work.
I. Mass , volume mass and their work-m3

2. (Earthwork, brief work etc)
II. Shallow surface & their work –m2
(Shelters, plasters)
III. Long & their works- running meter
(skirting, handrail )
IV. Peace work job work – number –( ceiling fan)
(Q) The unit of measurement of surface excavation is.
a) m2
b)m3
c) m d) none.
Depth of excavation 30 cm (shallow)
(Q) Surface dressing –m2
(15 m सम्म बुझाउनु पर्छ )
(Q) Lightering conductors – meter.
(Q) Painting in gutter pipe – meter.
(Q) Painting in letter – number
(Q) Lime concrete on roof – m2
(Q) B/W n stelining-m2
( Area x thicuess )
(Q) Honeycombed brief work – m2
Preparation of detailed Estimate
S.N Description No. Length Breadth Height Quantity Remrks
1 E/W in Excavation 1 10 1 1 10 m3
2.
Abstract of cost sheet (Estimated cost)
S.N Description Quantity unit Rate Amount Remark
1 E/W in Excavation
a) total cost of items….
b) working charge establishment (2.5 % of +)
c) contingency 2.5 % of A +
Total = Rs.
Bills of Quantity (BOQ)

3. Item Description Quantity Unit rate words Amount Remarks
1 E/W in Excavation in
foundation lift up to
1.5m and lead 30m in
ordinary soil
Administrative Approval को लागि
a ) total cost ………
b) Price inflection 10% of @+
c) Physical contingency 10% of @ + total …………. (A)
d) Vat 13%vv (A)……………+
Grand total
Stranded methods f measurement..... (NS 389-2054)
IS 1200-1958- reunion)
Length - 0.01m---expect, wood work – 0.002m.
Area - 0.01m3
--- steel reinforcement – 0.005 m
Volume – 0.01m3
--- thickness of slab -0.005m
----120 cm thick Road pavement -0.005m
Area मा, except, steel plate -0.001m2
Volume मा , expect –Wood work -0.001 m3
- Steel reify -0.001 mt (1kg)
1) Earthwork life - - 0 -1.5 m
1.5 – 3.0m
3 – 4.5 m
4.5 – 6.0 m
2) Brief work
No deduction -0.1m2
opening end of beam
3) Concrete work
. No deduction -0.1m2
. Volume of steel of reinforcement - No – deduction
4) Formwork – No deduction - 0.40 m2
duet opening
5) False ceiling – No deduction - 0.40 m2
6) Plaster work – No deduction – 0.50 m2
opening, end of beam.
One side deduction – 0.5 to 3m2
opening (both side plaster)
Two side deduction – 3m2
opening
(Both side plaster but still daub, soffit)
Separate measurement)
30 cm wide plaster band – rm.
Multiplying factors

4. Painting in paneled door -----1.30.
Plashed doors -------1.20
Glazed window -------0.80 (0.50
Louver -------- 1.80
Ms grill Railing ----- ------ 1.00
Ruling shutter --------1.10
Collapsible gate ---- 1.50
CGT sheet ---------1.14
Types of Estimate
1) Approximate Estimate / preliminary / regular / conceptra / Estimate
2) Detailed Estimate
3) Revised Estimate
4) Supplementary Estimate
5) Extensor & important Estimate
6) Annual repair & maintenance – (1.5 to 2) %f the capital cost
7) complete measurement Estimate
1) total cost of land 2) total cost of bldg
(1) Approximate - unit rate basis
-plinth area basis
-cubic rare basis
-Approximate quality basis
*Plinth area basis (building मा)
Cost of bldg – total plinth area / Built up area in m2
x prevailing plinth area raze / m2
Total pliant area – carpet area + circulation area + wall & column area (8-w10d% of PA)
*cubic rate basis
Cost of bldg = cubic content of bldg x prevailing cubic rate.
Cubic content = plinth area x let of bldg.
2) Detailed Estimate - After getting the administration approval of approximate Estimate.
3) Revised Estimate – when sanctioned detailed Estimate emceed by more than 5% either due to insufficient in rate or
after reason .
Comparative statement Of Estimate.
4) Supplementary Estimate - Estimate of additional work.
- During construction.
- a type of detail estimate .
5) Extension and improvement --
Breakdown of cost of work –

5. i. Cost of materials --(65 to 75) % of whole cost
ii. Cost of labor - (30 to 35 0 % of whole cost
iii. Cost of foundation & plinth –(10 to 15 ) of whole cost .
Break down f cost of bldg work
Ewe in Excavation filling – 1+ 1.5% of whole cost
Cost of concrete in found – 5 to 6 %
Brick work - 30 to 34 %
DPC - 1 to 1.5 %
Flooring - 5 to 6 %
Roofing - 20 to 22 %
Wood work - 16 to 20 %
Plaster & painting - 10 to 12 %
Painting work - 3 to 5%
Misc work -4 to 6%
Read word
E/W n embankment & filling – 14 % of whole cost
Soiling cost including stone & couslidatri -22%
Wearing coat including stone agg. & birdmen – 44% other item – 20 %
Cost of w/s & sanitary work – 8 to 10 % of cost of civil works
Cost of electrical work – 8 10 % of cost of civil work
Analysis of rate –
The method of determining the rate of an item of work considering the cost of materials, cost of labor, live
changes of tools and plants , overhead changes , profit etc is known as ………….
Rate Analysis..
Purposes – to revise the schedule of rate.
i. CDO – chairman
ii. Chef district member – member secretary
iii. FNCCI - member
iv. CDO - member
v. CAN -member
vi. DDC - member
vii. Financial counter officer - member
-To work out the actual cost per unit of an item.
- To work out economical use of materials
- to work out the cost of extra item f work
- to executive the viability of tender rates

6. - to fix the labors contract rates
Requirement
i. Correct information of the market rate of materials.
ii. Correct information of the market rates of various categories of labor.
iii. Out of laborer ( tank or output of a worker)
iv. Knowledge rate and outturn of the equipments to be used in construction work
v. Up to date knowledge of construction work.
Factors affecting two rate analyses
i. Quality of materials
ii. Preparation of mortar
iii. Construction facilities available with regards to tools and plant to the site of work.
iv. Location of the site
v. Transportation facilities for materials laborers etc to the site
vi. Transportation charges and indictor of road to the site
vii. Overhead charges (2+5)%
viii. Profit received – work load
-amount of project
ix. Experience of water and annuities provided to them
x. management
Govt. procedure of preparing rate analysis
A) total cost f materials= Rs. X
b) Total cost of labor = Rs. Y
c) Here charges of tool and plants (including cost of total)
=RS (Z)
d) Contractor’s overhead charges 15 % of Rs.(c) = Rs.0.15 (c). Unit rate of an item =.1.15(c)
- prepare an analysis of rate for pcc (1:2:4) per m3
i. Vot. of the pcc = 1m3
ii. Add ( 50 to 60 ) % to get dry or mixed vot of pcc = 1+
54
100
x 1= 1-54 m3
iii. Summation of mix. Proportion = 1+2+4 = 7 parts
iv. Cement =
1.54
7
x 1= 0.22m3
x 25.8 bags / m3
= 6.34 bags
v. Saud = 0.22 x 2 = 0.44m3
vi. Agg = 0.22 x 4 = 0.88 m3
vii.
𝑤
𝑐
= 0.50 w = 0.5 x 6.34bags x 50 kg = 158 kg

7. A) Material
i. Cement = 6.34 bags x RS. 850.00/ bags = Rs.
ii. Saud = 0.44 bags x Rs. 3000.00 / bag m3
= Rs.
iii. Agg = 0.88 m3
x Rs. 3500 / m3 = Rs.
iv. Water = 158 ltrs x 0.30/ ltr = Rs.
Total of (A) = Rs.
b) Labors
i. Sallied = 1.00 no. Rs. 865.00/ head / day
ii. Unskilled = 4.00 no. x Rs. 635.00/ head /day =Rs. Total 13 = Rs.
iii. Contractors overhead charge 15 % of (A+D) % = Rs.
Rate of per m3 = Rs.
# prepare of analysis of rate for pcc (1:2:4) for RCC work
- Skilled = 0.80
- Unskilled = 7.0
# RCC work pausing equipment (1:2:4)
- Petrol =0.10 ltr
- Diesel = 3 ltr
Equipment
- Mixes = 0.60 hr
- Vibrator =0.25 hr
Labor
- Skilled = 0.30 no
- Unskilled = 3.50 no
# 50 mm thick pcc (1:2:4) per m3
Govt . Norms = 40mm, 50mm, 75mm.
Cement =3.07 bags
Saud = 0.22m3
Agg = 0.44 m3
Water = 79 liters
Skilled = 1.25 nos
Unskilled = 2.50 nos

8. # 40mm thick pcc ( per 10 m3
) = skilled = 1.25
Unskilled 2.0
Skilled 1.25
Unskilled = 3.0
= prepare an analysis for brickwork in (1:6) cement mortar in ground floor level per m3
i. Assume thickness of brick = 2.30 x 110 x 55
Assume thickness of mortar = 10 mm = (3-12) mm
ii. Site of brick with mortar = 2.40 x 120 x 65 mm
iii. Numbers of bricks
1𝑚 3
0.24 𝑥 12 𝑥 0.065
=534 nos
Add 5% wastage =
26 𝑛𝑜𝑠.
𝑡𝑜𝑡𝑎𝑙=560 𝑛𝑜𝑠.
Iv. vot . Of mortar = {1m3- 534 (0.23 x 0.11 x 0.055} = 0.257 m3
v. Add 30% to get dry or unmixed vot. Of mortar = 0.257
30
100
x 0.257 = 0.337 m3
say 0.35 m3
vi. Summation f mix proportion = 1+6=7 parts
Vii . Cement =
0.35
7
= 0.05 x 28.8 bags / m3= 1.44 bags.
viii. Saud = 0.05 x 6 = 0.30m3
𝑤
𝑐
= 0.80 w =0.85 x 1.44 x 50 =
A) Materials
i. Bricks = 560 nos. x Rs
ii. Cement = 1.44 bags x Rs
iii. Saud = 0.30 m3
x Rs
iv. Water = --------------- x Rs.
Total of A= ------------------- Rs.
b). skilled = 1.50nos x Rs
Unskilled = 2.20 nos x 635.00
Unskilled =0.20 no: x 635.00 (2nd
floor मा 0.75 हुन्र् scoff folding for 1 floor)
Cost of scoff folding = 3% of cost of unskilled (iii) total of A+B+C
# contractors an analysis for 12.5 mm thick cement plaster (1:4) in wall per 10m2
- Add – (40 to 50 )% to get dry or unmixed
- Cement = 1.09 bags
- Saud = 0.152

9. - Water = 45 liter
# Labors
Skilled = 1.20 nos.
Unskilled = 1.60 nos
# 20mm thick cement plaster (1:4) in wall
-skilled =1.40 nos
- Unskilled = 1.90 nos
# For ceiling plaster per 10m2
Skilled = 105 nos
Unskilled =2.0nos
Valuation = it is the art of assessing the present fair value of the property at a started time, the value of property may be
Land, land and building, factory - (civil engineering) , agricultural land , machine , jewelry etc
= the value of property mainly depends upon life, structure, location supply and demand, rate of interest, rent etc
Cost – means the original cost of property. May be construction cost or purchase cost of the property
Value – means the present saleable value of the property it may be more or less than originals cost of property…
.Purposes - 1. Buying and selling of the property.
2. Auction bid of the property.
3. Security of loan (mortgage)
4. Assessment off taxes (property tax, gift tax etc)
5. Dissemination of rent of property.
6. Insurance of the property
7. Partition of the property
8. Determination of court fee of the property
9. Preparation of balance sheet of the company
10. Acquisition of property (for compensations) etc
# Principles of valuation
i. Cost depends upon the supply and demand of the property

10. ii. Cost depends upon its location.
iii. Cost depends upon its design and specification of material used
iv. Cost varies with the purpose for which valuation is to be done
v. Cost is affected by the age of the property and its physi8cal condition ( maintenance )
vi. Present and future use of the property should be given due weightier in valuation
vii. Vendor must be willing to sue as also the purchase must be willing to purchase
viii. Cost must be based on stateside data..
# Terms used in valuation
i. Book value = original cast – deprecation till that years used in balance sheet of a company
ii. Scrup value = value of dismasted materials at the end of its useful period after deducting the cost of dismasting
- It is usually ( 8 to 10 ) % of the value of property
- Sometimes scrap value maybe ( -ve) too , in case of RCC frame stricture building .
iii. Salvage value = it is the value of existing property at the end of its utility period without dismantling.
- Usually (8 to 10) %
- Never negative ( may to zero)
Iv. Assessed value = it is the value of the property recorded by municipality for taxes.
v. Discreet value = it is always lover than market value due to financial difficulties, insufficient, knowledge of market
value etc
vi. Monopoly value = it is always higher than market value due to shape, site, location etc.
vii. Obsolescence = loss in the value of property due to old / model / design / out of fashion etc.
viii. Capitalized value = net rent / return x years purchase
ix. Net rent = gross rent – out goings (expenses from property)
x. Years purchase =
𝑙
𝑖𝑝
(for indefinite period)
ip = highest prevailing rate of interest indicial
Xi. Years purchase =
𝑖
𝑖𝑝+𝑖𝑐
(definite period)
IC = coifs .of sinking fund
Ic =
𝑖
( 𝑙+𝑖)𝑛
= l
I = rate of interest for sinking funding decimal
N = future life of str. in years
Xii. Sinking fund = it is the accumulation of fund to replace / reconstruct the structure at the end of the ability period
(90) %
Annual sinking fund = s x IC

11. S= total sinking fund to be deposited.
Deprecation = it is the gradual decrease in the value of property due to wear & tear, delay, obsenscence etc.
Type –
1. Physical depreciation = a. due to wear and tear from operation
= b. due to action of time.
2. Financial department = a. Inadequacy
=b. obsouncess
3. Contingent dep = due to earthquake, flood etc
# Method of calculating depreciation
i. St. line method of depreciation
Annual depreciation (DA) =
𝑜𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡−𝑠𝑐𝑎𝑟𝑝 𝑠𝑎𝑙𝑤𝑎𝑔𝑒
𝑙𝑖𝑓𝑒 𝑜𝑓 𝑠𝑡𝑒 .𝑖𝑛 𝑦𝑟 .
=
𝑐−𝑠
𝑛
DA =
100−10
45
= 2% per yr
ii. Constant percentage rate of depreciation ( p) = l – (
𝑠
𝑐
) hn
iii. Sinking fund method
Annual sinking fund = s x
𝑖
(𝑙+𝑖)𝑛
-l
Depreciation … Depreciation from life of str. Assume life = 80 yrs.
Period % of dep. / Yr total % of dep
0-5 yr nil nil
5-10 yr 42% 2.5%
10-20 yr ¾ % 7.5 %
20-40 yr 1 % 20%
40-80 yr 142 % 60 %
= 90%

12. Depreciation from life of structure
Assume life of structure = 80 yrs
Period % of depreciation per year total % of depreciation
0-5 yrs nil nil
5-10 yrs ½ % 2.5 %
10-20 yrs ¾ % 7.5 %
20-40 yrs 1 % 20%
40-80 yrs 1 42% 60%

13. = 90 %
# Various method of valuation
1. cost of based method of valuation – most accurate
Value of property = value of building (detailed estimate)-
Total depreciation + value of land.
2. Plinth area method of valuation – most popular.
Value of property = total plinth area (built up area)
In m2
x prevailing plinth area rate per m 2
- total depreciation + value of land.
3. Depreciation method
Value of property = Depreciation value of building + value of land
Depreciation value of building = p (l-
4𝑑
100
)n
P= cost of building at present market rate.
= total plinth are x prevailing plinth area rate .
4d = fixed rate of depreciation
N = age of property.
Life of structure value of rd
100 1
75 1.3
50 2
25 2
20 5
4. Rental method of valuation
Value of property = capitalizes value of property.
= net rent x years purchase.
Net rent = gross rent – out going.
5. Profit based method
Commercial building (cinema hall etc)

14. Value of property = capitalized value of property.
= (net profit x yrs purchase) = net income = gross income – total outgoing.
# Capital value of comparison method
(Mostly used in land valuation) (In Nepal usually
Development method = land valuation
# Specification
= written instruction limiting and descrambling in detail % construction works to be undertaken .
= specification describes instruction to be done.
Quality of materials and workmanship to be used.
= method of construction to be adopted.
= tools, plant to be used.
= methods of testing inspection etc .
# Purchase –
=Contract document between the owner and contractors, limiting and describing their responsibilities guide
to bidder / tender at the time of tendering to quote reasonable tender rates.
*guide to site engineer / contractor during construction
*guide to manufacturing agencies for their products.
# Type
= general (brief specification)
= general idea of whole work.
= estimate can be done.
= but it is not part of legal document.
# detailed specification
= form a part contract document and gives the detailed information regarding the quality material, workmanship etc.
# Importance
= in the event of contract between the specification and drawing, specifying shall give priority.
= the cost of unit quantity of work is governed by its specification.
= specification is an essential contract document and is required for court case, arbitration etc.

15. = any changes in the specification of the work changes the tender rate.
# Wastage added in wood work = 10%
= capacity of skilled labor of cement plaster in ceiling / day / head of labor = 6.67 m2
Vat is added in detailed estimate.
Cost of scaffolding in layers – 3%
E/w in filling in layers – 20 cm
Curing in hot weather doesn’t exceed = 38’c
Half / out brick shall out be used expect bond, king course, queen courses.
(GT sheet minimum lap 2 corrugation
In the contract with in drawing
Large scale – priority
Frog upward in English bond
Opc shall conform to NS49/ 2041.

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