Dtar 221
Dtar 221
Tendering
Definition;
This is an administration procedure of sending out tender document through the
media inviting capable firms to state the price of every item in the Bills of
Quantities.
Tendering documents:
A tender document may include:
1. A cover letter pointing out specific contractual details such as contract
period, starting date, together with details of any special problems to be
encountered such as restricted hours of working.
2. Drawings
3. Bill(s) of quantities
4. The specifications
5. Form of tender (formal acknowledgment that the supplier understands)
6. Tender pricing document
7. Form of contract (the condition of contract)
8. The evaluation processes
9. The submission processes
Points to consider when preparing a tender
Name of the firm
Size of the firm
Evidence of financial stability
Location of firm
Recent experience of this type of work
Health and safety records
Availability of resources
4. Single/nominated tendering:
This is the type of tendering where only one firm is able to satisfy the
criteria for selection and this likely happens when specialized or nominated
contractors are selected in the supply of some selected materials,
installations.
Merits and demerits are as in negotiated tendering.
5. Serial tendering:
This is a method of tendering where the client deliberately extends the contract
of similar scheme which are carried over a period of time within the same area
and permitted the phased utilization of the site organization and plants e.g.
construction of schools.
It is useful for main contractor and can also secure the benefits of the increased
size of order and production plant for component contracts and specialized site
installations works which become sub-contract to a series of main contract.
Estimating:
Utc ki Estimation and Tendering lecture notes by OGT
Definitions;
I. Estimating is the process of producing the cost of materials, plants
and labours (cost of construction works).
II. Estimation is also the prediction of what the key cost of material,
land and plant, labour for constructing a facility will be carried out.
Importance of estimating:
One of the keys to commercial success is a construction company’s ability to
estimate costs of construction work and to construct that work at the estimated
cost.
1. Estimate the cost of construction work
2. Provide the most realistic production
Bid price: Is the total cost construction and that of the make-up.
Construction cost includes,
Labour (estimated for productivity outputs) how much a labourer takes to
lay bricks.
Material (based on quotations from suppliers together with addition on
storage, handling and wastage)
Plant (estimate based on quotations from hire companies)
Sub-contractor’s cost (based on calculations from sub-contractors with
additions for services)
Site on cost (based on assessments on the staff and general support
facilities required)
Company’s make-up includes;
Company overheads (based on calculations of company’s head office
budget and forecast profit turn over)
Profits (based on calculations of the minimum profit)
Risk (based on an assessment of risks involved in the project and is thus
largely a subjective element)
Bid process (competitive) stage:
Decision to tender
Programming the estimate
Preliminary project study
Preparing a construction cost estimate
Preparing reports for tender adjudication
Adjudication process
Labour
Calculations
Skilled
Basic pay-----------------------------------------------15000/8= 1875×40 =75000/=
Third party--------------------------------------------0.025×75000/= = 1875/=
Guaranteed time------------------------------------0.02×75000/= = 1500/=
Graduated pension-------------------------------- 0.02×75000/= = 1500/=
Sickness ---------------------------------------------0.005×75000/= =375/=
Holiday ---------------------------------------------------------350000/50 = 7000/=
National insurance-----------------------------------------128000/50 = 2560/=
Public holiday----------------------------------------------120000/50 = 2400/=
Utc ki Estimation and Tendering lecture notes by OGT
Training levy------------------------------------------------ = 10000/=
Total per week---------------------------------------------= 102,210/=
Rate per hour 101,173/40 = 2,555.25/=
Calculations
Unskilled
Basic pay-----------------------------------------------------8000/8= 1000×40 =40000/=
Third party--------------------------------------------------0.025×40000/= = 1000/=
Guaranteed time------------------------------------------0.02×40000/= = 800/=
Graduated pension---------------------------------------0.02×40000/= = 800/=
Sickness ----------------------------------------------------0.005×40000/= =200/=
Holiday ----------------------------------------------------200000/50 = 4000/=
National insurance------------------------------------128000/50 = 2560/=
Public holiday------------------------------------120000/50 = 2400/=
Training levy--------------------------------------- = 5000/=
Total per week--------------------------------------= 56,760/=
Rate per hour 56,760/40 = 1,419/=
Factors that lead to variation in labour rate
variation in attitudes, culture, of the individuals
location of work e.g. underground works
weather conditions
workmanship expected
level of supervision
site organization
skills of workers
Factors that affect labour rates
supervision
overtime
holidays
training levy
locality
Solutions;
Calculate the cost to the contractor of placing concrete give the cost element that
should be included in the rate for item F723, base the cost calculation on the
following data.
The average rate of placing is 250m3 per week.
The concrete placing is planned to take 45 weeks
The plan provided for placing of concrete is given below.
The labour required is one (1) ganger and four (4) labourers whose cost are;
Ganger cost £ 390 per week
Labourers cost £ 360 per week
Solutions
Plant cost:
2 cranes each 800 per week------------------------------------1600 per week
4 skips each 22 per week--------------------------------------88 per week
5 dampers each 84 per week---------------------------------42 per week
6 vibrators each 42 per week---------------------------------252per week
Total plan cost-----------------------------------------------£2360 per week
Labour cost: Ganger--------------------------------------------------------------390 per week
4 labourers------------------------------------------360×4--1440 per week
Total labour cost--------------------------------------------------£1830 per week
Material cost
Placing concrete at a rate of 250×35 per week----------------------8750/1125 = 7.8
Therefore, for 45 weeks---------------------------7.8×45---------------351
Total cost to the contractor (plant cost + labour cost + material cost)
(2360 + 1830 + 351) -------------------------------------------------£4541
Concrete (site mixed)
When pricing the site mixed concrete, the following factors are to be considered;
I. Cost of materials required to make the concrete
II. Methods of mixing involving plants and labours
III. Cost of transporting, placing and any surface treatment.
IV. Types of mixers to be used
V. Position of mixing
VI. workmanship involved
VII. Site organization
Note: 7m3 of dry concrete when mixed with water (7×0.6) of wet concrete, 40%
lost due to shrinkage.
Material supply list
Cement:
26 bags of cement in 1m3 were used to produced 7m3
After mixing with water = 7×0.6 = 4.2
Therefore, 1m3 of concrete = 26/4.2 = 6 bags
Sand:
4.2m3 of concrete was given by 2m3 of sand, 1m3 of sand requires 2/4.2 = 0.48
m3 of sand
Coarse aggregates:
4.2m3 of concrete was used for 4m3 of aggregates
1m3 of concrete requires 4/4.2 = 0.95m3 of aggregates
But density of aggregates is 1.6= 1600×0.95=152tones.
Volume of concrete slab= (15×7×0.15) m3=15.75m3.
Materials required for 15.75m3 0f concrete
Cement 6×15.75 = 95 bags
Sand 0.48×15.75 = 8m3
Aggregates 1.52×15.75 = 24tones
8m
Longitudinal bars = span/spacing+1 =6/0.2+1 =31
Transverse bars = 8/0.2+1 =41
Total length of the bars (31×8) + (41×6) 494m,
Numbers of bars 495/12 =42 bars.
Cost of bars =42×28000/= =1176000/=
Tying bars and spacers =2/100×1176000/= =23520/=
Fixing and bending = 1ton takes 48000/=
But Mass =Volume× Density=πd2l/4 = (3.142(0.002) squares×12×7850)12
=447.46kg
Cost =447.46/1000×48000 =21478/=
Total cost of reinforcement =1176000+23520+21478 =1220998/=
Total cost of concrete slab =12200998+2540030 =3761028/=
Add 20% overheads 1.2×3761028 =4513234/=
Material list;
Concrete required =8×6×0.15 =7.2m3
Mixes = 1:1:3 =5m3of dry concrete
Used concrete 60/100×5=3m3 of wet concrete.
Cement 28/3×7.2 =68bags
Sand 1/3×7.2 =2.4m3
Aggregates 3/3×7.2 =7.2m3
75mm
Finishing works:
Ceiling board.
Example one;
Built a unite rate /m2 for casting and plastering ceiling board with cement sand
mortar mix 1:4 given the following information.
Ordinary Portland cement cost 33000/=/bag of 50kg
Lake sand cost 30000/=/tone
Transport and offloading are 500/= and 50/= respectively
Mixer output is 2m3/hour and hired at 150000/=/day
Take density of sand as 1.3tone/m3 and cement as 1.4tone /m3
Metal lathe cost 36000/=/bundle of 10 pieces of (6×2feets)
1kg of 2” nails cost 6500/= delivered and having 150 nails
Thickness of the ceiling is 20mm and 15mm for plaster
One small square of the ceiling takes 40 nails
One skilled and one unskilled operates the machine
One skilled and one unskilled takes 1hour to cast 4m2
One skilled and one unskilled takes 1hour to plaster 2m2
Labour rates for skilled and unskilled are 3000/= and 1500/= respectively
Add 5% waste of materials, 25% consolidation and 20% profits.
NB. Ignore the cost of ceiling formwork.
1m
100
200
COST of 47 bricks =500000/1000*47= 23500/=
Labour
Assume the skilled lays 100bricks per hour
100 bricks---------------------------1hr.
1brick-----------------------------------1/100=
45bricks----------------------------------45/100
Skilled-------------------------------45/100×2000 = 900/=
Total cost of facing brick work 900+23500= 24400/=
Mortar required for the work
Volume of mortar in 1m2---------------1×1×0.01= 0.01m3
Cost------------------------------------------0.01×262023= 2620/=
Total cost of finishes--------------------2620+24400= 27020/=
Add 20% profits ------------------------1.02×27020= 32424/=
Therefore, the amount required to face the wall of 3*10
= 30×32424 = 972720/=
7420+8229+167+69……………………………………………………………..14563/=
Allows 20% profits and overheads 1.2×14563…………………..17,476/=
Example two
Brick work
Utc ki Estimation and Tendering lecture notes by OGT
Consider m2…………area of 1 brick………0.075×0.1125……………..0.00844m2
No. of bricks to be laid in m2……………….1/0.0084…………………….118.5 apr.119
Add 5% waste………………………1.05×118.5 ………………………………….125 bricks.
Costs of bricks in m2………125×200000/1000………………………….25000/=
Labour
50 bricks………….1hour, 1brick………..1/50
Skilled ………………119/50×1500………………………………………………..3570/=
Unskilled …………..119/50×800…………………………………………………1904/=
Total costs of brick work…………25000+3570+1904………………..30474/=
Volume of mortar required
Volume of the wall……………1×1×0.225…………………………………….0.225m3
Volume of one brick……………..1.025×0.065×0.225…………………0.00147m3
Volume of all the bricks in m2………..118.5×0.00147…………….0.177m3
Therefore volume of mortar in m2………………..0.225-0.117…….0.048m3
Costs …………………………………………..0.048×243210…………………..11674/=
Total costs of m2 of wall…………….11674+30474……………………42184/=
Add 20% profits ……………………………1.2×42185……………………..50620.8/=
Therefore the required wall of 3×4…………..12m2, will costs
12×50620.8…….607449.6/=
Assignments
Question one
a) In relation to procurements, state seven (7) general principles set by NJCC
(National join consultative committee for building construction) for a
successful procurement process. 7 marks
b) Outline eight (8) ways in which tender process are abused by the client and
the contractor. 8 marks
c) Explain any five (5) factors that can lead to loss of tender by the bidder
during the time of award of the contract. 5 marks
Question two
a. Define the term labour constant as applied in estimating. 2 marks
b. State any four (4) factors that affect the costs of brick/block work in the
construction industry 4 marks
c. One of the construction sites for a super market requires the construction
of a block wall in stretcher bond. As one of the estimator, built up a unit
Solutions
Purchase …………………………………………………………2000000/=
Waste……………………1.05×2000000………………….2100000/=
Tie bar and spacers………0.02×2000000……………….40000/=
Cutting, bending, and fixing (15hours+20hours)…………………..35hours
Labour for fixing……………………..35×3000…………..105000/=
Total costs………………………………………………………2245000/=
Allows 20%.....................1.2×2245000…………….2694000/=
200mm
6m
Solutions
No. of longitudinal bars………………..2/0.2+1……………………….11
No. of main bars……………………………6/0.2+1………………………31
Total length of all the bars (11×6) + (31×2)…………………………128m
No. of pieces of 16mm diameter bars………….128/12………………………..10.7
Allows 5% waste……………………1.05×10.7……………………….11.24………….12
Costs 12*4500…………………………………………………….540000/=
Tying bars and spacers…………..0.02×540000………..10800/=
Fixing and bending
W=πd2/4×p……….. (π (0.016)2/4×12×7850)12………….227.28kg
Costs………………………………. (227.28/1000)50000………………11364/=
Labour for cutting……………1.5×1000(227.28/1000)………… 341/=
Total cost of work……540000+10800+11364+341…………..562505/=
Allows 20% profits 1.2×562505…………………………………… 675006/=
Costs per kilogram………………675006/227.28……………………..2970/=
EXCAVATION