1

QUANTUM SERIES

For
B.Tech Students of Third Year
of All Engineering Colleges Affiliated to
Dr. A.P.J. Abdul Kalam Technical University,
Uttar Pradesh, Lucknow
(Formerly Uttar Pradesh Technical University)

QUANTITY ESTIMATION & MANAGEMENT

By
Vikas Yadav

TM

QUANTUM PAGE PVT. LTD.

Ghaziabad New Delhi
 2

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Quantity Estimation & Management (CE : Sem-5)

1st Edition : 2014-15
2nd Edition : 2015-16
3rd Edition : 2016-17
4th Edition : 2017-18
5th Edition : 2018-19 (Thoroughly Revised Edition)
6th Edition : 2019-20
7th Edition : 2020-21

Price: Rs. 85/- only

Printed Version : e-Book.

 3

CONTENTS

KCE–503 : QUANTITY ESTIMATION & MANAGEMENT

UNIT-1 : QUANTITY ESTIMATION FOR BUILDINGS (1–1 C to 1–18 C)

Measurement units for various building materials, Centreline method,
Long and short wall method of estimates, Types of estimates, PWD
schedule of rate.
UNIT-2 : ANALYSIS OF RATES, SPECIFICATION & TENDERS
(2–1 C to 2–36 C)
Analysis of rates knowing cost of material, labour, equipment,
overheads, profit, taxes etc, Specifications – Preparation of detailed
and general specifications, Legal aspects of contracts, laws related to
contracts, land acquisition, labour safety and welfare. Different types
of contracts, their relative advantages and disadvantages. Elements
of tender preparation, process of tendering, pre-qualification of
contracts, Evaluation of tenders, contract negotiation and award of
work, monitoring of contract extra items.
UNIT-3 : ELEMENTS OF MANAGEMENT (3–1 C to 3–39 C)
Project cycle, Organization, planning, scheduling, monitoring,
updating and management system in construction, Bar charts,
milestone charts, work break down structure and preparation of
networks. Network Techniques like PERT & CPM in construction
management. Project monitoring and resource allocation through
network techniques.
UNIT-4 : EQUIPMENT MANAGEMENT (4–1 C to 4–25 C)
Productivity, operational cost, owning and hiring cost and the
work motion study. Simulation techniques for resource scheduling.
Construction Equipment for earth moving, earth compaction,
Hauling Equipment, Hoisting Equipment, Conveying Equipment,
Concrete Production Equipment, Tunnelling Equipment.
UNIT-5 : PROJECT COST MANAGEMENT (5–1 C to 5–30 C)
Budgeting, Cost planning, Direct Cost, Indirect cost, Total Cost
Curve, Cost Slope. Time value of money, Present economy studies,
Equivalence concept, financing of projects, economic comparison,
present worth method, Equivalent annual cost method, discounted
cash flow method, Depreciation and its type, depletion, Arbitration,
and break even cost analysis.

SHORT QUESTIONS (SQ-1 C to SQ-18 C)

SOLVED PAPERS (2013-14 TO 2019-20) (SP-1 C to SP-39 C)

KCE 503 QUANTITY ESTIMATION AND CONSTRUCTION MANAGEMENT

(L-T-P 3-1-0) Credit – 4

Course Outcomes:

After completion of the course student will be able to:

CO-1 Understand the importance of units of measurement and preliminary estimate for administrative approval of
projects.
CO-2 Understand the contracts and tender documents in construction projects.
CO-3 Analyze and assess the quantity of materials required for civil engineering works as per specifications.
CO 4 Evaluate and estimate the cost of expenditure and prepare a detailed rate analysis report.
CO-5 Analyze and choose cost effective approach for civil engineering projects.

Unit 1
Quantity Estimation for Buildings Measurement units for various building materials,
Centreline method, Long and short wall method of estimates, Types of estimates, PWD schedule
of rate. [8]

Unit 2
Rate Analysis, Specification and Tenders Analysis of rates knowing cost of material, labour,
equipment, overheads, profit, taxes etc, Specifications – Preparation of detailed and general
specifications, Legal aspects of contracts, laws related to contracts, land acquisition, labour
safety and welfare. Different types of contracts, their relative advantages and disadvantages.
Elements of tender preparation, process of tendering, pre-qualification of contracts, Evaluation of
tenders, contract negotiation and award of work, monitoring of contract extra items. [8]

Unit 3
Elements of Management & Network Techniques Project cycle, Organization, planning,
scheduling, monitoring, updating and management system in construction, Bar charts, milestone
charts, work break down structure and preparation of networks. Network Techniques like PERT
& CPM in construction management. Project monitoring and resource allocation through
network techniques. [8]

Unit 4
Equipment Management Productivity, operational cost, owning and hiring cost and the work
motion study. Simulation techniques for resource scheduling. Construction Equipment for earth
moving, earth compaction, Hauling Equipment, Hoisting Equipment, Conveying Equipment,
Concrete Production Equipment, Tunnelling Equipment [8]

Unit 5
Project Cost Management Budgeting, Cost planning, Direct Cost, Indirect cost, Total Cost
Curve, Cost Slope. Time value of money, Present economy studies, Equivalence concept,
financing of projects, economic comparison, present worthmethod Equivalent annual cost
method, discounted cash flow method, Depreciation and its type, depletion, Arbitration, and
break even cost analysis. [8]

References:

1.Dutta, B.N., “Estimating and Costing in Civil Engineering”, UBS Publishers &
Distributors Pvt. Ltd., 2003
2.Srinath, L.S., “PERT and CPM Principals and applications” Affiliated East-West Press Pvt.
Ltd., New Delhi.
3.Patil, B.S., “Civil Engineering Contracts and Estimates” University Press India, Pvt. Ltd.
Hyderabad –500 004
4.Construction Management by Ojha
5.Srivastava, U.K., “Construction Planning and Management”, Galgotia Publications Pvt. Ltd.,
New Delhi.
6.Construction Technology by Sarkar, Oxford
7.Delhi Schedule of Rates (latest version)
Quantity Estimation & Management 1–1 C (CE-Sem-5)

1 Quantity Estimation
for Buildings

Part-1 ............................................................................ (1–2C to 1–17C)

• Measurement Units for Various Building Materials

• Centre Line Method
• Long and Short Wall Method of Estimates
• PWD Schedule Rate
• Delhi Schedule Rate

A. Concept Outline : Part-1 ............................................................. 1–2C

B. Long and Medium Answer Type Questions ............................... 1–2C
Quantity Estimation for Buildings 1–2 C (CE-Sem-5)

PART-1
Measurement Units for Various Building Materials, Centre Line
Method, Long and Short Wall Method of Estimates,
PWD Schedule Rate, Delhi Schedule Rate.

CONCEPT OUTLINE : PART-1

Types of Estimate :
i. Approximate estimates
ii. Detailed estimates.
Method of Estimation : There are two methods for civil work
estimation :
i. Center line method.
ii. Long and short wall method.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 1.1. What is estimation ? What is the purpose of estimation ?

Answer
Estimation : It is the process which guides us to determine the cost,
quantity, tools, plants and labours which are needed to complete the
project with in time of completion.
Purpose of Estimation : Following are the purposes of estimation :
1. To give a Reasonably Accurate Idea of the Cost : An estimate is
necessary to give the owner a reasonably accurate idea of the cost to
help him decide whether the work can be undertaken as proposed or
not, depending upon the availability of funds.
2. Estimating Materials : From the estimate of a work it is possible to
determine what materials (and in what quantities) will be required for
the work so that arrangements to procure them can be made.
3. Estimating Labour : The number and kind of workers of different
categories who will have to be employed to complete the work in the
specified time can be found out from the estimate.
4. Estimating Plant : An estimate will help in determining the amount
and kind of equipment needed to complete the work.
Quantity Estimation & Management 1–3 C (CE-Sem-5)

5. Estimating Time : The estimate of a work and past experience enable

one to estimate quite closely the length of time required to complete an
item of work or the work as a whole.

Que 1.2. Describe the types of estimates.

Answer
Types of Estimates : Estimates can be grouped into two main categories :
A. Approximate Estimates : An approximate estimate is an approximate
or rough estimate prepared to obtain an approximate cost in a short
time.
B. Detailed Estimates :
1. A detailed estimate of the cost of a project is prepared by determining
the quantities and costs of everything that a contractor is required to
provide and do for the satisfactory completion of the work.
2. It is the best and most reliable form of estimate.
3. A detailed estimate may be prepared in the following two ways :
i. Unit-quantity Method :
a. In the unit-quantity method, the work is divided into as many
operations or items as are required.
b. A unit of measurement is decided.
c. The total quantity of work under each item is taken out in the
proper unit of measurement.
d. The total cost per unit quantity of each item is analysed and worked
out.
e. Then the total cost for the item is found by multiplying the cost
per unit quantity by the number of units.
f. This method has the advantage that the unit costs on various jobs
can be readily compared and that the total estimate can easily be
corrected for variations in quantities.
ii. Total-quantity Method : In this method, an item of work is divided
into the following five subdivisions :
a. Materials,
b. Labour,
c. Plant,
d. Overheads, and
e. Profit.
The total quantities of each kind or class of material or labour are
found and multiplied by their individual unit cost. Similarly, the cost of
plant, overhead expenses and profit are determined.
Quantity Estimation for Buildings 1–4 C (CE-Sem-5)

Que 1.3. What are the main steps in preparation of estimate ?

Answer
Following are the steps in the preparation of an estimate :
1. Taking Out Quantities :
i. In the first step of taking out quantities, the measurements are taken
off from the drawings and entered on measurement sheet or dimension
paper.
ii. The measurements to be taken out would depend upon the unit of
measurement. For example, in the case of stone masonry length,
thickness and height of the walls would be entered on the measurement
sheet, whereas, in the case of plastering only the lengths and height of
the walls would be entered.
2. Squaring Out : The second step consists of working out volumes,
areas and so on, and casting up their total in recognised units.
3. Abstracting :
i. In the third step, all items along with the net results obtained in the
second step are transferred from measurement sheets to specially
ruled sheets having rate column ready for pricing.
ii. The second and third steps above are known as ‘working up’.
All calculations in these stages and every entry transferred should be
checked by another person to ensure that no mathematical or copying
error occurs.

Que 1.4. What are the principles of deciding unit of

measurement ?

Answer
Following are the principles of selection of unit of measurement :
1. The unit of measurement should be simple and convenient to measure,
record and understand.
2. It should be one which provides for fair payment for the work involved.
3. In the result it should yield quantities which are neither too minute nor
too large.
4. The price per unit should not be a very small figure or a very large one,
that is, generally costlier items will be measured in smaller units, cheaper
ones in larger units.
5. The unit of measurement may sometimes depend upon the unit for the
raw material and/or labour and/or important dimensions. For example,
stone masonry is measured in cubic metres because raw materials are
measured in cubic metres. Plastering or pointing is measured in square
metres as the labour is considerable.
Quantity Estimation & Management 1–5 C (CE-Sem-5)

Que 1.5. What are item of works ? Write the units required to
measure them.

Answer
Items of Works : Following are the main items of works and their
measure units :
1. Earthwork : Earthwork in excavation and earthwork in filling are
usually taken out separately under different items and quantities are
calculated in m3.
2. Concrete in Foundation : The concrete is taken out in m3 by length
× breadth × thickness. The length and breadth of foundation concrete
are usually the same as for excavation only the depth or thickness
differs.
3. Soiling : When the soil is soft or bad, one layer of dry brick or stone
soling is applied below the foundation concrete. The soling layer is
computed in m2 (length × breadth) specifying the thickness.
4. Damp Proof Course (DPC) : It is usually of 2.5 cm thick rich cement
concrete 1 : 1.5 : 3 or 2 cm thick rich cement mortar 1 : 2, mixed with
standard water proofing material is provided at the plinth level to full
width of plinth wall and the quantities are computed in m2 (length ×
breadth).
5. Masonry : It is computed in m3 (L × B × H). Foundation and plinth
masonry is taken under one item, and masonry in superstructure is
taken under a separate item.

Que 1.6. What are the various method of estimation ? Explain in

brief.
OR
What are the different methods of estimation ? Which method you
adopt for octagonal bay front building ?

Answer
Methods of Estimation for Building Works : The estimation of
building quantities like earth work, foundation concrete, brickwork in
plinth and superstructure etc. can be worked out by long wall-short wall
method and center line method.
1. Long Wall-Short Wall Method :
i. In this method, the wall along the length of room is considered to be long
wall while the wall perpendicular to long wall is said to be short wall.
ii. To get the length of longwall or shortwall, calculate first the centre line
lengths of individual walls. Then the length of long wall (out to out) may
be calculated after adding half breadth at each end to its centre line
length.
Quantity Estimation for Buildings 1–6 C (CE-Sem-5)

iii. Thus the length of short wall measured in to in and may be found by
deducting half breadth from its centre line length at each end.
iv. The length of long wall usually decreases from earth work to brick work
in super structure while the short wall increases. These lengths are
multiplied by breadth and depth to get quantities.
2. Centre Line Method :
i. This method is suitable for walls of similar cross sections. Here the total
centre line length is multiplied by breadth and depth of respective item
to get the total quantity at a time.
ii. When cross walls or partitions or verandah walls join with main wall,
the centre line length gets reduced by half of breadth for each junction.
iii. Such junction or joints are studied carefully while calculating total centre
line length. The estimates prepared by this method are most accurate
and quick.
iv. Center line method is suitably used for estimating circular, rectangular,
hexagonal, octagonal etc., shaped building
3. Partly Centre Line and Partly Cross Wall Method :
i. This method is adopted when external (i.e., around the building) wall is
of one thickness and the internal walls having different thicknesses. In
such cases, centre line method is applied to external walls and long wall-
short wall method is used to internal walls.
ii. This method suits for different thicknesses walls and different level of
foundations. Because of this reason, all Engineering departments are
practicing this method.

Que 1.7. Calculate the earthwork in excavation of foundation

for a room of internal size 5 m × 4 m with 300 mm thick walls, the
width and depth of the foundation being 900 mm and 900 mm
respectively.

Answer
3.50 m.

30 cm

60 cm 40 GL
30 cm 50
30 cm 60
30 cm
90 Section on AB and CD
Quantity Estimation & Management 1–7 C (CE-Sem-5)

D
30 cm

c/c 4.30 m
4.00 m
A B

30 cm
30 cm

5.00 m

c/c 5.30 m 30 cm

C
Plan of superstructure wall
Fig. 1.7.1.
1. The length of long wall centre to centre
= 5.00 + 1/2 × 0.30 + 1/2 × 0.30 = 5.30 m
2. The length of short wall centre to centre
= 4.00 + 1/2 × 0.30 + 1/2 × 0.30 = 4.30 m
Item Particular of Height
No. Items No. Length Breadth or Quantity Explanatory note
Depth cum
1. Earthwork in
Excavation in
Foundation
Long walls ... 2 6.20 m 0.90 m 0.90 m 10.04 Length = 5.30 + 0.90 = 6.20 m
Short walls ... 2 3.40 m 0.90 m 0.90 m 5.51 Breadth = 4.30 – 0.90 = 3.40 m

Total 15.55 m3
2. Concrete in
Foundation Length same as
Long walls ... 2 6.20 m 0.90 m 0.30 m for excavation
Short walls ... 2 3.40 m 0.90 m 0.30 m 1.83 Quantity = 1/3 of excavation

Total 5.18 m3
3. Brickwork in
Foundation
and Plinth
Long walls
1st footing ... 2 5.90 m 0.60 m 0.30 m 2.13 Length = 5.30 + 0.60 = 5.90 m
2nd footing ... 2 5.80 m 0.50 m 0.30 m 1.74 Length = 5.30 + 0.50 = 5.80 m
Plinth walls ... 2 5.70 m 0.40 m 0.60 m 2.74 Length = 5.30 + 0.40 = 5.70 m
Short walls
1st footing ... 2 3.70 m 0.60 m 0.30 m 1.33 Length = 4.30 – 0.60 = 3.70 m
2nd footing ... 2 3.80 m 0.50 m 0.30 m 1.14 Length = 4.30 – 0.50 = 3.80 m
Plinth walls ... 2 3.90 m 0.40 m 0.60 m 1.87 Length = 4.30 – 0.40 = 3.90 m

4.
Total 10.95 m3
Brickwork in
Superstructure
Long walls ... 2 5.60 m 0.30 m 3.50 m 11.76 Length = 5.30 + 0.30 = 5.60 m
Short walls ... 2 4.00 m 0.30 m 3.50 m 8.40 Length = 4.30 – 0.30 = 4.00 m

Total 20.16 m3
Quantity Estimation for Buildings 1–8 C (CE-Sem-5)

Que 1.8. Estimate by centre line method the quantities of the

following items of a single room building as shown in Fig. 1.7.1.
1. Earthwork in excavation in foundation,
2. Concrete in foundation,
3. Brickwork in foundation and plinth, and
4. Brickwork in superstructure.

Answer

1. Total centre length of walls = AB + BC + CD + DA = 5.30 + 4.30 + 5.30

+ 4.30 = 19.20 m Fig. 1.8.1 represents the foundation trench plan.
2. If the total centre length is multiplied by the breadth and the depth, we
get the quantity of earthwork in excavation. By doing so we take
certain portion twice and leave an equal portion but this does not affect
the quantity.
3. The quantity of excavation = AB × 90 cm × 90 cm + BC × 90 cm × 90 cm
+ CD × 90 cm × 90 cm + DA × 90 cm × 90 cm.
4. It may be noticed that the portions P, Q, R and S marked with double
hatch lines come twice while the portions K, L, M, N left blank do not
come at all, but these portions being equal in magnitude, we get the
correct quantity.
5. The same principle applies to foundation concrete, footings, plinth wall
and superstructure wall.

K L
90 cm
A B
P Q
4.30 m. c/c

90 cm 90 cm
S R
D C
90 cm
N M
5.30 m. c/c
Fig. 1.8.1.
Quantity Estimation & Management 1–9 C (CE-Sem-5)

Details of Measurement and Calculation of Quantities :

Item Description of Height

No. items No. Length Breadth or Depth Quantity Explanatory note
cm (cm) m2

1. Earthwork in
Excavation in
Foundation 1 19.20 m 90 cm 90 cm 15.552 m2 Total centre length of all
walls = 19.20 m
2. Concrete in
Foundation 1 19.20 m 90 cm 30 cm 5.184 m2

3. Brickwork in
Foundation
and Plinth
1st footing 1 19.20 m 60 cm 30 cm 3.456
2nd footing 1 19.20 m 50 cm 30 cm 2.88
Plinth walls 1 19.20 m 40 cm 60 cm 4.608
Total 10.44 m2
4. Brickwork in
...
Superstructure 1 19.20 m 30 cm 3.50 cm 20.16 m2 Door and window opening,
lintels, etc. to be deducted.

Que 1.9. Prepare a detailed estimate of part of a wall of a building

from the given plan and section and general specifications
Fig. 1.9.1.

Answer

A. General Specifications :
1. Foundation concrete shall be of lime concrete.
2. Foundation and plinth shall be of Ist class brickwork in lime mortar.
3. Damp proof course : 2.5 cm thick and ratio of concrete 1 : 1.5 : 3 with
water proofing compound.
4. Superstructure : Ist class brickwork in lime mortar.
5. Wall finishing : Inside wall 12 mm cement plastered 1 : 6 and white
washed 3 coats.
6. Outside wall 12 mm cement plastered 1 : 6 including 10 cm below
ground level and finished with two coats of colour wash over one coat
of white washing.
Quantity Estimation for Buildings 1–10 C (CE-Sem-5)

3.50 m
Outside Inside

Superstructure
wall
30
2.5 cm DPC cm
Plinth level

Plinth 40 60 cm
GL cm
20 cm
2nd footing 50 cm 20 cm
Ist footing 60 cm 20 cm
Lime conc 30 cm

80 cm 57

(a) Cross section

40 cm 30 cm

6.00 m
(b) Plan
Fig. 1.9.1. Plan and cross-section of the wall
with standard modular brick.
Quantity Estimation & Management 1–11 C (CE-Sem-5)

B. Details of Measurement and Calculation of Quantities :

Item Description of Height Quantities

No. items of work No. Length Breadth or or Total
Depth contents quantities
1. Earthwork in Excavation
in Foundation 1 6.00 m 0.80 m 0.90 m 4.32 4.32 cu m
2. Lime Concrete in
Foundation 1 6.00 m 0.80 m 0.30 m 1.44 1.44 cu m

3. Ist Class Brickwork in

Lime Mortar in
Foundation and Plinth
1st footing ... 1 6.00 m 0.60 m 0.20 m 0.72
2nd footing ... 1 6.00 m 0.50 m 0.20 m 0.60 3.24 cu m
Plinth wall up to GL 1 6.00 m 0.40 m 0.20 m 0.48
Plinth wall above GL 1 6.00 m 0.40 m 0.60 m 1.44
4. 2.5 cm Damp Proof Course
(DPC) c.c.1 : 1.5 : 3 1 6.00 m 0.40 m — 2.4 2.4 sq. m
5. First Class Brickwork in
Lime Mortar for
Superstructure 1 6.00 m 0.30 m 3.50 m 6.3 6.3 cu m
6. 12 mm Plaster of Cement
Sand 1:6 —
Inside 1 6.00 m — 3.50 m 21.0
Outside Including 10 cm 46.2 sq m
below GL 1 6.00 m — 4.2 m 25.2
7. White Washing Three
Coats (inside) 1 6.00 m — 3.50 m 21.0 21.0 sq m
8. Colour Washing Two
Coats over One Coat of
White Washing (outside
above GL) 1 6.00 m — 4.10 m 24.6 24.6 sq m

Que 1.10. How do you account for deductions for openings in the
wall ?

Answer
A. No Deduction : No deduction is made for the following :
1. Opening each up to 1000 sq cm or 0.1 sq m (1 sq ft).
2. Ends of beams, posts, rafters, purlins, etc. upto 500 sq cm or 0.05 sq m
in section.
3. Bed plate, wall plate, bearing of chajjas and the like upto 10 cm (4)
depth.
Bearings of floor and roof slabs are not deducted from wall masonry.
B. Deduction for Different Structure : Openings deductions are made
in the following manner :
1. Rectangular Openings : Full deduction is made.
Deduct = l × h × thickness of wall.
Quantity Estimation for Buildings 1–12 C (CE-Sem-5)

l
Fig. 1.10.1.
2. Doors and Windows with Small Segmental Arches :
i. Deduction is made for rectangular portion only up to the springing.
ii. The segmental portion is considered as solid to allow for the extra
expense in constructing the arch, and the filling up with thin wall.
Deduction = l × h × thickness of wall.

l
Fig. 1.10.2.

3. Segmental Arch Openings :

i. Deduction is made for the whole opening, the rectangular portion as
well as the segmental portion.

2 r3
The area of segmental portion = lr 
3 2l
ii. But for deduction, the area of the segmental portion is obtained
approximately by taking 2/3 of span × rise, (2/3 × l × r) and the quantity
2
for deduction is × l × r × thickness of wall. (r3 / 2l being small is
3
neglected for simplicity.)

 2 
iii. The total deduction will be =  (l  h)    l  r   × thickness of wall.
 3 
4. Semi-circular Arch Openings :
i. The area of semi-circular portion = 1/2  r2.
ii. But for the deduction, the area of the semi-circular portion is obtained
approximately by 3/4 of span × rise, (3/4 × l × r).
iii. The total deduction will be = [(l × h) + (3/4 × l × r)] × thickness of wall.
iv. Elliptical arches may be considered as semi-circular arches and may be
dealt in the same manner.
Quantity Estimation & Management 1–13 C (CE-Sem-5)

r Rise

l
Fig. 1.10.3.
5. For Large Arches : The actual area of opening should be calculated
correctly by Mensuration formulae, and deduction should be made for
actual area.
r

l
Fig. 1.10.4.
6. Arch Masonry Work :
i. Masonry work in arches is calculated in cu m separately by multiplying
the mean length of the arch by the thickness of arch and by the breadth
of the wall.
lm
t

s
Fig. 1.10.5.
ii. Quantity of arch masonry = lm × t × thickness of wall.
iii. Deduction = lm × t × thickness of wall.
7. Lintels over Openings :
i. Lintels are either of RCC or of RB, quantities are calculated in cu m.
ii. Length of the lintel is equal to the clear span plus two bearings. If
dimension of bearing is not given the bearing may be taken as same as

the thickness of lintel with a minimum of 12 cm (4 12  ) .

iii. Thus the length of the lintel, l= s + 2t, i.e., clear span plus two bearings.
iv. Quantity of lintel = l × t × thickness of wall.
v. Deduction = l × t × thickness of wall.
Quantity Estimation for Buildings 1–14 C (CE-Sem-5)

l
t

s
Fig. 1.10.6.

Que 1.11. Estimate by centre line method the quantities of the

following items of a two roomed building as shown in Fig. 1.11.1.
Two Roomed Building

30 cm
W W
S

A A

6.00 m
W

Room 4 m × 6 m

W
Room 6 m × 6 m
S
30 cm

30 cm
30 cm

4.00 m 6.00 m
D D
30 cm

(a) Plan
7.5 cm LC Terrace over 13 cm RCC

All walls are of same section

Lintels over doors. Windows and
4.20 m

Shelves are 15 cm thick RB

30 cm

2 cm DPC
2.5 cm cc Over 7.5 cm LC

40 60 cm
G L
cm 20 cm Doors D-1.20 m × 2.10 m
50 cm 10 cm Windows W-1.00 × 1.50 m
60 cm 10 cm Shelves S-1.00 m × 1.50 m
70 cm 80 cm 10 cm
20 cm
30 cm
1.10 m Lime concrete
(b) Cross-section of wall on AA
Fig. 1.11.1.
Quantity Estimation & Management 1–15 C (CE-Sem-5)

1. Earthwork in excavation in foundation,

2. Lime concrete in foundation,
3. Ist class brickwork in cement mortar 1 : 6 in foundation and
plinth,
4. 2.5 cm c.c. damp proof course, and
5. Ist class brickwork in lime mortar in superstructure.

Answer
1. In this problem there are two junctions of the inter wall with the main
wall.
2. Total centre length of wall = 2 × c/c of long wall + 3 × c/c of short wall.
= 2 × 10.60 + 3 × 6.30 = 40.10 m

1.10 m

6.30 m c/c
1.10 m

1.10 m

1.10 m
B

1.10 m
10.60 m c/c
Fig. 1.11.2. Foundation trench plan.

3. If the total centre length is multiplied by the breadth and depth, at the
junction the portions A and B shown by hatch lines in Fig. 1.11.2 come
twice, and we get the quantity in excess by these portions, and these
excesses shall have to be deducted.
4. The deduction may be effected reducing the centre length by half
breadth for each junction.
5. Thus the quantity of earthwork in excavation :
= [Total centre length — (2 × ½ breadth)] × breadth × depth
= (40.10 – 2 × ½ × 1.10) × 1.10 × 1.00 = 39.00 × 1.10 × 1.00 = 42.9 cu m.
6. The same principle applies to foundation concrete, to footings, plinth
wall and superstructure wall.
7. At every stage deduction of half breadth of the main wall at that
particular level shall have to be made per junction (i.e. one breadth for
two junctions) from the total centre length, and this net centre length
after deduction shall be multiplied by the respective breadth and the
height of depth to get quantities.
Quantity Estimation for Buildings 1–16 C (CE-Sem-5)

8. Details of Measurement and Calculation of Quantities :

Item Particulars of Height

No. Length Breadth Quantities Explanatory
No. Items or
notes
Depth
1. Earthwork in Total centre length
Excavation in = 40.10 m
Foundation 1 39.00 m 1.10 m 1.00 m 42.90 cu m L = 40.10 – 2 × 1.10/2
2. Lime Concrete in = 39.00 m
Foundation 1 39.00 m 1.10 m 0.30 m 12.87 cu m L same as above
3. Ist Class Brickwork
in 1:6 Cement Mortar
in Foundation and
Plinth
1st footing ... 1 39.30 m 0.80 m 0.20 m 6.29 L = 40.10 – 2 × 0.80/2
= 39.30 m
2nd footing ... 1 39.40 m 0.70 m 0.10 m 2.76 L = 40.10 – 2 × 0.70/2
= 39.40 m
3rd footing ... 1 39.50 m 0.60 m 0.10 m 2.37 L = 40.10 – 2 × 0.60/2
= 39.50 m
4th footing ... 1 39.60 m 0.50 m 0.10 m 1.98 L = 40.10 – 2 × 0.50/2
= 39.60 m
4. Plinth Wall above 1 39.70 m 0.40 m 0.80 m 12.70 L = 40.10 – 2 × 0.40/2
Footing Total 26.10 = 39.70 m
cu m
5. Damp Proof Course 1 39.70 m 0.40 m — 15.88 L = 40.10 – 2 × 0.40/2
2.5 cm cc = 39.70 m
6. Deduct Door Sill 2 1.20 m 0.40 m — 0.96
Net 14.92
cu m
7. Ist Class Brickwork 1 39.80 m 0.30 m 4.20 m 50.15 L = 40.10 – 2 × 0.30/2
in Lime Mortar in = 39.80 m
Superstructure
8. Deduct Door, 1 Same as per detail in 4.40 Deduction to be made
Window, Shelve page as usual.
45.75
Openings and Lintels
cu m

Que 1.12. Define task. Give the recommendations for average

work per day for various items.

Answer
Task : The capacity of doing work by an artisan or skilled labour in the
form of quantity of work per day in known as the task-work or out-
turn of the labour.
Quantity Estimation & Management 1–17 C (CE-Sem-5)

S. No. Particulars of Items Quantity Per Day

1. Brickwork in lime or cement 1.25 cu m (45 cu ft) per mason

mo rtar in fo und ation and
plinth.
2. -Do- in superstructure. 1.00 cu m (35 cu ft) per mason
3. Brickwork in mud mortar in 1.50 cu m (55 cu ft) per mason
foundation and plinth.
4. -Do- in superstructure. 1.25 cu m (45 cu ft) per mason
5. Brick in cement or lime mortar 0.55 cu m (20 cu ft) per mason
in arches.
6. -Do- in jack arches. 0.55 cu m (20 cu ft) per mason
7. Half brick wall in partition. 5.00 sq m (50 sq ft) per mason

8. Lime concrete in foundation or 8.50 cu m (300 cu ft) per mason

floor.
9. Lime concrete in roof terracing. 6.00 cu m (200 cu ft) per mason
10. Cement concrete 1 : 2 : 4 5.00 cu m (175 cu ft) per mason
11. RB work 1.00 cu m (35 cu ft) per mason
12. RCC work 3.00 cu m (125 cu ft) per mason
13. 12 mm (1/2) plastering with 8.00 sq m (80 sq ft) per mason
cement or lime mortar.
14. Wh ite w ash ing or c olo ur 70.00 sq m (700 sq ft) per white washer
washing three coat.
15. Wh ite w ash ing or c olo ur 200.0 sq m (2000 sq ft) per white washer
washing one coat.
16. Earthwork in excavation in 3.00 cu m (100 cu ft) per belder mazdoor
ordinary soil.
17. Earthwork in excavation in 2.00 cu m (75 cu ft) per belder mazdoor
hard soil.
18. Excavation in rock. 1.00 cu m (35 cu ft) per belder mazdoor
19. Sand filling in plinth. 4.00 cu m (140 cu ft) per belder mazdoor
20. Number of bricks laid by a 600 bricks per mason
mason in brickwork upto a
height of 3 m (10)
21. Amount of work done by a
mazdoor (helper) per day :
i. Mix 3 cu m (100 cu ft) mortar per mazdoor
ii. Deliver brick 4000 nos. to a distance of 15 m
(50) per mazdoor
iii. Deliver mortar 5.5 cu m (200 cu ft) per mazdoor
Quantity Estimation for Buildings 1–18 C (CE-Sem-5)

VERY IMPORTANT QUESTIONS

Following questions are very important. These questions
may be asked in your SESSIONALS as well as
UNIVERSITY EXAMINATION.

Q. 1. What do you understand by items of works ? Explain the

units required to measure them.
Ans. Refer Q. 1.5, Unit-1.

Q. 2. What are the various methods of estimation ? Explain in

brief.
Ans. Refer Q. 1.6, Unit-1.

Q. 3. Calculate the earthwork in excavation of foundation for a

room of internal size 5m × 4m with 300 thick walls, the
width and depth of the foundation being 900 mm and 900
mm respectively.
Ans. Refer Q. 1.7, Unit-1.

Q. 4. How do you account for deductions for openings in the

wall ?
Ans. Refer Q. 1.10, Unit-1.

Q. 5. Describe the types of estimates.

Ans. Refer Q. 1.2, Unit-1.


Quantity Estimation & Management 2–1 C (CE-Sem-5)

2 Analysis of Rates,
Specification
and Tenders

Part-1 ............................................................................ (2–2C to 2–11C)

• Analysis of Rates Knowing Cost of Material

• Labour • Equipment • Overhead
• Profit • Taxes etc

A. Concept Outline : Part-1 ............................................................. 2–2C

B. Long and Medium Answer Type Questions ............................... 2–2C

Part-2 .......................................................................... (2–12C to 2–18C)

• Specification
A. Concept Outline : Part-2 .......................................................... 2–12C
B. Long and Medium Answer Type Questions ............................ 2–12C

Part-3 .......................................................................... (2–19C to 2–28C)

• Legal Aspect of Contracts • Law Related to Contracts

• Land Acquisition • Labour Safety and Welfare
• Different Type of Contract Their Relative Advantages and Disadvantages

A. Concept Outline : Part-3 .......................................................... 2–19C

B. Long and Medium Answer Type Questions ............................ 2–19C

Part-4 .......................................................................... (2–28C to 2–35C)

• Process of Tendering • Pre-qualification of Contracts

• Evaluation of Tenders • Contract Negotiation and Award of Work
• Monitoring of Contract Extra Items

A. Concept Outline : Part-4 .......................................................... 2–28C

B. Long and Medium Answer Type Questions ............................ 2–28C
Analysis of Rates, Specification & Tenders 2–2 C (CE-Sem-5)

PART-1
Analysis of Rates Knowing Cost of Material, Labour,
Equipment,Overhead, Profit, Taxes etc.

CONCEPT OUTLINE : PART-1

Analysis of Rates : It is the study of principal rule played by various
constituents, elements of construction such as equipment, cost of
labour, number of equipment, etc.
Factors : Factors affecting rate of an item :
i. Locality and situation.
ii. Size and extent of work.
iii. Nature of project.
iv. Environment and climatic condition.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 2.1. What do you understand by ‘analysis of rates’ ? What

are purposes of rate of analysis ?

Answer
1. The method of determination of rate per unit of a particular item of
work considering the cost of quantities of materials, the cost of labours,
hire of tools and plants, overhead charges, water charges, contractors
profit etc., is known as rate analysis or analysis of rate.
2. Rates of materials are usually taken as the rates delivered at the site of
work and include the first cost (cost at origin), cost of transport, railway
freight (if any), taxes etc.
3. If the materials are to be carried from a distant place, more than 8 km,
additional cost of transport may be added.
4. A contractor’s profit is added on all items of the particular work which
have been arranged by him.
Purposes of Rate Analysis : The purposes of rate analysis are as
follows :
1. To determine the current rate per unit of an item of work at the locality.
2. To examine the viability of rates quoted by contractors.
Quantity Estimation & Management 2–3 C (CE-Sem-5)

3. To ascertain the quantity of materials and labour strengths required to

complete the project.
4. To revise the schedule of rates due to increase in the cost of materials
and labour or due to changed situations.

Que 2.2. Give the factors which affect the analysis of rates.

Answer
Factors Affecting Rate Analysis : Followings are the factors that
affect the rate of a particular item of work :
1. Specifications of works and materials, quality of materials, proportion of
mix, method of constructional operation etc.
2. Quantities of materials and their rates.
3. Number of different types of labour and their rates.
4. Location of site of work and its distance from the sources of materials
and rates of transport.
5. Availability of water.
6. Miscellaneous and overhead expenses of contractor.
7. Site conditions and the organizations.

Que 2.3. Discuss in detail procedure to fix up rates per unit of an

item.

Answer
1. The following information are required to fix up the rate for unit of an
item :
i. Out-turn or Task.
ii. Estimation of labour.
iii. Materials for different items of work.
iv. Current rate of materials.
v. Current rate of labour of different categories.
2. The analysis of rate is done for unit quantity of an item of work.
3. Details of various materials and labour are worked out and added together
to get the total cost of materials and labour.

1
4. This will also include miscellaneous and T and P cost. To this 1
% of it
2
is added for water charge (only in those items which require water in
any way). 10 % contractor’s profit is also added.
5. The summation all these costs is known as rate of unit quantity of an
item.
Analysis of Rates, Specification & Tenders 2–4 C (CE-Sem-5)

6. Mathematically :
i. Let cost of materials for unit item = x
ii. Let cost of labourers, T and P and sundries = y
iii. Cost of material and labour = (x + y)
1 1.5
iv. Add 1 % for water charge = ( x  y)
2 100
 1.5 10 
v. Total cost with contractor profit (= 10 %) = ( x  y)  1   
100 100 
vi. Rate for unit of the item = 1.115 (x + y)

Que 2.4. Explain the labour requirement for different works

according to National Building Code.

Answer
A. Earthwork per 28.30 cu m (1000 cu ft) :
1. Excavation in foundations, trenches, etc. in ordinary soil including disposal
up to 30 m (100) and lift of 1.5 m (5 ft) – 5 Beldars and 4 Mazdoors can
do 28.30 cu m (1000 cu ft) per day.
2. Refilling excavated earth in foundations, plinth, etc., including
consolidation in 15 cm (6”) layers – 3 Beldars, 2 Mazdoors and 1/2 Bhishti
can do 28.30 cu m (1000 cu ft) per day.
3. Disposal of surplus earth within a lead of 30m (100) – 1 Mazdoor can do
2.83 cu m (100 cu ft) per day.
B. Cement Concrete Work per 2.83 cu m (100 cu ft) :
Laying cement concrete – 2 Beldars, 3 Mazdoors, 3/4 Bhishti and 1/4
Mason can do 2.83 cu m (100 cu ft) per day.
C. RCC Work :
1. Laying reinforced concrete – 3 Beldars, 3 Mazdoors, 1.1/3 Bhishti and
1/2 Mason can do 2.83 cu m (100 cu ft) per day.
2. Centering and shuttering for flat surfaces – 4 Beldars and 4 Carpenters
(II class) can do 9.6 sq m (96 sq ft) per day.
3. Reinforcement work for R.C.C. – 1 Blacksmith or fitter and 1 Beldar can
bend and place in position 1 quintal (2 cwt) of steel per day.
D. Stone Work per 2.83 cu m (100 cu ft) :
Random rubble masonry with blue stone in foundations – 3 Masons, 3
Beldars, 2 Mazdoors and 1/4 Bhishti can do 2.83 cu m (100 cu ft) per day.
E. Brickwork per 2.83 cu m (100 cu ft) :
First class brickwork in 1 : 4 cement mortar in superstructure partition
walls, junctions of roof, parapet walls and string course – 2 14 A Masons,

4 12 Mazdoors and 1/2 Bhishti can do 2.83 cu m (100 cu ft) per day.
Quantity Estimation & Management 2–5 C (CE-Sem-5)

F. Wood Work :
1. For the frames of doors and windows – 2 Carpenters and 1 Beldar can
work 0.18 cu m (6.40 cu ft) of wood equivalent to 4 door frames 7.5 cm ×
10 cm of 1.2m × 2.1 m (3 × 4 of 3 – 11 × 7) size per day.
2. For panelled, glazed, etc., shutters – 15 Carpenters and 4 Beldars can

make and fix 4 shutters 40 mm thick of size 2.00 in × 1.15 m ( 1 1  thick

2
of size of 6– 9 × 3– 9) per day. Quantity of wood per shutter – 0.075
cu m, i.e., 2.66 cu ft.
G. Iron Work :
1. Fixing 40 mm × 3 mm × 38 cm ( 1 12 × 1/8 × 15) flat iron holdfasts – 1
Blacksmith (II class),
1 Mason and 1 Beldar can fix 36 holdfasts per day.
2. Fixing 16 mm dia (5/8 dia.) M.S. rods – 1 Blacksmith (II class), 2
Carpenters (II class) and 3 Beldars can fix 16.5 m (54 r ft) per day.

H. Flooring : 4 cm (1 12  ) thick cement concrete flooring of 40 sq m (400

sq-ft) require – 5 Masons, 4 Beldars, 3 Mazdoors and 1 Bhishti per day
for mixing, laying and finishing.
I. Finishing :
1. Plastering with any mortar 12 mm (1/2) thick – 3 Masons, 3 Mazdoors
and 1 Bhishti can plaster 40 sq m (400 sq ft) per day.
2. White washing or colour washing (3 coats) – 1 White washer and 1
Mazdoor can do 60 sq m (600 sq ft) per day.
3. Painting two coats such as chocolate; red, grey, etc., on wood or steel –
3 Painters and 2 Mazdoors can paint 10 sq m (100 sq ft) per day.

Que 2.5. Calculate the rate of M15 grade concrete used in slabs of
a single storied building.

Answer
1. In the analysis of rates per cum, at first a volume of 10 cum (set volume)
has been considered to avoid one place of decimal.
2. 1 cum of set volume of concrete corresponds to 1.54 cum of dry volume
of concrete.
3. Therefore for 10 cum of set volume = 15.4 cum of dry volume.
Ratio of proportion in M20 is 1 : 2 : 4
Summation of proportions =1 + 2 + 4 = 7
15.4
4. Cement = = 2.2 cum = 66 bags ( 1 cum cement = 30 bags of
7
cement)
Sand = 2.2 × 2 = 4.4 cum
Stone chips = 2.2 × 4 = 8.8 cum.
Analysis of Rates, Specification & Tenders 2–6 C (CE-Sem-5)

4. Reinforcement steel for RCC for beams and slabs @ 1 % of volume of

concrete and for columns @ 2 % of volume of concrete.
1 cum steel = 78.5 quintals.
To note :
i. If cement and steel are supplied by the department, 10 % contractor’s
profit should not be added on the cost of these materials but the cost of
transport from godown to worksite may be added.
ii. If concrete mixer is employed for mixing concrete, hiring and running
charges may be added @ Rs. 100 per cum and labour may be reduced @
2 beldars per 10 cum.
iii. Rate of bending, cranking and binding with steel wires may be taken as
Rs. 150 per quintal.
iv. Rate of centering and shuttering may be taken as Rs. 200 per cum of
RCC work.
v. For each additional storey the strength of mazdoors may be increased
@ 6 nos per 10 cum. All India standard schedule of rates provides an
increase of rate by 1 % per floor per cum for lifting the materials assuming
each floor to be an average of 3 m.
Particulars Quantity or Rate Cost
Nos for 10 cum (Rs.) (Rs.)
a. Materials :
Stone chips 20 mm 8.80 cu m 600.00 per cu m 5280.00
Coarse sand 4.40 cu m 275.00 per cu m 1210.00
Cement (2.2 cum) 66 bags 135.00 per bag 8910.00
b. Labour :
Head mason 1/2 no. 100.00 per day 50.00
Mason 3 nos. 90.00 per day 270.00
Mazdoor 12 nos. 50.00 per day 600.00
Bhisti 6 nos. 50.00 per day 300.00
Woman coollies 20 nos. 40.00 per day 800.00
Sundries T and P Lumpsum 50.00 (LS) 50.00
Scaffolding Lumpsum 400.00 (LS) 400.00
Total cost of materials and labour 17870.00
c. Add water charge @ 1 ½ % of (a + b) 268.05
d. Contractor’s profit @ 10 % of (a + b) 1787.00
Grand Total for 10 cu m = Rs. 19,925.05

19,925.05
 Rate per cu m = = Rs. 1992.505
10
Quantity Estimation & Management 2–7 C (CE-Sem-5)

Que 2.6. Calculate the quantity and rate for 25 mm thick DPC.

Answer
1. The quantity of cement concrete may be calculated by multiplying the
area of DPC by the thickness and the quantity of each material may be
calculated as :
2. For 2.5 cm cement concrete DPC for 100 m2 of area, the quantity of
cement concrete = 100 × 0.025 = 2.5 m3
Add 10 % extra for unevenness of base concrete = 2.5 + 0.25 = 2.75 m3
3. For 2.5 cm thick DPC of 1 :1.5 : 3 proportion, for 100 m2 total dry volume
of materials 2.75 + 50 % = 2.75 + 1.375 = 4.125 m3
4.125
4. Therefore cement = 0.75 m3 = 22.5 bags
1  1.5  3
5. Quantity of sand = 0.75 × 1.5 = 1.13 m3
6. Quantity of stone aggregate = 0.75 × 3 = 2.25 m3
25 mm thick cement concrete 1 : 1.5 : 3 damp proof course (DPC) unit
1 sq m (Take 100 sq m)
Particulars Quantity or Rate Cost
Nos (Rs.) (Rs.)
a. Materials :
Stone chips 12 mm 2.25 cu m 1900 per cu m 4275
Coarse sand 1.13 cu m 1800 per cu m 2034
Cement (22.5 bag) 0.75 cu m 9700 per cu m 7275
Cem-seal or 22.5 kg 75 per kg 1687.5
impermo (1 kg per
bag of cement)
Total 15271.5
b. Labour
Head mason 1/3 425 per day 141.7
Mason 8 400 per day 3200
Mazdoor 8 250 per day 2000
Bhisti 1 230 per day 230
From insides Lumpsum 250 (LS) 250
Sundries, T and P Lumpsum 100 (LS) 100
Total 5921.7
Total of materials and labour 21193.2
c. Add water charge @ 1 ½ % of (a + b) 318
d. Contractor’s profit @ 10 % of (a + b) 2119.32
Grand Total for 100 m2 = Rs. 23630.52
23630.52
 Rate per m2 = = Rs. 236.3052
100
Analysis of Rates, Specification & Tenders 2–8 C (CE-Sem-5)

Que 2.7. Find out rate analysis for excavation in a trench for
foundation.

Answer

Particulars Quantity Rate Cost

or nos. Rs. Rs.
Materials
Labour, etc.
Mistri (Head mason) 1/2 400.00 per day 200.00
Mazdoor (Beldar) 20 250.00 per day 5000.00
Boy or woman coolie 24 230.00 per day 5520.00
Sundries, T and P etc. Lump sum 125.00 LS 125.00
Total of materials and labour 10845.00
Add 10 % contractor’s profit 1084.50
Grand Total 11929.50
Rate per % cu m — Rs. 11930.00 for 100 cu m

1. For every additional lead of 30 m beyond 30 m — Beldar — 2 nos, Coolie

— 2 nos.
2. For every additional lift of 1.5 m beyond 1.5 m — Beldar — 2 nos, Coolie
— 2 nos.

Que 2.8. Find out rate analysis for cement concrete 1 : 4 : 8 in

foundation or floor with brick ballast 40 mm thick gauge.

Answer
To find the material for 10 m3 of concrete of 1 : 4 : 8 proportion cement
15.4 15.4
= 
148 13
= 1.18 m3, say = 1.15 m3
Therefore sand = 1.15 × 4 = 4.6 m3 and aggregate = 8 × 1.15 = 9.20 m3
Quantity Estimation & Management 2–9 C (CE-Sem-5)

Particulars Quantity or Rate Cost

Nos (Rs.) (Rs.)
a. Materials :
Brick ballast class 9.2 cu m 1000 per cu m 9200
40 mm guage
Sand (local) 4.6 cu m 1500 per cu m 6900
Cement (34.5 bag) 1.15 cu m 9700 per cu m 11155
Total 27255
b. Labour :
Head mason 1/2 no. 425 per day 212.5
Mason 3/2 no. 400 per day 600
Mazdoor 12 nos. 250 per day 3000
Boy or woman coolie 18 nos. 230 per day 4140
Bhistri (including 4 nos. 230 per day 920
curing)
Sundries, T and P Lumpsum 150 (LS) 150
Total 9022.5
Total of materials and labour 36277.5
c. Add water charge @ 1 ½ % of (a + b) 544.2
d. Contractor’s profit @ 10 % of (a + b) 3627.75
Grand Total for 10 cu m = Rs.40449.45
Rate per cu m = Rs. 40449.45/10 = Rs. 4044.945

Que 2.9. Find out rate analysis for white washing three coats for
100 sqm.

Answer
White washing three cost-unit 100 m2.
Analysis of Rates, Specification & Tenders 2–10 C (CE-Sem-5)

Particulars Quantity or Rate Cost

Nos (Rs.) (Rs.)
a. Materials :
White lime unslaked 30 kg 10 per kg 300
Glue powder Lumpsum 20 LS 20
Blue (Pigment colour) Lumpsum 18 LS 18
Total 338
b. Labour, etc.

1 3
White washer 1 no. 300 per day  300 = 450
2 2

1 3
Boy or woman coolie 1 no. 230 per day  230 = 345
2 2
Sundries, ladder, etc Lumpsum 12 LS 12
Total 807
Total of materials and labour 338 + 807 = 1145
c. Add water charge 1.5 % of (a + b) 17.175
d. Contractor’s profit @ 10 % of (a + b) 114.5
Grand Total for 100 m2 Rs. 1276.675

Que 2.10. Find out rate analysis for RB work in slab etc, 1 : 3
mortar.

Answer
Reinforced brick work (RB work) in slab, etc 1 : 3 mortar. Take
10 cu m.
Quantity Estimation & Management 2–11 C (CE-Sem-5)

Particulars Quantity or Nos Rate (Rs.) Cost (Rs.)

a. Materials :
Brick (1 class @ 450 4500 8000 % nos 36000
nos/cu m
Cement (36 bags) 1.2 cu m 9700 per cu m 11640
Sand (coarse) 3.6 cu m 1800 per cu m 6480
Mild steel rods @
0.8 % = 0.08 cu m @
78.5 q/cu m = 6.25 q 6.25 q 4200 per q 26250
Total 80370
b. Labour :
Mistri 1/2 nos. 425 per day 212.5
Mason 10 nos. 400 per day 4000
Mazdoor (beldar) 10 nos. 250 per day 2500
Boy or woman coolie 10 nos. 230 per day 2300
Bhistri 4 nos. 230 per day 920
Sundries, T and P Lumpsum 150 (LS) 150
Total 10082.5
c. Bending and
Cracking Steel
Black smith 6 nos. 300 per day 1800
Mazdoor (Beldar) 6 nos. 250 per day 1500
T and P Lumpsum 100 LS 100
Total 3400
d. Centering and
shuttering
Timber planks and
ballies Lumpsum 2000 per day 2000
Carpenter (II class) 8 nos 300 per day 2400
Mazdoor (Beldar) 8 nos 250 per day 2000
Nails Lumpsum 200 LS 200
T and P Lumpsum 100 LS 100
Total 6700
Total of materials and labour 100552.5
e. Add water charge @ 1 ½ % of (a + b + c + d) 1508.3
f. Contractor’s profit @ 10 % of (a + b + c + d) 10055.25
Grand Total 112116.05 for 10 cu m
Rate per cu m Rs. 112116.05/10 = Rs. 11211.6
Analysis of Rates, Specification & Tenders 2–12 C (CE-Sem-5)

PART-2
Specification.

CONCEPT OUTLINE : PART-2

Specification : A detailed description of the dimensions, construction,
workmanship, materials etc., of work done or to be done, prepared by
an architect engineers etc.
Type of specification : There are two types of specification :
i. General specification.
ii. Detailed specification.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 2.11. What is specification and its objects ? Also explain its
types.

Answer
Specification : A specification is a statement of particulars.
Construction specifications may be defined as written instructions
distinguishing (or limiting) and describing in detail the construction
work to be undertaken.
Objects : Following are the objects of specification :
1. Contract Document : Specifications serve as a contract document
between the owner and the contractor, limiting and describing their
responsibilities.
2. Guide to Bidders : Specifications enable the estimators of the
contractors to arrive at a fair price for the work involved.
3. Guide to Supervisors : Specifications serve as a guide for the
fabrication and installation of materials and equipment.
Types of Specification : Following are the two types of specification :
1. General Specifications :
i. In general specifications, nature and class of works and names of
materials that should be used are described.
ii. Only a brief description of each and every item is given. It is useful for
estimating the project.
Quantity Estimation & Management 2–13 C (CE-Sem-5)

iii. The general specifications do not form a part of contract document.

2. Detailed Specifications :
i. The detailed specifications form a part of a contract document.
ii. They specify the qualities, quantities and proportions of materials and
the method of preparation and execution for a particular item of works
in a project.
iii. The detailed specifications of the different items of the work are prepared
separately and they describe what the work should be and how they
shall be executed.
iv. While writing the detailed specifications, the same order sequence as
the work is to be carried out is to be maintained.

Que 2.12. Discuss the importance of detailed specification.

Answer
Importance of Specifications : Following are the importance of
specifications :
1. The cost of a unit quantity of work is governed by its specifications.
2. Specification of a work is required to describe the quality and quantity
of different materials required for a construction work and is one of
the essential contract documents.
3. This also specifies the workmanship and the method of doing the work.
4. A work is carried out according to its specification and the contractor is
paid for the same. Any change in specification changes the tendered
rate.
5. As the rate of work is based on the specification, a contractor can
calculate the rates of various items of works in tender with his
procurement rates of materials and labour. Thus tender rate without
specification of works is baseless, incomplete and invalid.
6. Specification is necessary to specify the equipment tools and plants to
be engaged for a work and thus enables to procure them beforehand.
7. The necessity of specification is to verify and check the strength of
materials for a work involved in a project.

Que 2.13. Write down a detailed specification of earthwork in

excavation in foundation.

Answer
Earthwork in Excavation in Foundation : Following are the points
consider in excavation in foundation :
Analysis of Rates, Specification & Tenders 2–14 C (CE-Sem-5)

1. Excavation :
i. Foundation trenches shall be dug out to the exact width of foundation
concrete and the sides shall be vertical.
ii. If the soil is not good and does not permit vertical sides, the sides
should be sloped back or protected with timber shoring.
iii. Excavated earth shall not be placed within 1 m of the edge of the
trench.
2. Finish of Trench :
i. The bottom of foundation trenches shall be perfectly leveled both
longitudinally and transversely and the sides of the trench shall be
dressed perfectly vertical from bottom up to the least thickness of
loose concrete so that concrete may be laid to the exact width as per
design.
ii. The bed of the trench shall be lightly watered and well rammed. Excess
digging if done through mistake shall be filled with concrete at the
expense of the contractor.
iii. Soft or defective spots shall be dug out and removed filled with concrete
or with stabilized soil.
iv. If rocks or boulders are found during excavation, these should be
removed and the bed of the trenches shall be leveled and made hard by
consolidating the earth.
v. Foundation concrete shall not be laid before the inspection and approval
of the trench by the engineer-in-charge.
3. Water in Foundation : Water, if any accumulates in the trench,
should be bailed or pumped out without any extra payment and
necessary precautions shall be taken to prevent surface water to enter
into the trench.
4. Trench Filling : After the concrete has been laid masonry has been
constructed the remaining portion of the trenches shall be filled up
with earth in layers of 15 cm and watered and well rammed.
5. Measurement :
i. The measurement of the excavation shall be taken in cu m (cu ft) as
for rectangular trench bottom width of concrete multiplied by the
vertical depth of foundation from ground level and multiplied, by the
length of trenches even though the contractor might have excavated
with sloping side for his convenience.
ii. Rate shall be for complete work for 30 m lead and 1.50 m lift, including
all tools and plants required for the completion of the works.
iii. For every extra lead of 30 m and every extra lift of 1.5 m separate extra
rate is provided.
Quantity Estimation & Management 2–15 C (CE-Sem-5)

Que 2.14. Write down a detailed specification of cement concrete

1 : 2 : 4.

Answer
Detailed Specification of Cement Concrete 1 : 2 : 4 : Following are
the point consider in specifications of cement concrete 1 : 2 : 4 :
1. Materials :
i. Aggregate shall be of invert materials and should be clean, dense,
hard, sound, durable, non-absorbent and capable of developing good
bond with mortar.
ii. Coarse aggregate shall be of hard broken stone of granite or similar
stone, free from dust, dirt and other foreign matters.
iii. The stone ballast shall be of 20 mm size and down and all should be
retained in a 5 mm square mesh and well graded such that the voids do
not exceed 42 per cent.
iv. For building work 20 mm gauge and for road work and mass work 40
to 60 mm gauge may be used.
v. Fine aggregate shall be of coarse sand consisting of hard, sharp and
angular grains and shall pass through screen of 5 mm square mesh.
vi. Cement shall be fresh Portland cement of standard ISI, specifications,
and shall have the required tensile and compressive stresses and
fineness.
vii. Water shall be clean and free from alkaline and acid matters and
suitable for drinking purposes.
2. Proportion :
i. The proportion of concrete shall be 1 : 2 : 4 as cement : sand : stone
ballast by volume unless otherwise specified.
ii. Minimum compressive strength of concrete of 1 : 2 : 4 proportion shall
be 140 kg per sq cm (2000 lbs/sq in) on 7 days.
iii. Stone aggregate and sand shall be measured by volume with boxes.
iv. Cement need not be measured by box, one bag of cement (50 kg)
should be considered as 1/ 30 cum.
v. Size of measured box may be 30 cm × 30 cm × 38 cm or 35 cm × 35 cm
× 28 cm equivalent to content of one bag of cement.
3. Hand Mixing :
i. Mixing shall be done in masonry platform or sheet iron tray.
ii. For concrete of 1 : 2 : 4 proportion, first two boxes of sand and one bag
of cement shall be mixed dry thoroughly and then this dry mix of
cement and sand shall be placed over a stack of 4 boxes of stone
aggregate and the whole mixed dry turning at least three times to
have uniform mix.
Analysis of Rates, Specification & Tenders 2–16 C (CE-Sem-5)

iii. Water shall then be added slowly and gradually according to water-
cement ratio with a water-can while.
iv. The whole shall be mixed thoroughly turning at least three times to
give a uniform concrete.
4. Machine mixing :
i. Stone ballast sand and cement shall be put into the cement concrete
mixer to have the required proportion.
ii. Mixer, the machine shall then be revolved to mix materials dry and
then water shall be added gradually to the required quantity.
5. Formwork :
i. Formwork centering and shuttering shall be provided as required, as
per standard specifications before laying concrete to confine to support
or to keep the concrete in position.
ii. The inner surface of shuttering shall be oiled to prevent concrete
sticking to it.
iii. The base and formwork over which concrete to be laid shall be watered
by sprinkling water before concrete is laid.
iv. Forms should not be removed before 14 days in general, side forms
may however be removed after 3 days of concreting.
6. Laying :
i. Concrete shall be laid gently (not thrown) in layers not exceeding
15 cm and compacted by pinning with rods and tamping with wooden
tampers or with mechanical vibrating machine until a dense concrete
is obtained.
ii. Concrete shall be laid continuously, if laying is suspended for rest or
for the following day the end shall be sloped at an angle of 30° and
made rough for further jointing.
iii. When the work is resumed, the previous sloped portion shall be
roughened, cleaned and watered and a grout of neat cement shall be
applied and the fresh concrete shall be laid.
iv. For successive layer the upper layer shall be laid before the lower has
set.
7. Curing : After about two hours laying when concrete has begun to
harden, it shall be kept damp by covering with wet gunny bags or wet
sand for 24 hours, and then cured by flooding with water making mud
walls 7.5 cm high or by covering with wet sand or earth and kept damp
continuously for 15 days.

Que 2.15. Write general specification of 1st class building.

Quantity Estimation & Management 2–17 C (CE-Sem-5)

Answer
Following are the general specification of first class building :
1. Foundation and Plinth : Foundation and plinth shall be of 1st class
brickwork in lime mortar or 1 : 6 cement mortar over lime concrete or
1 : 4 : 8 cement concrete.
2. Damp Proof Course : DPC shall be 2.5 cm thick cement concrete
1: 1 12 : 3, mixed with one kg of Impermo per bag of cement or other
standard water proofing materials as specified and painted with two
coats of bitumen.
3. Superstructure : Superstructure shall be of 1st class brickwork with
lime mortar or 1:6 cement mortar. Lintels over doors and windows
shall be of RCC.
4. Roofing :
i. Roof shall be of RCC slab with an insulation layer and lime concrete
terracing above, supported over RS Joists or RCC beams as required.
ii. Height of rooms shall not be less than 3.7 m (12 feet).
5. Flooring :
i. Drawing room and dining room floors shall be of mosaic (terrazo).
ii. Bathroom and WC floors and dado shall be of mosaic (terrazo).
iii. Floors of bedrooms shall be coloured and polished of 2.5 cm cement
concrete over 7.5 cm lime concrete.
6. Finishing :
i. Inside and outside walls shall be of 12 mm cement lime plastered 1 : 6.
ii. Drawing, dining and bedrooms — inside shall be distempered, and
others — inside washed 3 coats.
iii. Outside shall be coloured snowcem washed two coats over one coat of
white wash.
7. Doors and windows : Chaukhats shall be seasoned teak wood.
Shutters shall be teak wood 4.3 cm thick panelled glazed or partly
panelled and partly glazed as required, with additional wire gauge
shutters.
8. Miscellaneous :
i. Rain water pipes of cast iron or of asbestos cement shall be provided
and finished painted.
ii. Building shall be provided with first class sanitary and water fittings
and electrical installations.

Que 2.16. Write general specification for a second class building.

Analysis of Rates, Specification & Tenders 2–18 C (CE-Sem-5)

Answer
Following are the general specification of second class buildings :
1. Foundation and Plinth : Foundation and plinth shall be of 1st class
brickwork with lime mortar over lime concrete.
2. Damp Proof Course : DPC shall be of 2 cm thick cement concrete
1 : 2 mixed with 1 kg of Impermo per bag of cement or other standard
water proofing materials.
3. Superstructure : Superstructure shall be of 2nd class brickwork in
lime mortar. Lintels over doors and windows shall be of reinforced
brick (RB).
4. Roofing :
i. Roof shall be RB slab with 7.5 cm lime concrete terracing above (or hat
terraced roof supported over wooden battens and beams, or Jack arch
roof).
ii. Verandah roof may be of asbestos cement (AC) sheet or Allahabad
tiles.
5. Flooring : Floors shall be 2.5 cm cement concrete over 7.5 cm LC.
Verandah floor shall be of brick tile or flag stone over lime concrete,
finished cement painted.
6. Finishing :
i. Inside and outside walls shall be of 12 mm cement mortar plastered
1 : 6.
ii. Ceiling shall be cement plastered 1:3.
iii. Inside shall be white washed 3 coats, colour washed two coats over one
coat of white wash.
7. Doors and Windows :
i. Chaukhat shall be of RCC or well seasoned wood, shutters of shisham
wood or deodar wood 4 cm thick, panelled, glazed or partly panelled
and partly glazed as required, fitted with iron fittings.
ii. Doors and windows shall be painted two coats over one coat of priming.
8. Miscellaneous :
i. Rain water pipes shall be of cast iron finished painted.
ii. Electrification, and sanitary and water fittings may be provided if
required.
Quantity Estimation & Management 2–19 C (CE-Sem-5)

PART-3
Legal Aspect of Contracts, Law Related to Contracts, Land
Acquisition, Labour Safety and Welfare, Different Type of
Contract their Relative Advantages and Disadvantages.

CONCEPT OUTLINE : PART-3

As per the Indian Contract Act, 1872, a contract is an agreement,
enforceable by law. The agreements that are not enforceable by
law are not contracts. An agreement means a promise or a set of
promises forming consideration for each other.
Labour Safety and Welfare Law :
i. Payment of wages act,
ii. Minimum wages act,
iii. Factories act, 1948,
iv. Contract labour act, 1970,
v. Labour welfare fund act, 1965,
vi. Workmen’s compensation act, 1923, and
vii. Trade union act, 1926.
Types of Contract :
i. Item rate contract,
ii. Percentage rate contract,
iii. Lump-sum contract,
iv. Labour contract,
v. Materials supply contract,
vi. Target contract,
vii. Negotiated contract etc.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 2.17. Explain the legal aspects of contracts and various laws

related to contracts. AKTU 2016-17, Marks 10

Analysis of Rates, Specification & Tenders 2–20 C (CE-Sem-5)

Answer
Legal Aspects :
i. Construction work on project takes on land. For a contract to be legally
valid the construction project must fit into the legal framework governing
the property.
ii. These include government regulations on the use of property and
obligation that are created in the process of construction.
iii. Since a contract is an exchange set of obligations between two or more
parties, it must be designed to ensure that each side is capable of
performing the obligation set out.
Following are the main requirements of a valid contract so that it may
be legal binding on both/all the involved parties.
1. Legally Competent Parties :
i. As per Indian Contract Act, the parties entering into contract should be
legally competent.
ii. Anyone who is of the age of majority and is of sound mind can enter into
a contract.
iii. Subordinate authority who has not been directed or authorised cannot
be involved in signing any contract.
2. Free Consent of Parties :
i. It means concurring of two minds in respect of the same opinion, purpose
or understanding as regards the course to be pursued.
ii. Contract is said to be free consent when :
a. It is not caused under any influence.
b. It is not caused by mistake.
c. It is not caused by misrepresentation.
d. It is not caused by fraud.
e. It is not caused under duress.
3. Proper and Valid Consideration :
i. Legally, valid consideration is termed as the act or a promise to do
something by a party in return of money or promise or grant of some
interests by other party.
ii. The consideration may not be adequate or a full return of the promise,
but it must be component, real and should not be illegal, ambiguous,
impossible or uncertain.
4. Meaningful Contract in Writing and Signed by Both Parties :
i. Meaning of agreement should be certain or capable of being made certain.
ii. According to the law, the contract must be signed by the authorised
persons of both the parties.
Quantity Estimation & Management 2–21 C (CE-Sem-5)

iii. In case of public bodies, an official duly authorised for this purpose signs
the contract fixing the seal of the public body on the agreement.
5. Various Laws :
i. The Law of Contracts is the basis of business law because the bulk of
transactions of the people engaged in trade, commerce and industry are
based on contracts.
ii. In India, the Law of Contracts is contained in the Indian Contract Act,
1872.
iii. Though the Partnership Act, the Sale of Goods Act; the Negotiable
Instruments Act, the Companies Act, technically belong to the Law of
Contracts yet they have been covered by separate enactments.
iv. However, the general principles of the Contract Law are the basis for all
such contracts as well.
The main features of the Law of Contracts are :
a. The parties to the contract make the law for themselves.
b. The Act is not exhaustive since, it does not take into its purview all the
relevant legislations.
c. It does not override customs or usages.

Que 2.18. Write short notes on land acquisition in India.

Answer
Land Acquisition : It refers to the process by which the union or a
state government in India acquires private land for the purpose of
industrialization, development of infrastructure facilitates or
urbanization of the private land and provides compensation to the
affected land owners and their rehabilitation and resettlement.
Following are the two bases of land acquired in India :
1. Permanent Land : Land is to be acquired permanently for the
expected life of the project.
For example, consider the case of laying a new pipeline. Land is acquired
permanently along the pipeline route and the facility sites such as
pump stations, metering stations, block valve station, anode ground
beds, power line pylons, etc.
2. Temporary Land :
i. All areas which are needed in addition to the permanently acquire land
in order to carry out the construction and installation of the pipelines
system and associated facilities are acquired on temporary basis.
ii. This includes contractor camp, storage yards and other auxiliary areas
needed for the storage of equipment and materials.
The Constitutional Framework :
“The Land Acquisition Act, 1894”.
Analysis of Rates, Specification & Tenders 2–22 C (CE-Sem-5)

i. Land can be acquired either by State or the Central government for

the purpose listed under State and Centre list respectively unless the
Central government delegates the task to the state government under
article 258(1) of constitution.
ii. Article 31(2) categorically states that a land can be acquired by the
state only for the public purpose.
iii. In every case, land acquisition must take place in a manner that fully
protects the interests of land owner and also of those whose livelihood
depends on the land being acquired.

Que 2.19. What are the various Indian laws related to labour safety
and welfare ?

Answer
Following are laws/act related to labour safety and welfare :
1. Payment of Wages Act :
i. This act is related to the payment of wages. This act was introduced to
regulate the payment of wages, imposition of fines, etc.
ii. According to this act, wages are to be paid promptly on a monthly basis
and if any person is terminated from services, his wages should be
settled within 2 days of the termination.
2. Minimum Wages Act :
i. According to this act, provision is made for the statutory fixation of a
minimum rate of wages in the establishment.
ii. According to this act, different minimum rates can be fixed depending
on the class of work, type of personnel employed-adults, permanent
employee or, apprentice and depending on the location of work.
3. Factories Act :
i. Under this act, the health, safety, welfare, working hours, annual
leave, accidents and any penalties are taken care of.
ii. Regarding health, arrangements for proper cleanliness of the premises,
disposal of wastes, ventilation and comfortable working temperature
are to be maintained.
iii. Normally, the working hours are restricted to 8 hours/day with a lunch
break for 1/2 hr and a total of not more than 48 hours/week.
iv. If the worker is engaged on holidays, compensatory leave is to be
given. Over time wages are at twice the ordinary rate of wages.
v. Women workers should be employed only from 6 a.m. to 7 p.m.
vi. In case of accident, proper compensation is to be paid as per the
provision.
4. Contract Labour (Regulation and Abolition) Act, 1970 (Amended
1986) :
Quantity Estimation & Management 2–23 C (CE-Sem-5)

i. This act contains the provisions for improving the condition of contract
labour.
ii. According to this Act contractors should get themselves registered and
obtain certificates of registration.
iii. The welfare and health provisions to be provided to the contract labour
include rest rooms, proper ventilation, lighting, water supply and
sanitary facilities.
iv. First aid facilities and washing are also contained in this act.
v. Payment of wages to each worker is to be made within the prescribed
period.
5. Workmen’s Compensation, Act, 1923 (Amended-1984) :
i. This act is for providing social security to the workers. Compensation
is to be paid to the workers in case of accidents sustained during the
course of employment and the amount is decided upon its seriousness.
ii. Under this act, financial relief is given in the following cases :
a. In case of death,
b. On account of occupational diseases,
c. For permanent/partial disablement, and
d. Half-monthly payments for temporary disablement.
6. The Trade Union Act, 1926 :
i. Trade union is an association of persons formed mainly for the purpose
of regulating the relations between employers and employees.
ii. A minimum of 7 workers can join together and form a trade union.
iii. The union has to get itself registered with the registrar of trade union.
The relevant details such as the name, address, the objectives of forming
the union and the subscription rate are all to be specified before
registration.

Que 2.20. Explain in detail about different types of contract and

their relative advantages and disadvantages.
AKTU 2015-16, Marks 10
OR
Explain various types of contract system with advantages and
disadvantages. AKTU 2016-17, Marks 10

Answer
Types of Contract : The following are the various types of contracts
for execution of civil engineering works, with their relative merits and
demerits :
1. Item Rate Contract :
Analysis of Rates, Specification & Tenders 2–24 C (CE-Sem-5)

i. Item rate contract is also known as unit price contract or schedule

contract.
ii. A contract undertakes the execution of work on an item rate basis.
iii. He is required to quote rate for individual item of work on the basis of
schedule of quantities (i.e., bill of quantities) furnished by the
department.
iv. The amount to be received by the contraction depends upon the
quantities of work actually performed.
v. The payment to the contractor is made on the basis of the detailed
measurement of different items of work actually executed by him.
Merits :
i. This method ensures a very detailed analysis of cost and payment to the
contractor and is based upon detailed measurements of each item actually
done, so this method is more scientific.
ii. Changes in drawings and quantities of individual item can be made as
per requirements within agreed limits.
Demerits :
i. The total cost of work can only be known after completion. As such the
owner may face financial difficulty if the final cost is substantially high.
ii. Additional staff is required to take detailed measurements of work.
iii. The scope of saving with use of inferior quality materials may prompt
the contractor to do so.
2. Percentage Rate Contract :
i. In this form of contract, the department draws up ‘item rate tender’ i.e.,
bill of quantities with rate, amount and total amount.
ii. The contractors are required to offer to carry out the work as per with
the rates shown in the specific price schedule or some percentage above
or some percentage below the rate indicated in the schedule of work
attached with the tender.
iii. The percentage above or below or at par is applicable on the overall cost
of the work also.
Merits :
i. The ranking amongst the contractors is easily known just on the opening
of the tenders.
ii. As there is no provision to quote contractors own rate for an individual
item, benefit due to increased quantity with a beneficial rate cannot be
availed by the contractor. The chance of unbalanced tender gets
eliminated.
Demerits :
i. A contractor is required to write down only the percentage above or at
par or below, it is very easy to write such a rate in few minutes before
the time of submission of the tender.
Quantity Estimation & Management 2–25 C (CE-Sem-5)

ii. By negotiating among the contractors, two or more may quote the same
rate in order to get a part of the work at a high rate. It may be difficult
to divide the work at equal amount among the contractors.
3. Lump-Sum Contract :
i. In this type of contract, a contractor is required to quote a fixed sum for
execution of work complete in all respect in the stipulated time according
to the drawing, design and specifications supplied to him with the tender.
ii. The departmental schedule of rate for various items of work is also
provided which regulates the payment of the contractor in respect of
any additions and alterations which are made over the original work.
iii. On the completion of the work, no detailed measurement of different
items of work is needed but the whole work done must be compared and
checked with the drawings and specifications.
Merits :
i. As the total cost of the work known before hand, the owner can arrange
the fund in time.
ii. Detailed measurements of the work done are not required except in
respect of additions and alterations.
iii. The contractor’s profit mainly lies in the completion time. Hence for
getting more profit the contractor tries to complete the work as early as
possible.
Demerits :
i. It is very essential that the work must be defined accurately, specifications
must be fully specified and the site conditions must be fully explained
otherwise disputes can arise later on.
ii. For any intermediate payment, the value of work done should not be
less than the payment being made.
4. Labour Contract :
i. In labour contract, the contractor undertakes contract for the labour
portion only excluding the materials which are arranged and supplied at
the work site by the department/owner.
ii. The contractor engages the requisite labour and gets the work done as
per drawings and specifications.
iii. It is an item rate basis for labour portion only and the contractor is paid
for the quantities of work done on measurement of different items of
work at the stipulated rate in the contract agreement.
Merits :
i. The materials stored by the department are thus utilised.
ii. The work done through labour contract is of superior quality as better
quality materials are arranged by the owner.
iii. The overall cost of construction may be less, as no profit is paid on the
cost of materials.
Analysis of Rates, Specification & Tenders 2–26 C (CE-Sem-5)

iv. This system is very convenient for private building construction.

Demerits :
i. A large storage area is required to store the various kinds of materials to
be used in the construction under a constant guarding.
ii. This system is not suitable for government department. Because of
lengthy formalities in procurement of materials, it is very difficult to
supply each and every material readily to the labour contractor.
5. Cost Plus Percentage Rate Contract :
i. In this type of contract, a contractor agrees to take the work of
construction on the actual cost of work plus an agreed percentage in
addition, for his services.
ii. It is generally adopted when the labour and material costs are liable to
fluctuate heavily in the market.
iii. The contractor arranges materials and labour at his cost and keeps
proper account which is paid by the department or owner with certain
percentage (say 10 %) of the cost of construction as his profit. An
agreement is made accordingly in advance.
Merits :
i. The contract can be quickly drawn up and agreed and work can be
completed in the shortest possible time.
ii. It is particularly suitable when work cannot be executed by other types
of contracts due to uncertainty and fluctuations in the market rates of
labour and materials.
Demerits :
i. The contractor’s only aim is to make the cost of the project as high as
possible in order to seek greater margin of profit.
ii. A proper control over purchase of materials and of labour shall have to
be exercised by the department or the owner.

Que 2.21. Write down the elements of tender preparation.

AKTU 2015-16, Marks 10

Answer
Following are the elements of tender preparation :
1. As part of the preparation work, and before any tender is advertised,
the procuring agency requires a realistic estimate of the cost of the
structure with a breakdown of significant cost items.
2. To prepare such an estimate, an engineer should be selected and be
appointed to not only carry out this preliminary work but continue to
supervise the contractor and ensure all works are carried out according
to the design and to the highest quality possible.
Quantity Estimation & Management 2–27 C (CE-Sem-5)

3. The preparation of tender and contract documents, including all survey

and design work needed to prepare quantities and guideline costings,
should take place in good time.
4. If funds are to be sourced from international lending agencies or donors,
their guidelines will have to be followed and examples of advertisements
and documents from such organizations should be obtained at the
beginning of this process.
5. Preparation may require the application for land and water rights,
environmental impact assessments plus any needed compensation or
resettlement plans.
6. These must be completed before the any construction can be approved
and allowed to proceed.

Que 2.22. List the information which should customarily appear

in an advertisement for tenders. AKTU 2014-15, Marks 10

Answer
1. For execution of work through contract, especially in an open bidding
system, the jobs need to be given due publicity. A common practice is to
publish a formal notice inviting tender (NIT) in leading national and
local newspapers.
2. The NIT is also pasted on the notice boards of departments inviting
tenders. Now-a-days internet is also being used.
3. NIT is uploaded on company’s official website or the concerned
government department with the following details :
i. Name of the authority inviting the bids,
ii. Name of the project,
iii. Conditions for eligibility of contracting agencies to submit a bid,
iv. Brief details of the project,
v. Estimated cost and time of completion of the project,
vi. The cost of the tender documents,
vii. Earnest money to be deposited with the completed tender,
viii. Date and time by which the bids are to be submitted and the place of
submission,
ix. The date and time of opening of the bids, and
x. Validity of the tender, etc.
4. Tender notice also includes a number of information and conditions in
addition to a few mentioned in the typical tender notice viz., refund of
earnest money, period of validity of rates quoted, site inspection, not
relative of contractor, rates to include all taxes, (about 2 % of gross
amount), source and specification of materials, change of address, etc.
Analysis of Rates, Specification & Tenders 2–28 C (CE-Sem-5)

5. When tender form is obtained from the office, the tender notice will
include all such particulars. These items are not given in contract
document. Hence, the tender notice is very important document on
which the subsequent agreements with the contractors are based.
6. Therefore, it is necessary that the tender notice must be included in the
contract document.

PART-4
Process of Tendering, Pre-qualification of Contracts, Evaluation
of Tenders, Contract Negotiation and Award of Work,
Monitoring of Contract Extra Items.

CONCEPT OUTLINE : PART-4

Prequalification : Capability assessment of firms to carry out
a particular contract prior to being invited to submit a bid is a
process called prequalification.
Evaluation of Tenders : It is the process that takes place after
the tender submission deadline it involves the opening and
examining of the bids to identify the preferred suppliers for the
project.
Contract Negotiation : A process of gives and take, the parties
go through to reach an contract.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 2.23. Describe the tendering process adopted in case of an

item rate contract. What is the importance of comparative statement
of tenders and how does it help in decision making with respect to
accepting or rejecting the lowest tender.
AKTU 2013-14, Marks 10

Answer
A. Process of Tendering : The process of tendering consists of the
following steps :
1. Tender Process is Determined : The organization requesting the
tender will determine the type of tender that will be used, as well as
what will be involved in the tender process.
Quantity Estimation & Management 2–29 C (CE-Sem-5)

2. Request for Tender is Prepared : The request for tender outlines

what is required, the contractual requirements and how one should
respond.
3. Tenders are Invited : The value, complexity and business category
determines how tenders are invited.
4. Suppliers Respond : Suppliers/contractors or interested parties first
obtain all relevant documentation. Then :
i. Attend any pre tender briefing sessions being conducted,
ii. Clarify any uncertainties,
iii. Plan their response,
iv. Prepare their response, and
v. Submit their response in the right format in time and at the right location.
5. Evaluation and Selection :
i. Each tender will be checked for compliance. If it is found in order, then
it is evaluated against the criteria specified in the tender documentation.
ii. The tender that offers best value for money will get the contract.
6. Notification and Debriefing :
i. When a contract has been awarded, the successful tenderer will be
informed in writing of the outcome.
ii. Unsuccessful tenderers are also informed.
7. Contracts Established and Managed : Generally, a formal
agreement will be required between the successful tenderer and the
relevant agency.
B. Importance of Comparative Statement of Tenders :
1. A comparative statement of tenders submitted by the contractors is
drawn up item-wise/total cost-wise in order to facilitate the award of
contract.
2. Ranking of contractors is obtained. The recommendation or orders
regarding acceptance or rejection of the tender is recorded on it.
3. Contract is awarded on the basis of ranking obtained by comparative
statement of tenders.
4. Generally, it is awarded to the lowest bidder provided the authority
must be fully acquainted with the reliability and his past experience of
the contractor concerned.
5. If the authority has any doubt regarding the credentials of the lowest
bidder, the contact may be awarded to the next higher bidder.
Que 2.24. Explain the procedure of opening the tenders, acceptance
of tenders and the execution of agreement for carrying out a work.
AKTU 2016-17, Marks 10
Analysis of Rates, Specification & Tenders 2–30 C (CE-Sem-5)

Answer
A. Tender Opening Procedure :
1. A member of the tender panel will collect the unopened tender envelopes
from secure storage and the panel shall assemble, preferably in a room
where they can be undisturbed.
2. Each envelope should be opened in turn and the tender date, name of
the tenderer, tender sum(s) and delivery time recorded on the schedule
of tenders.
3. All pages containing prices should be date stamped and initialed by a
member of the tender panel.
4. When all tenders have been recorded, each member of the tender Panel
should sign the schedule of tenders.
5. Where more than one copy of a tender is submitted the tender panel
should ensure that the tender sum(s) on each copy are identical.
6. One copy should be marked ‘Master Copy’ and retained by the person
responsible for the tender exercise, this will form part of the contract
documentation.
7. A copy of the completed schedule of tenders should be sent to the
Purchasing Office.
B. Acceptance Procedure :
1. Inform all tenders as soon as possible of the outcome.
2. Arrange for unsuccessful tenderers to return any retained documents.
3. Issue a letter of acceptance setting out any conditions or provisos which
have been agreed since issuing the documents and directing the
contractor to carry out all further correspondence with the ‘Engineer’
under the contract.
4. If there is a delay to formal acceptance, a letter of intent may be sent
containing instructions to proceed (or not to proceed) with design,
ordering materials etc, and setting a limit to financial liability before
formal acceptance.
C. Execution of Agreement : When concluding a contract or agreement,
the parties shall clearly state how they will perform their obligations.
1. The obligations under the contract shall be duly performed in accordance
with the conditions of the obligation and requirements of legislation,
and if there are no such conditions and requirements in accordance
with generally specified requirements.
2. Unilateral refuse to perform the obligation and unilateral change of its
condition shall not be admitted, unless otherwise results from legislation
or the contract.
3. The creditor is entitled not to accept the performance of the obligations
by parts, unless otherwise is provided by legislation or conditions of the
obligation.
4. When the obligation is performed the debtor has the right to demand
the evidence that the performance is accepted by the creditor or a person
Quantity Estimation & Management 2–31 C (CE-Sem-5)

authorized to do so by the creditor and bears the risk of consequences

for non-fulfillment of such a demand.
5. The performance of the obligation may be laid by the debtor on some
third person, unless conditions of the obligation or its essence or
legislation result in the obligation of the debtor to perform this obligation
personally. In this case the creditor shall accept the performance offered
by the third person instead of the debtor.
Que 2.25. Explain briefly the procedure of pre-qualification of
contractors. State its advantages and drawbacks.

Answer
The Prequalification Process :
1. Advertisement and Notification : It is the employer’s responsibility
to advertise the Invitation for Prequalification (IFP) on the ADB website
as well as in :
i. A newspaper of general circulation in the borrower’s country (at least
one English-language newspaper, if available)
ii. An internationally known and freely website in English.
2. Preparing and Issuing a Prequalification Document :
i. The e mplo ye r is respo nsible fo r pre paring and issuing the
prequalification document.
ii. The employer shall use ADB’s Standard Procurement Document for
the Prequalification of Bidders (SPQD).
iii. The employer shall prepare the prequalification document using the
published version of the SPQD without suppressing or adding text to
Section 1-Instructions to Applicants (ITA).
All information and data particular to each individual prequalification
process must be provided by the employer in the following sections of
the prequalification document :
Section 2 Application Data Sheet
Section 3 Qualification Criteria
Section 4 Application Forms
Section 5 Eligible Countries
Section 6 Scope of Contract
iv. The employer shall allow applicants a minimum period of 42 days to :
a. Study the prequalification document,
b. Prepare complete and responsive applications, and
c. Submit their applications.
3. Preparation and Submission of Applications :
i. The applicant is solely responsible for the preparation and submission
of its application.
ii. During this stage, the employer shall :
a. Promptly respond to requests for clarifications from applicants and
amend, as needed, the prequalification document; and
b. Amend the prequalification document only with the prior approval of
ADB.
Analysis of Rates, Specification & Tenders 2–32 C (CE-Sem-5)

4. Opening and Evaluation of Applications :

i. The employer shall appoint experienced staff to conduct the evaluation
of applications.
ii. Mistakes committed at evaluation may later prompt complaints from
applicants, requiring re-evaluation of the applications, with consequent
delays and waste of resources.
iii. The employer, in observance of best practices, shall :
a. Maintain strict confidentiality throughout the evaluation process,
b. Reject any attempts or pressures to distort the outcome of the
evaluation, including fraud and corruption,
c. Strictly apply only and all of the qualification criteria specified in
the prequalification document; and
d. Notify all applicants in writing of the names of those applicants
who have been prequalified.
5. Updating and Confirmation of Bidder’s Qualifications :
i. Information pertaining to a bidder’s eligibility, pending litigation, and
financial situation shall be updated during bidding.
ii. Additio nal qualifying re quire me nts no t e xamine d during
prequalification such as :
a. Financial resources and current contract commitments.
b. Equipment to be allocated for the particular contract.
c. Personnel to be fielded for the particular contract.
Advantages :
i. Enhances participation of serious contractors (since unqualified bidders
are excluded).
ii. Reduces high cost of bidding.
iii. Gives early warning of competition potential.
iv. Reduces complaints of disqualified bidders.
v. Gives “Peace of Mind” to Employers.
vi. Borrower able to assess interest of qualified firms.
vii. Identifies potential conflict of interest (contractors with business
association with consultants).
viii. Reduces time in evaluating bids from unqualified bidders.
ix. Reduces potential for controversy.
x. Early Detection of Employer’s capacity to manage procurement.
Disadvantages :
i. Increases procurement lead time.
ii. Review of all application is mandatory whereas post-qualification
requires review of only winning bid.
iii. Possibility of collusion.

Que 2.26. What are reciprocal promises in a contract ? How their

nonfulfillment to breach of contract ? Discuss it with a few practical
examples. AKTU 2013-14, 2014-15; Marks 10
Quantity Estimation & Management 2–33 C (CE-Sem-5)

Answer
A. Reciprocal Promises :
i. Promises which form the consideration or a part of consideration for
each other are called reciprocal promises.
ii. An agreement may consist of either :
a. A promise supported by consideration given, or
b. A promise supported by another promise.
iii. In the latter case, when an agreement is supported by another promise,
it will be a reciprocal promise.
iv. Thus, in reciprocal promises each party gives a promise for a promise.
Reciprocal promises are of the following types :
i. Mutual and Independent Reciprocal Promises : When each party
performs his promise independently and irrespective of the fact whether
the other party has performed, or is willing to perform his promise or
not, the promises are mutual and independent.
Example : X agrees Y to supply milk daily, while Y agrees to pay the
price of milk every month. Both these are mutual and independent
promises.
ii. Conditional and Dependent Reciprocal Promises : When the
performance of a promise by one party depends upon the prior permission
of the other party, it will be a conditional and dependent promise.
Example : X promises to construct Y ’s house, provided that Y supplies
cement and bricks. This will be a conditional and dependent promise.
Here, X need not perform the promise if Y fails to supply cement and
bricks.
iii. Mutual and Concurrent or Simultaneous Reciprocal Promises :
This is the state when two contracts are to be performed simultaneously.
Example : All cash sales are examples of simultaneous or concurrent
promises, as delivery of goods and payment of price take place
simultaneously.
B. Breach of the Contract : Breach is non-fulfillment of an agreed
promise under the contract such as :
i. Not handing over the assignment mentioned in the contract on stipulated
timelines.
ii. Not furnishing the relevant document to the promisor for making the
payment.
iii. Not making payments on time as per the contract for work done.
iv. Not confirming to the schedule mentioned in the contract.
v. Not completing the works as per milestones mentioned in the contract.

Que 2.27. What is the purpose of retention money ? When

payments may be made at reduced rate ? How and by whom are the
reduced rates determined ? AKTU 2013-14, 2014-15; Marks 10
Analysis of Rates, Specification & Tenders 2–34 C (CE-Sem-5)

Answer
Retention Money : It is an amount held back from a payment made
under a construction contract. It is usually a percentage (5%) of the
amount payable of each installment. It is generally held to ensure that
a contractor performs all of its obligations under the contract, and is
then released either on practical completion or after the end of a defects
notification period.
Purpose of Retention Money :
1. In general, Retention Money provides protection to the employer.
Retention money gives the idea of importance of completing the signed
project as per its terms and designs.
2. With such retention held, the contractor takes the responsibility to
complete the construction project as per the design and quality stated in
the initial contract.
Condition for Reduced Rate : If the contractor fails to carry out the
work strictly in accordance with the drawings and specifications, and, if
in the opinion of the engineer, the work is structurally sound, he may
accept the work, but the contractor will be paid at reduced rates which
will be decided by the engineer.
Example : Assume that the specification for teak wood panelled
windows and doors mentions that the thickness of the shutters should
be 4 cm and if the shutters actually provided by the contractor are only
3.5 cm thick, the engineer may accept the work and reduce the rate per
square metre of the shutters by an amount equal to the reduction in the
cost of the materials used in the work.

Que 2.28. Define and discuss the importance of the following :

1. Earnest money. 2. Security deposit.
3. Maintenance liability period of contract.
4. Debitable agency.
5. Registration of contractors and suppliers by engineering
departments. AKTU 2013-14, Marks 10

Answer
1. Earnest Money :
i. Earnest money is an assurance or guarantee on the part of the contractor
to keep the offer for consideration and to confirm his intention to take
up the work if accepted in his favour for execution as per terms and
conditions in the tender.
2. Following are the importance of earnest money :
i. Compensation : In case, the contractor refuses to take up the work or
runs away when his tender is accepted, the work can be allotted to the
next lowest bidder. The earnest money forfeited compensates the loss
of owner/department to a great extent.
Quantity Estimation & Management 2–35 C (CE-Sem-5)

ii. Punishment : In case the contractor quotes lower rate without intention
of doing the work, the earnest money shall be forfeited as a punishment.
iii. Restriction on Unnecessary Competition : The provision of earnest
money will restrict the entry of many contractors who may not have
enough resources to do the work.
2. Security Deposit :
i. The contractor whose tender has been accepted is to deposit 10 % of the
tendered amount as security money with the department inclusive of
the earnest money already deposited.
ii. This amount is kept as a check so that the contractor fulfils all the terms
and conditions and carries out the work satisfactorily within the
prescribed time limit.
iii. If the contractor fails on this part, his whole or part of the security
money is forfeited by the department as a punishment.
iv. The security money also serves as a security against the materials or
the tools and machineries provided by the department to the contractor
on loan.
3. Maintenance Liability Period of Contract :
i. The maintenance period is the period following completion of a
construction project during which the contractor is responsible for certain
maintenance issues under the many building or engineering contracts.
ii. During this period, the contractor needs to maintain insurance in force,
the extent of which will depend on the contract and on his own concern
for the risk he is facing.
iii. Normally the maintenance period will last for twelve months from the
completion of the contract but this may be longer or shorter.
4. Debitable agency : When the contractor fails to fulfill his contractual
obligation in respect of progress or quality of work even after being
given due notice by the owner, a debitable agency is appointed. The
expenses incurred will be charged from the bills of contractor or security
money deposited earlier.
5. Registration of Contractors and Suppliers by Engineering
Departments :
i. The contractor and suppliers must get himself registered in the
departments (or Government) for which he is interested to take up
works.
ii. Government contractors are entitled to do government jobs if awarded.
iii. Contractors are classified according to the registration and registration
fees and depending on this they can undertake works up to certain
amount.
Analysis of Rates, Specification & Tenders 2–36 C (CE-Sem-5)

VERY IMPORTANT QUESTIONS

Following questions are very important. These questions
may be asked in your SESSIONALS as well as
UNIVERSITY EXAMINATION.

Q. 1. Discuss in detail procedure to fix up rates per unit of item.

Ans. Refer Q. 2.3, Unit-2.
Q. 2. Calculate the rate of M15 grade concrete used in slabs of a
single storied building.
Ans. Refer Q. 2.5, Unit-2.
Q. 3. What is specification and its objects ? Also explain its types.
Ans. Refer Q. 2.11, Unit-2.
Q. 4. Discuss the importance of detailed specification.
Ans. Refer Q. 2.12, Unit-2.
Q. 5. Explain the legal aspects of contracts and various laws
related to contracts.
Ans. Refer Q. 2.17, Unit-2.
Q. 6. Explain in detail about different types of contract and their
relative advantages and disadvantages.
Ans. Refer Q. 2.20, Unit-2.
Q. 7. What are reciprocal promises in a contract ? How their
nonfulfillment to breach of contract ? Discuss it with a few
practical examples.
Ans. Refer Q. 2.26, Unit-2.
Q. 8. What is the purpose of retention money ? When payments
may be made at reduced rate ? How and by whom are the
reduced rates determined.
Ans. Refer Q. 2.27, Unit-2.
Q. 9.
Define and discuss the importance of the following :
1.
Earnest money.
2.
Security deposit.
3.
Maintenance liability period of contract.
4.
Debitable agency.
5.
Registration of contractors and suppliers by engineering
departments.
Ans. Refer Q. 2.28, Unit-2.


Quantity Estimation & Management 3–1 C (CE-Sem-5)

3 Elements of
Management and
Network Techniques

Part-1 ............................................................................ (3–2C to 3–19C)

• Project Cycle
• Organization
• Planning
• Scheduling
• Monitoring
• Updating and Management System in Construction

A. Concept Outline : Part-1 ............................................................. 3–2C

B. Long and Medium Answer Type Questions ............................... 3–2C

Part-2 .......................................................................... (3–19C to 3–38C)

• Bar Charts
• Milestone Charts
• Work Break Down Structure and Preparation of Networks
• Network Techniques Like PERT and CPM in Construction
Management
• Project Monitoring and Resource Allocation Through Network
Techniques

A. Concept Outline : Part-2 .......................................................... 3–19C

B. Long and Medium Answer Type Questions ............................ 3–20C
Elements of Management 3–2 C (CE-Sem-5)

PART-1
Project Cycle, Organization, Planning, Scheduling, Monitoring
Updating and Management System in Construction.

CONCEPT OUTLINE : PART-1

Project Cycle : The project cycle of a project consists of following
phase :
i. Conceptual and feasibility studies,
ii. Engineering design,
iii. Contracting and procurement,
iv. Construction,
v. Commissioning/Start-up and implementation of a project, and
vi. Utilization and maintenance.
Organization : It is the systematic arrangement of people
working together towards a common purpose.
Type of Construction Organization :
i. Line organization,
ii. Staff organization, and
iii. Functional organization.
Project Planning : It involves objectives, gross requirement of
materials, equipments, costs and duration of activities of project
to bring about the satisfactory completion of the project.
Scheduling : Scheduling is the process of arranging, controlling
and optimizing work and work loads in production process or
manufacturing process.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 3.1. Discuss project life cycle and performance objectives.

AKTU 2013-14, Marks 05

Answer
A. Project Life Cycle : All projects can be mapped to the following simple
life cycle structure :
Starting the project  organizing and preparing  carrying out the
work  closing the project.
Quantity Estimation & Management 3–3 C (CE-Sem-5)

Following are the four phases of project life cycle :

1. Initiation Phase :
i. During the initiation phase, the project objective or need is identified.
ii. An appropriate response to the need is documented in a business case
with recommended solution options.
iii. A feasibility study is conducted to investigate whether each option
addresses the project objective and a final recommended solution is
determined.
2. Planning Phase :
i. In the planning phase, project solution is further developed in as much
detail as possible and the steps necessary to meet the project’s objective
are planned.
ii. In this step, the team identifies all of the work to be done. The project's
tasks and resource requirements are identified, along with the strategy
for producing them.
iii. A project plan is created outlining the activities, tasks, dependencies,
and timeframes.
iv. The project manager coordinates the preparation of a project budget by
providing cost estimates for the labor, equipment, and materials costs.
The budget is used to monitor and control cost expenditures during
project implementation.
3. Implementation (Execution) Phase :
i. In this phase, the project plan is put into motion and the work of the
project is performed.
ii. Progress is continuously monitored and appropriate adjustments are
made and recorded as variances from the original plan.
iii. The project manager uses this information to maintain control over the
direction of the project by comparing the progress reports with the
project plan to measure the performance of the project activities and
take corrective action as needed.
4. Closing Phase : During the final closure, or completion phase, the
emphasis is on releasing the final deliverables to the customer, handing
over project documentation to the business, terminating supplier
contracts, releasing project resources, and communicating the closure
of the project to all stakeholders.
B. Performance Objectives : Following are the various performance
objectives :
1. Quality : Quality is a measure of excellence or a state of being free
from defects, deficiencies, and significant variations.
2. Speed : How quickly does production take and how quickly can it
respond to changes in demand.
Elements of Management 3–4 C (CE-Sem-5)

3. Dependability : How uniform, consistent and reliable a business

products are.
4. Flexibility : How quickly operations processes can adjust to changes in
the market.
5. Customization : Refers to creation of individualized products to meet
the specific needs of customers.
6. Cost : Minimization of expenses so that the operations function can be
completed as cheaply as possible.

Que 3.2. Define organization and explain its types.

AKTU 2016-17, Marks 10

OR
What are the different types of organizational structures ? Outline
in brief the characteristics, advantages and disadvantages of each
structure. AKTU 2015-16, Marks 10

Answer
Organization :
i. Organization is the systematic arrangement of people working together
towards a common purpose.
ii. It is composed of a group of individuals acting as a unit for the attainment
of an objective.
Types of Organization : Following are the various types of
organization :
1. Line Organization :
i. Under line organization, each department is generally a complete self-
contained unit. A separate person will look after the activities of the
department and he has full control over the department.
ii. The same level executives do not give or receive orders amongst
themselves. But they receive orders from their immediate boss and
give orders to their subordinates.
Characteristics of Line Organization :
i. It consists of direct vertical relationships.
ii. Authority flows from top-level to bottom level.
iii. Departmental heads are given full freedom to control their departments.
iv. A senior member has direct command over his subordinates.
v. Existence of direct relationship between superiors and subordinates.
vi. The superior takes decisions within the scope of his authority.
Advantages :
i. It is simple in form with a clear cut division of authority.
ii. The decisions are speedy and their implementation is quick.
iii. It promotes greater co-ordination and keeps better discipline.
Quantity Estimation & Management 3–5 C (CE-Sem-5)

iv. The responsibility can be easily fixed.

v. More economical and flexible.
Disadvantages :
i. Lack of specification and initiative.
ii. Overloading.
iii. Limited communication and subjective approach.
2. Functional Organization :
i. Under functional organization, various specialists are for various
functions performed in an organization.
ii. These specialists will attend to the work which is common to different
functions of various departments.
iii. Workers, under functional organization, receive instructions from
various specialists.
Characteristics of Functional Organization :
i. The work is divided according to specified functions.
ii. Authority is given to a specialist to give orders and instructions in
relation to specific function.
iii. Functional authority has right and power to give command throughout
the line with reference to his specified area.
Advantage of Functional Organisation :
i. Efficiency : Greater efficiency is achieved because of every function
performing a limited number of functions.
ii. Economy : Specialization compiled with standardization facilitates
maximum production and economical costs.
iii. Expansion : Expert knowledge of functional manager facilitates better
control and supervision.
Disadvantages of Functional Organisation :
i. It is difficult to define who the ‘boss’ is.
ii. It de-emphasizes the position of the line organization.
iii. Increasing the overhead expenses.
3. Line and Staff Organization :
i. The line officers have authority to take decisions and implement them
to achieve the objectives of the organization.
ii. The line officers may be assisted by the staff officers while framing the
policies and plans and taking decisions organization.
iii. The authority flows from top level to the lower level of the organization
through the line officers while the staff officers attached to the various
departments advise the departments.
Characteristics of Line and Staff Organization :
i. It consists of direct vertical relationships.
ii. Departmental head is given full freedom to manage his department.
iii. It does not make provision for staff specialists.
iv. Existence of superior-subordinate relationship.
v. Instructions are given by the boss directly to his subordinates.
vi. Superior at each level makes decisions within the scope of his authority.
Elements of Management 3–6 C (CE-Sem-5)

Advantages :
i. Facilitates to work faster and better.
ii. Officers can take sound advice.
iii. Promotes efficient functioning of line officers.
Disadvantages :
i. There may be confusion about the relation between staff and line
employees.
ii. If power are not defined then get confusion.
iii. Line officers may reject advice without any reason for their action.
iv. Line officers blame staff officers for unfavorable results and want to
get rewards for favorable results.

Que 3.3. In what respect does the functional organization differ

from the line and staff organization ? AKTU 2015-16, Marks 10

Answer

S. No. Line and Functional

Staff Organization Organization
1. There are experts known as Functional managers are specialists
staff to advise and assist the in their respective areas.
line officials.
2. Line authority and staff The line of authority is functional
peo ple with advisory or diago nal. The functio nal
authority. manager has authority over the
functions wherever it is performed.
3. Less discipline. More discipline.
4. It is based upon planned Base d on high de gree of
specialization. specialization.
5. Unity of command observed Unity of command is not followed
to a great extent. as e ach sub-ordinate gets
instructions from his line boss and
the functional bosses.
6. Suitable for medium scale It is suitable fo r large scale
operations. operatio ns whe re e xpert
knowledge in certain fields is a
must.
7. Little costlier. Very costly.

Que 3.4. What are the six main functions of management in

undertaking a construction project ? Discuss.

AKTU 2013-14, 2014-15; Marks 10
Quantity Estimation & Management 3–7 C (CE-Sem-5)

Answer
Following are the six main functions of management in construction
project :
1. Planning :
i. The first managerial function involves planning. The function is about
creating a detailed plan towards achieving a specific organizational
objective.
ii. When you are planning, you are identifying the tasks, which are required
to achieve the desired goals, outlining how the tasks should be performed,
and identifying when and by whom they must be performed.
iii. The focus of planning is about achieving the objectives and it does require
knowledge of the organization’s objectives and vision.
2. Organizing :
i. The next function of management follows planning and it is about
organizing. It’s about using the plan to bring together the physical,
financial and other available resources and use them to achieve the
organizational goal.
ii. It involves a certain pattern of relationship of authority and responsibility
among the members of groups, so that the work is performed with
speed, accuracy and economy to achieve the organizational objectives.
3. Staffing :
i. Staffing is a process of matching the jobs with individuals.
ii. After organizing the total activities to be done, management is in a
position to know manpower requirements of the company at different
level in the organization.
iii. Management is to take necessary steps for recruitment, selection,
training and placement of employees.
iv. Staffing is a continuous process because existing employees may leave
the organization and the new employees may join it.
4. Directing :
i. Management is, essentially, an art of getting the work done with the
people. Therefore, management has the responsibility not only of
planning and organizing the operations but also of guiding and directing
the subordinates towards the common goal of the enterprise.
ii. It is the most important function of the management which is performed
by managers/supervisors at all the levels of the organization.
iii. When any decision is taken, it must be converted into action and for
converting into action, direction is required.
5. Co-ordinating :
i. The process of co-ordination involves synchronizing individual efforts
with the goals of the enterprise.
Elements of Management 3–8 C (CE-Sem-5)

ii. Co-ordination is very important in achieving harmony of individual

actions towards accomplishment of company objectives.
iii. Ineffective co-ordination between different functions of a business
enterprise (such as production, sale, administration etc.) can run the
enterprise.
6. Controlling :
i. Control consists in verifying whether everything occurs in conformity
with the plans adopted, the instructions issued and principles established.
ii. It has to point out weaknesses and errors in order to rectify them and
prevent recurrence.
iii. It operates on both human and non-human resources. Checks and
examinations are required on a periodic basis to ensure that orders are
not misunderstood, rules are not violated and objectives have not been
unknowingly shifted or lost sight of it.
iv. The control function follows the three basic steps :
a. Establishing standards,
b. Appraising performance, and
c. Taking corrective actions.

Que 3.5. Describe the salient features of various activities and

resources involved to be planned for a new project. What are the
roles of planning techniques to make the decision for a new project ?
AKTU 2014-15, Marks 10

Answer
Following are the activities involved in construction planning :
1. Defining the Scope of Work : Since all activities involve consumption
of different resources to different extents, it is important that the scope
of work involved is properly and, to the extent possible, completely
defined.
2. Identifying Activities Involved :
i. This part of planning is very closely linked to defining the scope, and
involves identifying activities in a particular job.
ii. Since different activities involved consume different physical resources
to varying extents, it is crucial that these activities are exhaustively
listed, along with the resources required.
3. Establishing Project Duration :
i. This can be done only with a clear knowledge of the required resources,
productivities and interrelationships.
ii. This information is used to prepare a network and other forms of
representations outlining the schedules.
Quantity Estimation & Management 3–9 C (CE-Sem-5)

4. Defining Procedures for Controlling and Assigning Resources :

It is important that the planning document prepared is followed by
others involved in the execution of the project, or in its individual phases.
Thus, the procedures to be followed for procurement and control of
resources for different activities—manpower, machines, material and
money—are also laid down.
5. Developing Appropriate Interfaces : The planner needs to devise an
appropriate system for management information system (MIS) reporting.
Tools such as computers and formats for reporting are widely used, and
it may be noted that several software are readily available to aid the
planner.
6. Updating and Revising Plans : Although a construction plan needs
to be continuously updated and revised during monitoring, some basic
issues should be borne in mind before drawing up a full-fledged plan.
Roles of Planning : Following are the roles of planning in developing
a new project.
1. Minimizes Uncertainty : Planning helps in minimizing the
uncertainties of the future as it anticipates future events.
2. Emphasis on Objectives : When the objectives are clearly fixed, the
execution of plans will be facilitated towards these objectives.
3. Promotes Coordination : Planning helps to promote the coordinated
effort on account of pre-determined goals.
4. Facilitates Control : Planning and control are inseparable in the
sense that unplanned actions cannot be controlled. Control is nothing
but making sure that activities conform to the plans.
5. Improves Competitive Strength : Planning enables an enterprise to
discover new opportunities, which give it a competitive edge.
6. Economical Operation : Planning helps in proper utilization of
resources and elimination of unnecessary activities.
7. Encourages Innovation : Planning creates an innovative and
foresighted attitude among the managers.

Que 3.6. Explain the principles of planning. State their

advantages and limitations. AKTU 2016-17, Marks 10

Answer
Principles of Planning : Following are the various principles of
planning :
1. Contribution to Objectives :
i. The plans are made for the purpose of achieving the organizational
goals.
Elements of Management 3–10 C (CE-Sem-5)

ii. In this way, both the major as well as the derivative plans are made with
a view to contribute in the achievement of organizational goals.
2. Primacy of Planning :
i. According to this principle, the process of planning is the primary function
of all the managers.
ii. The managers are required to plan all their actions and then they should
proceed with other functions.
3. Planning Premises : For the purpose of making the process of planning
effective, there are certain presumptions or premises that have to be
made and the planning is undertaken on the basis of these premises.
4. Principle of Alternatives : The process of planning involves the
development of several alternatives and then the planners select the
alternative that is most appropriate for achieving the organizational
goals.
5. Principle of Timing : The plans have the capability of contributing
significantly in the achievements of the organizational goals if the plans
are properly timed. Therefore the planning premises as well as the
policies are not much helpful if the plans are not properly timed.
6. Principle of Flexibility :
i. According to this principle, there should be flexibility in the plans. This is
very important because flexibility allows the plans to deal with the
contingencies that may develop later on.
ii. Therefore, the plans should be adjustable so that they can deal with the
changes that may develop after the plans have been formulated.
7. Principle of Comparative Strategies :
i. This requires that while formulating their plans, the managers should
also consider the plans made by their competitors.
ii. In this way, the managers should formulate their plans by considering
what the competition would have done in such a case.
8. Principle of Commitment : According to this principle, a time frame
should be provided by the plan during which the commitments made in
the plan have to be fulfilled. This commitment allows the managers to
achieve the targets in time.
Advantages of Planning : Following are the advantages of planning :
1. Planning helps in determining the objectives of an enterprise.
2. Planning avoids chaos because all efforts are directed towards a
predetermined goals of the enterprise.
3. Planning helps in control by distributing the responsibilities of different
persons and jobs.
4. Planning minimizes the cost by utilizing the available resources in the
best way.
Quantity Estimation & Management 3–11 C (CE-Sem-5)

Limitations of Planning : Following are the limitations of planning :

1. In case the data that has been provided to the managers is not reliable,
it is possible that the decisions that are based on this data can also be
unreliable.
2. It also needs to be noted that the process of planning can be very
expensive.
3. The process of planning can be very time consuming and this in turn
reduces the practical utility of planning.
4. Planning cannot be considered as a remedy for all the problems faced by
the organization.

Que 3.7. Explain the different classification of scheduling in

detail. AKTU 2016-17, Marks 10

Answer
Following are the various types of scheduling :
1. Material Scheduling :
i. It provides advanced capabilities for scheduling different types of
commodities and products which include procured raw material, stores,
spares and consumables.
ii. The scheduling of raw material is done on daily production schedule
basis for short lead and cycle time materials, master production schedule
for longer lead time items and on replenishment basis for imported
items with long lead/cycle time.
2. Labour Scheduling :
i. It is used to create, update, and review employee labour schedules. A
labour schedule specifies how an employee’s pay is to be distributed to
oracle grants accounting, oracle projects, or oracle general ledger.
ii. Multiple labour schedules can be created for each employee assignment.
iii. Each schedule contains schedule lines with charging instructions for
grants accounting, projects, or general ledger.
iv. Each payroll is distributed according to the schedule lines in effect for
the period of the payroll to be distributed. An employee can have an
unlimited number of schedule lines.
3. Equipment Scheduling :
i. A civil engineering project needs a variety of equipments and it is
imperative for the engineer/contractor to know what type of equipments
and what number of the equipment and for how many days (with exact
dates) for each will be needed for the purpose.
ii. So that he may arrange them timely by hiring or by purchasing or by
any other means and the work may not be delayed because of non-
availability of equipment.
Elements of Management 3–12 C (CE-Sem-5)

4. Financial Scheduling :
i. It contained in an audited annual report, summarizes the audited financial
position of the audited entity.
ii. Other application of the term is the scheduling of amounts, not
necessarily by date, of major financial events by any given category as to
projected receipts, payments, costs, etc.

Que 3.8. Discuss the monitoring and reporting of project. How is

project monitoring achieved ?
OR
Why is it necessary to maintain an appropriate reporting and
monitoring system in a construction project ?

Answer
1. Project monitoring and reporting involves :
i. The monitoring of actual project progress as compared to the planned
project progress and the collection of key progress metrics such as
risks, issues, changes and dependencies; and
ii. The reporting of project status, costs and outputs and other relevant
information to the project stakeholders.
2. Project monitoring typically involves tracking five variables :
i. Schedule : The estimated effort and duration versus the actual effort
and duration.
ii. Costs : The estimated cost versus the actual costs.
iii. Deliverables : What products or components have been delivered and
plan to be delivered.
iv. Quality : How well are the deliverables being completed.
v. Benefits : Are the processes in place to achieve and to measure the
lead indicators for benefits realization.
3. To provide increased project visibility it is necessary to maintain an
appropriate reporting and monitoring system in a construction project.

Que 3.9. What is updating ? What are the various steps in up-
dating process ?

Answer
Updating : It can be defined as planning and programming of the
remaining portion of an activity job by introducing the latest information
available.
Steps in the Process of Updating :
i. Describe : The point in time at which updating is to be done according
to the original plan.
Quantity Estimation & Management 3–13 C (CE-Sem-5)

ii. Record : What has happened actually till the updating point.
iii. Summarize : The knowledge attained presented in the tabulated form.
iv. Place : The information contained in the updating table onto the original
network. This is done by :
a. Assigning the time of update as the earliest occurrence time for
the tail event of the project,
b. Allotting a zero time duration for all activities which have been
completed,
c. Entering the remaining estimated durations of those activities
which are in progress, and
d. Entering the estimated durations based on new knowledge of
activities which are still to be commenced.
v. Perform : Calculations of earliest occurrence time and latest
occurrence time and mark these on the network known as updated
network.

Que 3.10. What is the role of architects and other specialist

consultants in planning and construction of a multi storied housing
project ? How is their role integrated in the whole system of project
planning ? AKTU 2013-14, Marks 05

Answer
1. Role of Architects :
i. Architects were responsible both in pre-project and project phases, and
they were acting on client’s behalf.
ii. In pre-project phase, they were responsible for preparation of drawings,
preparation of tender document and contractor selection.
iii. In project phase, they were responsible for checking the measurement,
certification of bills and overall project management functions.
iv. In the case of Public Sector, there may be a separate department
(Engineering Department) which is responsible for the tender
preparation and contractor selection.
2. Role of Client (Owner) :
i. The client is often the person or organization that will manage the
facilities or structures upon completion of the project.
ii. The client is in a position to judge the use of funds to execute the project
and they are at his discretion.
3. Role of Constructor :
i. The constructor is sometimes called the construction contractor.
ii. The job is an important one : Completing the project on schedule according
to the contract concluded with the client, and in accordance with design
drawings and specifications.
Elements of Management 3–14 C (CE-Sem-5)

iii. They may actively conduct research and development.

4. Role of Engineer (Consultant) :
i. Generally, the term ‘engineer’ means the consulting engineer who works
with the client to conclude the contract.
ii. He provides technical services on behalf of the client (as a partner and/
or agency).
iii. They are responsible for undertaking project feasibility study,
preparation of cost estimates, geotechnical investigation, reviewing
and coordinating engineering drawings, helping client in bidding
process, and coordinating in execution phase of the project.
5. Role of Sub-contractor/Supplier/Vendor :
i. In large projects, very often no single contracting company has adequate
expertise and/or resources to be able to undertake all the activities on
their own.
ii. Under such situations, they employ small contractors for certain
specialized items of work, for either execution purpose or material
procurement purpose, or both.
iii. These are referred to as sub-contractors or vendors, and are a very
important part in any construction project.
6. Lawyer, etc. :
i. In some countries, lawyers are part and parcel of a construction project
and it is normal for a lawyer to be retained.
ii. Lawyers specializing in claims settlements and disputes play an important
role in domestic projects undertaken in India, as well as in international
projects.
iii. Some of the construction companies in India do have a separate legal
cell comprising lawyers specializing in construction disputes.

Que 3.11. Dis cuss the various types of civil engineering

construction and their unique features. AKTU 2013-14, Marks 05

Answer
Following are the various types of civil engineering construction :
1. Agricultural : Typically economical buildings, and other improvements,
for agricultural purposes. Examples include barns, equipment and animal
sheds, specialized fencing, storage silos and elevators, and water supply
and drains such as wells, tanks, and ditches.
2. Residential : Residential construction includes houses, apartments,
townhouses, and other smaller, low-rise housing, small office types.
3. Commercial : This refers to construction for the needs of private
commerce, trade, and services. Examples include office buildings, “big
Quantity Estimation & Management 3–15 C (CE-Sem-5)

box” stores, shopping centers and malls, warehouses, banks, theaters,

casinos, resorts, golf courses, and larger residential structures such as
high-rise hotels.
4. Institutional : This category is for the needs of government and other
public organizations. Examples include schools, fire and police stations,
libraries, museums, dormitories, research buildings, hospitals,
transportation terminals, some military facilities, and governmental
buildings.
5. Industrial : Buildings and other constructed items used for storage
and product production, including chemical and power plants, steel mills,
oil refineries and platforms, manufacturing plants, pipelines, and
seaports.
6. Heavy Civil : The construction of transportation infrastructure such
as roads, bridges, railroads, tunnels, airports, and fortified military
facilities. Dams are also included, but most other water-related
infrastructure is considered environmental.
7. Environmental : Environmental construction was part of heavy civil,
but is now separate, dealing with projects that improve the environment.
Some examples are water and wastewater treatment plants, sanitary
and storm sewers, solid waste management, and air pollution control.

Que 3.12. Discuss management system in construction.

Answer
To ensure smooth working in the project work, certain key elements
must be placed in the organization.
The project management system consists of seven components or sub-
systems. These are as follows :
1. Project Planning and Design :
i. The planning and designing system is perhaps the most important
component, on it depends the successful completion of a project.
ii. Project planning is concerned with laying down certain objectives, goal
and strategies. Better results can be achieved if the design of the
project work is systematized.
2. Project Information System :
i. In organizing the implementation of project work, the information
system must be good.
ii. However, one of the problems some organizations have is that the
data on project status is collected, processed and distributed at such
large time intervals so as to make the information useless in terms of
control.
3. Project Control System :
i. Monitoring and control are the important sub-sets of the project
implementation process. The objective of monitoring is to see deviations
from the planned project performance.
Elements of Management 3–16 C (CE-Sem-5)

ii. On the other hand, control is making decision to redirect projects

inputs, resources and schedules in order to ensure that the anticipated
deviations do not materialize.
4. Project Techniques and Execution System :
i. In order to ensure timely completion of a project, manager makes use
of certain techniques and methodologies. These may consist of certain
technology, PERT/CPM scheduling and costing designs.
ii. In addition to these techniques, the project execution plan, working
packaging plan, procedure plan and human resource plan are also
there.
5. Project Organization System :
i. A system approach will enable the project manager to reduce the risk
which is inherent in most projects.
ii. An organization is often needed by the project manager for securing
co-ordinated efforts of all participants. This organization must define
the limits of authority, responsibility and accountability of participants.
6. Cultural System :
i. The project organization operates in a given cultural environment.
ii. The culture of an organization is the totality of the values, traditions,
beliefs and behaviours of the participants of the project organization,
since, change is resisted, it must be properly planned to avoid troubles.
7. Human System :
i. Human resources system is the most important aspect of the project
management.
ii. Project techniques and methodologies are of no use if personnel lack
adequate skills and motivation.
iii. A project manager needs very good interpersonal skills. These include
the ability to provide good leadership for project team, the ability to
deal with other constituents for needed resources, skills in motivating
team members, good communication skills etc.

Que 3.13. Discuss the importance of control system in successful

completion of a project i.e., with respect to scope, cost, time and
quality. AKTU 2013-14, Marks 05

Answer
1. Project controls system encompass the people, processes and tools used
to plan, manage and mitigate cost and schedule issues and any risk
events that may impact a project.
2. The traditional measures of project success are the accomplishment of a
scope in budget, on time, and with required quality.
3. Control system helps in successful completion of a project with respect
to :
Quantity Estimation & Management 3–17 C (CE-Sem-5)

i. Cost :
a. The financial commitment of the project is dependent on several
variables. There are the resources involved, from materials to people,
which include labor costs.
b. Cost processes include cost estimating to figure out the needed financial
commitment for all resources necessary to complete the job.
c. Control system helps in ensuring that your estimates are as accurate as
possible.
ii. Scope :
a. Scope deals with the specific requirements or tasks necessary to complete
the project.
b. Scope is important to manage on any project, because if you can’t control
the scope of the project, you’re not likely to deliver it on time or under
budget.
c. Control system helps in controlling the scope of the project.
iii. Time :
a. The schedule is the estimated amount of time allotted to complete the
project, or producing the deliverable.
b. This is achieved by noting all the tasks necessary to move from the start
to the finish of the project.
c. Control system helps the project stay on track.
iv. Quality :
a. Quality is critical and the most important factor for completion of a
project on time and within the allocated budget.
b. If proper quality checks are not in place, defective materials or work
may cause damage to equipment and facilities.
c. Control system helps in maintaining the quality in the project.

Que 3.14. How are cost control systems classified ? Explain.

AKTU 2015-16, Marks 10

Answer
Cost Control Techniques : Cost can be controlling by employing the
following methods :
1. Materials Control :
i. Materials control may be defined as the systematic control over the
procurement, storage and usage of materials so as to maintain an even
flow of materials and at the same time avoiding excessive investment in
inventories.
ii. From the above definition we can derive the following important aspects :
a. To ensure the smooth flow of production without interruptions.
b. Prevention of excessive investments in materials stock.
2. Labor Control :
i. In order to achieve the effective utilization of manpower resources, the
management has to apply proper system of labour cost control.
Elements of Management 3–18 C (CE-Sem-5)

ii The labour cost control may be determined on the basis of establishment

of standard of efficiency and comparison of actual with standards.
iii. The management applies various techniques for the effective control of
labour costs as under :
a. Scientific method of production planning.
b. Use of labour budgets.
c. Establishment of labour standards.
d. Proper system of labour performance report.
e. Effective system of job evaluation and job analysis.
f. Devise a proper system of control over ideal time and unusual
overtime work.
3. Overhead Control :
i. Aggregate of all expenses relating to indirect material cost, indirect
labour cost and indirect expenses is known as overhead.
ii. Measures to controlling overhead costs :
a. Inventory counts (avoid excessive/wrong inventory items).
b. Renegotiate interest terms.
c. Renegotiate rental terms.
d. Decrease working capital.
e. Implement quality control system.
f. Re-evaluate sales and marketing costs.
g. decrease transportation cost.
4. Standard Costing :
i. Implementing this level of control can have a profound positive impact
on profits over the long term.
ii. The following four steps are associated with standard costing :
a. Create a baseline.
b. Calculate a variance.
c. Investigate variances.
d. Take action.
5. Budgetary Control :
i. Budgetary control is the process of determining various actual results
with budgeted figures for the enterprise for the future period and
standards set then comparing the budgeted figures with the actual
performance for calculating variances, if any.
ii. The comparison of budgeted and actual figures will enable the
management to find out discrepancies and take remedial measures at a
proper time.
Quantity Estimation & Management 3–19 C (CE-Sem-5)

6. Capital Expenditure Controlling :

i. Capital expenditure controlling refers to the actions, processes and tools
used to identify, forecast, assess, decide and manage capital expenditure.
ii. Capital expenditure can be used to replace or expand existing plant and
equipment, to invest in new equipment or to make use of strategic
opportunities in new production or market contexts.
iii. In the broader sense capital expenditure controlling is also applied to
expenditure incurred in the context of campaigns or projects typical for
areas such as marketing or research and development.

PART-2
Bar Charts, Milestone Charts, Work Breakdown Structure
and Preparation of Networks, PERT and CPM,
Project Monitoring and Resource Allocation.

CONCEPT OUTLINE : PART-2

Bar Chart : Bar chart is a graph that represents categorical data with
rectangular bars with height or length proportional to the values that
they represent.
Milestone Chart : Milestone chart is a modification over the original
Gantt chart. Milestones are key events of a main activity represented
by bar.
Work Breakdown Structure : Work breakdown structure is a
pictorial representation of the entire program.
PERT (Program Evaluation and Review Technique) : PERT is a
management tool used for planning, controlling and reviewing project.
Three time estimates of activity duration are as follows :
i. Optimistic time estimate (to).
ii. Pessimistic time estimate (tp).
iii. Most likely time estimate (tm).
Slack : The difference between earliest expected time (TE) and latest
allowable occurrence time (TL) of an event is called slack of event.
Slack can be positive, zero or negative.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Elements of Management 3–20 C (CE-Sem-5)

Que 3.15. What is the bar chart ? Also explain its limitations.
OR
Discuss in details about the limitations of a bar chart.
AKTU 2015-16, Marks 10

Answer
Bar Chart : A bar chart or bar graph is a chart that presents categorical
data with rectangular bar with height or length proportional to the
values that they represent.
Limitations of Bar Chart : These are the following limitations of bar
chart :
1. Only major activities are shown in bar chart and sub activities cannot be
separated out. Hence effective control over the activities in big projects
cannot be achieved.
2. A bar chart does not show progress of work hence it cannot be used as
a control device.
3. It does not show the interdependencies between the various activities
clearly.
4. Delays in the work cannot be detected.
5. Bar chart cannot distinguish between critical and non-critical activities.
Hence resource smoothening and resource levelling cannot be done.
6. The financial aspect involved is not known i.e., whether the project cost
is within the estimated one or exceeded.

Que 3.16. Draw a bar chart and compute the total duration of the
project from the data given below :

Task(1) 5 days (Duration)

Task(2) 3 days
Task(3) 7 days
Task(4) 2 days
Task(5) 4 days
Task(6) 7 days

Task (1) and (4) will be started together. Task(2) will start after
completion of task (3) and task (3) will the place after task (1). Task(5)
and (6) will be taken up together but only after completion of task
(3). AKTU 2013-14, 2014-15; Marks 10
Quantity Estimation & Management 3–21 C (CE-Sem-5)

Answer
i. Bar Chart :

7
6
5
Item

4
3
2
1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
(Time in days)
Fig. 3.16.1. Bar chart.

ii. Total duration of the project = 5 + 7 + 7 = 19 days.

Que 3.17. Explain the milestone chart. Also give its limitations.
OR
State how project controlling and activity inter relationship can be
achieved in a modified bar chart. Determine the critical path with
the scheduled completion time of 21 days.

Fig. 3.17.1.

AKTU 2014-15, Marks 10

Answer
A. Milestone Chart :
1. Milestone chart is a modification over the original Gantt chart.
2. Milestones are key events of a main activity represented by bar. These
are specific points in time which mark the completion of certain portions
of the main activity.
3. These points are those which can be easily identified over the main bar.
Elements of Management 3–22 C (CE-Sem-5)

4. The activity is broken or sub-divided into a number of sub activities,

each one of which can be easily recognized.
5. During the progress of the project, controlling can be easily done and
interrelationships between other similar activities can be easily
established.
6. The beginning and end of these sub-divided activities or tasks are termed
as milestones.
7. For example,
i. Let us consider an item of structural steel. This item will be represented
on the chart by one single bar, though the following functions control
the completion time of such an item :
a. Materials ordered,
b. Procurement time,
c. Erection started,
d. Erection completed, and
e. Test and approval.
ii. For completion of the item as per schedule, each of the above functions
must be allocated a specific time and that time should be properly
controlled.
iii. The above information can be shown on the bar chart by the use of
milestones.
iv. These are slidable symbols superimposed upon the bar as shown in
Fig. 3.17.2.
January February March
Item 7 14 21 28 4 11 18 25 4 11 18
Excavation
A B C D
Formwork
A B C D
Reinforcing
A B C D
Concreting

Finishing

Fig. 3.17.2. Milestone chart.

Limitations of Milestone Chart :
i. It does not show the interdependencies between the events.
ii. Within a task, the relationship between two specific milestones is
revealed, but the relationship between and among milestones contained
in different task is not indicated on the chart.
Quantity Estimation & Management 3–23 C (CE-Sem-5)

B. Numerical :
2 4
5 2
2
8 8 14 14
7 7
0 0 1 5 9 21 21
6
3 3
3 5 1
3
3
6 8
5
Fig. 3.17.3.
Note : In this question activity numbers and activity times are not
given, so we assume activity numbers and times suitably.
1. The network has following path :
i. 1-2-4-7-9 = 2 + 5 + 2 + 7 = 16 days
ii. 1-2-4-7-8-9 = 2 + 5 + 2 + 3 + 3 = 15 days
iii. 1-3-5-7-9 = 3 + 5 + 6 + 7 = 21 days
iv. 1-3-5-6-8-9 = 3 + 5 + 1 + 5 + 3 = 17 days
v. 1-3-5-7-8-9 = 3 + 5 + 6 + 3 + 3 = 20 days
vi. 1-3-6-8-9 = 3 + 3 + 5 + 3 = 14 days
2. For 21 day the critical path is 1-3-5-7-9 = 3 + 5 + 6 + 7 = 21 days

Que 3.18. Explain work breakdown structure, prepare the work

breakdown structure for the launching of a communication
satellite. Assume the activities suitably. AKTU 2015-16, Marks 10

Answer
A. Work Breakdown Structure :
1. Work breakdown structure or schedule is a pictorial representation of
the entire program.
2. It is a preliminary diagram illustrating the way in which all the supporting
objectives go together and mesh to ensure the attainment of the major
objective.
3. Such a breakdown structure is more essential in complex projects
consisting of hundreds of events and activities.
4. In work breakdown structure, the top-down approach to planning is
adopted. Such an approach ensures that the total project is fully planned.
5. The work breakdown schedule aids in the identification of objective and
allows the planner to see the picture of the project.
6. The development of the work breakdown structure begins at the highest
level of the program with the identification of project end items.
7. The major end items are then divided into their sub-component parts
(i.e., system, sub systems, components) and the component parts are
further divided into their more detailed units.
8. The subdivision of the work breakdown structure continues to
successively lower levels, until it reaches the level where the end item
Elements of Management 3–24 C (CE-Sem-5)

subdivisions finally become manageable units for planning and controlling

purpose.
9. The end items subdivisions appearing at this last level in work breakdown
structure are then divided into major work packages (i.e., engineering,
manufacturing, testing etc.).
Construction work

Civil Work Electrical Work Plumbing Work

Foundation Super Structure Road Work

Layout PCC RCC Anti Termite

Shuttering Steel Work Concreting Removal of Shuttering

Fig. 3.18.1.
B. Breakdown Structure for the Launching of a Communication
Satellite :
Ground segment

Transport and Weather

Launch pad Ground station Mission control Recovery
logistics modelling

PSLV Communi- Atmosphere

cations Sriharikota RIB Booster
profiling
Launch rail/ Tracking
platform CCI Plane Capsule Impact
predictions
Tanking/ Data
detanking recording Safing Stacking
Procedures procedures
Launch vehicle Data Relay Propellants
servicing Trajectory Retrieval

Land assets
Crew
Servicing Planning
Video
streaming Equipment
Interfaces

Weather Launch range

protection
ATC
Safety
systems
CCI - Command and Control Interface
RIB - Rigid hulled Inflatable Boat
ATC - Air Traffic Control

Fig. 3.18.2.

Que 3.19. Define networks. Describe the various rules for prepare
a network.
Quantity Estimation & Management 3–25 C (CE-Sem-5)

Answer
Network : This is an arrow-diagram (consisting only arrows and circles)
drawn to represent the inter-relationship and sequence of all the required
construction activities of a project as shown in Fig. 3.19.1.
3
F
B
Initial A H
event 1 Activity 2 D 5 6 Find
E event
C G
4 Dual role event
Fig. 3.19.1.
Network Rules : Following are the rules used for prepare a network :
1. In a network, there are three types of events :
i. Initial event,
ii. Final event, and
iii. Dual role event.
2. The completion of a project, which constitutes of a number of activities,
passes through a number of events. These events must occur at definite
time and in a particular sequence or order. As per sequence or order the
events may be specified as predecessor events and successor events.
3. Similar to that of an event, activity also may be predecessor activity and
successor activity.
4. It is customary to assume that time flows from left to right which gives
the direction of arrows.
5. Arrows should normally not cross each other.
6. It is essential to number the events in a discrete manner. Every activity
in a network is identified by its own i-node and j-node number.
Fulkerson’s Rule of Node Numbering :
i. There will be a single initial event in a network which has only arrows
coming out of it. The event is first given number (say 1).
ii. All the arrows coming out of event (1) are neglected. This provides us
with one or more initial events. These events are numbered as (2), (3),
(4), etc.
iii. Again, neglect all arrows coming out of these events. A few more initial
events will be created, number them similarly.
iv. This operation is continued until the last event is reached and numbered.

Que 3.20. A target data of completion is to be forecast based on the

following information :
Item A : Takes 7 weeks for completion.
Item B : Takes 5 weeks.
Item C : Depends on the completion of both A and B and requires
3 weeks.
Elements of Management 3–26 C (CE-Sem-5)

Item D : Follows up of item C and requires 2 week.

Prepare a bar chart and mile stone chart for scheduling the
completion date. AKTU 2015-16, Marks 10

Answer
1. Bar Chart :

B
Item

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
(Time in week)
(a) Bar chart.
2. Milestone Chart :

Critical item
B Non critical item

C
Item

1 2 3 4 5 6 7 8 9 10 11 12
Time in week
(b) Milestone chart.
Fig. 3.20.1.

Que 3.21. What is CPM ? Describe the various type of activity

time, related to CPM.

Answer
CPM (Critical Path Method) : The critical path method is step by step
project management technique for process planning that defines critical
and non-critical tasks with the goal of preventing time-frame problems
and process bottlenecks.
Quantity Estimation & Management 3–27 C (CE-Sem-5)

Types of Activity Times : Following are the various activity times

occur in CPM :
1. EOT (Earliest Occurrence Time) : EOT of an event obviously represent
the minimum time required for completing the project.
2. LOT (Latest Occurrence Time) : It is defined as the latest possible
time at which an event can take place without upsetting the total project
time calculated by the method of forward pass.
(LOT)i = (LOT)j – ti – j
3. EST (Earliest Start Time) : The earliest start time is the earliest
possible time at which an activity can start.
(EST)i –j = (EOT)i
4. EFT (Earliest Finish Time) : The earliest finish time is the earliest
possible time at which an activity can finish.
(EFT)i –j = (EOT)j + ti – j
5. LST (Latest Start Time) : The latest start time is the latest possible
time by which an activity can start without any delay of project time
forecast on the basis of earliest occurrence time to the final event.
(LST)i –j = (LOT)j – ti– j
6. LFT (Latest Finish Time) : The latest finish time is the latest possible
time that an activity can finish without any delay in completion of the
project.
(LFT)i –j = (LOT)j

Que 3.22. Explain the concept of float and slack. Distinguish

between the free, independent and interfering floats.
AKTU 2013-14, Marks 05

Answer
1. Slack :
i. Slack is amount of time that a task in a project network can be delayed
without causing a delay to subsequent tasks and project completion
data.
ii. The difference between TE and TL of an event is called the slack of that
event.
Slack = TE – TL
2. Float :
i. Float denotes the flexibility range within which the activity start and
finish times may fluctuate without affecting the total project duration.
ii. The float is similar to ‘slack’ in PERT. The difference is that float is
associated with the activity times while slack is with event times.
Elements of Management 3–28 C (CE-Sem-5)

Types of Float : Following are the various types of float :

1. Total Float :
i. It is the time span by which the starting or finishing of an activity can be
delayed without affecting the overall completion time of the project.
ii. Total float = FTij = (TLj – TEi) – tij
 FT = LST – EST
Similarly, FT = LFT – EFT
2. Free Float :
i. Free float is that duration by which an activity can be delayed without
delaying any other succeeding activity. Free float is a portion of the total
float.
ii. Free float = FEij = TEj – (TEi + tij)
 FF = FT – Sj
= TLj – TEj
Sj = Head event slack.
3. Independent Float :
i. It is the excess time available if the preceding activity ends as late as
possible and the succeeding activity starts as early as possible.
ii. The independent float is a part of the free float.
FID = TEi – TLi – tij
= FF + TEi – TLi = FF – (TLi – TEi)
FID = FF – Si
4. Interfering Float :
i. It is the difference between the total float and free float. This is equal to
the head event slack.
ii. This is the potential downstream difference.
FIT = FT – FF = FT – (FT – Si)
FIT = Si

Que 3.23. Fig. 3.23.1 represents the network of a project and

duration of each activity in number of days is given along the
respective activity. Identify all the paths through the network and
find out the critical path and project duration.
Quantity Estimation & Management 3–29 C (CE-Sem-5)

C 4
2 6
A
3 G
1 D 4 9
B
4
E H K
3 6 11 7 11 8
2
F I J
7 2 7
5
Fig. 3.23.1.

AKTU 2013-14, Marks 10

Answer

1. Total Possible Paths :

i. 1 – 2 – 4 – 8 = A – C – G = 3 + 6 + 9 = 18 days
ii. 1 – 3 – 4 – 8 = B – D – G = 4 + 4 + 9 = 17 days
iii. 1 – 3 – 6 – 7 – 8 = B – E – H – K = 4 + 2 + 11 + 11 = 28 days
iv. 1 – 3 – 5 – 6 – 7 – 8 = B – F – I – H – K = 4 + 7 + 2 + 11 + 11 = 35 days
v. 1 – 3 – 5 – 7 – 8 = B – F – J – K = 4 + 7 + 7 + 11 = 29 days
2. Critical path = 1 – 3 – 5 – 6 – 7 – 8 = B – F – I – H – K = 35 days
3. Project duration = 35 days
C 4
2
A 6
3 G
1 D 9
4
B
4
E H K
3 2 6 7 8
11 11
F J
7 I
2 7
5
Fig. 3.23.2.

Que 3.24. Draw the network and design the critical path and
calculate the completion time of the project whose activities are as
follows.
Elements of Management 3–30 C (CE-Sem-5)

Activity Duration in days Preceding

A-B 7 –

B-C 10 A-B

B-D 15 A-B

C-D 7 B-C

C-E 12 B-C

D-E 3 B-D, C-D

E-F 5 C-E, D-E

AKTU 2016-17, Marks 10

Answer
1. Network :

7 7 17 17 29 29 34 34
7 10 12 5
A B C E F

0 0 7
15
3

24 26

Fig. 3.24.1.
2. Critical Path : There are three possible path for completion this project,
such as :
i. A-B-C-E-F
Total time taken = 7 + 10 + 12 + 5 = 34 days
ii. A-B-D-E-F
Total time taken = 7 + 15 + 3 + 5 = 30 days
iii. A-B-C-D-E-F
Total time taken = 7 + 10 + 7 + 3 + 5 = 32 days
Quantity Estimation & Management 3–31 C (CE-Sem-5)

Maximum time taken path is path (i), so this is called as critical path.
Hence completion time for project is 34 days.

Que 3.25. A project of five activities, whose activity relationships,

activity durations (normal and crash) and activity costs (normal
and crash) are given in the following table. Estimate the optimum
cost and time.
Normal Crash
Activity Time Cost ( ` ) Time Cost ( ` )
(Week) (Week)
10-20 3 12000 2 16000
10-30 6 18000 3 24000
20-40 2 20000 1 23000
30-40 4 16000 2 21000
40-50 5 30000 4 35000
AKTU 2016-17, Marks 10

Answer
1. The network diagram for the given problem is shown in Fig. 3.25.1.

20 2
3
40
5
10
6 4
50
30

Fig. 3.25.1. Network diagram.

2. From network diagram, the critical path is 10-30-40-50 with project
duration of 15 week and project cost of ` 96000.
3. The cost slope for all activities are given below :

Crash cost  Normal cost

Activity Cost slope =
Normal time  Crash time
10-20 4000
10-30 2000
20-40 3000
30-40 2500
40-50 5000
Elements of Management 3–32 C (CE-Sem-5)

4. Since the project duration is controlled by the activities on the critical

path therefore the duration of activities on the critical path is reduced.
5. Crash the least cost slope activity first to the maximum extent possible
and then higher ones such that the final crashing yields to parallel
critical path with optimum cost and time.
6. So we start with the least slope activity (10-30) on critical path and crash
it by 3 week and activity (30-40) by 2 week which gives project duration
of 10 days and project cost of 96000 + 3 × 2000 + 2 × 2500 = ` 107000.
7. So, optimum cost = ` 107000 and optimum time = 10 week.
Que 3.26. Explain the three time estimates that are used in PERT.
How are the expected duration of a project and its standard deviation
calculated ? AKTU 2013-14, Marks 05

AKTU 2014-15, Marks 10

Answer
There are three different estimates of activity duration in PERT :
1. Optimistic, 2. Pessimistic and 3. Most Likely.
1. Optimistic Time : It expressed as ‘to’, represents estimate of minimum
possible time by which an activity can be completed assuming that
everything is in order according to the plan and there can be only
minimum amount of difficulty.
2. Pessimistic Time : It expressed as ‘tp’ represents estimate of maximum
possible time by which an activity can be completed assuming that things
may not be in accordance with the plan and there can be incidence of
difficulties in carrying out the activity.
3. Most Likely Time : It expressed as ‘tm’, represents estimate of time for
completion of an activity, which is neither optimistic nor pessimistic,
assuming that things should go in a normal way, and if the activity is
repeated several times, in most of the cases, it will be completed in time
represented by t.
4. The expected mean time (te) (duration) of a project is calculate by formula,
to  4 tm  t p
te =
6
tp  to
5. Standard deviation, t =
6
(tp  to )2
6. Variance, t = (t)2 =
36
Que 3.27. Describe the various terms which are related to PERT
Analysis.
Quantity Estimation & Management 3–33 C (CE-Sem-5)

Answer
Following are the various term associated with PERT :
1. The Earliest Expected Time (TE) : It is the time when an event can be
expected to occur earliest. The calculation of TE of an event is as follows :
(TE)j = (TE)i + ti – j
2. The Latest Allowable Occurrence Time (TL) :
i. The latest time by which an event must occur to keep the project on
schedule is called the latest allowable occurrence time.
ii. The calculation of TL of an event is given by,
(TL)i = (TL)j + ti – j
3. Slack : The slack is difference between event times denoting the range
within which an event time can vary.
Slack = TL – TE
Slack may be positive, zero or negative depending upon the value of TE
and TL of that event.
i. Positive Slack : When TL is more than TE, positive slack is obtained.
It indicates the project is ahead of schedule meaning thereby the excess
resources.
ii. Zero Slack : When TL is equal to TE, zero slack is obtained. It indicates
that the project is going on schedule meaning thereby adequate
resources.
iii. Negative Slack : When the schedule completion time TS (and hence
TL) is less than TE, negative slack is obtained. It indicates the project is
behind schedule meaning thereby the lack of resources.
4. Critical Event : The event having the least slack value is known as a
critical event.
5. Critical Path : The path joining the critical events is called a critical
path of the PERT network. Timewise, the critical path is the longest
path connecting the initial event to the final event.
Que 3.28. The time estimates for the activity P, Q and R in a project
are as follows :
Activity to tm tp
P 10 12 14
Q 6 8 12
R 5 10 12
i. Determine the expected time and variance of each activity.
ii. Which activity has more reliable time estimates ?
AKTU 2015-16, Marks 05
Elements of Management 3–34 C (CE-Sem-5)

Answer
t0  4 tm  t p
1. Expected time, te =
6
10  4  12  14
i. For activity P : te =  12
6
6  4  8  12
ii. For activity Q : te =  8.33
6
5  4  10  12
iii. For activity R : te =  9.5
6
2
 t p  t0 
2. Variance, 2 =  
 6 
i. For activity P : t0 = 10, tm = 12, tp = 14
2
 14  10 
2 =   0.44
 6 
ii. For activity Q : t0 = 6, tm = 8, tp = 12
2
2 =  12  6   1
 6 
iii. For activity R : t0 = 5, tm = 10, tp = 12
2
 12  5 
2 =    1.36
 6 
3. te = 12, so activity P has more reliable time estimate.

Que 3.29. For an activity of casting a raft foundation of a high

rise building, three engineers A, B, C have given the following times
estimates. State, among these three engineers who is more certain
about the time of completion of job ?
Engineer Time in week
to tm tp
A 05 07 09
B 04 06 07
C 03 05 08

Answer
1. For A to = 5, tm = 7, tp = 9

to  4 tm  t p 5   4  7   9 42
te =    7 weeks
6 6 6
Quantity Estimation & Management 3–35 C (CE-Sem-5)

2. For B to = 4, tm = 6, tp = 7
to  4 tm  tp4   4  6   7 35
te =    5.84 weeks
6 6 6
3. For C to = 3, tm = 5, tp = 8
to  4 tm  t p
3  (4  5)  8
te =   5.17 weeks
6 6
4. te = 7 weeks, so engineer A is more certain about the time of completion
of job.

Que 3.30. Enumerate the difference between CPM and PERT.

AKTU 2015-16, Marks 05

Answer
Difference between CPM and PERT :
S. No. CPM PERT
1. It is basically having deterministic It is basically having
approach in the de sign o f probabilistic approach in the
network. design of network.
2. Only one time estimate is required Three time estimate (in the
for each activity. form of Pessimistic time,
Optimistic time and Most likely
time) for each activity.
3. It is built-up of activity-oriented It is built-up of event-oriented
diagram. diagram.
4. Time and cost both are controlling Time only is the controlling
factors. There is an optimum factor and the cost is assumed
duration of the project at which proportional to the project
the project cost is minimum and duration.
this can be obtained by crashing
the network.
5. Critical events must have zero Critical events may be positive/
slack. zero/negative depending upon
the project sche dule d
completion time.
6. It is recommended for repetitive It is re co mmende d fo r
nature o f wo rk whe re past research and development
e xperie nces are ade quately project where no past
available. experiences are available or
where great uncertainty lies
in the time estimation.
Elements of Management 3–36 C (CE-Sem-5)

Que 3.31. In a big construction project, how the work is divided

into small sub projects and how contract planning programme is
worked out to complete the project in specified time. Discuss with a
suitable example. AKTU 2013-14, Marks 05

Answer
Work Breakdown Structure : Refer Q. 3.18, Page 3–23C, Unit-3.
Contract Planning :
1. A contract planning programme assists contract managers to properly
manage contracts by addressing transition management, performance
monitoring and by helping to ensure that both parties fulfill their
commercial and contractual commitments.
2. Contract planning programme is developed for all medium to high risk
contracts.
3. Following key components should be considered when drafting a contract
planning programme to complete the project in specified time :
i. Contract Summary and Background of the Scope of Work : In
this section, provide a summary of the program. This section should
include the type of work being performed, the goals of the contract, the
place of performance, and significant features of the contract.
ii. Contract Management Team Coordination : The contract planning
programme should incorporate detail regarding identification of the
members of the contract planning programme team and their
responsibilities.
iii. Contract Identification : The contract planning programme should
include the contract information like, Contractor name, Contract value,
and Contractor key personnel.
iv. Contract Management Processes : In this section, identify the critical
process or guidelines for successfully managing the contract and
reference sections of the contract (e.g., conditions, instructions, contract
clauses, etc.) that support these functions.
v. Method for Monitoring Performance-Based Objectives : Describe
the methods for monitoring and evaluating the performance-based
objectives, for example, Quality Assurance Surveillance Plan (QASP)
addresses the methods for monitoring performance against the contract.
This section should also address contractor oversight (e.g., field
inspe ctions, monthly assessment of pro ject status, contract
administration, deliverable reports, budgetary data, physical inspections,
etc.).
vi. Contract Deliverables : Identify critical milestones and contract
deliverables (e.g., Transition Plan, Risk Mitigation Plan, Project
Management, Quality Surveillance Assurance Plan, etc.); and the
individuals responsible for the requirement.
vii. Performance Risk Areas : Identify known performance risks and the
individuals responsible for mitigating these risks.
Quantity Estimation & Management 3–37 C (CE-Sem-5)

viii. Key Performance Metrics : The section should identify any key
performances for determining contractor progress.

Que 3.32. What is resource allocation ? How is it achieved through

network techniques ?

Answer
Resources Allocation :
i. Resource allocation simply means deciding what resources each activity
of the project requires. For this resource usage profile i.e., Histogram is
drawn either on earliest start of each activity or latest start of each
activity basis.
ii. The process of resource allocation consists essentially of fitting activities
into pattern of resource availability within stipulated time period and it
is achieved by the following ways, namely.
1. Resource Smoothing : In this approach the total project duration is
not changed but some of the activity start times are shifted by their
available float so that more or less uniform demand is generated and
this is called Resource Smoothing.
Example :
i. The project duration (6 days) is maintained, so the critical activity
(10 – 40) will start earliest and finish in 6 days.
ii. But the path (10 – 20 – 40) has 3 days float and path (10 – 30 – 40) has 2
days float.
iii. The float period may be distributed among the activities lying on the
path or the float may be distributed over one activity on the path.
2m

20 1
m
On
at

2
1d d e
lo

da
f

y
ys

flo
da

4 Resource at
2

availability 1m
men

3
2 10 40
1 1m 6d
1m
2d s
0 1 2 3 4 5 6 ay 2d
2d
days
lo at
30 f

Fig. 3.32.1. Resource smoothing profile.

iv. Various trials and errors are taken and finally the resource smoothing
is obtained and is presented in the form of histogram and the
corresponding network showing start time of each activity.
2. Resource Levelling :
In this approach, the activity start times are so rescheduled that the
peak demand does not exceed the available limit of resource. If it does
not give the desirable result by consideration of floats, the total project
Elements of Management 3–38 C (CE-Sem-5)

duration to minimum extent may be extended and this is called resource

levelling.
Example :
i. If the resource availability is quite limited. It cannot meet period by
period variation.
ii. Critical activity (10 – 40) is given one day float in the start time making
project period of 7 days instead of 6 days.
iii. Float of 4 days in the path of (10 – 20 – 40) has been totally used in the
activity of (20 – 40) only such that the activity starts 2 days late and
finishes 2 days earlier.
iv. 3 days float of the path (10 – 30 – 40) has been distributed such that
activity (10 – 30) starts 1 day late and activity (30 – 40) starts 2 days late.
v. Consequently a uniform demand of 2 men each day agrees exactly with
the availability of 2 men.

20 2
da
flo ys
at 1m
m

2d 2d
4
2

Demand Availability flo ays

1d

3 at
1m
men

2 10 40
1 one day float 6d
1d 1m
ay
0 1 2 3 4 5 6 7 flo ys
2d
a
day at 2d
at
project period extended 30 flo
for 1 days
Fig. 3.32.2.

VERY IMPORTANT QUESTIONS

Following questions are very important. These questions
may be asked in your SESSIONALS as well as
UNIVERSITY EXAMINATION.

Q. 1. Discuss project life cycle and performance objectives.

Ans. Refer Q. 3.1, Unit-3.

Q. 2. Define organization and explain its types.

Ans. Refer Q. 3.2, Unit-3.
Q. 3. In what respect does the functional organization differ
from the line and staff organization ?
Ans. Refer Q. 3.3, Unit-3.
Quantity Estimation & Management 3–39 C (CE-Sem-5)

Q. 4. What is the role of architects and other s pecialist

consultants in planning and construction of a multi storied
housing project ? How is their role integrated in the whole
system of project planning ?
Ans. Refer Q. 3.10, Unit-3.

Q. 5. What is the bar chart ? Also explain its limitations.

Ans. Refer Q. 3.15, Unit-3.

Q. 6. A target data of completion is to be forecast based on the

following information :
Item A :Takes 7 weeks for completion.
Item B :Takes 5 weeks.
Item C :Depends on the completion of both A and B and
requires
3 weeks.
Item D : Follows up of item C and requires 2 week.
Prepare a bar chart and milestone chart for scheduling the
completion date.
Ans. Refer Q. 3.20, Unit-3.

Q. 7. Explain the three time estimates that are used in PERT.

How are the expected duration of a project and its standard
deviation calculated ?
Ans. Refer Q. 3.26, Unit-3.
Q. 8. Enumerate the difference between CPM and PERT.
Ans. Refer Q. 3.30, Unit-3.


Quantity Estimation & Management 4–1 C (CE-Sem-5)

4 Equipment
Management

Part-1 ............................................................................... (4–2C to 4–9C)

• Productivity
• Operational Cost
• Owning and Hiring Cost and the Work Motion Study
• Simulation Techniques for Resource Scheduling

A. Concept Outline : Part-1 ............................................................. 4–2C

B. Long and Medium Answer Type Questions ............................... 4–2C

Part-2 ............................................................................ (4–9C to 4–24C)

• Construction Equipment for Earth Moving

• Earth Compaction
• Hauling Equipment
• Hoisting Equipment
• Conveying Equipment
• Concrete Production Equipment
• Tunneling Equipment

A. Concept Outline : Part-2 ............................................................. 4–9C

B. Long and Medium Answer Type Questions ............................ 4–10C
Equipment Management 4–2 C (CE-Sem-5)

PART-1
Productivity, Operational Cost, Owning and Hiring Cost and the
Work Motion Study, Simulation Techniques for Resource Scheduling.

CONCEPT OUTLINE : PART-1

Productivity : Productivity is a measure of how well resources

are utilized to produce output.
Output
Productivity =
Input
Productivity Index :
Productivity during current year
Productivity index =
Productivity during base year
Productivity Measures : Following are three methods :
i. Partial productivity,
ii. Total factor productivity, and
iii. Total productivity.
Cost of Owning and Operating : The cost of possession of an
equipment is called cost of owning to which can be added the
cost of fuel for running the equipment. It is generally estimated
on hourly basis. Thus it is the amount by which equipment
should be hired. It does not include the labour cost.
Constituents of the Cost of Owning and Operating :
i. Depreciation cost,
ii. Maintenance and repair cost,
iii. Investment cost,
iv. Fuel or energy consumption cost, and
v. Lubricating oil cost.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 4.1. Define productivity. What are the different methods to

measure productivity ?
Quantity Estimation & Management 4–3 C (CE-Sem-5)

Answer
Productivity : A productivity measure is expressed as the ratio of
output to input used in a production process, i.e., output per unit of
input.
Output
Productivity =
Input
Methods : Following are the methods to measure the productivity :
1. Partial Productivity : It is the ratio of output to one class of input
among many factors of production.
Output
i. Labour productivity =
Labour input
Output
ii. Capital productivity =
Capital employed
Output
iii. Material productivity =
Material input
2. Total Factor Productivity : It is the ratio of net output to the sum of
associated labour and capital (factor) inputs. Net output means output
minus material, capital, energy and other input expenses.
Net output
Total factor productivity =
Labour inputs + Capital inputs
3. Total Productivity : It is the ratio of total output to the sum of all input
factors. It represents the joint impact of all the input factors in producing
the output.
Total tangible (measurable) output
Total productivity =
Total tangible input
Total tangible output = Value of finished product + Value of partially
finished unit + Dividends from securities + Interest + Other income.
Total tangible input = Value of human, material, capital, energy and
other inputs used.

Que 4.2. Describe the various techniques for improving the

productivity.

Answer
Following are the techniques for improving the productivity :
1. Value Analysis : This is systematic investigation of the project to reduce
cost and improve value. It reduces excess work content.
Equipment Management 4–4 C (CE-Sem-5)

2. Process Planning and Research : Process planning ensures selection

of current machines. Process research ensures correct operation.
3. Method Study : It is a technique to simplify the job and develop more
economical methods of doing it.
4. Work Measurement : The standard time for completing a job is set by
the use of work measurement.
5. Worker Training : Through sound and uniform training, working
methods can be ensured.
6. Project Planning and Control : It reduces idle time of men and
machines.
7. Material Control : Irregular supply of materials may cause idle time
of men and machines. It reduces or avoids locking up capital and reduces
project cost.
8. Equipment Maintenance : Proper maintenance reduces idle time of
men and machines due to breakdowns.
9. Improved Working Condition : It enables the workers to work
efficiently to raise productivity.
10. Personal Policy : It creates a good relationship between management
and employees and reduces ineffective time.
11. Incentives : It arouses interest in an employee to produce more.

Que 4.3. What is owning and operational cost of any equipment ?

Why is it necessary for project ? Also give the affecting factor of it.

Answer
1. The cost of possession of an equipment is called cost of owning to which
can be added the cost of fuel for running the equipment. It is generally
estimated on hourly basis.
2. This is the amount by which equipment should be hired. It does not
include the labour cost.
Necessity : In cases where the machine and the elements of production
are not rented, a calculation of the owning and operating costs is
necessary to derive the machine rate.
Factor : Following are the factors affect the cost of owning and
operating :
1. Initial cost of the equipment which consists the price of equipment,
transportation cost, loading and unloading charge and installation
cost.
2. Severity of service condition under which it is to be used.
3. Number of hours it is used per year.
4. The care with which it is maintained and repaired.
Quantity Estimation & Management 4–5 C (CE-Sem-5)

5. The demand for equipment after its useful period i.e., the salvage
value.
6. Useful life of equipment in years.

Que 4.4. How will you maintain the cost records of the
equipments ?

Answer
1. Depreciation and Replacement Cost :
i. For consideration of replacement cost of the equipment, it is necessary
to know the salvage value of the similar equipment for each year of its
life separately.
ii. Since the average cost of the construction equipment has been increasing
at a rate of approximately 5 % per year during the past 10 years.
iii. So, the replacement cost must be increased 5 % per year to accommodate
the increase in the cost of equipment.
2. Investment Cost : The investment cost is assumed to be 10 to 12 % per
year of the value of the equipment at the beginning of the year.
3. Maintenance and Repair Cost :
i. The cost of maintenance and repair cost largely varies with the condition
under which the equipment is used and the care with which it is handled.
ii. So, it is essential to keep accurate records of these costs.
4. Downtime Cost :
i. Downtime is the time which is lost when the equipment is undergoing
repairs and adjustments.
ii. It increases with the passage of time. If an equipment is down 5 percent
of time, its availability for actual production is 95 percent of working
hours.
iii. Supposing the operating cost is Rs. 5.00 per hour with an average
downtime of 5%.
iv. The cost per hour for this downtime will be 0.05 × 5 = Rs. 0.25 and if the
machine is used 2000 hours per year, the annual cost of downtime will
be 2000 × Rs. 0.25 = Rs. 500.
5. Obsolescence Cost :
i. The continuous improvements in the design of construction equipments
have resulted in lower production cost.
ii. For example, if a new equipment reduces the production cost by 5 percent
when compared with the production cost for an existing machine, the
existing machine will suffer a loss in value equal to 5 % and this is
defined as obsolescence cost.
Equipment Management 4–6 C (CE-Sem-5)

iii. During the past years, experience shows that productive improvement
have averaged about 5 % per year and it appears that future
improvements may continue at the same rate.
Table 4.4.1. Summary of cumulative cost per hour
Item 1 year 2 years 3 years 4 years 5 years 6 years

Depreciation and 30.00 25.00 21.70 18.40 17.10 16.75

replacement cost

Investment cost 12.00 10.95 9.40 7.60 6.90 6.10

Maintenance and 4.40 6.30 7.90 9.40 11.10 12.30

repair cost
Downtime cost 0.0 1.50 3.00 4.50 6.00 7.75

Cumulative cost 48.20 46.45 45.50 44.10 46.00 48.50

per hour

Que 4.5. Give the advantages and disadvantages of owning

construction equipments.
OR
How the purchase of an equipment is beneficial as compared with
renting it explain. AKTU 2014-15, Marks 10

Answer
Advantages of Owning a Construction Equipment :
1. Buying results in direct ownership of the equipment.
2. One of the main advantages of owning the equipment by outright cash
purchase is that it may result in lowest cost per operating hour as
compared to renting or leasing.
3. Complete control of the owner over use of the equipment and its
maintenance and replacement of equipment when it is no more
economical.
4. There is also income tax benefit associated with depreciation of the
equipment.
5. Economically attractive option when there is more work load leading to
higher utilization rate of the equipment over its useful life.
Disadvantages of Owning a Construction Equipment :
1. Acquisition of equipment by buying is done through cash purchase.
However cash purchase can have an adverse effect on company’s cash
flow as it reduces the liquid asset thus affecting company’s working
capital.
2. Risk of not getting the required return on the capital investment if
there is not enough utilization of the equipment.
Quantity Estimation & Management 4–7 C (CE-Sem-5)

3. If the equipment is purchased through finance purchasing, the equipment

owner has to pay the required loan installment to the lender even when
the equipment is not operational.
4. Acquisition through buying may sometimes force the owner to use the
obsolete equipment due to financial constraints.
Advantages of Renting a Construction Equipments :
1. Lower initial investment.
2. Access to a broader range of equipment at all times.
3. Latest equipment usually offered.
4. Maintenance, insurance etc. handled by another party.
Disadvantages of Renting a Construction Equipments :
1. For long-term work, the rental costs may be much more than purchasing
the equipment.
2. Availability can also be a problem.

Que 4.6. What do you understand by the term work study ?

OR
Write short note on motion and time study.

Answer
Work Study :
i. Work study is a means of enhancing the production efficiency
(productivity) of the firm by elimination of waste and unnecessary
operations.
ii. It is a technique to identify non-value adding operations by investigation
of all the factors affecting the job.
iii. It is the only accurate and systematic procedure oriented technique to
establish time standards.
iv. It is going to contribute to the profit as the savings will start immediately
and continue throughout the life of the product. Method study and work
measurement is part of work study.
v. Part of method study is motion study, work measurement is also called
by the name ‘Time study’.
Motion Study :
1. It can be defined as “a science of eliminating wastefulness resulting
from ill-directed and inefficient motion”.
2. The main objective of the motion study is to find a scheme of the least
wastage of labour.
3. Basically this technique analyses each operation of a given piece of
work very closely in order to eliminate unnecessary operations and to
approach the quickest and easiest methods of performing each necessary
operation.
Equipment Management 4–8 C (CE-Sem-5)

4. It includes the standardization of equipment, method, working condition

and training to the operator to follow the standard method.
Objectives of Motion Study :
1. Elimination of wastage of time and labour.
2. Reduction in fatigue and boredom of work by avoiding unnecessary
movements.
3. Best and effective utilization of men, materials and machinery.
4. Reduced health hazards.
5. Efficient and fast materials handling.
Time Study :
1. Time study can be defined as an art of observing and recording the time
to do each detailed element of an industrial concern or activity of a
construction industry.
2. It helps the management in measurement and analysis of the time
taken to perform a given job.
3. By this method, one can arrive at methods which is least time consuming
thereby increasing the output.
4. This also helps in arriving at the standard time taken by an average
worker or equipment under standard conditions.
Objectives/uses of Time Study :
1. It helps in determining the standard time for various operations.
2. It compares alternative methods and establishes the fastest method.
3. It decides man power requirements for a job.
4. It helps in forecasting the finishing date and also in calculating exact
delivery date.
5. It results in effective labour control.

Que 4.7. Explain the Us e of different types of Computer

Software’s in Construction Management of Large Infrastructure
Projects.

Answer
Following are the software's used in construction management :
1. Primavera :
i. Primavera Systems, Inc. is the world’s leading provider of project,
program and portfolio management software solutions.
ii. It provides the software foundation that enables all types of businesses
to excel in managing their portfolios, programs, projects and resources.
iii. Primavera helps companies make better portfolio investment decisions,
improve governance, prioritize their project investments and resources,
and deliver tangible results back to the business.
Quantity Estimation & Management 4–9 C (CE-Sem-5)

iv. Primavera has product solutions specific to certain industries like

construction, aerospace, manufacturing and power.
2. Milestone Professional :
i. It is fast and easy software to schedule, manage and report projects.
ii. It has Gantt Chart Software for creating presentation-ready project
management charts and also works with Microsoft Project.
iii. It can create presentation reports, combine cost and schedule, manage
large projects, create reports from Microsoft Office Project, calculate
earned value, and distribute schedules via print, e-mail and Internet.
3. ‘Candy’ Construction Project Modelling and Project Control :
i. ‘Candy’ Construction project modelling and project control is a single
package, project control system designed by construction professionals
specifically for the construction industry.
ii. Estimations, evaluations, planning, cash flow and forecasting
components can be integrated.
4. AMS Realtime Projects :
i. This is a powerful, easy to use tool that provides integrated project,
resource scheduling and cost management.
ii. It supports the needs of individual project managers and provides
consolidation, aggregation, analysis and management through powerful
multi-project facilities.

PART-2
Construction Equipment for Earth Moving, Earth Compaction,
Hauling Equipment, Hoisting Equipment, Conveying Equipment,
Concrete Production Equipment, Tunneling Equipment.

CONCEPT OUTLINE : PART-2

Excavating and Transporting Equipment :
1. Tractor, 2. Bulldozer,
3. Dragline, 4. Scraper,
5. Power Shovel, 6. Clamshelle, and
7. Hoe.
Hauling Equipment : Hauling is the movement of material by
mobile units such as road vehicles and rail locomotives, e.g.
truck, tractor or trailers. This unit falls in two categories :
i. On highway vehicles, and
ii. Off highway vehicles.
Equipment Management 4–10 C (CE-Sem-5)

Conveying Equipment : It is an equipment which is capable

of carrying material in a continuous stream, usually having an
endless chain or belt.
Hoisting Equipment : Hoisting is the operation of lifting the
load.
Types of Hoisting Equipment :
i. Pully, ii. Chain hoist,
iii. Jacks, iv. Winch,
v. Cranes, and vi. Derrick pole.
Types of Mixer :
i. Hand mixing,
ii. Freefall/gravity mixers :
a. Tilting mixers, and b. Reversible mixers.
iii. Power mixers :
a. Pan mixers, and b. Thorough mixers.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 4.8. Explain in detail about various types of earth work

equipments with special purpose usage for each equipments.
AKTU 2016-17, Marks 15

Answer
Excavating and Earth Moving Equipment : Following are the
excavating and earth moving equipment :
1. Power Shovel :
i. Basic parts of power shovel including the track system, cabin, cables,
rack, stick, boom foot-pin, saddle block, boom, boom point sheaves and
bucket.
ii. Bucket size varies from 0.375 m3 to 5 m3.
iii. Uses :
a. Suitable for close range of work.
b. Capable of digging very hard materials.
c. Can remove big sized boulders.
d. To excavate the earth and to load the trucks.
Quantity Estimation & Management 4–11 C (CE-Sem-5)

e. It is used in various types of jobs such as digging in gravel banks,

clay pits, digging cuts in road works, road-side berms, etc.
2. Back Hoe :
i. It is also known as hoe, back shovel and pull shovel.
ii. The basic parts are boom, jack boom, boom foot drum, boom sheave,
stick sheave, stick, bucket and bucket sheave.
iv. Uses :
a. It is the most suitable machine for digging below the machine level,
such as, trenches, footings, basements etc.
b. It can be efficiently used to dress or trim the surface avoiding the
use of manual effort for dressing the excavated the surface.
3. Drag Line :
i. The drag line is so named because of its prominent operation of dragging
the bucket against the material to be dug.
ii. Unlike the shovel, it has a long light crane boom and the bucket is
loosely attached to the boom through cables
iii. Because of this construction, a dragline can dig and dump over larger
distances than a shovel can do.
iv. Drag lines are useful for digging below its track level and handling
softer materials.
v. The basic parts of a drag line including the boom, hoist cable, drag cable,
hoist chain, drag chain and bucket.
vi. Uses :
a. It is the most suitable machine for dragging softer material and
below its track level.
b. It is very useful for excavating trenches when the sides are permitted
to establish their angle of repose without shoring.
c. It is mostly used in the excavation for canals and depositing on the
embankment without hauling units.
4. Clam Shell :
i. This is so named due to resemblance of its bucket to a clam which is like
a shell-fish with hinged double shell.
ii. The front end is essentially a crane boom with a specially designed
bucket loosely attached at the end through cables as in a drag line.
iii. The capacity of a clam shell bucket is usually given in cubic meters.
iv. The basic parts of clam shell bucket are the closing line, hoist line,
sheaves, brackets, tagline, shell and hinge.
v. Uses :
a. Used for handling loose material such as crushed stone, sand, gravel,
coal etc.
Equipment Management 4–12 C (CE-Sem-5)

b. Main feature is vertical lifting of material from one location to

another.
c. Mainly used for removing material from coffer dam, sewer main
holes, well foundations etc.
5. Trenching Machine :
i. Trenchers are the equipments used for excavating trenches or ditches
of variable width and depth.
ii. Two types of trenching machine are available : wheel type, and ladder
type.
iii. Operation is quick giving the required depth or width.
iv. Used for excavating trenches for laying pipelines, sewer, cables etc.
6. Scrapers :
i Unique machine for digging and long-distance hauling of plough able
materials.
ii. The basic parts of scrapers are the bowl, apron and tail gate or ejector.
iii. It is a self-operating machine.
iv. Wheels of machine cause some compaction.
7. Bulldozer :
i. The heavy blade attached to the tractor pushes the material from one
place to another.
ii. The tractor can be of the crawler or the wheeled type.
iii. Uses :
a. For spreading the earth fill.
b. For opening up pilot roads through mountainous and rocky terrains.
c. Clearing land from the trees and stumps.
d. Back-filling trenches at construction sites by dragging the earth
from one place to another.

Que 4.9. What are the various types of heavy hauling equipment
vehicles ?
OR
Explain hauling equipments with neat sketch.

Answer
A. Hauling Equipments.
1. Haulage of heavy construction equipment carriage and disposal of
excavated earth transportation of building materials.
2. Haulers may operate on the roadways or railways.
B. Types of Hauling Equipments : Following are the various types of
hauling equipments :
Quantity Estimation & Management 4–13 C (CE-Sem-5)

1. Side or Rear Dump Trucks :

i. These are heavy duty trucks with strongly built body which is hinged on
the truck chassis at the rear end and one side respectively, and can be
fitted to the rear in the case of rear dump and to the hinged side in case
of the side dump, through the action of hydraulic jacks.
ii. These trucks are suitable for use in hauling wet clay, sand, gravel,
quarry rocks etc.
iii. They are used for earth moving purpose.
iv. The selection of the type of dump trucks for a specific job depends on the
soil condition.
2. Bottom Dump Trucks :
i. These are similar to semi-trailers in which their front is supported on
the rear of the hauling tractor and their rear is resting on their own
wheels.
ii. The body of the truck remains in the same position and the discharge of
the material takes place through its bottom after opening of two
longitudinal gates.
iii. The gates are hinged to the side of the body.
iv. These trucks are suitable for use in hauling free flowing material, such
as, sand, gravel, dry earth, hard clay etc.
3. Dumpers :
i. Dumpers are high speed pneumatic wheeled trucks.
ii. They have short chassis and strong bodies.
iii. Loading, hauling and dumping is done very fast as compared to other
equipment.
iv. Suitable for short hauls on rough roads, especially where a shuttle
movement is required.
4. Tractors :
i. Tractors are multi-purpose machines used mainly for pulling and pushing
the other equipment.
ii. Tractors may be classified as :
a. Crawler Type Tractor : Used to move bull dozers, scrapers. The crawler
has a chain by which these tractors can be very effective even in the
case of loose or muddy soils. The speed of this type does not exceed
12 kmph normally.
b. Wheel Type Tractor : The engine is mounted on four wheels. The
main advantage is higher speed, sometimes exceeding 50 kmph, it is
used for long-distance hauling and good roads.
Equipment Management 4–14 C (CE-Sem-5)

Liftarm
Piston rod
Hoist cylinder
Tension line Body

Hinge
Tail board

Gear pump
Power take off
Fig. 4.9.1.

Que 4.10. Explain the various type of hoisting equipments.

Answer
Hoisting Equipment : Hoisting is the operation of lifting the load.
Equipment used for hoisting lift the load from place to place, hold it in
suspension during transfer from one location to other.
Types of Hoisting Equipment : Following are the different types of
hoisting equipment :
1. Pulley : It is used for lifting rough surfaced and heavy objects.
2. Chain Hoists : It is used for lifting loads up to 50 tonnes. System
consists of hand chain and land chain.
3. Jacks : It is based on the principle of inclined plane. The smallest jack
may have capacities for 5 tonnes used for lifting an automobile wheel,
while the bigger variety may be of 100 tonnes capacity.
Jacks are of two types :
i. Mechanical : Load is mounted on platform.
ii. Hydraulic : Pressure is exerted by liquid.
4. Winch : A combination of gears, clutches and brakes. Operation is
controlled through a series of levers.
5. Cranes : Lifting capacity varies from 1/2 tonne to 500 tonnes.
Following are the different types of cranes :
i. Derrick Cranes :
a. Derrick cranes consist of a mast, a boom and a bull wheel on which the
boom rotates about a vertical axis and guys or supporting members.
b. Electrically operated, diesel operated or diesel-electrically operated.
c. The boom can revolve through 360º.
Quantity Estimation & Management 4–15 C (CE-Sem-5)

d. This crane is used for heavy loads upto 200 tons.

ii. Mobile cranes :
a. These cranes are mounted on mobile units which is either crawler type
or wheel type.
b. Truck cranes have high mobility while the crawler mounted cranes
move slowly.
c. Crawler mounted cranes are capable of moving on rough terrain.
iii. Overhead or Gantry Cranes :
a. It has large service area.
b. Widely used in erection, foundry, steel plants, storage yards and different
types of industrial works.
c. These type of cranes consist of two main parts i.e., the bridge and the
crab.
d. The bridge consists of two main girders fixed at their end to end and
capable of moving on gantry rails.
e. The crab consists of the hoisting gear mounted on a frame.
f. The frame itself is mounted on another set of wheels and capable of
travelling across the main girder.
iv. Traveller Cranes :
a. Travelling or bridge cranes have their crabs moving on girders which
are supported on legs instead of on overhead gantry track as used in
overhead cranes.
b. The legs are capable of moving on tracks laid on the floor.
5. Tower Cranes :
a. Tower cranes are actually a derrick crane mounted on a steel tower.
b. Tower cranes are usually used for industrial and residential high-rise
buildings.
c. These are commonly used for assembly of industrial plants with steel
structures.
d. The main parts of tower crane are under carriage, slewing platform,
tower with operator’s cabin and jibs.
e. The tower has a truss structure welded from steel bars and channels.

Que 4.11. Explain with neat sketch conveying equipments.

Answer
A. Conveying Equipment :
i. Transporting material from one place to another over a stationary
structure.
Equipment Management 4–16 C (CE-Sem-5)

ii. Caries material in continuous stream with its distinct feature such as
endless chain or belt.
iii. When the equipment does horizontal conveying, it is known as conveyor
and when it does vertical, it is known as elevator.
iv. Conveying are mainly used in mining, construction and in some of the
industries.
v. In construction industry, conveyors are mainly used for concreting
purpose.
B. Type of Conveyors Equipment : Following are the types of conveyors
equipment.
1. Belt Conveyor :
i. It used when large quantities of materials have to be conveyed over long
distances at fast speed.
ii. It consists of a belt running over a pair of end drums or pulleys and
supported at regular intervals by a series of rollers called idlers.
iii. Generally, rubber is most commonly used as conveyor belt.
Feeder Head pulley Screw takeup
Screw takeup
Belt Head drive

Height

Tail pulley
Snub pulley
Snub pulley
Length
Tail drive
(a) (b)

Fig. 4.11.1. Belt conveyor system.

2. Screw Conveyor :
i. A screw conveyor consists of a helix mounted on a bearing at the ends
and at intermediate points and is driven by a motor from one end.
ii. The material enters the through at one end is carried to the other end
by screwing action of helix.
Bearing
Blockage detector temperature
sensor

Rotation Level detector

sensor
Fig. 4.11.2.
Quantity Estimation & Management 4–17 C (CE-Sem-5)

iii. The length of the conveyor is about 65 m. with an inclination up to a

maximum of 350.
iv. It is used for handling granular or pulverized material.
v. The quantity of material conveyed is less compared to the belt conveyor,
but at the same time the cost is also less.
3. Bucket Conveyor :
i. It has buckets in the shape of 'V' which are open at the top.
ii. They may be feeder loaded or may drag in a vertical movement or along
an incline.
iii. The length of these types of conveyors is generally limited to 25 m (due
to weight of the conveyor and strength of the chains).
iv. This type of conveyer is mainly used in tunnels where bucket elevators
carry the material vertically.

Bucket
Rubber conveyor belt
Fig. 4.11.3.

4. Aerial Transport :
i. Aerial transportation through cableways, rope-ways and tram ways.
ii. It is used with advantage for transportation of material in hilly regions.
iii. It is reducing the distance of transportation as well as cost of
transportation.
iv. The load being passed over intermediate towers or stations for long
distances.

Que 4.12. Explain the various compaction equipment used in

construction industry.

Answer
Following are the various compaction equipments used in construction
industry.
1. Smooth-Wheel Rollers :
i. It is plain steel roller and Self-propelled type.
ii. It has weighing from 5 to 15 tonnes
Equipment Management 4–18 C (CE-Sem-5)

iii. It is used for ordinary rolling work where deep compaction is not required
iv. The rear wheels being usually larger in diameter and the front one
being winder.
v. Weight of rollers may be increased by filling water or sand ballast in
hollow cylinder.
vi. These rollers are effective in compacting granular soils, such as sand,
gravel and crushed stone.
2. Sheep-foot Rollers :
i. It is used for compacting earth work in embankments and canals (where
compaction deep into the layer of the earth is required)
ii. These gives best result in compaction when the soil is clay or
predominantly cohesive and impervious.
iii. The sheep foot rollers may weigh upto 15 tonnes or more. It is travel at
a speed of 25 kmph.
iv. As roller moves over the surface, the feet penetrate the soil to produce
a kneading action and a pressure to mix and compact the soil from
bottom to top layer.
3. Pneumatic-tyred Rollers :
i. It is most suitable for compacting fine-grained soil and well graded sands.
ii. Ballasting is done using water, sand or pig iron in order to increase the
self weight.
iii. Major advantages are the ability to control the ground contact pressure
by :
a. Altering the weights of machines,
b. Increasing the number of wheels,
c. Increasing the tyre width, and
d. Changing the contact area of the tyre by altering the contact pressure.

Que 4.13. What are the methods of preparing concrete in field ?

Also describe the advantages of using concrete mixer.
AKTU 2014-15, Marks 10

Answer
Following are the types of mixing used in construction site :
A. Hand Mixing : It is adopted for small works where the quantity of
concrete is small. The procedure is as follows :
1. A platform is constructed by brick or lean concrete or iron sheet as per
the requirement of the concrete to be mixed.
2. A measured quantity of sand is uniformly spread and requisite amount
of cement is dumped over it. Sand and cement is mixed uniformly.
Quantity Estimation & Management 4–19 C (CE-Sem-5)

3. On the top of this the measured quantity of stonechips are also spread
uniformly and mixed by shovels from centre to the side and then back to
centre for three times.
4. A hollow in the middle of mixed pile is created and a half to three
quarters of required quantity of water is added in the hollow while the
materials are turned in towards the centre with shovel. The mixing time
should never exceed three minute.
B. Machine Mixing :
1. Where a large quantity of concrete of the desired quality is to be produced,
the machine mixing becomes imperative. Concrete can be produced at a
faster rate with better quality.
2. Machine used for the purpose is called concrete mixer which may be
batch type or continuous type.
i. Continuous Concrete Mixers :
a. Continuous mixer, the name itself telling its duty that the loading, mixing
and discharging of mix is continuously done until the work is complete
or work break occurs. The loading of materials is done continuously by
screw feeders.
b. Continuous mixtures are used for very large projects such as dams,
bridges, construction of high rise buildings, etc.
ii. Batch Concrete Mixers :
a. Batch mixers are widely used machines for concrete mixing. Concrete
mix obtained by this mixer is collected batch by batch and time by time.
So, it is called as batch mixer.
b. After pouring all the materials into pan or drum, it mixes all of those for
some time and finally discharges. This process is repeated until required
amount of concrete mix is obtained.
Following are two types of batch mixers :
1. Drum Type Mixers : In case Drum type mixers concrete ingredients
are mixed in a drum which is actually in double conical frustum shape.
2. Pan Type Concrete Mixers : Pan type mixers consists a circular pan
in which concrete is mixed. The mixing is done by blades which are
arranged in star shape inside the pan.
Advantages of Concrete Mixer :
1. The quality of concrete is good and fast.
2. Since mixing is done in machine; area is less untidy and cleaning is easy.
3. Multiple jobs can be worked without the needs of sending the equipment
back to the batch plant. You will mix what you are going to pour only.
4. Ideal for a remote location or when the batch plant cannot be installed at
the job site.
5. Reduce the amount of concrete waste and minimize shortages by mixing
the amount you need.
Equipment Management 4–20 C (CE-Sem-5)

6. Concrete is always fresh, and you will not need to worry about concrete
being too hot or over mixed.
7. Concrete mixers will be available at your convenience anytime/ any
date, like having your concrete ready 24 × 7.
8. As with any regular concrete plant, these mixers can also be customized
to add color and admixtures to the concrete batch

Que 4.14. Discuss the various equipments used in production and

placement of concrete.

Answer
Concrete production equipments : Refer Q. 4.13, Page 4–18C,
Unit-4.
Concrete Placement Equipment : Following are the equipment used
for concrete placement :
1. Paving Mixers :
i. Paving mixers are used for concreting the pavement of highways/runways
to have mobility of the mixer along with the placement of concrete.
ii. They are mounted on crawler tractors. They may have single
compartment drums or double compartment drums.
2. Bottom-Dump Bucket : It is a common equipment used for placing
concrete. These buckets can be used for both vertical and horizontal
movements.
3. Wheelbarrows : These are usually used to transport concrete in the
horizontal direction, provided there is a smooth and rigid runway to
operate on.
4. Hand Buggies : These are safer compared to wheelbarrows because
they have two wheels while wheelbarrows have only one wheel. These
means of horizontal transportation are preferred when the distance to
be covered is less than 60 m.
5. Drop Pipes and Chutes : These are used to transfer concrete from
higher elevations to lower elevations.
i. The chutes used are round-bottomed and have sufficient slopes to allow
the free flow of concrete.
ii. Drop pipes are used in wall or column constructions to avoid the
segregation of concrete by allowing the free flow of concrete through
the reinforcement.
6. Conveyor Belts : They are used to transport low slump concrete. They
provide rapid movement of fresh concrete.
7. Pump : They are commonly used simple equipment. By applying
appropriate pressure, concrete can be moved through large distances in
both horizontal and vertical directions provided a proper lubricating
layer is provided within the pipe.
Quantity Estimation & Management 4–21 C (CE-Sem-5)

Pumps are generally of three types :

i. Piston pump.
ii. Square pressure pump.
iii. Pneumatic pump.
8. Vibrators :
i. Concrete is consolidated to remove the entrapped air and improve the
quality of concrete.
ii. This consolidation can be done by vibration, for which three types of
vibrators are used.
ii. Following are three types of vibrators :
a. An internal vibrator : As the name indicates, is immersed into the
concrete and vibrated. It has a vibrating casing and head which is
immersed into the concrete and made to vibrate at high frequency
(10,000 to 15,000 vibrations/min). The internal vibrator is normally
preferred in all construction sites.
b. Surface vibrators : They are used in slab construction. These vibrators
are used for consolidation only from the top surface. Their vibration
speed is about is about 3000-6000 vibrations/min.
c. A form vibrator : It is an external vibrator. As the name indicates,
these vibrators shake the entire form (vibrate the entire form). They
are attached to the outer surface of the form. Form vibrators are used in
large panel construction.

Que 4.15. When is it economical and desirable to use ready mix

concrete at site of construction ?

Answer
RMC is economical and desirable at site of construction because it
possesses some advantages as compared to conventional site mixed
concrete :
1. Uniform and Assumed Quality of Concrete : Since RMC is factory
produced, the raw material and production process quality is better than
conventional site mixed concrete.
2. Durability of Concrete : RMC ensures that correct water-cement
ratio is maintained. Hence the durability of RMC is consistent and better.
3. Faster Construction Speed :
i. In site mixed concrete, the contractor needs to mobilize labour for mixing
as well as placing.
ii. In RMC, fresh concrete is supplied in a placeable condition and can
directly be placed by pumping. Hence, a faster construction speed can be
achieved.
Equipment Management 4–22 C (CE-Sem-5)

4. Elimination of Storage Needs at the Construction Site :

i. In the case of site mixed concrete, all raw materials such as aggregates,
sand, and cement have to be stored at the site.
ii. In the case of RMC, this problem is completely avoided as the storage of
materials takes place at the central plant.
5. Easier Admixture Addition : In RMC, admixtures can be added in a
controlled manner because of the use of sophisticated computer-
controlled methods of releasing exact quantities needed. This is not
posses in normal concreting.
6. Documentation of Mix Designs : The contractor purchases fresh
concrete from the supplier of RMC, who is responsible not only for
documentation but also for maintaining the records.
7. Reduction in Wastage of Material : In RMC, materials are stored in
bulk and used in bulk. Hence, wastage that occurs in loose handling of
cement is avoided.
8. RMC is Eco-friendly : The production of RMC is done in an
environmentally assessed and licensed central plant. Hence, dust and
noise pollution which is inevitable in site mixed concrete is avoided.

Que 4.16. Explain the tunneling equipment with neat sketches.

Answer
Tunneling Equipment : Following are the equipment used in
tunnelling operations.
1. Tunnel Boring Machine :
i. Tunnel boring machine TBM also known as a ‘mole’, is a machine used
to excavate tunnels with a circular cross section through a variety of
soil and rock strata.
ii. They can bore through anything from hard rock to sand.
Shield
Hydraulic push arms Rock cutter head

Fig. 4.16.1. Tunnel boring machine.

iii. Tunnel diameters can range from a meter (done with micro-TBMs) to
19.25 m.
Quantity Estimation & Management 4–23 C (CE-Sem-5)

iv. Tunnels of less than a meter or so in diameter are typically done using
trenchless construction methods or horizontal directional drilling rather
than TBMs.
Drilling Equipments : Following are the various drilling equipments :
1. Drifter :
i. A drifter is an air-operated percussion type drill, similar to a jackhammer
but it is so large that it requires mechanical mounting.
ii. It varies in weight from 45 to 68 kg and is capable of drilling holes up to
11 cm in diameter and 12 m in depth.
iii. It is extensively used in mining and tunnelling.
2. Blast-hole Drill :
i. It is a rotary drill consisting of a steel-pipe drill stem at the bottom of
which is a roller-bit that disintegrates the rock as it rotates over it.
ii. A continuous blast of compressed air is forced down the pipe to remove
the rock cuttings.
iii. This drill is suitable for drilling soft to medium rock, such as hard
dolomite and limestone, but is not suitable for drilling the harder
igneous rock.
3. Fusion Piercing Drill :
i. Fusion piercing is produced by burning a mixture of oxygen and a flux-
bearing fuel such as kerosene oil, at the end of the blow pipe.
ii. When the flame is directed towards the rock, the high temperature
about 4000 °F causes the rock to melt.
iii. Water is used to quench the heated rock, resulting in small fragments,
which are blown out of the hole.
iv. It is mainly used for blasting purposes.
4. Other drilling equipments are :
i. Jackhammer or sinker.
ii. Wagon drill.
iii. Shot drill.

Que 4.17. What are the various operations associated with the
earth work for providing basement and raft foundation for
constructing a multi storied building. Describe the various
equipments which shall be deployed for carrying out these
operations.

Answer
A. Operations : Following are the operations associated with earth work :
1. Excavation : Excavation work generally means work involving the
removal of soil or rock from a site to form an open face, hole or cavity
using tools, machinery or explosives.
Equipment Management 4–24 C (CE-Sem-5)

Equipments : Refer Q. 4.8, Page 4–10C, Unit-4.

2. Hauling :
i. It is the movement of material by mobile units such as road vehicles and
rail locomotives.
ii. It includes transportation of earth, aggregate, rock and other materials
including equipments.
Equipments : Refer Q. 4.9, Page 4–12C, Unit-4.
3. Conveying :
i. It is the continuous transportation of material as distinct from intermittent
transportation (by hauling equipments) which implies transport in a
successive stage.
ii. This is done with endless procession of hooks, gears, buckets, and a
wide rubber belt.
iii. The belt is then supported by a series of rollers along the path.
Equipments : Refer Q. 4.11, Page 4–15C, Unit-4.
4. Concreting : It includes batching, mixing, placing, finishing and curing
of concrete.
Equipments : Refer Q. 4.13, Page 4–18C and Q. 4.14, Page 4–20C;
Unit-4.
B. Required Equipments : Following are the equipment used in raft
foundation operations :
Construction
equipment

Earth moving Construction Material handling Construction

equipment vehicle equipment equipment

Tunneling Road
Excavators Backhoe Dumpers Cranes & handling rollers
equipment

Loaders Bull dozers Tankers Conveyors Concrete Hot mix

mixers plants

Road making
machines Stone
Skid steer Trenchers Tippers Fortifies crushers
loaders (conactors)

Slurry
Motor Motor Trailors Hoists Pavers seal
graders scrappers machines

Crawler Wheeled Spraying & Heavy

loader loading plastering duty
shovels machines pumps
Fig. 4.17.1.
Quantity Estimation & Management 4–25 C (CE-Sem-5)

VERY IMPORTANT QUESTIONS

Following questions are very important. These questions
may be asked in your SESSIONALS as well as
UNIVERSITY EXAMINATION.

Q. 1. Give the advantages and disadvantages of owning

construction equipments.
Ans. Refer Q. 4.5, Unit-4.

Q. 2. What do you understand by the term work study ?

Ans. Refer Q. 4.6, Unit-4.

Q. 3. Explain the Use of Computer Software’s in Construction

Management of Large Infrastructure Projects.
Ans. Refer Q. 4.7, Unit-4.

Q. 4. What are the various types of heavy hauling equipment

vehicles ?
Ans. Refer Q. 4.9, Unit-4.

Q. 5. What are the methods of preparing concrete in field ? Also

describe the advantages of using concrete mixers.
Ans. Refer Q. 4.13, Unit-4.

Q. 6. Discuss the various equipments used in production and

placement of concrete.
Ans. Refer Q. 4.14, Unit-4.

Q. 7. When is it economical and desirable to use ready mix

concrete at site of construction ?
Ans. Refer Q. 4.15, Unit-4.


Quantity Estimation & Management 5–1 C (CE-Sem-5)

5 Project Cost
Management

Part-1 ............................................................................ (5–2C to 5–15C)

• Cost Planning
• Direct Cost
• Indirect Cost
• Total Cost Curve
• Cost Slope
• Time Value of Money
• Present Economy Studies
• Equivalence Concept

A. Concept Outline : Part-1 ............................................................. 5–2C

B. Long and Medium Answer Type Questions ............................... 5–2C

Part-2 .......................................................................... (5–16C to 5–29C)

• Financing of Projects
• Economic Comparisons Present Worth Method
• Equivalent Annual Cost Method
• Discounted Cash Flow Method
• Depreciation and Break Even Cost Analysis

A. Concept Outline : Part-2 .......................................................... 5–16C

B. Long and Medium Answer Type Questions ............................ 5–16C
Project Cost Management 5–2 C (CE-Sem-5)

PART-1
Cost Planning, Direct Cost, Indirect Cost, Total Cost Curve,
Cost Slope, Time Value of Money, Present Economy Studies,
Equivalence Concept.

CONCEPT OUTLINE : PART-1

Direct Costs : Direct costs are directly dependent on the
resources involved in the project e.g., materials, labours, plants
and machinery.
Indirect Costs : The costs of buying resources and the cost of
operations involved every project incurs some expenditures in
term of overhead administrative expenses, depreciation, lost
profit, loss of revenue, penalty etc.
Total Cost : It is a sum of direct cost and indirect cost of a
project.
Time Value of Money : The time value of money (TVM) is the
idea that money available at the present time is worth more
than the same amount in the future due to its potential earning
capacity.
Cash Flow Diagram : The graphical representation of the
cash flows i.e., both cash outflows and cash inflows with respect
to a time scale is generally referred as cash flow diagram.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 5.1. What is budgeting ? Why is budgeting so important ?

Answer
Budgeting :
1. Budgeting is the process of creating a plan to spend your money. This
spending plan is called a budget.
2. Creating this spending plan allows you to determine in advance whether
you will have enough money to do the things you need to do or would
like to do.
Quantity Estimation & Management 5–3 C (CE-Sem-5)

Importance of Budgeting :
1. A process of tracking your expenses.
2. A safety valve to prevent over expenditures.
3. Financial control of inputs.
4. Management of ongoing activities.
5. Planning and setting priorities.
6. Accountability.
7. Ensures that the finances are spent for true purpose of spending.

Que 5.2. What is cost planning ? Give its advantages and

disadvantages.

Answer
Cost Planning :
1. Once the resource requirement is obtained, the estimate to complete
each of these can be prepared based on the unit cost of the resources
and the total unit of the resources required. This process is called cost
planning and it is a must for project cost management.
2. The essential components of a cost plan are the project schedule and
estimates.
Advantages of Cost Planning :
1. Tender sum is likely to be closer to the estimate derived from the cost plan.
2. Less likelihood of revising the design.
3. Ensure cost-effectiveness and value for money design is obtained.
4. Ensure a balanced distribution of expenditure. A more rational design
would be obtained.
Disadvantages of Cost Planning :
1. Time consuming to prepare.
2. Insufficient information. Architect has not firmed up on the
specifications.
3. Architect has to draw more details and make design decisions earlier to
prepare the cost plan.

Que 5.3. Write a short note on direct cost and indirect cost.
OR
Compare direct and indirect cost in the construction project.
AKTU 2016-17, Marks 10
Project Cost Management 5–4 C (CE-Sem-5)

Answer
1. Direct Cost :
i. Direct costs are directly attributable to the object and it is financially
feasible to do so.
ii. In construction, the costs of materials, labour, equipment, etc., and all
directly involved efforts or expenses for the cost object are direct costs.
2. Indirect Cost :
i. Indirect costs are, not directly attributable to a cost object.
ii. It should be financially infeasible to do so.
iii. Indirect costs are typically allocated to a cost object on some basis.
iv. In construction, all costs which are required for completion of the
installation, but are not directly attributable to the cost object are indirect,
such as overhead.
v. In manufacturing, costs not directly assignable to the end product or
process are indirect.
3. Difference between Direct Cost and Indirect Cost :
S.No. Basis for Direct Cost Indirect Cost
Comparison

i. Meaning A co st that is e asily Indirect cost is defined

attributable to a cost as the cost that cannot
object is known as direct be allocated to a
cost. particular cost object.
ii. Benefits Specific projects Multiple projects
iii. Aggregate When all the direct costs Total of all the indirect
are taken together they costs is called as
are kno wn as prime overheads or oncost.
costs.
iv. Traceable Yes No
v. Classification Direct material, direct Indirect mate rial,
labour, direct expenses indirect labour, indirect
overheads

Que 5.4. Illustrate the relationship between ‘time’ and ‘cost’.

AKTU 2013-14, Marks 05

Answer
Total Cost : The direct cost and indirect cost added together constitute
the total project cost.
Quantity Estimation & Management 5–5 C (CE-Sem-5)

1. Fig. 5.4.1 shows the indirect cost curve, direct cost curve and the
corresponding total cost curve.
2. From the total cost curve, we find that the minimum total cost (optimum
cost) is obtained at some duration known as optimum duration. The
corresponding cost is known as the minimum cost.
3. If the project duration is increased, total cost will be the highest.
4. In figure 5.4.1, we observe two types of times–normal and crash. These
will have two types of cost associated with them. These are defined as
follows :
i. Normal Time (tn) : It is the standard time that an estimator would
usually allow for an activity.
ii. Crash Time (tc) : It is the minimum possible time in which an activity
can be completed by employing extra resources. Crash time is that time
beyond which the activity cannot be shortened by any amount of increase
in resources.

Total cost

Direct cost
Optimum
Cost

cost

Indirect cost

Crash Optimum Normal

Time
Fig. 5.4.1. Total cost curve.
iii. Normal Cost (Cn) : This is the direct cost required for the completion of
the activity in the normal time duration.
iv. Crash Cost (Cc) : It is the direct cost corresponding to the completion of
the activity within crash time.
v. Cost Slope (Cs) : The cost slope is the slope of the direct cost curve,
approximated as straight line. The cost slope is defined as follows :
Crash cost  Normal cost
Cost slope =
Normal time  Crash time
Cc  Cn C
i.e., Cs = 
tn  tc t
where, C = Increase in cost.
t = Decrease in time.
Project Cost Management 5–6 C (CE-Sem-5)

Que 5.5. Bring out the scope of engineering economics with

appropriate examples. Explain the process of material selection in
new product development. AKTU 2014-15, Marks 10

Answer
1. Scope of Engineering Economics : Following are the scope of
economics in engineering :
i. It has wide scope in manufacturing, construction, mining and other
engineering industries. Examples of economic applications are as follows :
a. Selection of location and site for a new plant.
b. Production planning and control.
c. Selection of equipment and their replacement analysis.
d. Selection of a material handling system.
ii. Better decision making on the part of engineers.
iii. Efficient use of resources results in better output and economic
advancement.
iv. Cost of production can be reduced.
v. Alternative courses of action using economic principles may result in
reduction of prices of goods and services.
vi. Elimination of waste can result in application of engineering economics.
vii. Competitive strength on the part of the firm in adopting engineering
economics.
viii. More capital will be made available for investment and growth.
ix. Improves the standard of living with the result of better products, more
wages and salaries, more output, etc. from the firm applying engineering
economics.
2. Material Selection in New Product Development :
Following are the steps used in material selection :
Step 1 : Identify the Design Requirements :Identifying as many of
the requirements as possible is critical for increasing the likelihood of
learning whether potential materials exist. As the number of
requirements increases, the chance of finding a set of potential materials
decreases.
Step 2 : Identify Materials Selection Criteria : The materials
selection criteria are specific materials properties derived from the
requirements identified during Step 1. For example, for a component
that must support a specific load, the minimum yield stress that is required
for the component's material can be determined. This will be one of the
material selection criteria.
Step 3 : Identify Candidate Materials : Use the materials selection
criteria to rule out materials that will not satisfy all the materials selection
criteria.
Quantity Estimation & Management 5–7 C (CE-Sem-5)

Step 4 : Evaluate Candidate Materials : There may be candidate

materials for which there insufficient data available to indicate whether
the materials satisfy certain selection criteria. These materials will have
to be analyzed and tested to determine whether they do meet the
selection criteria.
Step 5 : Select Materials : Select the materials that satisfy all the
materials selection criteria at the lowest cost.

Que 5.6. Explain the concept of time value of money and also
give its importance.

Answer
A. Time Value of Money :
1. The time value of money (TVM) is the idea that money available at the
present time is worth more than the same amount in the future due to
its potential earning capacity.
2. This core principle of finance holds that, provided money can earn
interest, any amount of money is worth the more the sooner it is received.
3. Time value of money (TVM) is an important concept in financial
management. It can be used to compare investment alternatives and to
solve problems involving loans, leases, savings.
4. TVM help us in knowing the value of money invested. As time changes
value of money invested on any project/firm also changes. And its present
value is calculated as :
FV
PV =
(1  i)n
where, PV = Present value.
FV = Future value (Money to be received in the future).
i = Discount rate.
n = Number of periods until FV is received.
B. Importance : Following are the importance of time value of money :
1. Valuation of loans and other assets.
2. Capital budgeting (criteria of investment).
3. Lease analysis.
4. Working capital.

Que 5.7. What do you understand by cash flow diagram in a

project ? What are the details required to draw the project cash flow
diagram ?

Answer
1. The graphical representation of the cash flows i.e., both cash outflows
and cash inflows with respect to a time scale is generally referred as
cash flow diagram.
Project Cost Management 5–8 C (CE-Sem-5)

2. A typical cash flow diagram is shown in Fig. 5.7.1. The cash flows are
generally indicated by vertical arrows on the time scale as shown in
Fig. 5.7.1.
Cash inflow End of year 1 P1 P2 S
End of year 10
Time 0 1 2 3 4 5 6 7 8 9 10

Year 1 Year 7

Cash outflow P F1 F2

Fig. 5.7.1. Cash flow diagram.

3. The cash outflows (i.e., costs or expense) are generally represented by
vertically downward arrows whereas the cash inflows (i.e., revenue or
income) are represented by vertically upward arrows.
4. In the cash flow diagram, number of interest periods is shown on the
time scale. The interest period may be a quarter, a month or a year.

Que 5.8. Discuss briefly about cash flow forecasting.

AKTU 2015-16, Marks 05

Answer
1. Cash flow forecasting is the process of obtaining an estimate or forecast
of a company future financial position and is a core planning component
of financial management within a company.
2. A cash flow forecast is a projection of an organizations future financial
position based on anticipated payments and receivables. The process of
deriving a cash flow forecast is called cash flow forecasting.
Goals of Cash Flow Forecasting :
1. The main goal of a cash flow forecasting is to assist with managing
liquidity within an organization and ensuring that the business has the
necessary cash to meet its obligations and avoid funding issues, essentially
better management of working capital.
2. Underneath the high level goal of liquidity management, there are
often a number of reasons why companies set up a cash flow forecasting
process, these include :
i. Covenant forecasting and half/ full year reporting visibility.
ii Interest and debt reduction.
iii. Short term liquidity planning.
iv. Long term planning / budgeting purposes (e.g. 3 year plan)
Quantity Estimation & Management 5–9 C (CE-Sem-5)

Que 5.9. Describe the used in engineering economics various

interest formulae.
OR
Write a short note on :
A. Interest formula for single payment series
B. Interest formula for equal payment series.

Answer
Following are the various types of interest formulae.
A. Interest Formulae for Single Payment Series :
Fig. 5.9.1 shows a cash flow diagram involing a present single sum (P), a
future single sum (F), separated by n year with interest rate i per year.
Case 1 : Finding F, when given P.

1 2 3 4 5 n–1 n

P = Present worth Fig. 5.9.1. F = Future worth

at 0 time at end of n year
i. Future amount at end of n year, F = P (1 + i)n
F
= (1 + i)n ...(5.9.1)
P
ii. The quantity (1 + i)n is commonly called single payment compound
F 
amount indicated by the functional notation as :  , i, n  .
P 
iii. This factor may be used to find the compound amount F of a present
F 
principal sum P. It can be expressed as F = P  , i, n 
P 
Case 2 : Finding P, when given F.
i. From equation F = P (1 + i)n, solving this for P gives the relation,

 1 
P=F  n ...(5.9.2)
 (1  i) 

1
ii. The quantity is called single payment present worth factor
1  i n
P 
indicated by the functional symbol as  , i, n
F 
Project Cost Management 5–10 C (CE-Sem-5)

2. Interest Formulae for Equal Payment Series :

Case 1 : Finding P, when given A.
A A A A A A

1 2 3 4 n–1 n

P Fig. 5.9.2.
i. The present worth is obtained by summing the present worth of each
payment of amount A,
A A A A
P=    ............ 
(1  i) (1  i)2 (1  i)3 (1  i) n
 1  rn  1
ii. From the GP, Sum of payment = a   , where r =
 1r  (1  i)n
iii. Present worth at zero time
 (1  i)n  1  P 
P= A  n 
 A  , i, n ...(5.9.3)
i(1  i) A 
 
P 
 , i, n  = Equal payment series present worth factor
A 
Case 2 : Finding A, when given P.
From eq. 5.9.3, we get
 i(1  i)n 
A=P  n 
 (1  i)  1 
Single payment, A = P(A/P, i, n)
A 
 , i, n = Capital recovery factor
P
Case 3 : Finding F, when given A.
F
Substituting, P= in eq. (5.9.3), we get
(1  i) n

F  n 
n
= A  (1  i)  1 
(1  i) n
 i(1  i) 
 (1  i)n  1  F 
Future worth, F= A    A  , i, n ...(5.9.4)
 i  A
F 
 , i, n = Equal payment series compound amount factor.
A
Case 4 : Finding A, when given F.
from eq. (5.9.4), we get
Quantity Estimation & Management 5–11 C (CE-Sem-5)

A = F[i/{(1 + i)n – 1}]

The bracket portion shows the sinking fund factor using functional
notations as (A/F, i, n).
[i/(1 + i)n – 1] = Sinking fund factor = (A/F, i, n)
Hence, A = F(A/F, i, n).

Que 5.10. Give a brief discussion on present economy studies.

Answer
Present Economy Studies : These are engineering economy analysis
where alternatives for accomplishing a specific task are being compared
over one year or less and the influence of time on money can be ignored.
Two rules shall be followed in conducting present economy studies :
Rule 1 : When revenues and other economic benefits are present and
vary among alternatives, choose the alternative that maximizes overall
profitability based on the number of defects free units of a product or
service product.
Rule 2 : When revenues and other economic benefits are not present or
are constant among all alternatives, consider only the costs and select
the alternative that minimizes total cost per defect free unit of product
service output.
Present Economy Studies Occur in the Following Situations :
1. Selection in present economy.
2. Selection of method to be used.
3. Selection of design.
4. Selection of location or site for a project.
4. Comparison of proficiency among workers.
6. Economy of tool and equipment maintenance.
7. Economy of number of laborers.
Que 5.11. Write a short note on project cost analysis.

AKTU 2015-16, Marks 05

Answer
Project Cost Analysis : It is act of breaking down a cost summary into
its constituents and studying and reporting on each factor.
Project cost analysis is done by following solutions :
1. The normal solution is the one corresponding to the normal durations of
all the activities giving the minimum direct cost for the project.
2. The crash solution is the one giving the minimum direct cost
corresponding to the minimum project duration.
Project Cost Management 5–12 C (CE-Sem-5)

3. The all-crash solution is the one corresponding to crash durations of all

the activities.
4. The optimal solution is the one giving the minimum total project cost,
that is, the sum of the direct and indirect costs. As compared to the
normal solution, this solution leads to a reduction in the project duration
well as a saving in the total project cost.
5. The minimum net cost solution is the one giving the minimum net cost,
that is, total project cost minus the value of additional benefits as compared
to the normal solution.

Que 5.12. Discuss elements of cost control and its importance.

AKTU 2015-16, Marks 10

Answer
A. Element of Cost Control : Following are the element of cost control :
1. Materials :
i. Materials costs are the tangible goods used in producing the product.
These costs can be direct or indirect.
ii. Direct materials are the quantifiable and traceable costs of materials
used in production.
iii. Indirect materials either cannot be traced to products or it is not cost
effective to do so.
2. Labour :
i. Wages and salaries paid to employees involved in manufacturing are
known as labour costs.
ii. These costs can be broken down into direct and indirect labour.
iii. Direct labour costs include the wages that are paid to employees that
physically handle the product.
iv. For this reason, direct labor is also referred to as touch labour. Indirect
labour costs are any other wages and salaries related to production,
but are not traceable back to units of product.
3. Overhead :
i. Overhead costs are those costs that are related to production, but are
not classified as direct labour or direct materials.
ii. This includes all indirect labour and materials costs, as well as any
other untraceable costs.
Quantity Estimation & Management 5–13 C (CE-Sem-5)

iii Common overhead costs include depreciation on factory equipment,

manufacturing rents, supplies costs, insurance costs and licensing fees.
iv. For some small businesses, overhead costs make up the majority of
production costs.
v. In these cases, small-business owners should be careful to recognize
that just because overhead costs are not easily traceable to products
does not mean that effective cost management is any less important.
4. Period Costs :
i. Period costs are costs that are not related to manufacturing.
ii. These costs are not considered an element of cost in management
accounting.
iii. As opposed to product costs, which are held in inventory, generally
accepted accounting principles require that period costs are expensed
as soon as they are incurred.
iv. Common small-business period costs include advertising costs, sales
commissions, salaries for owners and top management, administrative
costs and depreciation for non-factory equipment.
v. Even though period costs are not considered elements of cost in
managerial accounting, these costs reduce net income just the same.
vi. As such, management may wish to track these costs on an ongoing
basis and intervene if these costs are higher than expected.
B. Inportance : Following are the importance of cost control :
1. The main objective of cost control of a project is to gain the minimum
profit within the designated period within the budget to monitor and
control actual expenditure against the estimated project budget.
2. It is important to ensure that there should not be any under claim or
over claim of the workdone.
3. This is required to maintain a steady cash flow. Also it helps the client
and the contractor to manage their expenditure and income.

Que 5.13. A person deposits a sum of Rs. 20,000 at the interest rate
of 18 % compounded annually for 10 years. Find the maturity value
after 10 years.

Answer

Given : P = Rs. 20,000, i = 18 %, Time, n = 10 yr.

To Find : Maturity value.
1. Maturity value, F = P (1 + i)n
Project Cost Management 5–14 C (CE-Sem-5)

10
 18 
= 20,000  1   = 1,04,680
100 
F = Rs. 1,04,680
2. The maturity value of Rs. 20,000 invested now at 18 % compounded
yearly is equal to Rs. 1,04,680 after 10 years.

Que 5.14. A person wishes to have a future sum of Rs. 1,00,000 for
his son’s education after 10 years from now. What is the single-
payment that he should deposit now so that he gets the desired
amount after 10 years ? The bank gives 15 % interest rate
compounded annually.

Answer

Given : Future worth, F = Rs. 1,00,000, Time, n = 10 yr, Interest rate,

i = 15 %.
To Find : Single payment annually.
1. Single payment is given by,
F
P=
(1  i)n

100000
P= 10
 15 
 1  
100 
P = Rs. 24720
2. The person has to invest Rs. 24,720 now so that he will get a sum of Rs.
1,00,000 after 10 years at 15 % interest rate compounded annually.

Que 5.15. A person who is now 35 years old is planning for his
retired life. He plans to invest an equal sum of Rs. 10,000 at the end
of every year for the next 25 years starting from the end of the next
year. The bank gives 20 % interest rate, compounded annually. Find
the maturity value of his account when he is 60 years old.

Answer

Given : A = Rs. 10000, n = 25 yr, Interest rate, i = 20 %

To find : Maturity value.
1. The corresponding cash flow diagram is shown in Fig. 5.15.1.
Quantity Estimation & Management 5–15 C (CE-Sem-5)

F
i = 20 %
0 1 2 3 4
25

10,000 10,000 10,000 10,000 10,000

Fig. 5.15.1. Cash flow diagram of equal-payment
series compound amount.
25
 20 
(1  i)n  1 1   1
2. Maturity value, F= A × 
= 10000
100 
i 0.2
= Rs. 47,19,810.83
3. The future sum of the annual equal payments after 25 years is equal to
Rs. 47,19,810.83

Que 5.16. A company has to replace a present facility after 15 years

at an outlay of Rs. 5,00,000. It plans to deposit an equal amount at
the end of every year for the next 15 years at an interest rate of 18 %
compounded annually. Find the equivalent amount that must be
deposited at the end of every year for the next 15 years.

Answer

Given : F = 5,00,000, Time n = 15 yr, Interest rate, i = 18 %

To Find : Annually deposited amount A.

1. The corresponding cash flow diagram is shown in Fig. 5.16.1.

5,00,000
i = 18 %
0 1 2 3 4
15

A A A A A
Fig. 5.16.1. Cash flow diagram of equal-payment series sinking fund.

i 0.18
2. Equal payment, A=F = 5,00,000 
(1  i)n  1 (1  0.18)15  1
A = 5,00,000 × 0.0164 = Rs. 8,200
Annual equal amount which must be deposited for 15 years is Rs. 8,200.
Project Cost Management 5–16 C (CE-Sem-5)

PART-2
Financing of Projects, Economic Comparisons present worth Method,
Equivalent Annual Cost Method, Discounted Cash Flow Method,
Depreciation and Break Even Cost Analysis.

CONCEPT OUTLINE : PART-2

Comparison of Alternatives : There are several bases for

comparing the worthiness of project. These bases are as follows :
i. Present worth method,
ii. Future worth method,
iii. Annual equivalent method, and
iv. Rate of return method.
Depreciation : It is defined as the decrease in value of assets
resulting from deterioration, wear and tear from you,
obsolescence arising from improvement in design and new
technology.
Type of Depreciation :
i. Physical depreciation,
ii. Functional depreciation, and
iii. Contingent depreciation.
Break Even Analysis : It is a tool for studying the relationship
between volume, cost, revenue and profit.
Important terms used in break even cost analysis are as follows :
i. Fixed costs : It comprises of wages and salary, maintenance,
rent, insurance etc.
ii. Variable costs : It comprises of raw materials, consumable
items, power, fuel water etc.

Questions-Answers

Long Answer Type and Medium Answer Type Questions

Que 5.17. What are the different bases of comparing the worthiness
of the projects ?
OR
Discuss the following methods used in engineering economic
analysis for evaluating and comparing alternatives :
a. The present worth method.
Quantity Estimation & Management 5–17 C (CE-Sem-5)

b. Future worth method.

c. The annual equivalent method.
d. Rate of return method. AKTU 2013-14, 2014-15 Marks 10

Answer
A. The Present Worth Amount : The method is described as follows :
1. Indicate all expenses and benefits at appropriate point of time in the
form of cash flow separately for each alternative. Represent downward
arrows for expenses (costs) and upward arrows for benefits or savings.
In the algebraic expression + sign for expenses and – sign for benefits.
2. Shift the amount at zero time by using proper interest formulae and
find total present worth amount of each alternative and compare. There
may be two cases.
i. Case I : When service life of each alternative is same.
Item no. (2) will clearly indicate which alternative has lower present
worth. The alternative having lower present worth is economically
accepted.
ii. Case II : When service life of alternatives is different.
The cycle of item no. (2) is repeated till the common service life is
obtained. The common life is taken as the LCM value of the given lives.
The overall present worth of alternatives are obtained and then
compared for the selection of economical alternative.
B. Annual Equivalent Amount :
1. In this method, cash flow is converted into a series of equal annual
amount by first calculating the present worth amount for the original

series and then multiplying it with capital recovery factor  A , i, n .

P 
2. The comparison is made by seeing the annual equivalent amount of
each alternative.
C. The Capitalized Amount / Future Worth Method :
1. The annual equivalent amount obtained is assumed to extend for in-
A
finite period and the capitalized amount is obtained by using .
i
2. The equivalent annual amount is calculated for replacement and
maintenance cost and added to the initial cost of the alternative.
D. Rate of Return Method :
1. It is defined as the interest rate that reduces the present worth amount
of a series of receipts and disbursements to zero for each alternative.
2. In economic terms, the fundamental concept of rate of return is that it
is the rate of interest earned on the unrecovered balance of an investment
so that the unrecovered balance is zero at end of investment’s life.
Project Cost Management 5–18 C (CE-Sem-5)

3. The computation of the rate of return generally requires a trial and

error solution until the i can be interpolated. The common conversion
used is ‘+’ sign for cash inflows and ‘–’ signs for cash outflows.

Que 5.18. Discuss in details about replacement and maintenance

analysis.
OR
Explain the causes for replacement of assets, in detail with examples.
AKTU 2014-15, Marks 10

Answer
1. Equipments and machines used in industries and in military deteriorate
with time, as a result of which their efficiency decreases and in turn
increases their maintenance cost.
2. Hence, there arises a need to formulate a replacement policy which
would enable us in deciding the age at which the replacement of the old
equipment by new one is most economical than continuation of old
equipment at an increased maintenance cost.
Causes Reasons for Replacement : Following are the reasons for
replacement :
1. Deterioration : Deterioration is the decline in performance of
equipment as compared to new equipment identical to the present one.
It may occur due to equipment wear, tear and misalignment.
It causes :
i. Increases maintenance costs.
ii. Reduces product quality.
iii. Decreases rate of production.
iv. Causes loss in operating time.
v. Increases labour costs.
2. Obsolescence :
i. Technology is progressing rapidly newer and better equipments are
being developed and produced every year.
ii. Obsolescence is due to improvement in technology. It causes loss in
value of machinery.
iii. If management of a concern does not go for a change in the equipment
or machinery, the unwarranted manufacturing costs arising from
obsolete equipment will :
i. Reduce profits.
ii. Impair competition.
iii. Cause loss in value of machinery.
Quantity Estimation & Management 5–19 C (CE-Sem-5)

3. Inadequacy :When existing equipment becomes inadequate to meet

the challenge of making new products or existing product in large
quantities, the question of replacement arises.
4. Working Conditions : It may be thought of replacing old equipments
and machinery which create unpleasant give rise to unsafe conditions
for workers and loads to accidents, making the environment noisy and
smoky etc.
5. Economy : The existing unit equipment has outlived their effective and
it is not economical to continue with them.

Que 5.19. Write a short note on discounted cash flow method.

Answer
Discount cash flow method :
1. Discounted cash flow (DCF) analysis is a method of valuing a project,
company, or asset using the concepts of the time value of money.
2. All future cash flows are estimated and discounted by using cost of
capital to give their present values (PVs).
3. The sum of all future cash flows, both incoming and outgoing, is the net
present value (NPV), which is taken as the value of the cash flows in
question.
4. Discounted cash flow analysis is widely used in investment finance, real
estate development, a financial management and patent valuation.
Discounted Cash Formula : This discounted cash flow formula is
derived from the future value formula for calculating the time value of
money and compounding returns.
CF1 CF2 CFn
DCF =   ... 
(1  r )1 (1  r)2 (1  r )n
FV = DCF (1 + r)n
Discounted present value (for one cash flow in one future period) is
expressed as :
FV
DVD = (1  r ) n
where, DPV = Discounted present value of the future cash
flow.
FV= Nominal of a cash flow amount in a future
period.
r = Interest rate or discount rate,
n = Time in years before the future cash flow occurs.
Project Cost Management 5–20 C (CE-Sem-5)

Que 5.20. What do you mean by depreciation ? Describe the types

of depreciation.

Answer
Depreciation : It is the decrease in value of asset resulting from
deterioration, wear and tear from you, obsolescence arising from
improvement in design and new technology.
Types of Depreciation : Following are the various types of depreciation :
1. Physical Depreciation :
i. Depreciation resulting in physical impairment of an asset is known as
physical depreciation. This results in lowering the ability of the asset to
render its intended service.
ii. The primary cause of physical depreciation is wear and tear because of
its constant use such as abrasion, shocks, vibration, and impact etc. and
the deterioration due to action of elements such as corrosion of pipe,
chemical decomposition.
2. Function Depreciation : Functional depreciation often called
obsolescence is defined as the loss in the value of the property due to
change in fashion, design or structure due to inadequate to meet the
growing demand, necessity of replacement due to new invention be
more economical and more efficient etc.
3. Contingent Depreciation : It causes due to :
i. Accident (due to negligence),
ii. Diseases (pollution of water, parasites), and
iii. Diminution of supply (natural gas, electricity, water etc.)

Que 5.21. Discuss the various methods for determination of

depreciation.
OR
Distinguish between declining balance method of depreciation and
double declining balance method of depreciation.
AKTU 2013-14, Marks 10

Answer
Following are the methods for determining depreciation :
A. Straight-Line Depreciation Method :
1. Straight-line depreciation is a very common and simple method of
calculating the expense. In straight-line depreciation, the expense amount
is the same every year over the useful life of the asset.
2. Depreciation Formula for the Straight Line Method.
Quantity Estimation & Management 5–21 C (CE-Sem-5)

Depreciation Expense = (Cost – Salvage value) / Useful life

B. Declination Balance Method :
1. The declination balance method is widely used for accelerated
depreciation in which some percentage of straight line rates is used.
2. In this method, the properly is assumed to lose value annually at constant
percentage of its book value.
Depreciation, D = Ci × Depreciation factor
1
C n
Depreciation factor (FDB) = 1   s 
 Ci 
where, Ci = Initial cost.
Cs = Salvage value.
n = Life of the asset.
C. Double Declining Balance Depreciation Method :
1. Process of calculation of depreciation and book value for each year is the
same as adopted in the Declining Balance Method.
2. In this method also, the property is assumed to lose value annually by
fixed factor of the book value.
3. Depreciation = Cost of equipment × Factor (FDDB)
FDDB = Fixed factor for double declining balance method.
2
4. FDDB is taken as double the straight line rate i.e., FDDB = .
n
D. Units of Production Depreciation Method :
1. Units-of-production depreciation method depreciates assets based on
the total number of hours used or the total number of units to be
produced over its useful life.
2. The formula for the units-of-production method.
Depreciation Expense = (Number of units produced / Life in number of
units) × (Cost – Salvage value)
E. Sum-of-the-Years-Digits Depreciation Method :
1. Sum-of-the-years-digits method is one of the accelerated depreciation
methods. A higher expense is incurred in the early years while lower
expense is incurred in the latter years of the asset.
2. In sum-of-the-years digits depreciation method, the remaining life of an
asset is divided by the sum of the years and then multiplied by the
depreciating base to determine the expense.
3. The depreciation formula for the sum-of-the-years-digits method:
Depreciation Expense = (Remaining life / Sum of the years digits) ×
(Cost – Salvage value).
Project Cost Management 5–22 C (CE-Sem-5)

Que 5.22. What is the break even cost analysis ? Give assumptions
and limitations of break even chart.

Answer
A. Break Even Cost Analysis :
i. Break even cost analysis in economics, business, and cost accounting
refers to the point in which total cost and total revenue are equal.
ii. A break even point analysis is used to determine the number of units or
revenue needed to cover total costs (fixed and variable costs).
iii. The break even analysis is important to business owners and managers
in determining how many units (or revenues) are needed to cover fixed
and variable expenses of the business.
B. Assumptions of Break Even Cost Analysis :
Following are the assumptions of break even cost analysis :
i. The total costs may be classified into fixed and variable costs. It ignores
semi-variable cost.
ii. The cost and revenue functions remain linear.
iii. The price of the product is assumed to be constant.
iv. The volume of sales and volume of production are equal.
v. The fixed costs remain constant over the volume under consideration.
vi. It assumes constant rate of increase in variable cost.
vii. It assumes constant technology and no improvement in labour efficiency.
viiii. The price of the product is assumed to be constant.

Que 5.23. What is break even chart ? What are the functions and
limitations of break even chart ?

Answer
A. Break Even Chart :
i. A break even chart is a graphical representing of the relationship
between costs and revenue for all possible volumes of output.
ii. The main objective of the graphic device is to determine the break even
point and profit potential under varying condition of output and costs.
iii. In brief it may be called a continuous income (profit and loss) statement.
Therefore, the Concept of Break Even Point is as follows :
1. Profit when Revenue > Total Variable cost + Total Fixed cost
2. Break-even point when Revenue = Total Variable cost + Total Fixed
cost
Quantity Estimation & Management 5–23 C (CE-Sem-5)

3. Loss when Revenue < Total Variable cost + Total Fixed cost

Sales (S)

Profit
Total cost (TC)

Break-even BEP
sales Variable cost (VC)

Loss
Fixed cost (FC)

Production quantity

Fig. 5.23.1. Break-even chart.

B. Functions of Break Even Chart : The various functions of break

even chart are as follows :
1. It is an important tool of business management and it gives crystal clear
view of the position of a business.
2. BEP of the chart marks clearly no profit no loss situation.
3 It is useful in understanding the effects of variations of fixed cost, variable
cost and revenue on the profitability of a business. So, it is used to
portray the effects of proposed changes in operational policy.
4. Angle of incidence and margin of safety indicates the business position
whether favourable or unfavourable.
5. It indicates likely profit or losses at various output levels.
6. It is a decision making tool in the hands of management.
C. Limitations of Break Even Chart :
i. When the market conditions may not remain constant over the range of
projected capacity, it becomes difficult to classify the costs as fixed or
variable, the BEP may not portray the true picture.
ii. The break even chart is a tool for a short run analysis.
iii. The total cost line (sum of variable cost and fixed cost) need not be
straight line. In actual practice, costs do not vary in direct proportion.
vi. The revenue line may also not be a straight line.
v. It represents a static picture whereas business operations are very much
dynamic.
Project Cost Management 5–24 C (CE-Sem-5)

vi. Analysis of break even chart presents additional difficulty when a

company produces a variety of products.

Que 5.24. An engineer has two bids for an elevator to be installed

in a new building. The details of the bids for the elevators are as
follows :
Table. 5.24.1
Bid Engineer’s Estimates
Initial Cost Service Life Annual Operation
(`) (Year) and Maintenance
Cost (`).
Alpha elevator 4,50,000/- 15 27,000/-
Beta elevator 5,40,000/- 15 28,500/-
Determine which bid should be accepted, based on present worth
method of comparison assuming 15 % interest rate compound
annually. AKTU 2013-14, Marks 10

Answer

Given : Table 5.24.1, Rate of interest, n = 15 %

To Find : Acceptable bid by present worth method.
1. Alpha Elevator :
i. Life of this technology, n = 15 years.
Life cash flow diagram of this technology is shown in Fig. 5.24.1.
0 1 2 J 15

4,50,000 27,000 27,000 27,000

Fig. 5.24.1. Cash flow diagram for alpha elevator.

ii. The present worth expression for this technology is

PW(15 %) = 4,50,000 + 27,000 × (P/A, 15 %, 15)

(1  i)n – 1 (1  0.15)15  1
 P A , i, n  = 
i(1  i) n 0.15 (1  0.15)15

 1  0.15 15  1 
iii. PW(15%) = 4,50,000  27,000   15 
 0.15 1  0.15  
Quantity Estimation & Management 5–25 C (CE-Sem-5)

= 4,50,000 + 27,000 × (5.847)

PW = 4,50,000 + 157869 = Rs. 607869
2. Beta Elevator :
i. The cash flow diagram of this technology is shown in Fig. 5.24.2.
0 1 2 J 15

5,40,000 28,500 28,500 28,500

Fig. 5.24.2. Cash flow diagram for beta elevator.
ii. The present worth expression for this technology is
PW(15 %) = 5,40,000 + 28,500 × (P/A, 15 %, 15)
= 5,40,000 + 28,500 × (5.847)
= 5,40,000 + 166639.5 = Rs. 706639.5
3. Present worth of B bid > Present worth of the A bid.
4. Beta elevator bids are more acceptable than the alpha elevator.

Que 5.25. Two years ago, a machine was purchased at a cost of

Rs. 2,00,000 to be useful for eight years. Its salvage value at the end
of its life is Rs. 25,000. The annual maintenance cost is Rs. 25,000. The
market value of the present machine is Rs. 1,20,000. Now, a new
machine to cater to the need of the present machine is available at
Rs. 1,50,000 to be useful for six years. Its annual maintenance cost is
Rs. 14,000. The salvage value of the new machine is Rs. 20,000. Using
an interest rate of 12 %, find whether it is worth replacing the present
machine with the new machine.

Answer
Given :
Present Machine New Machine
Purchase price Rs. 2,00,000 Rs. 1,50,000
Present value (P) Rs. 1,20,000
Salvage value (F) Rs. 25,000 Rs. 20,000
Annual maintenance Rs. 25,000 Rs. 14,000
cost (A)
Life (n) 6 years 6 years
Interest rate (i) 12 % 12 %
To Find : Replacement of machine is possible or not.
Project Cost Management 5–26 C (CE-Sem-5)

1. Alternative Present Machine :

i. The cash flow diagram of the present machine is illustrated in
Fig. 5.25.1.
25,000

–2 –1 0 1 2 3 4 5 6

25,000 25,000 25,000 25,000 25,000 25,000

1,20,000
2,00,000
Fig. 5.25.1. Cash flow diagram for alternative 1.

ii. The annual maintenance cost for the preceding is not shown in this
figure.
iii. The annual equivalent cost is computed as
AE(12 %) = (P – F) (A/P, 12% , 6) + F × i + A

 i(1  i) n 
(A/P, 12 %, 6) =  n 
 (1  i)  1 
 0.12  (1  0.12)6 
=  6  = 0.2432 ...(5.25.1)
 (1  0.12)  1 
= (1, 20,000 – 25,000)(0.2432) + 25,000 × 0.12 + 25,000
AE(12 %) = Rs. 51,104
2. New Machine :
i. The cash flow diagram of the new machine is depicted in Fig. 5.25.2.
20,000

0 1 2 3 4 5 6

14,000 14,000 14,000 14,000 14,000 14,000

1,50,000
Fig. 5.25.2. Cash flow diagram for alternative 2.
Quantity Estimation & Management 5–27 C (CE-Sem-5)

ii. The formula for the annual equivalent cost is

AE(12 %) = (P – F)(A/P, 12 %, 6) + F × i + A
Value of (P/A, 12%, 6) from eq. (5.25.1)
= (1, 50,000 – 20,000) × (0.2432) + 20,000 × 0.12 + 14,000
AE(12 %) = Rs. 48,016
iii. Since the annual equivalent cost of the new machine is less than that of
the present machine, it is suggested that the present machine must be
replaced with the new machine.

Que 5.26. A company has recently purchased on overhead

travelling crane for ` 2,50,000/-. Its expected life is 7 years and its
salvage value at the end of the life is ` 1,00,000/-. Using the straight
line method of depreciation, find the depreciation and the book value
at the end of third and fourth year after the crane is purchased.
AKTU 2013-14, Marks 05

Answer

Given : Purchased cost of crane, P = ` 2,50,000

Life of crane, n = 7 year, Salvage value, F = ` 1,00,000.
To Find : Depreciation and book at the end of third and fourth year.

( P  F ) 2,50,000  1,00,000
1. Depreciation, Dt =  = 21428.57
n 7
2. In straight line method of depreciation, the value of Dt is same for all the
year.
Table. 5.26.1
End of Year Depreciation Book Value
(Dt) (Bt = Bt–1 – Dt)
0 2,50,000
1 21428.57 228571.43
2 21428.57 207142.86
3 21428.57 185714.29
4 21428.57 164285.72

Que 5.27. A company has purchased an equipment whose first

cost is Rs. 1,00,000 with an estimated life of eight years. The estimated
salvage value of the equipment at the end of its lifetime is Rs. 20,000.
Demonstrate the calculations of the declining balance method of
depreciation by assuming 0.2 for K.
Project Cost Management 5–28 C (CE-Sem-5)

Answer

Given : P =Rs. 1,00,000, Salvage value = Rs. 20,000

n = 8 years, K = 0.2
To Find : Calculate depreciation and book value.
i. The calculations pertaining to Dt and Bt for different value of t are
summarized in Table 5.27.1 using the following formulae :
Dt = K × Bt–1
Bt = Bt–1 – Dt
Table 5.27.1 : Dt and Bt according to declining
balance method of depreciation

End of Year Depreciation Book Value

(n) (Dt) (Bt)
0 1,00,000.00
1 20,000.00 80,000.00
2 16,000.00 64,000.00
3 12,800.00 51,200.00
4 10,240.00 40,960.00
5 8,192.00 32,768.00
6 6,553.60 26,214.40
7 5,242.88 20,971.52
8 4,194.30 16,777.22

Que 5.28. Alpha Associates has the following details :

Fixed cost = Rs. 20,00,000
Variable cost per unit = Rs. 100
Selling price per unit = Rs. 200
Find :
1. The break-even sales quantity,
2. The break-even sales
3. If the actual production quantity is 60,000,
Find :
i. Contribution, and
ii. Margin of safety by all methods.

Answer

Given : Fixed cost (FC) = Rs. 20,00,000

Variable cost per unit (V) = Rs. 100
Selling price per unit (S) = Rs. 200
Quantity Estimation & Management 5–29 C (CE-Sem-5)

FC 20,00,000
1. Break-even sales quantity, = 
S  V 200  100
= 20,00,000/100 = 20,000 units

FC
2. Break-even sales, = × s (Rs.)
SV

20,00,000
=  200 = Rs. 40,00,000
200  100
3. i. Contribution = Sales – Variable cost
= S×Q–V×Q
= 200 × 60,000 – 100 × 60,000 = Rs. 60,00,000
ii. Margin of safety
a. Method I :
MS = Sales – Break-even sales
= 60,000 × 200 – 40,00,000 = Rs. 80,00,000
b. Method II :
Profit
MS = × Sales
Contribution
Profit = Sales – (FC + V × Q)
= 60,000 × 200 – (20,00,000 + 100 × 60,000)
= 1,20,00,000 – 80,00,000 = Rs. 40,00,000
40,00,000
MS = × 1,20,00,000 = Rs. 80,00,000
60,00,000
80,00,000
MS as a percent of sales = × 100 = 67 %
1,20,00,000
Project Cost Management 5–30 C (CE-Sem-5)

VERY IMPORTANT QUESTIONS

Following questions are very important. These questions
may be asked in your SESSIONALS as well as
UNIVERSITY EXAMINATION.

Q. 1. Illustrate the relationship between ‘time’ and ‘cost’.

Ans. Refer Q. 5.4, Unit-5.

Q. 2. Discuss briefly about cash flow forecasting.

Ans. Refer Q. 5.8, Unit-5.

Q. 3. Discuss elements of cost control and its importance.

Ans. Refer Q. 5.12, Unit-5.

Q. 4. What are the different bases of comparing the worthiness

of the projects ?
Ans. Refer Q. 5.17, Unit-5.

Q. 5. Discuss in details about replacement and maintenance

analysis.
Ans. Refer Q. 5.18, Unit-5.

Q. 6. A company has recently purchased on overhead travelling

crane for ` 2,50,000/-. Its expected life is 7 years and its
salvage value at the end of the life is ` 1,00,000/-. Using the
straight line method of depreciation, find the depreciation
and the book value at the end of third and fourth year after
the crane is purchased.
Ans. Refer Q. 5.26, Unit-5.


Quantity Estimation & Management SQ–1 C (CE-Sem-5)

1 Quantity Estimation
for Buildings
(2 Marks Questions)

1.1. What do you understand by ‘Estimate’ ?

Ans. Estimate is the process which guides us to determine the cost,
quantity, tools and labors which are needed to complete the project
with in time of completion.

1.2. Enumerate the different methods to calculate earthwork.

Ans. Following are the methods to calculate earthwork :
i. Separate or individual wall method.
ii. Centre line method.

1.3. List the data required to make out estimation for a work.
Ans. To make out an estimate for a work, the following data is necessary :
i. Drawings (plan and section).
ii. Specification.
iii. Rates.

1.4. Units of measurements for various items of building

construction.
Ans. Item of work Units of measurements :
i. Earthwork — m3
ii. Concrete — m3
iii. Damp proof course (thickness mentioned) — m2
iv. Brick work — m3
v. Steel work — Quintal
vi. Plastering, points, and finishing — m2
vii. Wood work — m3 or m2

1.5. What are the types of approximate estimates ?

Ans. Following are the various type of approximate estimates :
1. Unit estimate.
2. Square metre of floor area.
3. Cubic metre of the building.
2 Marks Questions SQ–2 C (CE-Sem-5)

4. Rough grouped quantities or elemental bill method.

5. Detailed quantities of a bag.
6. Comparison of costs at relative dates.

1.6. What is preliminary estimate ?

Ans. This is an estimate to find out an approximate cast in a short
period of time and thus enables the authority concerned to consider
the financial aspects of the scheme for according sanction.


Quantity Estimation & Management SQ–3 C (CE-Sem-5)

Analysis of Rates,

2 Specification
and Tenders
(2 Marks Questions)

2.1. What are the different types of specifications ?

Ans. Following are the different types of specifications :
i. General or brief specification.
ii. Detailed specification.

2.2. What are the difference between brief specification and

detailed specification ?
Ans.
S. No. Brief specification Detailed specification
1. The specification which gives The de taile d specificatio n
the brief description of various describes the item of work in
items. detail.
2. Brief specification specifies the The spe cification in which
materials, quantitie s, detailed information of the
proportion of materials. vario us quantitie s of
materials, procedure of
workmanship to be adopted.
3. It gives general idea about the It gives nature and class of work
whole work. in detail.
4. The general specification used The de taile d specificatio n
for estimating the project is the describes the item of work
brief specifications. accurately and complete in all
re spects in re lation to the
drawings of the work.

2.3. What is the purpose of analysis of rates ?

Ans. Following are the various purpose of the analysis of rates :
i. To work out the actual cost per unit of the items.
ii. To work out the economical use of materials and processes in
completing the particular item.
2 Marks Questions SQ–4 C (CE-Sem-5)

iii. To revise the schedule of rates due to increase in the cost of

material and labour or due to change in technique.

2.4. Define contract.

Ans. As per the Indian Contract Act, 1872, a ‘contract’ is an agreement
enforceable by law. The agreements that are not enforceable by
law are not contracts.

2.5. Describe the term land acquisition.

AKTU 2016-17, Marks 02
Ans. Land acquisition refers to the process by which the union or a state
government in India acquires private land for the purpose of
industrialization, development of infrastructure facilitates or
urbanization of the private land and provides compensation to the
affected land owners and their rehabilitation and resettlement.

2.6. What are the different types of land acquisition ?

Ans. There are two types of land acquisition for a project :
i. Permanent land, and ii. Temporary land.

2.7. What is permanent land ?

Ans. The land which is to be acquired permanently for the expected life
of the project is called permanent land.

2.8. Define temporary land.

Ans. All areas which are needed in addition to the permanently acquire
land in order to carry out the construction and installation of the
pipe lines system and associated facilities acquired on temporary
basis is known as temporary land.

2.9. Write down the different laws related to labour safety and
welfare.
Ans. Laws related to labour safety and welfare are :
i. Payment of wages act, ii. Minimum wages act,
iii. Factories act, iv. Contract labour act,
v. Labour welfare fund act,
vi. Workmen’s compensation act, and
vii. Trade union act.

2.10. Discuss contract labour act, 1970.

Ans. This act contains the provisions for improving the condition of
contract labour. According to this act, contractors should get
themselves registered and obtain certificates of registration.

2.11. In which case, financial relief is given ?

Ans. Financial relief is given in the following cases :
Quantity Estimation & Management SQ–5 C (CE-Sem-5)

i. In case of death.
ii. On account of occupational diseases.
iii. For permanent/partial disablement.
iv. Half monthly payments for temporary disablement.

2.12. Classify contracts.

Ans. Contracts are classified as follows :
i. Item rate contract, ii. Percentage rate contract,
iii. Lump-sum contract, iv. Labour contract,
v. Material supply contract,
vi. Cost plus percentage rate contract,
vii. Cost plus fixed fee contract, viii. Cost plus sliding,
ix. Target contract, and x. Negotiated contract.

2.13. Show some conditions under which a contract can be

terminated.
Ans. The contract may be terminated in the following conditions :
i. Completion of work,
ii. By agreement,
iii. By breach of condition,
iv. By impossibility of complete, and
v. By bankruptcy.

2.14. What are the contents of a tender notice ?

Ans. The contents of the tender notice are :
i. Name of the authority inviting the bids.
ii. Name of the project.
iii. Conditions for eligibility of contracting agencies to submit a bid.
iv. Brief details of project.
v. Estimated cost and time of completion of project.
vi. The cost of the tender documents.
vii. Earnest money to be deposited with the complete tender.
viii. Data and time by which the bids are to be submitted.
ix. Data and time of opening of the bids.
x. Validity of tender, etc.
2.15. What is letter of intent ?
Ans. If the competent authority approves the recommendations of the
tender committee, a letter of intent is issued to the contractor
requesting him to submit necessary documents like partnership
deed in case of partnership firm, and income tax clearance.

2.16. Define tender.

Ans. Tender is an offer in writing to execute some specified work at
certain rates, with in a fixed time under certain conditions of contract
and agreement between the contractor and the party/owner.


2 Marks Questions SQ–6 C (CE-Sem-5)

Element of

3 Management and
Network Techniques
(2 Marks Questions)

3.1. What is the term planning ? AKTU 2016-17, Marks 02

Ans. Planning is the process of thinking about and organizing the
activities required to achieve a desired goal. It involves the creation
and maintenance of a plan such as psychological aspects that require
conceptual skills.

3.2. What are the important and stage in the planning of a

project ? AKTU 2015-16, Marks 02
Ans. These are the following eight steps of project planning :
i. Define,
ii. Establish goals,
iii. Development of activities objectives,
iv. Evaluate the resources,
v. Determine alternatives,
vi. Test consistency,
vii. Decision making, and
viii. Finalizing.

3.3. Write the classification of scheduling.

AKTU 2015-16, 2016-17; Marks 02
Ans. Following are the classification of scheduling.
i. Long term scheduling
ii. Medium term scheduling
iii. Short term scheduling
iv. Non-preemptive scheduling
v. Preemptive scheduling

3.4. State the objectives of integrated project management.

AKTU 2015-16, Marks 02
Quantity Estimation & Management SQ–7 C (CE-Sem-5)

Ans. The objective of IPM is to establish and manage the project and the
involvement of relevant stakeholders according to an integrated
and defined process that is tailored from the organization’s set of
standard processes.
3.5. Define network with example.
Ans. N e two rk is an arro w diagram drawn to re pre se nt the
interrelationship and sequence of all the required construction
activities of a project.
Example :

Fig. 3.5.1.

3.6. What do you understand by predecessor events and

successor events ?
Ans. Predecessor Events : The event or events that happen before
another event are called predecessor events to that event.
Successor Events : The event or events that follow another
event are called successor events to that event.
3.7. Define predecessor activity.
Ans. Activity or activities that are required to be performed before an
activity under consideration are called predecessor activity to that
activity.
3.8. Define successor activities.
Ans. Activity or activities that are required to be performed after
completion of an activity under consideration are called successor
activities.
3.9. Define dummy activity.
Ans. A dummy is an artificial activity represented on the arrow diagram
by dotted arrow which indicates that an activity following the
dummy cannot be started until the activity or activities preceding
the dummy are completed. A dummy activity does not require any
time and resource.
A

1 3
B
2 Dummy
Fig. 3.9.1.
2 Marks Questions SQ–8 C (CE-Sem-5)

3.10. What is the critical path and critical activities ?

Ans. The path of longest duration is known as critical path and activities
lying in this path are called critical activities.

3.11. What do you understand by EST and EFT ?

Ans. EST : EST is also known as Earliest Start Time. It is the earliest
possible time at which an activity can start.
EFT : EFT is also known as Earliest Finish Time. It is the earliest
possible time at which an activity can finish.

3.12. What is float ?

Ans. Float denotes the flexibility range within which the start time or
finish time of an activity can fluctuate without affecting the
completion of the project.

3.13. Give the classification of float.

Ans. There are four types of float which are as follows :
Float

Total float Free float Independent float Interfering float

(TF) (FF) (IF) (INT.F)
Fig. 3.13.1.

3.14. Define bar chart.

Ans. Bar charts are the picto rial charts. It co nsists o f two
coordinate axes, horizontal axis representing the time elapsed
and the vertical axis represents the jobs or activities to be
performed. The jobs are represented in the form of bars.
3.15. Write down the advantages of bar charts.
Ans. Following are the advantages of bar charts :
1. It is simple to draw, easy to understand and can be drawn quickly.
3. No trained/skilled personnel are required to make the chart.
3. The progress achieved at site is expressed in terms of percentage.
4. It may be used for depicting the resource requirements of a
construction project.

3.16. What are the limitations of bar charts ?

AKTU 2016-17, Marks 02
Ans. Following are the limitations of bar charts :
1. The bar chart cannot show clearly the interdependencies among
the various activities.
3. A bar chart does not distinguish between critical and non-critical
activities.
3. It does not facilitate the work of controlling, monitoring and
updating the project.
Quantity Estimation & Management SQ–9 C (CE-Sem-5)

3.17. How can you calculate the earliest expected time and latest
allowable occurrences time in PERT ?
AKTU 2015-16, Marks 02
Ans. Earliest Expected Time (TE) : It is the time when an event can be
expected to occur earliest. TE calculated as : (TE)j = (TE)i + ti – j.
Latest Allowable Occurrence Time (TL) : The latest time by
which an event must occur to keep the project on schedule is called
the latest allowable occurrence time (TL). TL is determine as :
(TL)i = (TL)j – ti – j

3.18. Illustrate the CPM technique as used in scheduling a

construction project. AKTU 2015-16, Marks 02

Ans. In applying the CPM, there are several steps that can be summarized
as follows :
i. Define the required tasks and put them down in an ordered
(sequenced) list.
ii. Create a flow chart or other diagram showing each task in relation
to the others.
iii. Identify the critical and non-critical relationships (paths) among
tasks.
iv. Determine the expected completion or execution time for each
task.
v. Locate or devise alternatives (backups) for the most critical paths.
3.19. Suggest a suitable method for submitting the periodical
reports for effective control through CPM.
AKTU 2015-16, Marks 02
Ans. PERT is suitable method for submitting the periodical reports for
effective control through CPM.

3.20. Difference between CPM and PERT ?

AKTU 2015-16, Marks 02
Ans.
S. No. CPM PERT

i. It is an activity oriented. It is an event oriented.

ii. Cost is the governing factor. Time is the governing factor.
iii. In this project, duration is fixed and Cost is directly proportional to
cost is minimum. time.
iv. The critical path in CPM is that path Critical path is that path
which joins the critical activities. which joins the critical events.
2 Marks Questions SQ–10 C (CE-Sem-5)

3.21. What do you understand by PERT ?

Ans. PERT is a management tool used for planning, controlling and
reviewing a project. It is an event oriented process.
3.22. What do you understand by “Work Breakdown Structure”
in construction planning ?
Ans. Work breakdown structure or schedule is a pictorial representation
of the entire program. It is a preliminary diagram illustrating the
way in which all the supporting objectives go together and mesh
to ensure the attainment of the major objective.
3.23. Give the definition of earliest expected time (TE). How it is
calculated ?
Ans. It is the time when an event can be expected to occur. It is usually
put above or below that particular node. It can be calculated by
adding the expected time (te) of all activities along the path leading
to that event.

3.24. What do you understand by slack ?

Ans. It is the difference between the earliest expected time (TE) and
latest allowable occurrence time (TL).
Slack = TE – TL
3.25. How is the milestone chart an improvement over the bar
chart ? AKTU 2015-16, Marks 02
Ans. Milestone chart is the modification over bar chart in which some of
the drawbacks of bar chart are being eliminated. There are certain
activities in the project which have a limited degree of concurrencies
which cannot be detected by bars in parallel as represented in bar
charts that is lack of activity interdependencies. This drawback of
bar chart is further modified by the use of milestones which marks
the starting or finishing of the certain portion of the activity.
3.26. What are the assumptions made for creating a network ?
Ans. Basic assumptions for creating a network are :
i. The project can be broken down into well defined and specified activities.
ii. Each activity can be assigned a duration.
iii. Logical relationship among activities is known and can be fixed in
the network chains.
3.27. Give use of learning curve in estimating duration.
AKTU 2016-17, Marks 02
Ans. Learning curves are useful for preparing cost estimates, bidding on
special orders, setting labour standards, scheduling labour
requirements, evaluating labour performance, and setting incentive
wage rates.


Quantity Estimation & Management SQ–11 C (CE-Sem-5)

4 Equipment
Management
(2 Marks Questions)

4.1. Define productivity.

Ans. Productivity is a measurement of how well resources are utilized
to produce output.

4.2. What is profitability ?

Ans. Profitability is the ratio of difference of revenue and cost to
investment.
Revenue  Cost
Profitability =
Investment

4.3. What is total factor productivity ?

Ans. It is the ratio of net output to the sum of associated labour and
capital inputs. Net output means output minus material, capital,
energy and other input expenses.
Net output
TFP =
Labour inputs + Capital inputs

4.4. Define total productivity.

Ans. It is the ratio of total output to the sum of all input factors. It
represents the joint impact of all the input factors in producing
the output.
Total measureable output
Total productivity =
Total measureable input

4.5. What are the different methods to measure productivity ?

Ans. There are three major types of productivity measures :
i. Partial productivity,
ii. Total factor productivity, and
iii. Total productivity.

4.6. Explain productivity index.

2 Marks Questions SQ–12 C (CE-Sem-5)

Ans. It is used to compare the productivity during the current year

with the productivity during the base year. Base year is any year
which the company uses for comparative study.
Productivity during current year
Productivity index =
Productivity during base year

4.7. What is deflator ?

Ans. It is the ratio of current year price to base year price. Deflators are
used to nullify the effect of changing price from one year to another.
Current year price
Deflator =
Base year price

4.8. What is investment cost ?

Ans. In order to own equipment, the owner has to spend money and
has to pay all types of taxes assessed against the equipment,
insurance premium and storage charge. These all, are called
investment cost.

4.9. Define operating cost.

Ans. Construction equipment must require fuel in the form of gasoline
oil, diesel, electrical energy and lubricating oil which is considered
as operating cost.

4.10. What are the factors affecting the selection of equipments ?

AKTU 2016-17, Marks 02
Ans. Following are the factors affecting the selection of equipments :
i. Existing equipment.
ii. Operating cost.
iii. Availability of equipment.
iv. Economic life.
v. Study of site condition.
vi. Suitability of equipment for future.
vii. Size of equipment.
4.11. What are the various excavating and earth moving
equipments ?
Ans. Following are the excavating and earth moving equipments is used :
i. Power shovel,
ii. Back hoe,
iii. Drag line,
iv. Clam shell,
v. Scraper, and
vi. Bulldozer
4.12. Enumerate the earth compaction equipments for
construction.
Quantity Estimation & Management SQ–13 C (CE-Sem-5)

Ans. Following are the equipment used for compaction :

i. Smooth-wheel rollers.
ii. Sheep foot rollers :
a. Ordinary sheep foot roller.
b. Convertible rollor.
iii. Pneumatic tyred rollers.

4.13. What is hauling equipment ? Also enlist them.

Ans. The equipments used for transportation of material are known as
hauling equipments or simply haulers.
Types : It includes :
i. Dump trucks :
a. Side or rear dump truck.
b. Bottom dump trucks.
ii. Dumpers or tractors.

4.14. Enlist the conveying equipment using in construction

industry.
Ans. Following are the equipments which are used for conveying :
i. Belt conveyor. ii. Screw conveyor.
iii. Bucket conveyor. iv. Aerial conveyor.

4.15. Give the advantages of conveyor equipments.

Ans. Following are the advantages of using conveyor equipment :
i. It increases the output.
ii. It facilitates continuity in operation.
iii. It results in time saving.
iv. There are no waiting periods.

4.16. Explain the advantages of belt conveyor system ?

Ans. Following are the advantages of belt conveyor system :
i. It can handle light as well as heavy materials, dry or wet, fine or
coarse etc.
ii. It is lighter in weight then other conveyors.
iii. In this system discharge controlled by speed of belt.

4.17. Describe the equipments which are used for hoisting

purpose.
Ans. Hoisting equipment includes :
i. Jacks. ii. Winches.
iii. Chain hoist.
iv. Crain :
a. Stationary or derrick cranes.
b. Mobile cranes.
c. Overhead or gantry cranes.
d. Traveller cranes.
e. Tower crane.
2 Marks Questions SQ–14 C (CE-Sem-5)

4.18. Write down the advantages of hoisting equipments.

AKTU 2015-16, Marks 02
Ans. Following are the advantages of hoisting equipments :
i. It can lift the load and place it on the desired location.
ii. The load can be hold in suspension during transfer from one location
to other.
4.19. Give the comparison of crawler and wheeled tractor.
Ans.
S. No. Crawler Type Wheeled Type

1. More compact and powerful Can handle only lighter jobs.

and can handle heavier jobs.
2. Slow speed and costly. Greater speed and cheaper.
3. Stick control for steering. Wheel steering control.
4. Co st o f operatio n and Operation and maintenance cost
maintenance is high. is less.

4.20. Enlist the tunneling equipment.

Ans. Following are the tunneling equipments :
i. TBM (Tunnel boring machine).
ii. Jack hammer or sinker. iii. Drifter
iv. Piston drill. v. Blast-hole drill.
vi. Shot drill. vii Diamond drill.
viii Drill bit.

4.21. Write the methods of tunneling.

AKTU 2016-17, Marks 02
Ans. Following are the methods of tunneling :
i. Classical method e.g. English method, Austrian, German, etc.
ii. Cut and cover. iii. Drill and blast.
iv. Tunnel boring machines (TBMs).
v. Immersed tunnel. vi. Tunnel jacking.
4.22. What are the basic operations involved in concrete
production ?
Ans. The basic operations involved in concrete production are :
i. Batching, ii. Mixing,
iii. Transporting, iv. Placing,
v. Consolidating, vi. Finishing, and
vii. Curing.


Quantity Estimation & Management SQ–15 C (CE-Sem-5)

5 Project Cost
Management
(2 Marks Questions)

5.1. Define engineering economics.

Ans. Engineering economics deals with the methods that enable one to
take economic decisions towards minimizing costs and/or
maximizing benefits to business organizations.

5.2. What are the different scopes of engineering economics ?

Ans. Following are the scopes of engineering economics :
i. Better decision making on the part of engineering.
ii. It has wide scope in manufacturing, construction, mining and
other engineering industries.
iii. Efficient use of resources results in better output and economics
advancement.

5.3. What is the concept of time value of money ?

Ans. Time value of money means that two equal amount at different
point of time, do not have equal value if the interest rate is greater
than zero. It is the relationship between interest and time that
leads to the concept of time value of money.

5.4. What do you understand by cash flow diagram in a project ?

Ans. The graphical representation of the cash flows i.e., both cash
outflows and cash inflows with respect to a time scale is generally
referred as cash flow diagram.

5.5. What is direct cost ?

Ans. Direct costs are directly dependent on the resources involved in
the project, e.g., materials, labours, plants and machinery, etc.

5.6. What do you mean by indirect cost ?

Ans. The cost of buying resources and the cost of operations involved
every project incurs some expenditure in terms of overhead,
administrative expenses, depreciation, lost profit, lost of revenue,
penalty etc.
2 Marks Questions SQ–16 C (CE-Sem-5)

5.7. What is total cost ?

Ans. The cost is the summation of the direct cost and indirect cost.
Total cost (TC) = Direct cost (DC) + Indirect cost (IC)

5.8. Define cost slope.

Ans. The cost slope is the slope of the direct cost curve appropriated as
straight line. The cost slope is defined as follows :
Crash cost  Normal cost
Cost slope =
Normal time  Crash time
CC  Cn C
CS = =
Tn  Tc t
where, t = Decrease in time, and
C = Increase in cost.
5.9. Brief short notes on total cost curve.
AKTU 2016-17, Marks 02
Ans. The direct cost and indirect cost added together constitute the total
project cost. Fig. 1 shows the indirect cost curve, direct cost curve
and the corresponding total cost curve. If the project duration is
increased, total cost will be the highest.
Total cost

Direct cost
Optimum
Cost

cost

Indirect cost

Crash Optimum Normal

time
Fig. 5.10.1. Total cost curve.

5.10. What are the different bases of comparing the worthiness

of the project ?
Ans. There are several bases for comparing the worthiness of the
projects. These bases are :
i. Present worth method,
ii. Future worth method,
iii. Annual equivalent method, and
iv. Rate of return method.
5.11. Give the reason of replacement of asset.
Ans. There are two basic reasons for considering the replacement of
equipment :
Quantity Estimation & Management SQ–17 C (CE-Sem-5)

i. Physical impairment of the various parts.

ii. Obsolescence of the equipment.
Physical impairment refer only to changes in the physical condition
of the machine itself and obsolescence is due to improvement of
the tools of production mainly improvement in technology.

5.12. What do you mean by depreciation ?

Ans. Depreciation is defined as the decrease in value of asset resulting
from deterioration, wear and tear from us, obsolescence arising
from improvement in design and new technology.

5.13. What are the different types of depreciation ?

Ans. Following are the types of different :
i. Physical depreciation,
ii. Function depreciation, and
iii. Contingent depreciation.

5.14. What are the different methods for calculate depreciation ?

Ans. Following are the different methods for determining depreciation :
i. Straight line method of depreciation,
ii. Declining balance method of depreciation,
iii. Sum of the years digits method of depreciation,
iv. Sinking fund method of depreciation, and
v. Service output method of depreciation.

5.15. Differentiate between depreciation and obsolescence.

Ans.
S. No. Depreciation Obsolescence

i. This is the physical loss in the This is functional loss in the value
value of property due to wear of the property due to change in
and tear and decay etc. design, structure, fashion, utility,
demand, etc.
ii. It depends upon its original It depends upon the technological
conditions, quality o f advancement, art, etc.
maintenance and mode of use.
iii. It varies with age. Not dependent on age.

5.16. What is salvage value or resale value ?

Ans. It is the value of the property at the end of its utility period without
being dismantled. Salvage value implies that the property has
further utility.

5.17. Define scrap value.

2 Marks Questions SQ–18 C (CE-Sem-5)

Ans. The value of a property realised when it becomes absolutely useless

except for sale as junk is its scrap value. The utility of the article is
assumed to be zero.

5.18. What is book value ?

Ans. It is defined as the value of the property shown in the account
book in that particular year i.e., the original cost is less than the
total depreciation till that year.

5.19. What is the main objective of cost control system ?

AKTU 2015-16, Marks 02
Ans. The main objective of cost control system is to identifying and
reducing business expenses to increase profits, and it starts with
the budgeting process.
5.20. Define break even cost analysis.
AKTU 2016-17, Marks 02
Ans.
1. Breakeven cost analysis is a tool for studying the relationship
between volume, cost, revenue and profit.
2. It is helpful in profit planning, the profitability projections are
essential to judge the financial desirability i.e., profitability of project.
5.21. Write the assumptions of break even analysis.
Ans. Following are the assumption of break even analysis :
i. The unit selling price is constant, this means that total revenue
varies linearly.
ii. The total cost is equal to the sum of fixed cost and variable cost.
iii. Inventory charges are nil.
5.22. What do you mean by break even chart ?
Ans.
i. A break even chart is a graphical representation of the relationship
between costs and revenue for all possible volume of output.
ii. The main objective of the graphical device is to determine the
breakeven point and profit potential under varying condition of
output and costs.
5.23. Write the advantages of break even chart.
Ans. Following are the advantages of break even chart :
i. BEP of the chart marks clearly no profit no loss situation.
ii. It indicates likely profit or losses at various output levels.
iii. It is a decision making tool in the hands of management.
iv. It is an important tool of business management and it gives crystal
clear view of the position of a business.


Quantity Estimation & Management SP–1 C (CE-Sem-5)

B. Tech.
(SEM. VI) EVEN SEMESTER THEORY
EXAMINATION, 2015-16
CONSTRUCTION TECHNOLOGY
AND MANAGEMENT

Time : 3 Hours Max. Marks : 100

Section-A

1. Attempt all parts. All parts carry equal marks. Write answer of
each part in short. (10 × 2 = 20)

a. State the objectives of integrated project management.

b. What are the important stages in the planning of a project ?

c. How is the milestone chart an improvement over the bar

chart ?

d. List out the classification of scheduling.

e. How can you calculate the earliest expected time and latest
allowable occurrences time in PERT ?

f. Illustrate the CPM technique as used in scheduling a

construction project.

g. Suggest a suitable method for submitting the periodical

reports for effective control through CPM.

h. What are the main objectives of cost control system ?

i. Differentiate between CPM and PERT.

j. Write down the advantages of hoisting equipments.

Section-B

2. Attempt any five questions from this section. (5 × 10 = 50)

a. What are the different types of organizational structures ?
Outline in brief the characteristics, advantages and
disadvantages of each structure.
Solved Paper (2015-16) SP–2 C (CE-Sem-5)

b. In what respect does the functional organization differ

from the line and staff organization ?

c. Discuss in details about the limitations of a bar chart.

d. Illustrates the relationship between ‘time’ and ‘cost’.

e. Write short notes on :

i. Network comparisons.

ii. Project cost analysis.

f. Discuss elements of cost control and its importance.

g. How are cost control systems classified ? Explain.

h. Write down the elements of tender preparation.

Section-C

Note : Attempt any two questions from this section. (2 × 15 = 30)

3. a. Explain ‘work breakdown structure’ prepare the work
breakdown structure for the launching of a communication
satellite. Assume the activities suitably.

b. A target data of completion is to be forecast based on the

following information :
Item A : Takes 7 weeks for completion.
Item B : Takes 5 weeks.
Item C : Depends on the completion of both A and B and
requires 3 weeks.
Item D : Follows up of item C and requires 2 week.
Prepare a bar chart and mile stone chart for scheduling the
completion date.

4. a. The time estimates for the activity P, Q and R in a project

are as follows :
Activity to tm tp
P 10 12 14
Q 6 8 12
R 5 10 12
i. Determine the expected time and variance of each activity.
ii. Which activity has more reliable time estimates ?
Quantity Estimation & Management SP–3 C (CE-Sem-5)

b. Discuss briefly about cash flow forecasting.

5. a. Explain in detail about different types of contract and their

relative advantages and disadvantages.

b. Explain the following with neat sketch :

i. Hauling equipments.
ii. Conveying equipments.
iii. Tunneling equipments.


Solved Paper (2015-16) SP–4 C (CE-Sem-5)

SOLUTION OF PAPER (2015-16)

Section-A

1. Attempt all parts. All parts carry equal marks. Write answer of
each part in short. (10 × 2 = 20)

a. State the objectives of integrated project management.

Ans. The objective of IPM is to establish and manage the project and the
involvement of relevant stakeholders according to an integrated
and defined process that is tailored from the organization’s set of
standard processes.

b. What are the important stages in the planning of a project ?

Ans. These are the following eight steps of project planning :
i. Define,
ii. Establish goals,
iii. Development of activities objectives,
iv. Evaluate the resources,
v. Determine alternatives,
vi. Test consistency,
vii. Decision making, and
viii. Finalizing.

c. How is the milestone chart an improvement over the bar

chart ?
Ans. Milestone chart is the modification over bar chart in which some of
the drawbacks of bar chart are being eliminated. There are certain
activities in the project which have a limited degree of concurrencies
which cannot be detected by bars in parallel as represented in bar
charts that is lack of activity interdependencies. This drawback of
bar chart is further modified by the use of milestones which marks
the starting or finishing of the certain portion of the activity.

d. List out the classification of scheduling.

Ans. Following are the classification of scheduling.
i. Long term scheduling
ii. Medium term scheduling
iii. Short term scheduling
iv. Non-preemptive scheduling
v. Preemptive scheduling

e. How can you calculate the earliest expected time and latest
allowable occurrences time in PERT ?
Quantity Estimation & Management SP–5 C (CE-Sem-5)

Ans. Earliest Expected Time (TE) : It is the time when an event can be
expected to occur earliest. TE calculated as : (TE)j = (TE)i + ti – j.
Latest Allowable Occurrence Time (TL) : The latest time by
which an event must occur to keep the project on schedule is called
the latest allowable occurrence time (TL). TL is determine as :
(TL)i = (TL)j – ti – j

f. Illustrate the CPM technique as used in scheduling a

construction project.
Ans. In applying the CPM, there are several steps that can be summarized
as follows :
i. Define the required tasks and put them down in an ordered
(sequenced) list.
ii. Create a flow chart or other diagram showing each task in relation
to the others.
iii. Identify the critical and non-critical relationships (paths) among
tasks.
iv. Determine the expected completion or execution time for each
task.
v. Locate or devise alternatives (backups) for the most critical paths.

g. Suggest a suitable method for submitting the periodical

reports for effective control through CPM.
Ans. PERT is suitable method for submitting the periodical reports for
effective control through CPM.

h. What are the main objectives of cost control system ?

Ans. The main objective of cost control system is to identifying and
reducing business expenses to increase profits, and it starts with
the budgeting process.
i. Differentiate between CPM and PERT.
Ans.
S. No. CPM PERT

i. It is an activity oriented. It is an event oriented.

ii. Cost is the governing factor. Time is the governing factor.
iii. In this project, duration is fixed and Cost is directly proportional to
cost is minimum. time.
iv. The critical path in CPM is that path Critical path is that path
which joins the critical activities. which joins the critical events.

j. Write down the advantages of hoisting equipments.

Solved Paper (2015-16) SP–6 C (CE-Sem-5)

Ans. Following are the advantages of hoisting equipments :

i. It can lift the load and place it on the desired location.
ii. The load can be hold in suspension during transfer from one location
to other.

Section-B

2. Attempt any five questions from this section. (5 × 10 = 50)

a. What are the different types of organizational structures ?
Outline in brief the characteristics, advantages and
disadvantages of each structure.
Ans. Types of Organization : Following are the various types of
organization :
1. Line Organization :
i. Under line organization, each department is generally a complete
self-contained unit. A separate person will look after the activities
of the department and he has full control over the department.
ii. The same level executives do not give or receive orders amongst
themselves. But they receive orders from their immediate boss
and give orders to their subordinates.
Characteristics of Line Organization :
i. It consists of direct vertical relationships.
ii. Authority flows from top-level to bottom level.
iii. Departmental heads are given full freedom to control their
departments.
iv. A senior member has direct command over his subordinates.
v. Existence o f dire ct re lationship betwee n supe riors and
subordinates.
vi. The superior takes decisions within the scope of his authority.
Advantages :
i. It is simple in form with a clear cut division of authority.
ii. The decisions are speedy and their implementation is quick.
iii. It promotes greater co-ordination and keeps better discipline.
iv. The responsibility can be easily fixed.
v. More economical and flexible.
Disadvantages :
i. Lack of specification and initiative.
ii. Overloading.
iii. Limited communication and subjective approach.
2. Functional Organization :
i. Under functional organization, various specialists are for various
functions performed in an organization.
ii. These specialists will attend to the work which is common to
different functions of various departments.
iii. Workers, under functional organization, receive instructions from
various specialists.
Quantity Estimation & Management SP–7 C (CE-Sem-5)

Characteristics of Functional Organization :

i. The work is divided according to specified functions.
ii. Authority is given to a specialist to give orders and instructions in
relation to specific function.
iii. Functional authority has right and power to give command
throughout the line with reference to his specified area.
Advantage of Functional Organisation :
i. Efficiency : Greater efficiency is achieved because of every
function performing a limited number of functions.
ii. Economy : Specialization compiled with standardization facilitates
maximum production and economical costs.
iii. Expansion : Expert knowledge of functional manager facilitates
better control and supervision.
Disadvantages of Functional Organisation :
i. It is difficult to define who the ‘boss’ is.
ii. It de-emphasizes the position of the line organization.
iii. Increasing the overhead expenses.
3. Line and Staff Organization :
i. The line officers have authority to take decisions and implement
them to achieve the objectives of the organization.
ii. The line officers may be assisted by the staff officers while framing
the policies and plans and taking decisions organization.
iii. The authority flows from top level to the lower level of the
organization through the line officers while the staff officers
attached to the various departments advise the departments.
Characteristics of Line and Staff Organization :
i. It consists of direct vertical relationships.
ii. Departmental head is given full freedom to manage his department.
iii. It does not make provision for staff specialists.
iv. Existence of superior-subordinate relationship.
v. Instructions are given by the boss directly to his subordinates.
vi. Superior at each level makes decisions within the scope of his
authority.
Advantages :
i. Facilitates to work faster and better.
ii. Officers can take sound advice.
iii. Promotes efficient functioning of line officers.
Disadvantages :
i. There may be confusion about the relation between staff and line
employees.
ii. If power are not defined then get confusion.
iii. Line officers may reject advice without any reason for their action.
iv. Line officers blame staff officers for unfavorable results and want
to get rewards for favorable results.

b. In what respect does the functional organization differ

from the line and staff organization ?
Solved Paper (2015-16) SP–8 C (CE-Sem-5)

Ans.
S. No. Line and Functional
Staff Organization Organization

1. There are experts known as Functional managers are specialists

staff to advise and assist the in their respective areas.
line officials.
2. Line authority and staff The line of authority is functional
peo ple with advisory or diago nal. The functio nal
authority. manager has authority over the
functions wherever it is performed.
3. Less discipline. More discipline.
4. It is based upon planned Base d on high de gree of
specialization. specialization.
5. Unity of command observed Unity of command is not followed
to a great extent. as e ach sub-ordinate gets
instructions from his line boss and
the functional bosses.
6. Suitable for medium scale It is suitable fo r large scale
operations. operatio ns whe re e xpert
knowledge in certain fields is a
must.
7. Little costlier. Very costly.

c. Discuss in details about the limitations of a bar chart.

Ans. Limitations of Bar Chart : These are the following limitations
of bar chart :
1. Only major activities are shown in bar chart and sub activities
cannot be separated out. Hence effective control over the activities
in big projects cannot be achieved.
2. A bar chart does not show progress of work hence it cannot be used
as a control device.
3. It does not show the interdependencies between the various
activities clearly.
4. Delays in the work cannot be detected.
5. Bar chart cannot distinguish between critical and non-critical
activities. Hence resource smoothening and resource levelling
cannot be done.
6. The financial aspect involved is not known i.e., whether the project
cost is within the estimated one or exceeded.

d. Illustrates the relationship between ‘time’ and ‘cost’.

Ans. Total Cost : The direct cost and indirect cost added together
constitute the total project cost.
Quantity Estimation & Management SP–9 C (CE-Sem-5)

1. Fig. 1 shows the indirect cost curve, direct cost curve and the
corresponding total cost curve.
2. From the total cost curve, we find that the minimum total cost
(optimum cost) is obtained at some duration known as optimum
duration. The corresponding cost is known as the minimum cost.
3. If the project duration is increased, total cost will be the highest.
4. In figure 1, we observe two types of times–normal and crash. These
will have two types of cost associated with them. These are defined
as follows :
i. Normal Time (tn) : It is the standard time that an estimator would
usually allow for an activity.
ii. Crash Time (tc) : It is the minimum possible time in which an
activity can be completed by employing extra resources. Crash time
is that time beyond which the activity cannot be shortened by any
amount of increase in resources.

Total cost

Direct cost
Optimum
Cost

cost

Indirect cost

Crash Optimum Normal

Time
Fig. 1. Total cost curve.
iii. Normal Cost (Cn) : This is the direct cost required for the completion
of the activity in the normal time duration.
iv. Crash Cost (Cc) : It is the direct cost corresponding to the
completion of the activity within crash time.
v. Cost Slope (Cs) : The cost slope is the slope of the direct cost curve,
approximated as straight line. The cost slope is defined as follows :
Crash cost  Normal cost
Cost slope =
Normal time  Crash time
Cc  Cn C
i.e., Cs = 
tn  tc t
where, C = Increase in cost.
t = Decrease in time.

e. Write short notes on :

i. Network comparisons.
ii. Project cost analysis.
Solved Paper (2015-16) SP–10 C (CE-Sem-5)

Ans.
i. Network comparisons : Network comparison is the comparison
between critical path method (CPM) and program evaluation and
review technique (PERT).

S. No. CPM PERT

1. It is basically having deterministic It is basically having
approach in the de sign o f probabilistic approach in the
network. design of network.
2. Only one time estimate is required Three time estimate (in the
for each activity. form of Pessimistic time,
Optimistic time and Most likely
time) for each activity.
3. It is built-up of activity-oriented It is built-up of event-oriented
diagram. diagram.
4. Time and cost both are controlling Time only is the controlling
factors. There is an optimum factor and the cost is assumed
duration of the project at which proportional to the project
the project cost is minimum and duration.
this can be obtained by crashing
the network.
5. Critical events must have zero Critical events may be positive/
slack. zero/negative depending upon
the project sche dule d
completion time.
6. It is recommended for repetitive It is re co mmende d fo r
nature o f wo rk whe re past research and development
e xperie nces are ade quately project where no past
available. experiences are available or
where great uncertainty lies
in the time estimation.

ii. Project Cost Analysis : It is act of breaking down a cost summary

into its constituents and studying and reporting on each factor.
Project cost analysis is done by following solutions :
1. The normal solution is the one corresponding to the normal durations
of all the activities giving the minimum direct cost for the project.
2. The crash solution is the one giving the minimum direct cost
corresponding to the minimum project duration.
3. The all-crash solution is the one corresponding to crash durations
of all the activities.
4. The optimal solution is the one giving the minimum total project
cost, that is, the sum of the direct and indirect costs. As compared to
Quantity Estimation & Management SP–11 C (CE-Sem-5)

the normal solution, this solution leads to a reduction in the project

duration well as a saving in the total project cost.
5. The minimum net cost solution is the one giving the minimum net
cost, that is, total project cost minus the value of additional benefits
as compared to the normal solution.

f. Discuss elements of cost control and its importance.

Ans.
A. Element of Cost Control : Following are the element of cost
control :
1. Materials :
i. Materials costs are the tangible goods used in producing the
product. These costs can be direct or indirect.
ii. Direct materials are the quantifiable and traceable costs of materials
used in production.
iii. Indirect materials either cannot be traced to products or it is not
cost effective to do so.
2. Labour :
i. Wages and salaries paid to employees involved in manufacturing
are known as labour costs.
ii. These costs can be broken down into direct and indirect labour.
iii. Direct labour costs include the wages that are paid to employees
that physically handle the product.
iv. For this reason, direct labor is also referred to as touch labour.
Indirect labour costs are any other wages and salaries related to
production, but are not traceable back to units of product.
3. Overhead :
i. Overhead costs are those costs that are related to production, but
are not classified as direct labour or direct materials.
ii. This includes all indirect labour and materials costs, as well as any
other untraceable costs.
iii Common o verhead costs include depreciation on factory
equipment, manufacturing rents, supplies costs, insurance costs
and licensing fees.
iv. For some small businesses, overhead costs make up the majority
of production costs.
v. In these cases, small-business owners should be careful to recognize
that just because overhead costs are not easily traceable to products
does not mean that effective cost management is any less
important.
4. Period Costs :
i. Period costs are costs that are not related to manufacturing.
ii. These costs are not considered an element of cost in management
accounting.
iii. As opposed to product costs, which are held in inventory, generally
accepted accounting principles require that period costs are
expensed as soon as they are incurred.
Solved Paper (2015-16) SP–12 C (CE-Sem-5)

iv. Common small-business period costs include advertising costs,

sales commissions, salaries for owners and top management,
administrative costs and depreciation for non-factory equipment.
v. Even though period costs are not considered elements of cost in
managerial accounting, these costs reduce net income just the
same.
vi. As such, management may wish to track these costs on an ongoing
basis and intervene if these costs are higher than expected.
B. Importance : Following are the importance of cost control :
1. The main objective of cost control of a project is to gain the minimum
profit within the designated period within the budget to monitor
and control actual expenditure against the estimated project
budget.
2. It is important to ensure that there should not be any under claim
or over claim of the workdone.
3. This is required to maintain a steady cash flow. Also it helps the
client and the contractor to manage their expenditure and income.

g. How are cost control systems classified ? Explain.

Ans. Cost Control Techniques : Cost can be controlling by employing
the following methods :
1. Materials Control :
i. Materials control may be defined as the systematic control over the
procurement, storage and usage of materials so as to maintain an
even flow of materials and at the same time avoiding excessive
investment in inventories.
ii. From the above definition we can derive the following important
aspects :
a. To ensure the smooth flow of production without interruptions.
b. Prevention of excessive investments in materials stock.
2. Labor Control :
i. In order to achieve the effective utilization of manpower resources,
the management has to apply proper system of labour cost control.
ii The labour cost control may be determined on the basis of
establishment of standard of efficiency and comparison of actual
with standards.
iii. The management applies various techniques for the effective control
of labour costs as under :
a. Scientific method of production planning.
b. Use of labour budgets.
c. Establishment of labour standards.
d. Proper system of labour performance report.
e. Effective system of job evaluation and job analysis.
f. Devise a proper system of control over ideal time and unusual
overtime work.
Quantity Estimation & Management SP–13 C (CE-Sem-5)

3. Overhead Control :
i. Aggregate of all expenses relating to indirect material cost, indirect
labour cost and indirect expenses is known as overhead.
ii. Measures to controlling overhead costs :
a. Inventory counts (avoid excessive/wrong inventory items).
b. Renegotiate interest terms.
c. Renegotiate rental terms.
d. Decrease working capital.
e. Implement quality control system.
f. Re-evaluate sales and marketing costs.
g. decrease transportation cost.
4. Standard Costing :
i. Implementing this level of control can have a profound positive
impact on profits over the long term.
ii. The following four steps are associated with standard costing :
a. Create a baseline.
b. Calculate a variance.
c. Investigate variances.
d. Take action.
5. Budgetary Control :
i. Budgetary control is the process of determining various actual results
with budgeted figures for the enterprise for the future period and
standards set then comparing the budgeted figures with the actual
performance for calculating variances, if any.
ii. The comparison of budgeted and actual figures will enable the
management to find out discrepancies and take remedial measures
at a proper time.
6. Capital Expenditure Controlling :
i. Capital expenditure controlling refers to the actions, processes and
tools used to identify, forecast, assess, decide and manage capital
expenditure.
ii. Capital expenditure can be used to replace or expand existing plant
and equipment, to invest in new equipment or to make use of
strategic opportunities in new production or market contexts.
iii. In the broader sense capital expenditure controlling is also applied
to expenditure incurred in the context of campaigns or projects
typical for areas such as marketing or research and development.

h. Write down the elements of tender preparation.

Ans. Following are the elements of tender preparation :
1. As part of the preparation work, and before any tender is
advertised, the procuring agency requires a realistic estimate of
the cost of the structure with a breakdown of significant cost
items.
2. To prepare such an estimate, an engineer should be selected and
be appointed to not only carry out this preliminary work but
Solved Paper (2015-16) SP–14 C (CE-Sem-5)

continue to supervise the contractor and ensure all works are

carried out according to the design and to the highest quality
possible.
3. The preparation of tender and contract documents, including all
survey and design work needed to prepare quantities and guideline
costings, should take place in good time.
4. If funds are to be sourced from international lending agencies or
donors, their guidelines will have to be followed and examples of
advertisements and documents from such organizations should
be obtained at the beginning of this process.
5. Preparation may require the application for land and water rights,
environmental impact assessments plus any needed compensation
or resettlement plans.
6. These must be completed before the any construction can be
approved and allowed to proceed.

Section-C

Note : Attempt any two questions from this section. (2 × 15 = 30)

3. a. Explain ‘work breakdown structure’ prepare the work
breakdown structure for the launching of a communication
satellite. Assume the activities suitably.
Ans.
A. Work Breakdown Structure :
1. Work breakdown structure or schedule is a pictorial representation
of the entire program.
2. It is a preliminary diagram illustrating the way in which all the
supporting objectives go together and mesh to ensure the attainment
of the major objective.
3. Such a breakdown structure is more essential in complex projects
consisting of hundreds of events and activities.
4. In work breakdown structure, the top-down approach to planning
is adopted. Such an approach ensures that the total project is fully
planned.
5. The work breakdown schedule aids in the identification of objective
and allows the planner to see the picture of the project.
6. The development of the work breakdown structure begins at the
highest level of the program with the identification of project end
items.
7. The major end items are then divided into their sub-component
parts (i.e., system, sub systems, components) and the component
parts are further divided into their more detailed units.
8. The subdivision of the work breakdown structure continues to
successively lower levels, until it reaches the level where the end
item subdivisions finally become manageable units for planning
and controlling purpose.
Quantity Estimation & Management SP–15 C (CE-Sem-5)

9. The end items subdivisions appearing at this last level in work

breakdown structure are then divided into major work packages
(i.e., engineering, manufacturing, testing etc.).
Construction work

Civil Work Electrical Work Plumbing Work

Foundation Super Structure Road Work

Layout PCC RCC Anti Termite

Shuttering Steel Work Concreting Removal of Shuttering

Fig. 2.
B. Breakdown Structure for the Launching of a
Communication Satellite :
Ground segment

Transport and Weather

Launch pad Ground station Mission control Recovery
logistics modelling

PSLV Communi- Atmosphere

cations Sriharikota RIB Booster
profiling
Launch rail/ Tracking
platform CCI Plane Capsule Impact
predictions
Tanking/ Data
detanking recording Safing Stacking
Procedures procedures
Launch vehicle Data Relay Propellants
servicing Trajectory Retrieval

Land assets
Crew
Servicing Planning
Video
streaming Equipment
Interfaces

Weather Launch range

protection
ATC
Safety
systems
CCI - Command and Control Interface
RIB - Rigid hulled Inflatable Boat
ATC - Air Traffic Control
Fig. 3.

b. A target data of completion is to be forecast based on the

following information :
Item A : Takes 7 weeks for completion.
Item B : Takes 5 weeks.
Item C : Depends on the completion of both A and B and
requires 3 weeks.
Solved Paper (2015-16) SP–16 C (CE-Sem-5)

Item D : Follows up of item C and requires 2 week.

Prepare a bar chart and mile stone chart for scheduling the
completion date.
Ans.
1. Bar Chart :

B
Item

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
(Time in week)
(a) Bar chart.
2. Milestone Chart :

Critical item
B Non critical item

C
Item

1 2 3 4 5 6 7 8 9 10 11 12
Time in week
(b) Milestone chart.
Fig. 4.

4. a. The time estimates for the activity P, Q and R in a project

are as follows :
Activity to tm tp
P 10 12 14
Q 6 8 12
R 5 10 12
i. Determine the expected time and variance of each activity.
ii. Which activity has more reliable time estimates ?
Quantity Estimation & Management SP–17 C (CE-Sem-5)

Ans.
t0  4 tm  t p
1. Expected time, te =
6
10  4  12  14
i. For activity P : te =  12
6
6  4  8  12
ii. For activity Q : te =  8.33
6
5  4  10  12
iii. For activity R : te =  9.5
6
2
 t p  t0 
2. Variance, 2 =  
 6 
i. For activity P : t0 = 10, tm = 12, tp = 14
2
 14  10 
2 =   0.44
 6 
ii. For activity Q :t0 = 6, tm = 8, tp = 12
2
2 =  12  6   1
 6 
iii. For activity R : t0 = 5, tm = 10, tp = 12
2
 12  5 
2 =    1.36
 6 
3. te = 12, so activity P has more reliable time estimate.

b. Discuss briefly about cash flow forecasting.

Ans.
1. Cash flow forecasting is the process of obtaining an estimate or
forecast of a company future financial position and is a core planning
component of financial management within a company.
2. A cash flow forecast is a projection of an organizations future
financial position based on anticipated payments and receivables.
The process of deriving a cash flow forecast is called cash flow
forecasting.
Goals of Cash Flow Forecasting :
1. The main goal of a cash flow forecasting is to assist with managing
liquidity within an organization and ensuring that the business has
the necessary cash to meet its obligations and avoid funding issues,
essentially better management of working capital.
2. Underneath the high level goal of liquidity management, there are
often a number of reasons why companies set up a cash flow
forecasting process, these include :
i. Covenant forecasting and half/ full year reporting visibility.
ii Interest and debt reduction.
iii. Short term liquidity planning.
Solved Paper (2015-16) SP–18 C (CE-Sem-5)

iv. Long term planning / budgeting purposes (e.g. 3 year plan)

5. a. Explain in detail about different types of contract and their

relative advantages and disadvantages.
Ans. Types of Contract : The following are the various types of
contracts for execution of civil engineering works, with their
relative merits and demerits :
1. Item Rate Contract :
i. Item rate contract is also known as unit price contract or schedule
contract.
ii. A contract undertakes the execution of work on an item rate
basis.
iii. He is required to quote rate for individual item of work on the
basis of schedule of quantities (i.e., bill of quantities) furnished by
the department.
iv. The amount to be received by the contraction depends upon the
quantities of work actually performed.
v. The payment to the contractor is made on the basis of the detailed
measurement of different items of work actually executed by
him.
Merits :
i. This method ensures a very detailed analysis of cost and payment
to the contractor and is based upon detailed measurements of each
item actually done, so this method is more scientific.
ii. Changes in drawings and quantities of individual item can be made
as per requirements within agreed limits.
Demerits :
i. The total cost of work can only be known after completion. As such
the owner may face financial difficulty if the final cost is substantially
high.
ii. Additional staff is required to take detailed measurements of work.
iii. The scope of saving with use of inferior quality materials may
prompt the contractor to do so.
2. Percentage Rate Contract :
i. In this form of contract, the department draws up ‘item rate tender’
i.e., bill of quantities with rate, amount and total amount.
ii. The contractors are required to offer to carry out the work as per
with the rates shown in the specific price schedule or some
percentage above or some percentage below the rate indicated in
the schedule of work attached with the tender.
iii. The percentage above or below or at par is applicable on the overall
cost of the work also.
Merits :
i. The ranking amongst the contractors is easily known just on the
opening of the tenders.
ii. As there is no provision to quote contractors own rate for an
individual item, benefit due to increased quantity with a beneficial
Quantity Estimation & Management SP–19 C (CE-Sem-5)

rate cannot be availed by the contractor. The chance of unbalanced

tender gets eliminated.
Demerits :
i. A contractor is required to write down only the percentage above
or at par or below, it is very easy to write such a rate in few minutes
before the time of submission of the tender.
ii. By negotiating among the contractors, two or more may quote the
same rate in order to get a part of the work at a high rate. It may be
difficult to divide the work at equal amount among the contractors.
3. Lump-Sum Contract :
i. In this type of contract, a contractor is required to quote a fixed sum
for execution of work complete in all respect in the stipulated time
according to the drawing, design and specifications supplied to him
with the tender.
ii. The departmental schedule of rate for various items of work is also
provided which regulates the payment of the contractor in respect
of any additions and alterations which are made over the original
work.
iii. On the completion of the work, no detailed measurement of different
items of work is needed but the whole work done must be compared
and checked with the drawings and specifications.
Merits :
i. As the total cost of the work known before hand, the owner can
arrange the fund in time.
ii. Detailed measurements of the work done are not required except
in respect of additions and alterations.
iii. The contractor’s profit mainly lies in the completion time. Hence
for getting more profit the contractor tries to complete the work as
early as possible.
Demerits :
i. It is very essential that the work must be defined accurately,
specifications must be fully specified and the site conditions must
be fully explained otherwise disputes can arise later on.
ii. For any intermediate payment, the value of work done should not
be less than the payment being made.
4. Labour Contract :
i. In labour contract, the contractor undertakes contract for the labour
portion only excluding the materials which are arranged and
supplied at the work site by the department/owner.
ii. The contractor engages the requisite labour and gets the work
done as per drawings and specifications.
iii. It is an item rate basis for labour portion only and the contractor is
paid for the quantities of work done on measurement of different
items of work at the stipulated rate in the contract agreement.
Merits :
i. The materials stored by the department are thus utilised.
Solved Paper (2015-16) SP–20 C (CE-Sem-5)

ii. The work done through labour contract is of superior quality as

better quality materials are arranged by the owner.
iii. The overall cost of construction may be less, as no profit is paid on
the cost of materials.
iv. This system is very convenient for private building construction.
Demerits :
i. A large storage area is required to store the various kinds of
materials to be used in the construction under a constant guarding.
ii. This system is not suitable for government department. Because of
lengthy formalities in procurement of materials, it is very difficult
to supply each and every material readily to the labour contractor.
5. Cost Plus Percentage Rate Contract :
i. In this type of contract, a contractor agrees to take the work of
construction on the actual cost of work plus an agreed percentage
in addition, for his services.
ii. It is generally adopted when the labour and material costs are liable
to fluctuate heavily in the market.
iii. The contractor arranges materials and labour at his cost and keeps
proper account which is paid by the department or owner with
certain percentage (say 10 %) of the cost of construction as his
profit. An agreement is made accordingly in advance.
Merits :
i. The contract can be quickly drawn up and agreed and work can be
completed in the shortest possible time.
ii. It is particularly suitable when work cannot be executed by other
types of contracts due to uncertainty and fluctuations in the market
rates of labour and materials.
Demerits :
i. The contractor’s only aim is to make the cost of the project as high
as possible in order to seek greater margin of profit.
ii. A proper control over purchase of materials and of labour shall
have to be exercised by the department or the owner.

b. Explain the following with neat sketch :

i. Hauling equipments.
ii. Conveying equipments.
iii. Tunneling equipments.
Ans.
A. Hauling Equipments :
1. Haulage of heavy construction equipment carriage and disposal of
excavated earth transportation of building materials.
2. Haulers may operate on the roadways or railways.
3. Types of Hauling Equipments : Following are the various types
of hauling equipments :
Quantity Estimation & Management SP–21 C (CE-Sem-5)

i. Side or Rear Dump Trucks :

a. These are heavy duty trucks with strongly built body which is
hinged on the truck chassis at the rear end and one side
respectively, and can be fitted to the rear in the case of rear
dump and to the hinged side in case of the side dump, through
the action of hydraulic jacks.
b. These trucks are suitable for use in hauling wet clay, sand,
gravel, quarry rocks etc.
c. They are used for earth moving purpose.
d. The selection of the type of dump trucks for a specific job
depends on the soil condition.
ii. Bottom Dump Trucks :
a. These are similar to semi-trailers in which their front is
supported on the rear of the hauling tractor and their rear is
resting on their own wheels.
b. The body of the truck remains in the same position and the
discharge of the material takes place through its bottom after
opening of two longitudinal gates.
c. The gates are hinged to the side of the body.
d. These trucks are suitable for use in hauling free flowing
material, such as, sand, gravel, dry earth, hard clay etc.
iii. Dumpers :
a. Dumpers are high speed pneumatic wheeled trucks.
b. They have short chassis and strong bodies.
c. Loading, hauling and dumping is done very fast as compared
to other equipment.
d. Suitable for short hauls on rough roads, especially where a
shuttle movement is required.
iv. Tractors :
a. Tractors are multi-purpose machines used mainly for pulling
and pushing the other equipment.
b. Crawler type and wheel type are the types of tractors.

Liftarm
Piston rod
Hoist cylinder
Tension line Body

Hinge
Tail board

Gear pump
Power take off
Fig. 5.
Solved Paper (2015-16) SP–22 C (CE-Sem-5)

B. Conveying Equipment :
1. Transporting material from one place to another over a stationary
structure.
2. Caries material in continuous stream with its distinct feature such
as endless chain or belt.
3. When the equipment does horizontal conveying, it is known as
conveyor and when it does vertical, it is known as elevator.
4. Conveying are mainly used in mining, construction and in some of
the industries.
5. In construction industry, conveyors are mainly used for concreting
purpose.
6. Type of Conveyors Equipment : Following are the types of
conveyors equipment.
i. Belt Conveyor :
a. It used when large quantities of materials have to be conveyed
over long distances at fast speed.
b. It consists of a belt running over a pair of end drums or pulleys
and supported at regular intervals by a series of rollers called
idlers.
c. Generally, rubber is most commonly used as conveyor belt.
Feeder Head pulley Screw takeup
Screw takeup
Belt Head drive

Height

Tail pulley
Snub pulley
Snub pulley
Length
Tail drive
(a) (b)
Fig. 6. Belt conveyor system.
ii. Screw Conveyor :
a. A screw conveyor consists of a helix mounted on a bearing at
the ends and at intermediate points and is driven by a motor
from one end.
b. The material enters the through at one end is carried to the
other end by screwing action of helix.
Bearing
Blockage detector temperature
sensor

Rotation Level detector

sensor
Fig. 7.
Quantity Estimation & Management SP–23 C (CE-Sem-5)

c. The length of the conveyor is about 65 m. with an inclination

up to a maximum of 350.
d. It is used for handling granular or pulverized material.
e. The quantity of material conveyed is less compared to the belt
conveyor, but at the same time the cost is also less.
iii. Bucket Conveyor :
a. It has buckets in the shape of 'V' which are open at the top.
b. They may be feeder loaded or may drag in a vertical movement
or along an incline.
c. The length of these types of conveyors is generally limited to
25 m (due to weight of the conveyor and strength of the chains).
d. This type of conveyer is mainly used in tunnels where bucket
elevators carry the material vertically.

Bucket
Rubber conveyor belt
Fig. 8.
iv. Aerial Transport :
a. Aerial transportation through cableways, rope-ways and tram
ways.
b. It is used with advantage for transportation of material in hilly
regions.
c. It is reducing the distance of transportation as well as cost of
transportation.
d. The load being passed over intermediate towers or stations for
long distances.
C. Tunneling Equipment : Following are the equipment used in
tunnelling operations.
i. Tunnel Boring Machine :
a. Tunnel boring machine TBM also known as a ‘mole’, is a
machine used to excavate tunnels with a circular cross section
through a variety of soil and rock strata.
b. They can bore through anything from hard rock to sand.
c. Tunnel diameters can range from a meter (done with micro-
TBMs) to 19.25 m.
d. Tunnels of less than a meter or so in diameter are typically
done using trenchless construction methods or horizontal
directional drilling rather than TBMs.
Solved Paper (2015-16) SP–24 C (CE-Sem-5)

Shield
Hydraulic push arms Rock cutter head

Fig. 9. Tunnel boring machine.

ii. Drilling Equipments : Following are the various drilling
equipments :
a. Drifter : A drifter is an air-operated percussion type drill,
similar to a jackhammer but it is so large that it requires
mechanical mounting.
b. Blast-hole Drill : It is a rotary drill consisting of a steel-pipe
drill stem at the bottom of which is a roller-bit that
disintegrates the rock as it rotates over it.
c. Fusion Piercing Drill : Fusion piercing is produced by
burning a mixture of oxygen and a flux-bearing fuel such as
kerosene oil, at the end of the blow pipe.
d. Other drilling equipments are Jackhammer or sinker, Wagon
drill and shot drill.


Quantity Estimation & Management SQ–1 C (CE-Sem-5)

B. Tech.
(SEM. VI) EVEN SEMESTER THEORY
EXAMINATION, 2016-17
CONSTRUCTION TECHNOLOGY
AND MANAGEMENT

Time : 3 Hours Max. Marks : 100

SECTION-A

1. Explain the following : (10 × 2 = 20)

a. What is the term planning ?

b. Write the classification of scheduling.

c. Enumerate the limitations of bar chart.

d. Give use of learning curves in estimating duration.

e. Define break even cost analysis.

f. Brief short notes on total cost curve.

g. Define arbitration.

h. Describe the term land acquisition.

i. Write the methods of tunneling.

j. What are the factors affecting the selection equipments ?

SECTION-B
2. Attempt any five of the following questions : (5 × 10 = 50)
a. Define organization and explain its types.

b. Explain the principles of planning. State their advantages

and limitations.

c. Draw the network and design the critical path and calculate
the completion time of the project whose activities are as
follows :
Solved Paper (2016-17) SQ–2 C (CE-Sem-5)

Activity Duration in days Preceding

A-B 7 –
B-C 10 A-B
B-D 15 A-B
C-D 7 B-C
C-E 12 B-C
D-E 3 B-D, C-D
E-F 5 C-E, D-E

d. Describe about the depreciation and break even cost

analysis of construction projects.

e. A project of five activities, whose activity relationships,

activity durations (normal and crash) and activity costs
(normal and crash) are given in the following table. Estimate
the optimum cost and time.
Normal Crash
Activity Time Cost ( ` ) Time Cost ( ` )
(Week) (Week)
10-20 3 12000 2 16000
10-30 6 18000 3 24000
20-40 2 20000 1 23000
30-40 4 16000 2 21000
40-50 5 30000 4 35000

f. Explain the procedure of opening the tenders, acceptance

of tenders and the execution of agreement for carrying out
a work.

g. Explain various types of contract system with advantages

and disadvantages.

h. Explain the various conveying equipments in detail.

SECTION-C

Attempt any two of the following questions : (2 × 15 = 30)

3. i. Explain the different classification of scheduling in detail.
ii. Enumerate the difference between CPM and PERT.
Quantity Estimation & Management SQ–3 C (CE-Sem-5)

4. i. Compare direct and indirect cost in the construction project.

ii. Explain the legal aspects of contracts and various laws

related to contracts.

5. Explain in detail about various types of earth work

equipments with special purpose usage for each equipments.


Solved Paper (2016-17) SQ–4 C (CE-Sem-5)

SOLUTION OF PAPER (2016-17)

SECTION-A
1. Explain the following : (10 × 2 = 20)
a. What is the term planning ?
Ans. Planning is the process of thinking about and organizing the
activities required to achieve a desired goal. It involves the creation
and maintenance of a plan such as psychological aspects that require
conceptual skills.

b. Write the classification of scheduling.

Ans. Following are the classification of scheduling.
i. Long term scheduling
ii. Medium term scheduling
iii. Short term scheduling
iv. Non-preemptive scheduling
v. Preemptive scheduling

c. Enumerate the limitations of bar chart.

Ans. Following are the limitations of bar charts :
1. The bar chart cannot show clearly the interdependencies among
the various activities.
3. A bar chart does not distinguish between critical and non-critical
activities.
3. It does not facilitate the work of controlling, monitoring and
updating the project.

d. Give use of learning curves in estimating duration.

Ans. Learning curves are useful for preparing cost estimates, bidding
on special orders, setting labour standards, scheduling labour
requirements, evaluating labour performance, and setting
incentive wage rates.

e. Define break even cost analysis.

Ans.
1. Breakeven cost analysis is a tool for studying the relationship
between volume, cost, revenue and profit.
2. It is helpful in profit planning, the profitability projections are
essential to judge the financial desirability i.e., profitability of project.

f. Brief short notes on total cost curve.

Ans. The direct cost and indirect cost added together constitute the total
project cost. Fig. 1 shows the indirect cost curve, direct cost curve
and the corresponding total cost curve. If the project duration is
increased, total cost will be the highest.
Quantity Estimation & Management SQ–5 C (CE-Sem-5)

Total cost

Direct cost
Optimum
Cost cost

Indirect cost

Crash Optimum Normal

time
Fig. 1. Total cost curve.

g. Define arbitration.
Ans. Arbitration is the process of the settlement of a dispute not by a
regular and ordinary court but by impartial references selected or
agreed upon by the parties concerned.

h. Describe the term land acquisition.

Ans. Land acquisition refers to the process by which the union or a state
government in India acquires private land for the purpose of
industrialization, development of infrastructure facilitates or
urbanization of the private land and provides compensation to the
affected land owners and their rehabilitation and resettlement.

i. Write the methods of tunneling.

Ans. Following are the methods of tunneling :
i. Classical method e.g. English method, Austrian, German, etc.
ii. Cut and cover. iii. Drill and blast.
iv. Tunnel boring machines (TBMs).
v. Immersed tunnel. vi. Tunnel jacking.

j. What are the factors affecting the selection equipments ?

Ans. Following are the factors affecting the selection of equipments :
i. Existing equipment.
ii. Operating cost.
iii. Availability of equipment.
iv. Economic life.
v. Study of site condition.
vi. Suitability of equipment for future.
vii. Size of equipment.
SECTION-B

2. Attempt any five of the following questions : (5 × 10 = 50)

a. Define organization and explain its types.
Solved Paper (2016-17) SQ–6 C (CE-Sem-5)

Ans. Organization :
i. Organization is the systematic arrangement of people working
together towards a common purpose.
ii. It is composed of a group of individuals acting as a unit for the
attainment of an objective.
Types of Organization : Following are the various types of
organization :
1. Line Organization :
i. Under line organization, each department is generally a complete
self-contained unit. A separate person will look after the activities
of the department and he has full control over the department.
ii. The same level executives do not give or receive orders amongst
themselves. But they receive orders from their immediate boss
and give orders to their subordinates.
Characteristics of Line Organization :
i. It consists of direct vertical relationships.
ii. Authority flows from top-level to bottom level.
iii. Departmental heads are given full freedom to control their
departments.
iv. A senior member has direct command over his subordinates.
v. Existence o f dire ct re lationship betwee n supe riors and
subordinates.
vi. The superior takes decisions within the scope of his authority.
Advantages :
i. It is simple in form with a clear cut division of authority.
ii. The decisions are speedy and their implementation is quick.
iii. It promotes greater co-ordination and keeps better discipline.
iv. The responsibility can be easily fixed.
v. More economical and flexible.
Disadvantages :
i. Lack of specification and initiative.
ii. Overloading.
iii. Limited communication and subjective approach.
2. Functional Organization :
i. Under functional organization, various specialists are for various
functions performed in an organization.
ii. These specialists will attend to the work which is common to
different functions of various departments.
iii. Workers, under functional organization, receive instructions from
various specialists.
Characteristics of Functional Organization :
i. The work is divided according to specified functions.
ii. Authority is given to a specialist to give orders and instructions in
relation to specific function.
iii. Functional authority has right and power to give command
throughout the line with reference to his specified area.
Quantity Estimation & Management SQ–7 C (CE-Sem-5)

Advantage of Functional Organisation :

i. Efficiency : Greater efficiency is achieved because of every
function performing a limited number of functions.
ii. Economy : Specialization compiled with standardization facilitates
maximum production and economical costs.
iii. Expansion : Expert knowledge of functional manager facilitates
better control and supervision.
Disadvantages of Functional Organisation :
i. It is difficult to define who the ‘boss’ is.
ii. It de-emphasizes the position of the line organization.
iii. Increasing the overhead expenses.
3. Line and Staff Organization :
i. The line officers have authority to take decisions and implement
them to achieve the objectives of the organization.
ii. The line officers may be assisted by the staff officers while framing
the policies and plans and taking decisions organization.
iii. The authority flows from top level to the lower level of the
organization through the line officers while the staff officers
attached to the various departments advise the departments.
Characteristics of Line and Staff Organization :
i. It consists of direct vertical relationships.
ii. Departmental head is given full freedom to manage his department.
iii. It does not make provision for staff specialists.
iv. Existence of superior-subordinate relationship.
v. Instructions are given by the boss directly to his subordinates.
vi. Superior at each level makes decisions within the scope of his
authority.
Advantages :
i. Facilitates to work faster and better.
ii. Officers can take sound advice.
iii. Promotes efficient functioning of line officers.
Disadvantages :
i. There may be confusion about the relation between staff and line
employees.
ii. If power are not defined then get confusion.
iii. Line officers may reject advice without any reason for their action.
iv. Line officers blame staff officers for unfavorable results and want
to get rewards for favorable results.

b. Explain the principles of planning. State their advantages

and limitations.
Ans. Principles of Planning : Following are the various principles of
planning :
1. Contribution to Objectives :
i. The plans are made for the purpose of achieving the organizational
goals.
Solved Paper (2016-17) SQ–8 C (CE-Sem-5)

ii. In this way, both the major as well as the derivative plans are made
with a view to contribute in the achievement of organizational
goals.
2. Primacy of Planning :
i. According to this principle, the process of planning is the primary
function of all the managers.
ii. The managers are required to plan all their actions and then they
should proceed with other functions.
3. Planning Premises : For the purpose of making the process of
planning effective, there are certain presumptions or premises that
have to be made and the planning is undertaken on the basis of
these premises.
4. Principle of Alternatives : The process of planning involves the
development of several alternatives and then the planners select
the alternative that is most appropriate for achieving the
organizational goals.
5. Principle of Timing : The plans have the capability of contributing
significantly in the achievements of the organizational goals if the
plans are properly timed. Therefore the planning premises as well
as the policies are not much helpful if the plans are not properly
timed.
6. Principle of Flexibility :
i. According to this principle, there should be flexibility in the plans.
This is very important because flexibility allows the plans to deal
with the contingencies that may develop later on.
ii. Therefore, the plans should be adjustable so that they can deal with
the changes that may develop after the plans have been formulated.
7. Principle of Comparative Strategies :
i. This requires that while formulating their plans, the managers
should also consider the plans made by their competitors.
ii. In this way, the managers should formulate their plans by
considering what the competition would have done in such a case.
8. Principle of Commitment : According to this principle, a time
frame should be provided by the plan during which the commitments
made in the plan have to be fulfilled. This commitment allows the
managers to achieve the targets in time.
Advantages of Planning : Following are the advantages of
planning :
1. Planning helps in determining the objectives of an enterprise.
2. Planning avoids chaos because all efforts are directed towards a
predetermined goals of the enterprise.
3. Planning helps in control by distributing the responsibilities of
different persons and jobs.
4. Planning minimizes the cost by utilizing the available resources in
the best way.
Limitations of Planning : Following are the limitations of
planning :
Quantity Estimation & Management SQ–9 C (CE-Sem-5)

1. In case the data that has been provided to the managers is not
reliable, it is possible that the decisions that are based on this data
can also be unreliable.
2. It also needs to be noted that the process of planning can be very
expensive.
3. The process of planning can be very time consuming and this in
turn reduces the practical utility of planning.
4. Planning cannot be considered as a remedy for all the problems
faced by the organization.

c. Draw the network and design the critical path and calculate
the completion time of the project whose activities are as
follows.
Activity Duration in days Preceding
A-B 7 –
B-C 10 A-B
B-D 15 A-B
C-D 7 B-C
C-E 12 B-C
D-E 3 B-D, C-D
E-F 5 C-E, D-E

Ans.
1. Network :
7 7 17 17 29 29 34 34
7 10 12 5
A B C E F

0 0 7
15
3

24 26
Fig. 2.
2. Critical Path : There are three possible path for completion this
project, such as :
i. A-B-C-E-F
Total time taken = 7 + 10 + 12 + 5 = 34 days
ii. A-B-D-E-F
Total time taken = 7 + 15 + 3 + 5 = 30 days
Solved Paper (2016-17) SQ–10 C (CE-Sem-5)

iii. A-B-C-D-E-F
Total time taken = 7 + 10 + 7 + 3 + 5 = 32 days
Maximum time taken path is path (i), so this is called as critical
path. Hence completion time for project is 34 days.

d. Describe about the depreciation and break even cost

analysis of construction projects.
Ans.
A. Depreciation : It is the decrease in value of asset resulting from
deterioration, wear and tear from you, obsolescence arising from
improvement in design and new technology.
Types of Depreciation : Following are the various types of
depreciation :
1. Physical Depreciation :
i. Depreciation resulting in physical impairment of an asset is known
as physical depreciation. This results in lowering the ability of the
asset to render its intended service.
ii. The primary cause of physical depreciation is wear and tear because
of its constant use such as abrasion, shocks, vibration, and impact
etc. and the deterioration due to action of elements such as corrosion
of pipe, chemical decomposition.
2. Function Depreciation : Functional depreciation often called
obsolescence is defined as the loss in the value of the property due
to change in fashion, design or structure due to inadequate to meet
the growing demand, necessity of replacement due to new invention
be more economical and more efficient etc.
3. Contingent Depreciation : It causes due to :
i. Accident (due to negligence),
ii. Diseases (pollution of water, parasites), and
iii. Diminution of supply (natural gas, electricity, water etc.)
B. Break Even Cost Analysis :
1. Break even cost analysis in economics, business, and cost accounting
refers to the point in which total cost and total revenue are equal.
2. A break even point analysis is used to determine the number of
units or revenue needed to cover total costs (fixed and variable
costs).
3. The break even analysis is important to business owners and
managers in determining how many units (or revenues) are needed
to cover fixed and variable expenses of the business.
4. Assumptions of Break Even Cost Analysis :
Following are the assumptions of break even cost analysis :
i. The total costs may be classified into fixed and variable costs. It
ignores semi-variable cost.
ii. The cost and revenue functions remain linear.
iii. The price of the product is assumed to be constant.
iv. The volume of sales and volume of production are equal.
Quantity Estimation & Management SQ–11 C (CE-Sem-5)

v. The fixe d co sts remain constant over the volume under

consideration.
vi. It assumes constant rate of increase in variable cost.
vii. It assumes constant technology and no improvement in labour
efficiency.
viiii. The price of the product is assumed to be constant.

e. A project of five activities, whose activity relationships,

activity durations (normal and crash) and activity costs
(normal and crash) are given in the following table. Estimate
the optimum cost and time.
Normal Crash
Activity Time Cost ( ` ) Time Cost ( ` )
(Week) (Week)
10-20 3 12000 2 16000
10-30 6 18000 3 24000
20-40 2 20000 1 23000
30-40 4 16000 2 21000
40-50 5 30000 4 35000

Ans.
1. The network diagram for the given problem is shown in Fig. 3.

20 2
3
40
5
10
6 4
50
30
Fig. 3. Network diagram.
2. From network diagram, the critical path is 10-30-40-50 with project
duration of 15 week and project cost of ` 96000.
3. The cost slope for all activities are given below :
Crash cost  Normal cost
Activity Cost slope =
Normal time  Crash time
10-20 4000
10-30 2000
20-40 3000
30-40 2500
40-50 5000
Solved Paper (2016-17) SQ–12 C (CE-Sem-5)

4. Since the project duration is controlled by the activities on the

critical path therefore the duration of activities on the critical path
is reduced.
5. Crash the least cost slope activity first to the maximum extent
possible and then higher ones such that the final crashing yields to
parallel critical path with optimum cost and time.
6. So we start with the least slope activity (10-30) on critical path and
crash it by 3 week and activity (30-40) by 2 week which gives
project duration of 10 days and project cost of 96000 + 3 × 2000 + 2
× 2500 = ` 107000.
7. So, optimum cost = ` 107000 and optimum time = 10 week.

f. Explain the procedure of opening the tenders, acceptance

of tenders and the execution of agreement for carrying out
a work.
Ans.
A. Tender Opening Procedure :
1. A member of the tender panel will collect the unopened tender
envelopes from secure storage and the panel shall assemble,
preferably in a room where they can be undisturbed.
2. Each envelope should be opened in turn and the tender date, name
of the tenderer, tender sum(s) and delivery time recorded on the
schedule of tenders.
3. All pages containing prices should be date stamped and initialed by
a member of the tender panel.
4. When all tenders have been recorded, each member of the tender
Panel should sign the schedule of tenders.
5. Where more than one copy of a tender is submitted the tender
panel should ensure that the tender sum(s) on each copy are
identical.
6. One copy should be marked ‘Master Copy’ and retained by the
person responsible for the tender exercise, this will form part of the
contract documentation.
7. A copy of the completed schedule of tenders should be sent to the
Purchasing Office.
B. Acceptance Procedure :
1. Inform all tenders as soon as possible of the outcome.
2. Arrange for unsuccessful tenderers to return any retained
documents.
3. Issue a letter of acceptance setting out any conditions or provisos
which have been agreed since issuing the documents and directing
the contractor to carry out all further correspondence with the
‘Engineer’ under the contract.
4. If there is a delay to formal acceptance, a letter of intent may be
sent containing instructions to proceed (or not to proceed) with
design, ordering materials etc, and setting a limit to financial liability
before formal acceptance.
Quantity Estimation & Management SQ–13 C (CE-Sem-5)

C. Execution of Agreement : When concluding a contract or

agreement, the parties shall clearly state how they will perform
their obligations.
1. The obligations under the contract shall be duly performed in
accordance with the conditions of the obligation and requirements
of legislation, and if there are no such conditions and requirements
in accordance with generally specified requirements.
2. Unilateral refuse to perform the obligation and unilateral change
of its condition shall not be admitted, unless otherwise results from
legislation or the contract.
3. The creditor is entitled not to accept the performance of the
obligations by parts, unless otherwise is provided by legislation or
conditions of the obligation.
4. When the obligation is performed the debtor has the right to demand
the evidence that the performance is accepted by the creditor or a
person authorized to do so by the creditor and bears the risk of
consequences for non-fulfillment of such a demand.
5. The performance of the obligation may be laid by the debtor on
some third person, unless conditions of the obligation or its essence
or legislation result in the obligation of the debtor to perform this
obligation personally. In this case the creditor shall accept the
performance offered by the third person instead of the debtor.

g. Explain various types of contract system with advantages

and disadvantages.
Ans. Types of Contract : The following are the various types of
contracts for execution of civil engineering works, with their
relative merits and demerits :
1. Item Rate Contract :
i. Item rate contract is also known as unit price contract or schedule
contract.
ii. A contract undertakes the execution of work on an item rate
basis.
iii. He is required to quote rate for individual item of work on the
basis of schedule of quantities (i.e., bill of quantities) furnished by
the department.
iv. The amount to be received by the contraction depends upon the
quantities of work actually performed.
v. The payment to the contractor is made on the basis of the detailed
measurement of different items of work actually executed by
him.
Merits :
i. This method ensures a very detailed analysis of cost and payment
to the contractor and is based upon detailed measurements of each
item actually done, so this method is more scientific.
ii. Changes in drawings and quantities of individual item can be made
as per requirements within agreed limits.
Solved Paper (2016-17) SQ–14 C (CE-Sem-5)

Demerits :
i. The total cost of work can only be known after completion. As such
the owner may face financial difficulty if the final cost is substantially
high.
ii. Additional staff is required to take detailed measurements of work.
iii. The scope of saving with use of inferior quality materials may
prompt the contractor to do so.
2. Percentage Rate Contract :
i. In this form of contract, the department draws up ‘item rate tender’
i.e., bill of quantities with rate, amount and total amount.
ii. The contractors are required to offer to carry out the work as per
with the rates shown in the specific price schedule or some
percentage above or some percentage below the rate indicated in
the schedule of work attached with the tender.
iii. The percentage above or below or at par is applicable on the overall
cost of the work also.
Merits :
i. The ranking amongst the contractors is easily known just on the
opening of the tenders.
ii. As there is no provision to quote contractors own rate for an
individual item, benefit due to increased quantity with a beneficial
rate cannot be availed by the contractor. The chance of unbalanced
tender gets eliminated.
Demerits :
i. A contractor is required to write down only the percentage above
or at par or below, it is very easy to write such a rate in few minutes
before the time of submission of the tender.
ii. By negotiating among the contractors, two or more may quote the
same rate in order to get a part of the work at a high rate. It may be
difficult to divide the work at equal amount among the contractors.
3. Lump-Sum Contract :
i. In this type of contract, a contractor is required to quote a fixed sum
for execution of work complete in all respect in the stipulated time
according to the drawing, design and specifications supplied to him
with the tender.
ii. The departmental schedule of rate for various items of work is also
provided which regulates the payment of the contractor in respect
of any additions and alterations which are made over the original
work.
iii. On the completion of the work, no detailed measurement of different
items of work is needed but the whole work done must be compared
and checked with the drawings and specifications.
Merits :
i. As the total cost of the work known before hand, the owner can
arrange the fund in time.
ii. Detailed measurements of the work done are not required except
in respect of additions and alterations.
Quantity Estimation & Management SQ–15 C (CE-Sem-5)

iii. The contractor’s profit mainly lies in the completion time. Hence
for getting more profit the contractor tries to complete the work as
early as possible.
Demerits :
i. It is very essential that the work must be defined accurately,
specifications must be fully specified and the site conditions must
be fully explained otherwise disputes can arise later on.
ii. For any intermediate payment, the value of work done should not
be less than the payment being made.
4. Labour Contract :
i. In labour contract, the contractor undertakes contract for the labour
portion only excluding the materials which are arranged and
supplied at the work site by the department/owner.
ii. The contractor engages the requisite labour and gets the work
done as per drawings and specifications.
iii. It is an item rate basis for labour portion only and the contractor is
paid for the quantities of work done on measurement of different
items of work at the stipulated rate in the contract agreement.
Merits :
i. The materials stored by the department are thus utilised.
ii. The work done through labour contract is of superior quality as
better quality materials are arranged by the owner.
iii. The overall cost of construction may be less, as no profit is paid on
the cost of materials.
iv. This system is very convenient for private building construction.
Demerits :
i. A large storage area is required to store the various kinds of
materials to be used in the construction under a constant guarding.
ii. This system is not suitable for government department. Because of
lengthy formalities in procurement of materials, it is very difficult
to supply each and every material readily to the labour contractor.
5. Cost Plus Percentage Rate Contract :
i. In this type of contract, a contractor agrees to take the work of
construction on the actual cost of work plus an agreed percentage
in addition, for his services.
ii. It is generally adopted when the labour and material costs are liable
to fluctuate heavily in the market.
iii. The contractor arranges materials and labour at his cost and keeps
proper account which is paid by the department or owner with
certain percentage (say 10 %) of the cost of construction as his
profit. An agreement is made accordingly in advance.
Merits :
i. The contract can be quickly drawn up and agreed and work can be
completed in the shortest possible time.
ii. It is particularly suitable when work cannot be executed by other
types of contracts due to uncertainty and fluctuations in the market
rates of labour and materials.
Solved Paper (2016-17) SQ–16 C (CE-Sem-5)

Demerits :
i. The contractor’s only aim is to make the cost of the project as high
as possible in order to seek greater margin of profit.
ii. A proper control over purchase of materials and of labour shall
have to be exercised by the department or the owner.

h. Explain the various conveying equipments in detail.

Ans. Type of Conveyors Equipment : Following are the types of
conveyors equipment :
1. Belt Conveyor :
i. It used when large quantities of materials have to be conveyed over
long distances at fast speed.
ii. It consists of a belt running over a pair of end drums or pulleys and
supported at regular intervals by a series of rollers called idlers.
iii. Generally, rubber is most commonly used as conveyor belt.

Feeder Head pulley Screw takeup

Screw takeup
Belt Head drive

Height

Tail pulley
Snub pulley
Snub pulley
Length
Tail drive
(a) (b)

Fig. 3. Belt conveyor system.

2. Screw Conveyor :
i. A screw conveyor consists of a helix mounted on a bearing at the
ends and at intermediate points and is driven by a motor from one
end.
ii. The material enters the through at one end is carried to the other
end by screwing action of helix.
Bearing
Blockage detector temperature
sensor

Rotation Level detector

sensor
Fig. 4.
iii. The length of the conveyor is about 65 m. with an inclination up to
a maximum of 350.
iv. It is used for handling granular or pulverized material.
Quantity Estimation & Management SQ–17 C (CE-Sem-5)

v. The quantity of material conveyed is less compared to the belt

conveyor, but at the same time the cost is also less.
3. Bucket Conveyor :
i. It has buckets in the shape of 'V' which are open at the top.
ii. They may be feeder loaded or may drag in a vertical movement or
along an incline.
iii. The length of these types of conveyors is generally limited to 25 m
(due to weight of the conveyor and strength of the chains).
iv. This type of conveyer is mainly used in tunnels where bucket
elevators carry the material vertically.

Bucket
Rubber conveyor belt
Fig. 5.
4. Aerial Transport :
i. Aerial transportation through cableways, rope-ways and tram ways.
ii. It is used with advantage for transportation of material in hilly
regions.
iii. It is reducing the distance of transportation as well as cost of
transportation.
iv. The load being passed over intermediate towers or stations for long
distances.
SECTION-C
Attempt any two of the following questions : (2 × 15 = 30)
3. i. Explain the different classification of scheduling in detail.
Ans. Following are the various types of scheduling :
1. Material Scheduling :
i. It provides advanced capabilities for scheduling different types of
commodities and products which include procured raw material,
stores, spares and consumables.
ii. The scheduling of raw material is done on daily production schedule
basis for short lead and cycle time materials, master production
schedule for longer lead time items and on replenishment basis for
imported items with long lead/cycle time.
2. Labour Scheduling :
i. It is used to create, update, and review employee labour schedules.
A labour schedule specifies how an employee’s pay is to be distributed
to oracle grants accounting, oracle projects, or oracle general ledger.
Solved Paper (2016-17) SQ–18 C (CE-Sem-5)

ii. Multiple labour schedules can be created for each employee

assignment.
iii. Each schedule contains schedule lines with charging instructions
for grants accounting, projects, or general ledger.
iv. Each payroll is distributed according to the schedule lines in effect
for the period of the payroll to be distributed. An employee can
have an unlimited number of schedule lines.
3. Equipment Scheduling :
i. A civil engineering project needs a variety of equipments and it is
imperative for the engineer/contractor to know what type of
equipments and what number of the equipment and for how many
days (with exact dates) for each will be needed for the purpose.
ii. So that he may arrange them timely by hiring or by purchasing or
by any other means and the work may not be delayed because of
non-availability of equipment.
4. Financial Scheduling :
i. It contained in an audited annual report, summarizes the audited
financial position of the audited entity.
ii. Other application of the term is the scheduling of amounts, not
necessarily by date, of major financial events by any given category
as to projected receipts, payments, costs, etc.

ii. Enumerate the difference between CPM and PERT.

Ans. Difference between CPM and PERT :

S. No. CPM PERT

1. It is basically having deterministic It is basically having
approach in the de sign o f probabilistic approach in the
network. design of network.
2. Only one time estimate is required Three time estimate (in the
for each activity. form of Pessimistic time,
Optimistic time and Most likely
time) for each activity.
3. It is built-up of activity-oriented It is built-up of event-oriented
diagram. diagram.
4. Time and cost both are controlling Time only is the controlling
factors. There is an optimum factor and the cost is assumed
duration of the project at which proportional to the project
the project cost is minimum and duration.
this can be obtained by crashing
the network.
5. Critical events must have zero Critical events may be positive/
slack. zero/negative depending upon
the project sche dule d
completion time.
Quantity Estimation & Management SQ–19 C (CE-Sem-5)

6. It is recommended for repetitive It is re co mmende d fo r

nature o f wo rk whe re past research and development
e xperie nces are ade quately project where no past
available. experiences are available or
where great uncertainty lies
in the time estimation.

4. i. Compare direct and indirect cost in the construction project.

Ans. Difference between Direct Cost and Indirect Cost :

S. No. Basis for Direct Cost Indirect Cost

Comparison

i. Meaning A co st that is e asily Indirect cost is defined

attributable to a cost as the cost that cannot
object is known as direct be allocated to a
cost. particular cost object.
ii. Benefits Specific projects Multiple projects
iii. Aggregate When all the direct costs Total of all the indirect
are taken together they costs is called as
are kno wn as prime overheads or oncost.
costs.
iv. Traceable Yes No
v. Classification Direct material, direct Indirect mate rial,
labour, direct expenses indirect labour, indirect
overheads

ii. Explain the legal aspects of contracts and various laws

related to contracts.
Ans.
A. Legal Aspects :
1. Construction work on project takes on land. For a contract to be
legally valid the construction project must fit into the legal
framework governing the property.
2. These include government regulations on the use of property and
obligation that are created in the process of construction.
3. Since a contract is an exchange set of obligations between two or
more parties, it must be designed to ensure that each side is capable
of performing the obligation set out.
4. Following are the main requirements of a valid contract so that it
may be legal binding on both/all the involved parties :
i. Legally competent parties
ii. Free consent of parties
Solved Paper (2016-17) SQ–20 C (CE-Sem-5)

iii. Proper and valid consideration

iv. Meaningful contract in writing and signed by both parties
B. Various Laws :
1. The Law of Contracts is the basis of business law because the bulk
of transactions of the people engaged in trade, commerce and
industry are based on contracts.
2. In India, the Law of Contracts is contained in the Indian Contract
Act, 1872.
3. Though the Partnership Act, the Sale of Goods Act; the Negotiable
Instruments Act, the Companies Act, technically belong to the Law
of Contracts yet they have been covered by separate enactments.
4. However, the general principles of the Contract Law are the basis
for all such contracts as well.
The main features of the Law of Contracts are :
i. The parties to the contract make the law for themselves.
ii. The Act is not exhaustive since, it does not take into its purview all
the relevant legislations.
iii. It does not override customs or usages.

5. Explain in detail about various types of earth work

equipments with special purpose usage for each equipments.
Ans. Excavating and Earth Moving Equipment : Following are the
excavating and earth moving equipment :
1. Power Shovel :
i. Basic parts of power shovel including the track system, cabin, cables,
rack, stick, boom foot-pin, saddle block, boom, boom point sheaves
and bucket.
ii. Bucket size varies from 0.375 m3 to 5 m3.
iii. Uses :
a. Suitable for close range of work.
b. Capable of digging very hard materials.
c. Can remove big sized boulders.
d. To excavate the earth and to load the trucks.
e. It is used in various types of jobs such as digging in gravel banks,
clay pits, digging cuts in road works, road-side berms, etc.
2. Back Hoe :
i. It is also known as hoe, back shovel and pull shovel.
ii. The basic parts are boom, jack boom, boom foot drum, boom sheave,
stick sheave, stick, bucket and bucket sheave.
iv. Uses :
a. It is the most suitable machine for digging below the machine level,
such as, trenches, footings, basements etc.
b. It can be efficiently used to dress or trim the surface avoiding the
use of manual effort for dressing the excavated the surface.
3. Drag Line :
i. The drag line is so named because of its prominent operation of
dragging the bucket against the material to be dug.
Quantity Estimation & Management SQ–21 C (CE-Sem-5)

ii. Unlike the shovel, it has a long light crane boom and the bucket is
loosely attached to the boom through cables
iii. Because of this construction, a dragline can dig and dump over
larger distances than a shovel can do.
iv. Drag lines are useful for digging below its track level and handling
softer materials.
v. The basic parts of a drag line including the boom, hoist cable, drag
cable, hoist chain, drag chain and bucket.
vi. Uses :
a. It is the most suitable machine for dragging softer material and
below its track level.
b. It is very useful for excavating trenches when the sides are permitted
to establish their angle of repose without shoring.
c. It is mostly used in the excavation for canals and depositing on the
embankment without hauling units.
4. Clam Shell :
i. This is so named due to resemblance of its bucket to a clam which
is like a shell-fish with hinged double shell.
ii. The front end is essentially a crane boom with a specially designed
bucket loosely attached at the end through cables as in a drag line.
iii. The capacity of a clam shell bucket is usually given in cubic meters.
iv. The basic parts of clam shell bucket are the closing line, hoist line,
sheaves, brackets, tagline, shell and hinge.
v. Uses :
a. Used for handling loose material such as crushed stone, sand, gravel,
coal etc.
b. Main feature is vertical lifting of material from one location to
another.
c. Mainly used for removing material from coffer dam, sewer main
holes, well foundations etc.
5. Trenching Machine :
i. Trenchers are the equipments used for excavating trenches or
ditches of variable width and depth.
ii. Two types of trenching machine are available : wheel type, and
ladder type.
iii. Operation is quick giving the required depth or width.
iv. Used for excavating trenches for laying pipelines, sewer, cables etc.
6. Scrapers :
i. Unique machine for digging and long-distance hauling of plough
able materials.
ii. The basic parts of scrapers are the bowl, apron and tail gate or
ejector.
iii. It is a self-operating machine.
iv. Wheels of machine cause some compaction.
7. Bulldozer :
i. The heavy blade attached to the tractor pushes the material from
one place to another.
Solved Paper (2016-17) SQ–22 C (CE-Sem-5)

ii. The tractor can be of the crawler or the wheeled type.

iii. Uses :
a. For spreading the earth fill.
b. For opening up pilot roads through mountainous and rocky terrains.
c. Clearing land from the trees and stumps.
d. Back-filling trenches at construction sites by dragging the earth
from one place to another.


Quantity Estimation & Management SQ–1 C (CE-Sem-5)

B. Tech.
(SEM. VI) EVEN SEMESTER THEORY
EXAMINATION, 2017-18
CONSTRUCTION TECHNOLOGY
AND MANAGEMENT

Time : 3 Hours Max. Marks : 100

Note : Attempt all Sections. If require any missing data; then choose
suitably.

SECTION-A

1. Attempt all questions in brief. (2 × 10 = 20)

a. What do you mean by project cycle ?

b. Write a short note on ‘construction team’.

c. What is bar chart ?

d. Define dummy activity.

e. What do you mean by depreciation ?

f. What is break-even cost analysis ?

g. Write a note on project contract.

h. What is land acquisition ?

i. What is operational cost ?

j. What are the various types of crane ?

SECTION-B
2. Attempt any three of the following : (10 × 3 = 30)

a. What is ‘Job Layout’ ? Explain factors affecting ‘Job Layout’.

b. What do you mean by CPM and PERT ? Illustrate with

example the difference between CPM and PERT.
Solved Paper (2017-18) SQ–2 C (CE-Sem-5)

c. What are the advantages and disadvantages of debt

financing ?

d. Write note on the following :

i. Tender.
ii. Earnest money deposit.
iii. Settlement of dispute.
iv. Commissioning of project.

e. What are the various types of hauling equipment vehicles ?

Also write in details their relative advantages and
disadvantages.
SECTION-C
3. Attempt any one of the following : (1 × 10 = 10)
a. What are the advantages and disadvantages of :
i. Line organization
ii. Line and staff organization

b. Explain various type of construction in detail.

4. Attempt any one of the following : (1 × 10 = 10)

i. A project consists of eight predecessor relationship as
under. Construct the network.
Event 1 2 3 4 5 6 7 8
Immediate Predecessor – 1 1 2, 3 3, 4 3, 5 6 4, 7
b. Define the following :
i. Direct cost and indirect cost.
ii. Crash time and crash cost.
iii. Cost slope.
iv. Optimum time and optimum cost.

5. Attempt any one of the following : (1 × 10 = 10)

a. The fixed cost for the year 2013-14 are 60,000 Rs. The
estimated sales for the period are valued at 2,00,000 Rs. The
variable cost per unit for the single product made is 5 Rs. If
each unit sells at 25 Rs and the no. of units involved coincide
with the expected volume of output. Construct break-even
chart and determine the following :
i. The break-even point.
ii. Margin of safety.

b. What do you mean by cash flow diagram ? How it is

classified ?
Quantity Estimation & Management SQ–3 C (CE-Sem-5)

6. Attempt any one of the following : (10 × 1 = 10)

a. What are the plans for labour safety on construction site ?

b. Describe importance of construction contracts for the

successful completion of the civil engineering projects.

7. Attempt any one of the following : (1 × 10 = 10)

a. Es timate the number of dump trucks required for
transportation of 1500 cu m of material per day for average
load of 5 km with the following data :
Capacity of one dump truck = 20 cu m
Speed during empty haul @ 30 km/hr and loaded haul
25 km/hr
Loading time of one dump truck = 15 minutes

b. Explain a central batching and mixing plant for a very large

construction project.


Solved Paper (2017-18) SQ–4 C (CE-Sem-5)

SOLUTION OF PAPER (2017-18)

Note : Attempt all Sections. If require any missing data; then choose
suitably.

SECTION-A

1. Attempt all questions in brief. (2 × 10 = 20)

a. What do you mean by project cycle ?

Ans. Project Life Cycle : All projects can be mapped to the following
simple life cycle structure :
Starting the project  organizing and preparing  carrying out
the work  closing the project.

b. Write a short note on ‘construction team’.

Ans. Construction team includes :
i. Role of architects
ii. Role of client (Owner)
iii. Role of constructor
iv. Role of engineer (Consultant)
v. Role of sub-contractor/supplier/vendor
vi. Lawyer, etc.

c. What is bar chart ?

Ans. Bar charts are the pictorial charts. It consists of two coordinate
axes, horizontal axis representing the time elapsed and the vertical
axis represents the jobs or activities to be performed. The jobs are
represented in the form of bars.

d. Define dummy activity.

Ans. A dummy is an artificial activity represented on the arrow diagram
by dotted arrow which indicates that an activity following the
dummy cannot be started until the activity or activities preceding
the dummy are completed. A dummy activity does not require any
time and resource.
A

1 3
B
2 Dummy
Fig. 1.

e. What do you mean by depreciation ?

Quantity Estimation & Management SQ–5 C (CE-Sem-5)

Ans. Depreciation is defined as the decrease in value of asset resulting

from deterioration, wear and tear from us, obsolescence arising
from improvement in design and new technology.

f. What is break-even cost analysis ?

Ans.
1. Breakeven cost analysis is a tool for studying the relationship
between volume, cost, revenue and profit.
2. It is helpful in profit planning, the profitability projections are
essential to judge the financial desirability i.e., profitability of project.

g. Write a note on project contract.

Ans. As per the Indian Contract Act, 1872, a ‘contract’ is an agreement
enforceable by law. The agreements that are not enforceable by
law are not contracts.

h. What is land acquisition ?

Ans. Land acquisition refers to the process by which the union or a state
government in India acquires private land for the purpose of
industrialization, development of infrastructure facilitates or
urbanization of the private land and provides compensation to the
affected land owners and their rehabilitation and resettlement.

i. What is operational cost ?

Ans. Construction equipment must require fuel in the form of gasoline
oil, diesel, electrical energy and lubricating oil which is considered
as operating cost.

j. What are the various types of crane ?

Ans. Following are the various types of cranes :
i. Stationary or derrick cranes.
ii. Mobile cranes.
iii. Overhead or gantry cranes.
iv. Traveller cranes.
v. Tower crane.

SECTION-B
2. Attempt any three of the following : (10 × 3 = 30)

a. What is ‘Job Layout’ ? Explain factors affecting ‘Job Layout’.

Ans. Job Layout: It is a scaled drawing of proposed construction site
showing all the relevant features such as entry and exit points to
the site, contractor's offices, storage areas for materials areas for
keeping equipment such as bar bending area, mixers, labour
housing, toilets, washing facilities, etc.
Factors : Following are the affecting factors for job layout :
Solved Paper (2017-18) SQ–6 C (CE-Sem-5)

1. Nature of the Project : It plays an important role. If it is a multi-

storeyed building project, then it will require a centrally located
layout scheme. On other hand if it is a highway construction project,
then it will require a number of construction centres at suitable
locations.
2. Construction Methods : Construction can be either cast in-situ
or by precast elements. If it is to be of precast elements then
provision for casting yard should be included in the job layout.
3. Availability of Resources :
i. Various types of resources are used in executing a project such as
labour, plant and equipment material etc. If labour is from outside
area, temporary housing will be taken into account and other
facilities required by them.
ii. Material storage areas are to be so provided such that cross
movements are avoided and their lead time is shortest.
4. Medical Facilities : If it is a big and complex type of project then
it is desirable that a field medical facility is provided.
5. Contractors and Site Engineer's Offices: These should be
located preferably in a noise free area for better co-ordination.
6. Provision for Temporary Roads : These are necessary to
transport the necessary plant machinery and material required for
the project and also to provide the access to the construction site
form the existing nearby roads.
7. Other Facilities : Services such as supply of power, water,
telephone connection and also repair and maintenance yards should
be made.

b. What do you mean by CPM and PERT ? Illustrate with

example the difference between CPM and PERT.
Ans. CPM (Critical Path Method) : The critical path method is step by
step project management technique for process planning that defines
critical and non-critical tasks with the goal of preventing time-
frame problems and process bottlenecks.
PERT : PERT is a management tool used for planning, controlling
and reviewing a project. It is an event oriented process.
Quantity Estimation & Management SQ–7 C (CE-Sem-5)

Difference between CPM and PERT :

S. No. CPM PERT

1. It is basically having deterministic It is basically having
approach in the de sign o f probabilistic approach in the
network. design of network.
2. Only one time estimate is required Three time estimate (in the
for each activity. form of Pessimistic time,
Optimistic time and Most likely
time) for each activity.
3. It is built-up of activity-oriented It is built-up of event-oriented
diagram. diagram.
4. Time and cost both are controlling Time only is the controlling
factors. There is an optimum factor and the cost is assumed
duration of the project at which proportional to the project
the project cost is minimum and duration.
this can be obtained by crashing
the network.
5. Critical events must have zero Critical events may be positive/
slack. zero/negative depending upon
the project sche dule d
completion time.
6. It is recommended for repetitive It is re co mmende d fo r
nature o f wo rk whe re past research and development
e xperie nces are ade quately project where no past
available. experiences are available or
where great uncertainty lies
in the time estimation.

c. What are the advantages and disadvantages of debt

financing ?
Ans. Advantages : Following are the advantages of debt financing :
1. Tax advantage : The amount you pay in interest is tax deductible,
effectively reducing your net obligation.
2. Easier planning : You know well in advance exactly how much
principal and interest you will pay back each month. This makes it
easier to budget and make financial plans.
3. Control : Allow you to have control of your own destiny.
4. The lender(s) from whom you borrow money do not share in your
profit.
5. You can apply for a loan that has more favorable terms.
Disadvantages : Following are the disadvantages of debt financing :
1. Qualification Requirements : You need a good enough credit
rating to receive financing.
Solved Paper (2017-18) SQ–8 C (CE-Sem-5)

2. Discipline :
i. You will need to have the financial discipline to make repayments
on time.
ii. Exercise restraint and use good financial judgment when you use
debt.
3. Collateral : Lenders will typically demand that certain assets of
the company be held as collateral, and the owner is often required
to guarantee the loan personally.
4. Fixed Payments :
i. Principal and interest payments must be made on specified dates
without fail. Businesses that have unpredictable cash flows might
have difficulties making loan payments.
ii. Declines in sales can create serious problems in meeting loan
payment dates.
5. Cash Flow :
i. Taking on too much debt makes the business more likely to have
problems meeting loan payments if cash flow declines.
ii. Investors will also see the company as a higher risk and be reluctant
to make additional equity investments.

d. Write note on the following :

i. Tender.
ii. Earnest money deposit.
iii. Settlement of dispute.
iv. Commissioning of project.
Ans. Tender : Tender is an offer in writing to execute some specified
work at certain rates, with in a fixed time under certain conditions
of contract and agreement between the contractor and the party/
owner.
Earnest Money Deposit : Earnest money is an assurance or
guarantee on the part of the contractor to keep the offer for
consideration and to confirm his intention to take up the work if
accepted in his favour for execution as per terms and conditions in
the tender.
Settlement of Dispute :
1. Settlement of dispute is the procedure of resolution of the industrial
dispute.
2. It is necessary to resolve the dispute because these are harmful to
all stakeholders-management, employees, economy, and the
society.
3. For management, disputes result in loss of production, revenue,
profit and even sickness of the plant.
4. A dispute, therefore, needs to be settled as early as possible.
5. Following are the various methods for resolving disputes:
i. Collective bargaining.
ii. Code of discipline.
iii. Grievance procedure.
Quantity Estimation & Management SQ–9 C (CE-Sem-5)

iv. Arbitration.
v. Conciliation.
vi. Adjudication.
vii. Consultative machinery.
Commissioning of Project :
1. Project commissioning is the stage in which the performance of
the structure is evaluated and nature of maintenance and repair
is proposed.
2. The purpose of this stage is to ensure that the construction work
has been completed as specified in the contract documents.
3. If any changes have been made because of some reasons, they
must be recorded for technical performance and financial
implications.
4. Following are the various step of project commissioning stage :
i. Keep various records of the actual work.
ii. Quality inspection (done to remove the defects, if found).
iii. Prepare operation and maintenance manuals.
iv. Carry out the performance test of the structure.
v. Training and recruitment of staff for commissioning schedule.

e. What are the various types of hauling equipment vehicles ?

Also write in details their relative advantages and
disadvantages.
Ans.
A. Types of Hauling Equipments : Following are the various types
of hauling equipments :
1. Side or Rear Dump Trucks :
i. These are heavy duty trucks with strongly built body which is
hinged on the truck chassis at the rear end and one side respectively,
and can be fitted to the rear in the case of rear dump and to the
hinged side in case of the side dump, through the action of hydraulic
jacks.
ii. These trucks are suitable for use in hauling wet clay, sand, gravel,
quarry rocks etc.
iii. They are used for earth moving purpose.
iv. The selection of the type of dump trucks for a specific job depends
on the soil condition.
2. Bottom Dump Trucks :
i. These are similar to semi-trailers in which their front is supported
on the rear of the hauling tractor and their rear is resting on their
own wheels.
ii. The body of the truck remains in the same position and the discharge
of the material takes place through its bottom after opening of two
longitudinal gates.
iii. The gates are hinged to the side of the body.
iv. These trucks are suitable for use in hauling free flowing material,
such as, sand, gravel, dry earth, hard clay etc.
Solved Paper (2017-18) SQ–10 C (CE-Sem-5)

3. Dumpers :
i. Dumpers are high speed pneumatic wheeled trucks.
ii. They have short chassis and strong bodies.
iii. Loading, hauling and dumping is done very fast as compared to
other equipment.
iv. Suitable for short hauls on rough roads, especially where a shuttle
movement is required.
4. Tractors :
i. Tractors are multi-purpose machines used mainly for pulling and
pushing the other equipment.
ii. Tractors may be classified as :
a. Crawler Type Tractor : Used to move bull dozers, scrapers.
The crawler has a chain by which these tractors can be very
effective even in the case of loose or muddy soils. The speed of
this type does not exceed 12 kmph normally.
b. Wheel Type Tractor : The engine is mounted on four wheels.
The main advantage is higher speed, sometimes exceeding 50
kmph, it is used for long-distance hauling and good roads.

Liftarm
Piston rod
Hoist cylinder
Tension line Body

Hinge
Tail board

Gear pump
Power take off

Fig. 2.

SECTION-C
3. Attempt any one of the following : (1 × 10 = 10)
a. What are the advantages and disadvantages of :
i. Line organization
ii. Line and staff organization
Ans.
1. Line Organization :
Advantages :
i. It is simple in form with a clear cut division of authority.
ii. The decisions are speedy and their implementation is quick.
iii. It promotes greater co-ordination and keeps better discipline.
Quantity Estimation & Management SQ–11 C (CE-Sem-5)

iv. The responsibility can be easily fixed.

v. More economical and flexible.
Disadvantages :
i. Lack of specification and initiative.
ii. Overloading.
iii. Limited communication and subjective approach.
2. Line and Staff Organization :
Advantages :
i. Facilitates to work faster and better.
ii. Officers can take sound advice.
iii. Promotes efficient functioning of line officers.
Disadvantages :
i. There may be confusion about the relation between staff and line
employees.
ii. If power are not defined then get confusion.
iii. Line officers may reject advice without any reason for their action.
iv. Line officers blame staff officers for unfavorable results and want
to get rewards for favorable results.

b. Explain various type of construction in detail.

Ans. Following are the various types of civil engineering construction :
1. Agricultural : Typically economical buildings, and other
improvements, for agricultural purposes. Examples include barns,
equipment and animal sheds, specialized fencing, storage silos and
elevators, and water supply and drains such as wells, tanks, and
ditches.
2. Residential : Residential construction includes houses, apartments,
townhouses, and other smaller, low-rise housing, small office types.
3. Commercial : This refers to construction for the needs of private
commerce, trade, and services. Examples include office buildings,
“big box” stores, shopping centers and malls, warehouses, banks,
theaters, casinos, resorts, golf courses, and larger residential
structures such as high-rise hotels.
4. Institutional : This category is for the needs of government and
other public organizations. Examples include schools, fire and police
stations, libraries, museums, dormitories, research buildings,
hospitals, transportation terminals, some military facilities, and
governmental buildings.
5. Industrial : Buildings and other constructed items used for storage
and product production, including chemical and power plants, steel
mills, oil refineries and platforms, manufacturing plants, pipelines,
and seaports.
6. Heavy Civil : The construction of transportation infrastructure
such as roads, bridges, railroads, tunnels, airports, and fortified
military facilities. Dams are also included, but most other water-
related infrastructure is considered environmental.
Solved Paper (2017-18) SQ–12 C (CE-Sem-5)

7. Environmental : Environmental construction was part of heavy

civil, but is now separate, dealing with projects that improve the
environment. Some examples are water and wastewater treatment
plants, sanitary and storm sewers, solid waste management, and
air pollution control.

4. Attempt any one of the following : (1 × 10 = 10)

i. A project consists of eight predecessor relationship as
under. Construct the network.
Event 1 2 3 4 5 6 7 8
Immediate Predecessor – 1 1 2, 3 3, 4 3, 5 6 4, 7

Ans. Network :

2 4 8

1 5
3 7

6
Fig. 3.
b. Define the following :
i. Direct cost and indirect cost.
ii. Crash time and crash cost.
iii. Cost slope.
iv. Optimum time and optimum cost.
Ans.
A. Direct Cost and Indirect Cost :
1. Direct Cost :
i. Direct costs are directly attributable to the object and it is financially
feasible to do so.
ii. In construction, the costs of materials, labour, equipment, etc., and
all directly involved efforts or expenses for the cost object are direct
costs.
2. Indirect Cost :
i. Indirect costs are, not directly attributable to a cost object.
ii. It should be financially infeasible to do so.
iii. Indirect costs are typically allocated to a cost object on some basis.
iv. In construction, all costs which are required for completion of the
installation, but are not directly attributable to the cost object are
indirect, such as overhead.
v. In manufacturing, costs not directly assignable to the end product
or process are indirect.
B. Crash Time and Crash Cost :
1. Crash Time (tc) : It is the minimum possible time in which an
activity can be completed by employing extra resources. Crash time
Quantity Estimation & Management SQ–13 C (CE-Sem-5)

is that time beyond which the activity cannot be shortened by any

amount of increase in resources.
2. Crash Cost (Cc) : It is the direct cost corresponding to the
completion of the activity within crash time.

Total cost

Direct cost
Optimum
Cost

cost

Indirect cost

Crash Optimum Normal

Time
Fig. 4. Total cost curve.
C. Cost Slope (Cs) : The cost slope is the slope of the direct cost curve,
approximated as straight line. The cost slope is defined as follows :
Crash cost  Normal cost
Cost slope =
Normal time  Crash time
Cc  Cn C
i.e., Cs = 
tn  tc t
where, C = Increase in cost.
t = Decrease in time.
D. Optimum Time and Optimum Cost :
From the total cost curve, we find that the minimum total cost
(optimum cost) is obtained at some duration known as optimum
duration. The corresponding cost is known as the minimum cost or
optimum cost.

5. Attempt any one of the following : (1 × 10 = 10)

a. The fixed cost for the year 2013-14 are 60,000 Rs. The
estimated sales for the period are valued at 2,00,000 Rs. The
variable cost per unit for the single product made is 5 Rs. If
each unit sells at 25 Rs and the no. of units involved coincide
with the expected volume of output. Construct break-even
chart and determine the following :
i. The break-even point.
ii. Margin of safety.
Ans.
Given : Fixed cost = Rs. 60,000, Variable cost = Rs 5/unit, Selling
cost = Rs 25/unit, Estimated sell = Rs 2,00,000.
To Find : Break-even point and Margin of safety.
Solved Paper (2017-18) SQ–14 C (CE-Sem-5)

1. Break Even Chart :

Rs
2,00,000 S

1,80,000

1,60,000
1,40,000

1,20,000

1,00,000 V

80,000
F BEP
60,000 F

40,000 Margin of safety

20,000
O
0 Units
2,000 3,000 4,000 6,000 8,000
Fig. 5. Break even chart.
where FF is representing fixed cost line, FV is the variable cost
line, and OS is sale line.
2. Number of output units estimate for the year 2013-14
2,00,000
=  8,000 units.
25
3. Variable cost for total project
= 8,000 × 5 = Rs, 40,000
4. i. The break even point :
At break even point,
Total sale = Total cost
S×x= V×x+F
Fixed cost
Break even point(x) =
Selling price/ unit  Variable cost/ unit
60,000
BEP =  3,000 units
25  5
Expected Output  BEP
ii. Margin of safety =  100
Expected Output
8,000  3,000
=  100  62.5 %
8,000

b. What do you mean by cash flow diagram ? How it is

classified ?
Quantity Estimation & Management SQ–15 C (CE-Sem-5)

Ans. Cash Flow Diagram :

1. Cash flow forecasting is the process of obtaining an estimate or
forecast of a company future financial position and is a core planning
component of financial management within a company.
2. A cash flow forecast is a projection of an organizations future
financial position based on anticipated payments and receivables.
The process of deriving a cash flow forecast is called cash flow
forecasting.
Classification of cash flow diagrams : Following are the five
categories of cash flow diagrams.
1. Single Payment Cash Flow : This involves a single present or
future cash flow.
2. Uniform Payment Series Cash Flow : It involves a series of
flows of equal amounts at regular intervals.
3. Linear Gradient Series Cash Flow : It is a series of flows
increasing or decreasing by a fixed amount at regular intervals.
4. Geometric Gradient Series Cash Flow : It is a series of flows
increasing or decreasing by a fixed percentage at regular intervals.
5. Irregular Payment Series : It is one that exhibits no regular
overall pattern of cash flow.

6. Attempt any one of the following : (10 × 1 = 10)

a. What are the plans for labour safety on construction site ?
Ans.
1. Construction sites are dangerous places where injury or death or
illness can cause to workers. These can happen due to injuries
from tools, equipment and machines etc.
2. Hence the plans for labour safety are to be considered right from
the design stage till the completion and handing over of the project.
3. The following guideline give plans for labour safety on construction
site :
i. Managing Safety and Health on Construction Sites : The
employer should make a suitable and sufficient assessment of any
risk to the safety and health to which any employee is exposed
whilst he is at work.
ii. Organising the Site : Make a good planning by gathering as
much information about the project and the project site before
works begin to ensure safety during construction phase.
iii. Excavations : Locate and identify all utility services, such as
electrical, water and sewer in the area before beginning to excavate.
iv. Working at Height : Ensure that working platform is secure and
check that it will support the weight of workers using it and any
materials and equipment they are likely to use or store on it.
v. Moving, Lifting and Handling Loads : Work site and storage of
materials should be planned so that manual handling is reduced to
a minimum.
Solved Paper (2017-18) SQ–16 C (CE-Sem-5)

vi. Site Vehicles and Mobile Plant : Provide safe site entry and exit
points with adequate turning room and good visibility for vehicle
drivers.
vii. Protective Equipment : Employees on construction sites need
specific Personal Protective Equipment (PPE) to ensure their safety
and health.
viii. Emergency Procedures : Where an employee has suffered injury
or illness at work necessitating his removal to his home or to a
hospital or other similar institution, the employer shall provide an
appropriate means of conveyance for the employee.

b. Describe importance of construction contracts for the

successful completion of the civil engineering projects.
Ans.
1. Construction Contracts documents are very important pieces of
information that make a binding obligation between two or more
parties, thus being evidence that a contract exists.
2. These construction contracts usually take the form of an agreement,
some general conditions, drawings, specifications, all sufficient to
show the extent and nature of the contract they represent.
3. These construction contracts are used by architects, engineers and
contractors to convey technical and legal messages and ideas to
various parties to the contract.
4. Due to these reasons, construction contracts are very important
for the successful completion of the civil engineering projects.

7. Attempt any one of the following : (1 × 10 = 10)

a. Es timate the number of dump trucks required for
transportation of 1500 cu m of material per day for average
load of 5 km with the following data :
Capacity of one dump truck = 20 cu m
Speed during empty haul @ 30 km/hr and loaded haul
25 km/hr
Loading time of one dump truck = 15 minutes
Ans.
Given : Transported material = 1500 cu m/day, Capacity of one
dump truck = 20 cu m, Average load = 5 km, Speed of empty
haul = 30 km/hr, Speed of loaded haul = 25 km/hr, Loading time
= 15 minutes.
To Find : Number of dump truck.
1. Cycle Time for a Dump Truck :
i. Loading time = 15 min
5  60
ii. Hauling time @ 25 km/hr = = 12 min
25
Quantity Estimation & Management SQ–17 C (CE-Sem-5)

5  60
iii. Returning time @ 30 km/hr = = 10 min
30
iv. Other fixed time = 3 min
v. Total time = 12 + 10 + 15 + 3 = 40 min
2. For estimating purpose, actual working period is considered as 50
minutes per hour and six hours working period in day.
50
3. Material transported per hours =  20 = 25 cum
40
4. Material transported per days = 25 × 6 = 150 cum
1500
5. Number of dump trucks required per day =  10
150
6. Stand by 10 % = 1
7. Total number of dump trucks = 10 + 1 = 11.

b. Explain a central batching and mixing plant for a very large

construction project.
Ans. Central Batching and Mixing Plant :
1. Central mix plant combines all of the required ingredients of concrete
at a central location.
2. The final product is then transported to the job site.
3. Central mix plant offer the end user a much more consistent
product, since all the ingredient mixing is done in a central location
and is computer assisted to ensure uniformity of product.
4. A temporary batch plant can be constructed on a large job site.
Components: Following are the various components of central
batching and mixing plant :
1. Aggregate Batching Machine :
i. The aggregate batching system of ready mix concrete machine
includes aggregate supply system, weighing system and electrical
control system.
ii. The feeding device is driven by belt.
iii. The batching system is controlled by sensor.
2. Mixing System : The center of the concrete batching plant is the
mixer. Following are the types of mixer used in central batching
plant :
i. Tilting Drum Mixer : They are fast and efficient, but can be
maintenance intensive since they include several moving part that
are subjected to a heavy load.
ii. Pan Mixer : Pan mixers are generally lower capacity mixers and
used at precast concrete plants.
iii. Twin Shaft Mixer :
a. The twin shaft mixer can ensure an even mixture of concrete and
large output with high quality.
Solved Paper (2017-18) SQ–18 C (CE-Sem-5)

b. It consists of mixer, with counter rotating shaft, delivers fast mixing

action and rapid discharge.
c. It can be used to mix hard-dry concrete and light aggregate concrete.
3. Cement Silo :
i. It is a structure used for bulk storage of cement and fly ash at
batching plant.
ii. Bolted type and welded type storage silo in various capacities and
dimensions are commonly used at plant.
iii. Bolted cement silo with special design can minimize the transport
cost.
4. Control System :
i. The programmable controller can control the production process
with high reliability and stability.
ii. It can control the unloading ingredients, mixing and automatic
control of the whole process of the concrete.
iii. Moreover, it also can dynamic display the process of weighing and
discharging.
5. Screw Conveyor : It is full with a screw inside, and the screw can
continually convey material.
6. Dust Collectors : It is used to minimize environmental pollution.


Quantity Estimation & Management SP–1 C (CE-Sem-5)

B.Tech.
(SEM. V) ODD SEMESTER THEORY
EXAMINATION, 2018-19
QUANTITY ESTIMATION AND
MANAGEMENT
Time : 3 Hours Max. Marks : 100

Note : Assume any missing data.

SECTION – A

1. Attempt all questions in brief. (7 × 2 = 14)

a. What is the use of a dummy in a network ?

b. What do you mean by cash flow diagram ?

c. Define interest rate. How interest rate can be classified ?

d. What is centre line method ?

e. What is Arbitration ?

f. What are the characteristics of a good programme ?

g. Define contract.

SECTION-B

2. Attempt any three of the following : (7 × 3 = 21)

a. What are the limitations of PERT network ?

b. Discuss the concept of time value of money ?

c. Enumerate the factors which affect the output of a dragline.

d. Define salvage value, scrap value and book value.

e. Discuss the time cost analysis.

SECTION-C

3. Attempt any one part of the following : (7 × 1 = 7)

a. Find the critical path and project duration of the given
CPM project. Also calculate EST, EFT, LST, LFT and all the
floats in a tabular form.
Solved Paper (2018-19) SP–2 C (CE-Sem-5)

1 A 2 D 4 E 6 J 7
2 2 2 6
B C F H
7 5 1 I
3 G 4
3 5
3
Fig. 1.

b. For the given PERT network, determine :

i. Expected time, standard deviation and variance of the
project and show the critical path also.
ii. Probability of completion of project in 35 days.
iii. Time duration that will provide 90 % probability (z is 1.32) of
its completion in time. (If z is 1, P is 84.13 %), (if z is 0.9, P is
81.59 %), (if z is 1.1, P is 86.43 %)
3 -7
-2 0 -1 7
4 -9
2-5-8 4-7-16 7-10-13
8-1
1- 2 2-3-10
0
3-5-13 2-4-6

Fig. 2.

4. Attempt any one part of the following : (7 × 1 = 7)

a. Write short notes on : clamshell, Hoe, scraper and bulldozer.

b. Explain in detail factors affecting the economic life of an

equipment.

5. Attempt any one part of the following : (7 × 1 = 7)

a. Alpha industry is planning to expand its production. It has
identified three different technologies for meeting the goal.
The initial outlay and annual revenue with respect to each
of the technologies are summarized in table. Suggest the
best technology which is to be implemented on the present
worth method of comparison assuming 20 % IR, compounded
annually.
Technology Initial Outlay (Rs.) Annual Revenue (Rs.) Life (year)
Technology 1 12,00,000 4,00,000 10
Technology 2 20,00,000 6,00,000 10
Technology 3 18,00,000 5,00,000 10

b. What is depreciation ? Also discuss the methods of calculate

the depreciation.
Quantity Estimation & Management SP–3 C (CE-Sem-5)

6. Attempt any one part of the following : (7 × 1 = 7)

a. Write short notes on : Tender, Earnest money deposit and
Commissioning of project.

b. What are the elements of tender preparation?

7. Attempt any one part of the following : (7 × 1 = 7)
a. Discuss the methods of estimating.

b. Estimate the quantities of the following items of a two

roomed building from the given plan and section :
i. Earthwork in excavation in foundation.
ii. Lime concrete in foundation.
iii. 1st class brickwork in cement mortar 1 : 6 in foundation and
plinth.
iv. 2.5 cm c.c. D.P.C
v. 1st class brickwork in line mortar in superstructure.
All walls are of same section, lintels over doors, windows
and shelves are 15 cm thick.
Doors D-1.20 m × 2.10 m
Windows W-1.00 m × 1.50 m
Shelves S-1.00 m × 1.50 m

30 cm

A A
S

Room 4 m × 6 m Room 6 m × 6 m
S
4m 6m
30 cm

30 cm

30 cm
Plan
2.5 cm c.c. over
13 cm R.C.C.
7.5 cm L.C. Terrance over

60 cm

20 cm
10 cm
10 cm
10 cm
10 cm

30 cm
2.5 cm D.P.C

7.5 cm L.C.

G.L.

1.10 m

4.20 m
G.L.
cm
40
cm
30

G.L.

60 cm
60 cm
70 cm
80 cm

Fig. 3.


Solved Paper (2018-19) SP–4 C (CE-Sem-5)

SOLUTION OF PAPER (2018-19)

Note : Assume any missing data.

SECTION – A
1. Attempt all questions in brief. (7 × 2 = 14)
a. What is the use of a dummy in a network ?
Ans. Uses : Following are the uses of dummy in a network :
1. Dummy activities are used to represent a connection between
events in order to maintain logic in the network.
2. Dummy activities used to reduce the complexity of a network.
3. It should be used to maintain preceding and succeeding relation.

b. What do you mean by cash flow diagram ?

Ans. The graphical representation of the cash flows i.e., both cash
outflows and cash inflows with respect to a time scale is generally
referred as cash flow diagram.

c. Define interest rate. How interest rate can be classified ?

Ans. Interest Rate : It is the price paid to borrow debt capital or in other
words it is the cost of money. To understand it better we can also
say that interest rates transforms money-today into money-
tomorrow; it is the rate at which it grows when invested.
Classification :
Classification of interest rates

Administered rates Market administered rates

Deposit Rates on Rates on long Rates on other

rates of company term government market
banks and deposits department department
post offices

Inter-bank Rates on Rates on

call money rate corporate trade
securities credit
Fig. 1.
d. What is centre line method ?
Ans. Centre Line Method :
i. This method is suitable for walls of similar cross sections. Here the
total centre line length is multiplied by breadth and depth of
respective item to get the total quantity at a time.
ii. When cross walls or partitions or verandah walls join with main
wall, the centre line length gets reduced by half of breadth for each
junction.
iii. Such junction or joints are studied carefully while calculating total
centre line length. The estimates prepared by this method are most
accurate and quick.
Quantity Estimation & Management SP–5 C (CE-Sem-5)

iv. Center line method is suitably used for estimating circular,

rectangular, hexagonal, octagonal etc., shaped building

e. What is Arbitration ?
Ans. Arbitration is the process of the settlement of a dispute not by a
regular and ordinary court but by impartial references selected or
agreed upon by the parties concerned.

f. What are the characteristics of a good programme ?

Ans. Following are the characteristics of good programme :
i. Portability. ii. Flexibility. ii. Readability.
vi. Generality. iii. Efficiency. vii. Documentation.
iv. Structural.

g. Define contract.
Ans. As per the Indian Contract Act, 1872, a ‘contract’ is an agreement
enforceable by law. The agreements that are not enforceable by
law are not contracts.

SECTION-B

2. Attempt any three of the following : (7 × 3 = 21)

a. What are the limitations of PERT network ?
Ans. Limitation of PERT Network :
1. PERT has been emphasis only on time, not on costs.
2. The cost of setting up such system is extensive.
3. It is difficult to estimate accurate time and cost of various activities
involved in a project error in estimation makes the PERT charts,
unreliable as a control aid.
4. These systems will not help managers to solve all their problem.
5. PERT is not easily scalable for smaller projects.
6. The network charts tend to be large and unwieldy requiring several
pages to print and requiring special size paper.
7. The lack of a timeframe on most PERT charts makes it harder to
show status although colours can help (e.g., specific colour for
completed nodes).
8. When the PERT charts become unwieldy, they are no longer used
to manage the project.

b. Discuss the concept of time value of money ?

Ans. Time Value of Money :
1. The time value of money (TVM) is the idea that money available at
the present time is worth more than the same amount in the future
due to its potential earning capacity.
2. This core principle of finance holds that, provided money can earn
interest, any amount of money is worth the more the sooner it is
received.
Solved Paper (2018-19) SP–6 C (CE-Sem-5)

3. Time value of money (TVM) is an important concept in financial

management. It can be used to compare investment alternatives
and to solve problems involving loans, leases, savings.
4. TVM help us in knowing the value of money invested. As time
changes value of money invested on any project/firm also changes.
And its present value is calculated as :
FV
PV =
(1  i)n
where, PV = Present value.
FV = Future value (Money to be received in the future).
i= Discount rate.
n= Number of periods until FV is received.

c. Enumerate the factors which affect the output of a dragline.

Ans. The following factors affect the output of dragline :
1. Class of material. 2. Depth of cut.
3. Angle of swing. 4. Size and type of the bucket.
5. Length of the boom. 6. Job conditions.
7. Management conditions.
8. Method of disposal or loading trucks.
9. Size of hauling units, if used.
10. Skill of operator.
11. Physical conditions of the machine.

d. Define salvage value, scrap value and book value.

Ans. Salvage Value : It is the value of the property at the end of its
utility period without being dismantled. Salvage value implies that
the property has further utility.
Scrap Value : The value of a property realised when it becomes
absolutely useless except for sale as junk is its scrap value. The
utility of the article is assumed to be zero.
Book Value : It is defined as the value of the property shown in
the account book in that particular year i.e., the original cost is
less than the total depreciation till that year.

e. Discuss the time cost analysis.

Ans. Total Cost : The direct cost and indirect cost added together
constitute the total project cost.
1. Fig. 2 shows the indirect cost curve, direct cost curve and the
corresponding total cost curve.
2. From the total cost curve, we find that the minimum total cost
(optimum cost) is obtained at some duration known as optimum
duration. The corresponding cost is known as the minimum cost.
3. If the project duration is increased, total cost will be the highest.
4. In Fig. 2, we observe two types of times–normal and crash. These
will have two types of cost associated with them. These are defined
as follows :
Quantity Estimation & Management SP–7 C (CE-Sem-5)

i. Normal Time (tn) : It is the standard time that an estimator would

usually allow for an activity.
ii. Crash Time (tc) : It is the minimum possible time in which an
activity can be completed by employing extra resources. Crash time
is that time beyond which the activity cannot be shortened by any
amount of increase in resources.

Total cost

Direct cost
Optimum
Cost

cost

Indirect cost

Crash Optimum Normal

Time
Fig. 2. Total cost curve.
iii. Normal Cost (Cn) : This is the direct cost required for the completion
of the activity in the normal time duration.
iv. Crash Cost (Cc) : It is the direct cost corresponding to the
completion of the activity within crash time.
v. Cost Slope (Cs) : The cost slope is the slope of the direct cost curve,
approximated as straight line. The cost slope is defined as follows :
Crash cost  Normal cost
Cost slope =
Normal time  Crash time
Cc  Cn C
i.e., Cs = 
tn  tc t
where, C = Increase in cost.
t = Decrease in time.

SECTION-C

3. Attempt any one part of the following : (7 × 1 = 7)

a. Find the critical path and project duration of the given
CPM project. Also calculate EST, EFT, LST, LFT and all the
floats in a tabular form.
1 A 2 D 4 E 6 J 7
2 2 2 6
B C F H
7 5 1 I
3 G 4
3 5
3
Fig. 3.
Solved Paper (2018-19) SP–8 C (CE-Sem-5)

Ans.
0 0 2 2 4 12 14 14 20 20
A D E J
1 2 4 6 7
2 2 2 6
B C F I
7 H 1
3 5 4
G
3 5
3
9 9 12 13
Fig. 4.
1. Project duration = 20 days
2. Critical path = 1 – 2 – 3 – 6 – 7 or A – C – F – J.
(Shown by thick line in Fig. 4).
3. Event time comprising EOT and LOT has been indicated in the
respective time box of each event.
4. EST, EFT, LST, LFT and TF, FF, IF, INT. F calculated by given
formulae :
i. (EST)i – j = (EOT)i ii. (EFT)i – j = (EOT)i + ti – j
iii. (LST)i – j = (LOT)j – ti – j iv. (LFT)i – j = (LOT)j
v. TF = LST – EST = LFT – EFT
vi. FF = EST of succeeding activity – EFT of the activity under
consideration.
vii. (IF)i – j = [(EOT)j – (LOT)i] – ti – j
viii. (INT. F)i – j = (TF)i – j – (FF)i – j
5. Calculations of EST, EFT, LST, LFT and TF, FF, IF, INT. F are
presented in the following tabular form :
Table. 1. Scheduling
Duration

Activity time (days) Float (days)

Activity

J-Node
I-Node

(days)

Remarks
EST EFT LST LFT TF FF IF INT.F

A 1 2 2 0 2 0 2 0 0 0 0 Critical
B 1 3 3 0 3 6 9 6 6 6 0
C 2 3 7 2 9 2 9 0 0 0 0 Critical
D 2 4 2 2 4 10 12 8 0 0 8
E 4 6 2 4 6 12 14 8 8 0 0
F 3 6 5 9 14 9 14 0 0 0 0 Critical
G 3 5 3 9 12 10 13 1 0 0 1
H 5 6 1 12 13 13 14 1 1 0 0
I 5 7 4 12 16 16 20 4 4 3 0
J 6 7 6 14 20 14 20 0 0 0 0 Critical

b. For the given PERT network, determine :

i. Expected time, standard deviation and variance of the
project and show the critical path also.
ii. Probability of completion of project in 35 days.
Quantity Estimation & Management SP–9 C (CE-Sem-5)

iii. Time duration that will provide 90 % probability (z is 1.32) of

its completion in time. (If z is 1, P is 84.13 %), (if z is 0.9, P is
81.59 %), (if z is 1.1, P is 86.43 %)
3 -7
-2 0 -1 7
4 -9
2-5-8 4-7-16 7-10-13
8-1
1- 2 2-3-10
0
3-5-13 2-4-6

Fig. 5.
Ans.
1. From the three time estimates of each activity, expected mean time
(te), standard deviation (t) and variance (vt) of each activity are
tabulated by using the following equations,
ta  4 tm  tb t – ta
te = ; t = b ; vt = (t)2
6 6

S=0
15 15
3 3 -7
- 20 te = -17
S=0 S=0 4 -9 = 1 0 S=0
8
S=0
0 0 5 5 te 13 13 23 23
2-5-8 4-7-16 7-10-13
1 2 4 6
te = 5 t =8 te = 10
8-1e 2-3-10
t 1 -2
e =1 0 te = 4
2
3-5-13 2-4-6
5 7 8
te = 6 te = 4
17 21 27 27 31 31
S=4 S=0 S=0

Fig. 6.
2. Earliest expected mean time (TE) and latest allowable occurrence
time (TL) are marked in time box at each event.
3. Slack (S) = (TL – TE) is also mentioned on the network.
4. Since scheduled completion time of project is not mentioned, for
the last event (8), TL = TE has been taken.
Table. 2.
Three Time Estimates (days) te t Vt
Activity ta tm tb (days) (days) (days)
1-2 2 5 8 5 1 1
2-3 4 9 20 10 2.67 7.1
2-4 4 7 16 8 2 4
2-5 8 11 20 12 2 4
Solved Paper (2018-19) SP–10 C (CE-Sem-5)

3-6 3 7 17 8 2.33 5.44

4-6 7 10 13 10 1 1
4-5 0 0 0 0 0 0
5-7 3 5 13 6 1.67 2.78
6-7 2 3 10 4 1.33 1.78
7-8 2 4 6 4 0.67 0.44
i. Least slack value = 0
 All the events having zero slack
ii. Critical path-I = 1 – 2 – 3 – 6 – 7 – 8
iii. Critical path-II = 1 – 2 – 4 – 6 – 7 – 8
iv. Expected mean time of project (T) = 31 days
v. Variance of project along critical path-I
(VTI) = 1 + 7.1 + 5.44 + 1.78 + 0.44 = 15.76
vi. Variance along critical path-II (VTII) = 1 + 4 + 1 + 1.78 + 0.44 = 2.86
vii.  Variance of the project (VT) = 15.76
viii. Standard deviation of the project (T) = VT  15.76 = 3.97
ix. Probability factor (z) corresponding to x = 35 days
x – T 35 – 31
z=  = 1.007 = 1.0
T 3.97
Probability % corresponding to z = 1.0
pr = 84.13 %, (For, z = 1, probability % = 84.13 %)
x. For 90 % probability, the value of z = 1.32 (From probability table)
x – 31
1.32 =
3.97
x = 36.24 days

4. Attempt any one part of the following : (7 × 1 = 7)

a. Write short notes on : clam shell, Hoe, scraper and bulldozer.

Ans.
1. Clam Shell :
i. This is so named due to resemblance of its bucket to a clam which
is like a shell-fish with hinged double shell.
ii. The front end is essentially a crane boom with a specially designed
bucket loosely attached at the end through cables as in a drag line.
iii. The capacity of a clam shell bucket is usually given in cubic meters.
iv. The basic parts of clam shell bucket are the closing line, hoist line,
sheaves, brackets, tagline, shell and hinge.
v. Uses :
a. Used for handling loose material such as crushed stone, sand,
gravel, coal etc.
b. Main feature is vertical lifting of material from one location to
another.
Quantity Estimation & Management SP–11 C (CE-Sem-5)

c. Mainly used for removing material from coffer dam, sewer

main holes, well foundations etc.
2. Back Hoe :
i. It is also known as hoe, back shovel and pull shovel.
ii. The basic parts are boom, jack boom, boom foot drum, boom sheave,
stick sheave, stick, bucket and bucket sheave.
iii. Uses :
a. It is the most suitable machine for digging below the machine
level, such as, trenches, footings, basements etc.
b. It can be efficiently used to dress or trim the surface avoiding
the use of manual effort for dressing the excavated the surface.
3. Scrapers :
i Unique machine for digging and long-distance hauling of plough
able materials.
ii. The basic parts of scrapers are the bowl, apron and tail gate or
ejector.
iii. It is a self-operating machine.
iv. Wheels of machine cause some compaction.
4. Bulldozer :
i. The heavy blade attached to the tractor pushes the material from
one place to another.
ii. The tractor can be of the crawler or the wheeled type.
iii. Uses :
a. For spreading the earth fill.
b. For opening up pilot roads through mountainous and rocky
terrains.
c. Clearing land from the trees and stumps.
d. Back-filling trenches at construction sites by dragging the earth
from one place to another.
b. Explain in detail factors affecting the economic life of an
equipment.
Ans. The economic life may be defined as the age in years and
replacement that maximize the profit return from the equipments.
Factors : Following are the factors affecting the economic life of
an equipment :
1. Depreciation Costs and Replacement : In terms of equipment,
the depreciation is the loss in value of equipment from the time it is
purchased to the time it is out of service or replaced.
2. Inflation : Economic inflation is defined as the loss in buying
power of the national currency, and industrial inflation is the change
in construction costs due to long and short-term fluctuations in
commodity pricing.
3. Investment Costs : Investment costs include interest, insurance,
taxes, and license fees beyond the initial acquisition cost of
equipment. Investment cost can be reduced to a percentage of
initial equipment cost.
Solved Paper (2018-19) SP–12 C (CE-Sem-5)

4. Maintenance and Repair Costs : Maintenance and repair costs

are the crux of the equipment replacement decision and result
from the cost of labour and parts used to maintain and repair the
given piece of equipment.
5. Downtime : Downtime is the time when equipment does not work
due to repairs or mechanical adjustments. Downtime leads to
increase as equipment usage increases. The downtime cost includes
the ownership cost, operating cost, operator cost, and productivity
loss caused by the loss of equipment availability.
6. Obsolescence : Obsolescence is the reduction in value and
marketability due to the competition between newer and more
productive models. Obsolescence is an extremely important factor
to be considered in the highly competitive construction industry.
Owning the latest technology equipment gives a contractor an edge
over the competition in that enhanced technology generally equates
with increased rates of production, translating into decreased
production costs.

5. Attempt any one part of the following : (7 × 1 = 7)

a. Alpha industry is planning to expand its production. It has
identified three different technologies for meeting the goal.
The initial outlay and annual revenue with respect to each
of the technologies are summarized in table. Suggest the
best technology which is to be implemented on the present
worth method of comparison assuming 20 % IR, compounded
annually.
Technology Initial Outlay (Rs.) Annual Revenue (Rs.) Life (year)
Technology 1 12,00,000 4,00,000 10
Technology 2 20,00,000 6,00,000 10
Technology 3 18,00,000 5,00,000 10

Ans.
Given : Interest rate, R = 20 %, Life n = 10 year
To Find : Choose best technology on the basis of present worth
method
1. Technology 1 :
4,00,000 4,00,000 4,00,000

1 2 10
12,00,000
Fig. 7.
P(1) = 12,00,000 – 4,00,000 [P/A, 20%, 10]
= 12,00,000 – 4,00,000 [(1.210 – 1)/(0.2 × 1.210)]
P(1) = Rs. – 4,76,989
Quantity Estimation & Management SP–13 C (CE-Sem-5)

2. Technology 2 :
6,00,000 6,00,000 6,00,000

1 2 10
20,00,000
Fig. 8.
P(2) = 20,00,000 – 6,00,000 [(1.210 – 1)/(0.2 × 1.210)]
P(2) = Rs. – 5,15,484
3. Technology 3 :
5,00,000 5,00,000 5,00,000

1 2 10
18,00,000
Fig. 9.
P(3) = 18,00,000 – 5,00,000 [(1.210 – 1)/(0.2 × 1.210)]
P(2) = Rs. – 2,96,236
Technology-2 > Technology-1 > Technology-3
i. Technology - 2 generates more revenue.
ii. Hence, select Technology-2

b. What is depreciation ? Also discuss the methods of calculate

the depreciation.
Ans. Depreciation : It is the decrease in value of asset resulting from
deterioration, wear and tear from you, obsolescence arising from
improvement in design and new technology.
Methods :
Following are the methods for determining depreciation :
A. Straight-Line Depreciation Method :
1. Straight-line depreciation is a very common and simple method of
calculating the expense. In straight-line depreciation, the expense
amount is the same every year over the useful life of the asset.
2. Depreciation Formula for the Straight Line Method.
Depreciation Expense = (Cost – Salvage value) / Useful life
B. Declination Balance Method :
1. The declination balance method is widely used for accelerated
depreciation in which some percentage of straight line rates is used.
2. In this method, the properly is assumed to lose value annually at
constant percentage of its book value.
Depreciation, D = Ci × Depreciation factor
1
C n
Depreciation factor (FDB) = 1   s 
C  i
where, Ci = Initial cost.
Cs = Salvage value.
n = Life of the asset.
Solved Paper (2018-19) SP–14 C (CE-Sem-5)

C. Double Declining Balance Depreciation Method :

1. Process of calculation of depreciation and book value for each year
is the same as adopted in the Declining Balance Method.
2. In this method also, the property is assumed to lose value annually
by fixed factor of the book value.
3. Depreciation = Cost of equipment × Factor (FDDB)
FDDB = Fixed factor for double declining balance method.
2
4. FDDB is taken as double the straight line rate i.e., FDDB = .
n
D. Units of Production Depreciation Method :
1. Units-of-production depreciation method depreciates assets based
on the total number of hours used or the total number of units to be
produced over its useful life.
2. The formula for the units-of-production method.
Depreciation Expense = (Number of units produced / Life in number
of units) × (Cost – Salvage value)
E. Sum-of-the-Years-Digits Depreciation Method :
1. Sum-of-the-years-digits method is one of the accelerated depreciation
methods. A higher expense is incurred in the early years while lower
expense is incurred in the latter years of the asset.
2. In sum-of-the-years digits depreciation method, the remaining life
of an asset is divided by the sum of the years and then multiplied by
the depreciating base to determine the expense.
3. The depreciation formula for the sum-of-the-years-digits method:
Depreciation Expense = (Remaining life / Sum of the years digits) ×
(Cost – Salvage value).

6. Attempt any one part of the following : (7 × 1 = 7)

a. Write short notes on : Tender, Earnest money deposit and
Commissioning of project.
Ans. Tender : Tender is an offer in writing to execute some specified work at
certain rates, with in a fixed time under certain conditions of contract and
agreement between the contractor and the party/owner.
Earnest Money : Earnest money is an assurance or guarantee on
the part of the contractor to keep the offer for consideration and to
confirm his intention to take up the work if accepted in his favour
for execution as per terms and conditions in the tender.
Commissioning of Project :
1. Project commissioning is the stage in which the performance of
the structure is evaluated and nature of maintenance and repair
is proposed.
2. The purpose of this stage is to ensure that the construction work
has been completed as specified in the contract documents.
3. If any changes have been made because of some reasons, they
must be recorded for technical performance and financial
implications.
Quantity Estimation & Management SP–15 C (CE-Sem-5)

4. Following are the various step of project commissioning stage :

i. Keep various records of the actual work.
ii. Quality inspection (done to remove the defects, if found).
iii. Prepare operation and maintenance manuals.
iv. Carry out the performance test of the structure.
v. Training and recruitment of staff for commissioning schedule.

b. What are the elements of tender preparation?

Ans. Following are the elements of tender preparation :
1. As part of the preparation work, and before any tender is
advertised, the procuring agency requires a realistic estimate of
the cost of the structure with a breakdown of significant cost
items.
2. To prepare such an estimate, an engineer should be selected and
be appointed to not only carry out this preliminary work but
continue to supervise the contractor and ensure all works are
carried out according to the design and to the highest quality
possible.
3. The preparation of tender and contract documents, including all
survey and design work needed to prepare quantities and guideline
costings, should take place in good time.
4. If funds are to be sourced from international lending agencies or
donors, their guidelines will have to be followed and examples of
advertisements and documents from such organizations should
be obtained at the beginning of this process.
5. Preparation may require the application for land and water rights,
environmental impact assessments plus any needed compensation
or resettlement plans.
6. These must be completed before the any construction can be
approved and allowed to proceed.

7. Attempt any one part of the following : (7 × 1 = 7)

a. Discuss the methods of estimating.
Ans. Methods of Estimation for Building Works : The estimation
of building quantities like earth work, foundation concrete,
brickwork in plinth and superstructure etc. can be worked out by
long wall-short wall method and center line method.
1. Long Wall-Short Wall Method :
i. In this method, the wall along the length of room is considered to be
long wall while the wall perpendicular to long wall is said to be short
wall.
ii. To get the length of longwall or shortwall, calculate first the centre
line lengths of individual walls. Then the length of long wall (out to
out) may be calculated after adding half breadth at each end to its
centre line length.
iii. Thus the length of short wall measured in to in and may be found
by deducting half breadth from its centre line length at each end.
Solved Paper (2018-19) SP–16 C (CE-Sem-5)

iv. The length of long wall usually decreases from earth work to brick
work in super structure while the short wall increases. These
lengths are multiplied by breadth and depth to get quantities.
2. Centre Line Method :
i. This method is suitable for walls of similar cross sections. Here the
total centre line length is multiplied by breadth and depth of
respective item to get the total quantity at a time.
ii. When cross walls or partitions or verandah walls join with main
wall, the centre line length gets reduced by half of breadth for each
junction.
iii. Such junction or joints are studied carefully while calculating total
centre line length. The estimates prepared by this method are most
accurate and quick.
iv. Center line method is suitably used for estimating circular,
rectangular, hexagonal, octagonal etc., shaped building
3. Partly Centre Line and Partly Cross Wall Method :
i. This method is adopted when external (i.e., around the building)
wall is of one thickness and the internal walls having different
thicknesses. In such cases, centre line method is applied to external
walls and long wall-short wall method is used to internal walls.
ii. This method suits for different thicknesses walls and different level
of foundations. Because of this reason, all Engineering departments
are practicing this method.

b. Estimate the quantities of the following items of a two

roomed building from the given plan and section :
i. Earthwork in excavation in foundation.
ii. Lime concrete in foundation.
iii. 1st class brickwork in cement mortar 1 : 6 in foundation and
plinth.
iv. 2.5 cm c.c. D.P.C
v. 1st class brickwork in line mortar in superstructure.
All walls are of same section, lintels over doors, windows
and shelves are 15 cm thick.
Doors D-1.20 m × 2.10 m
Windows W-1.00 m × 1.50 m
Shelves S-1.00 m × 1.50 m

30 cm

A A
S

Room 4 m × 6 m Room 6 m × 6 m
S
4m 6m
30 cm

30 cm

30 cm
Plan
Quantity Estimation & Management SP–17 C (CE-Sem-5)

2.5 cm c.c. over

13 cm R.C.C.
7.5 cm L.C. Terrance over

60 cm

20 cm
10 cm
10 cm
10 cm
10 cm

30 cm
2.5 cm D.P.C

7.5 cm L.C.

G.L.

1.10 m
4.20 m

G.L.
cm
40
cm
30

G.L.

60 cm
60 cm
70 cm
80 cm
Fig. 10.
Ans.
1. In this problem there are two junctions of the inter wall with the
main wall.
2. Total centre length of wall = 2 × c/c of long wall + 3 × c/c of short
wall.
= 2 × 10.60 + 3 × 6.30 = 40.10 m

1.10 m

6.30 m c/c
1.10 m

1.10 m

1.10 m

1.10 m
10.60 m c/c
Fig. 11. Foundation trench plan.
3. If the total centre length is multiplied by the breadth and depth, at
the junction the portions A and B shown by hatch lines in
Fig. 11 come twice, and we get the quantity in excess by these
portions, and these excesses shall have to be deducted.
4. The deduction may be effected reducing the centre length by half
breadth for each junction.
5. Thus the quantity of earthwork in excavation :
= [Total centre length — (2 × ½ breadth)] × breadth × depth
= (40.10 – 2 × ½ × 1.10) × 1.10 × 1.00 = 39.00 × 1.10 × 1.00 = 42.9 cu
m.
6. The same principle applies to foundation concrete, to footings,
plinth wall and superstructure wall.
7. At every stage deduction of half breadth of the main wall at that
particular level shall have to be made per junction (i.e. one breadth
for two junctions) from the total centre length, and this net centre
length after deduction shall be multiplied by the respective breadth
and the height of depth to get quantities.
Solved Paper (2018-19) SP–18 C (CE-Sem-5)

8. Details of Measurement and Calculation of Quantities :

Item Particulars of Height
No. Length Breadth Quantities Explanatory
No. Items or
notes
Depth
1. Earthwork in Total centre length
Excavation in = 40.10 m
Foundation 1 39.00 m 1.10 m 1.00 m 42.90 cu m L = 40.10 – 2 × 1.10/2
2. Lime Concrete in = 39.00 m
Foundation 1 39.00 m 1.10 m 0.30 m 12.87 cu m L same as above
3. Ist Class Brickwork
in 1:6 Cement Mortar
in Foundation and
Plinth
1st footing ... 1 39.30 m 0.80 m 0.20 m 6.29 L = 40.10 – 2 × 0.80/2
= 39.30 m
2nd footing ... 1 39.40 m 0.70 m 0.10 m 2.76 L = 40.10 – 2 × 0.70/2
= 39.40 m
3rd footing ... 1 39.50 m 0.60 m 0.10 m 2.37 L = 40.10 – 2 × 0.60/2
= 39.50 m
4th footing ... 1 39.60 m 0.50 m 0.10 m 1.98 L = 40.10 – 2 × 0.50/2
= 39.60 m
4. Plinth Wall above 1 39.70 m 0.40 m 0.80 m 12.70 L = 40.10 – 2 × 0.40/2
Footing Total 26.10 = 39.70 m
cu m
5. Damp Proof Course 1 39.70 m 0.40 m — 15.88 L = 40.10 – 2 × 0.40/2
2.5 cm cc = 39.70 m
6. Deduct Door Sill 2 1.20 m 0.40 m — 0.96
Net 14.92
cu m
7. Ist Class Brickwork 1 39.80 m 0.30 m 4.20 m 50.15 L = 40.10 – 2 × 0.30/2
in Lime Mortar in = 39.80 m
Superstructure
8. Deduct —
Door openings 2 1.20 m 0.30 m 2.10 m 1.51

Window openings 4 1.00 m 0.30 m 1.50 m 1.80

Shelves 2 1.00 m 0.20 m 1.50 m 1.60 Back of shelves
10 cm thick wall

Lintels over doors 2 1.50 m 0.30 m 0.50 m 0.14 Bearing 15 cm

Lintels over windows 4 1.30 m 0.30 m 0.15 m 0.23 Bearing 15 cm

Lintels over shelves 2 1.30 m 0.30 m 0.15 m 0.12 Bearing 15 cm

Total of deduction 4.40 cu m

Net Total 45.75 cu m


Quantity Estimation and Management SP–1 A (CE-Sem-5)

B.Tech.
(SEM. V) ODD SEMESTER THEORY
EXAMINATION, 2019-20
QUANTITY ESTIMATION AND
MANAGEMENT

Time : 3 Hours Max. Marks : 70

Note : Attempt all sections. If require any missing data; then choose suitably.

Section-A

1. Attempt all questions in brief. (7 × 2 = 14)

a. Define most likely time and mean time.

b. Define contract.

c. Differentiate between free float and total float.

d. Enlist the main items of work used in estimation of

buildings.

e. What do you mean by critical path of a project network ?

f. Differentiate between event and activity.

g. What do you mean by land acquisition ?

Section-B

2. Attempt any three of the following : (7 × 3 = 21)

a. What are different types of construction contracts and state
their main attributes ?

b. Explain the different types of specifications and their

importance in construction project.

c. Briefly describe various equipments, which are used for

placing concrete along with their comparative advantages
and disadvantages.

d. Describe the various types of estimation that are used in

estimation of building.
Solved Paper (2019-20) SP–2 A (CE-Sem-5)

e. Estimate the quantities of brickwork and plastering

required in a wall 4 m long, 3 m high and 30 cm thick.
Calculate also the cost if the rate of brickwork is Rs. 320.00
per cum. and of plastering is Rs. 8.50 per sq.m.
Section-C
3. Attempt any one part of the following : (7 × 1 = 7)
a. Explain bar chart. What were the problems in the bar charts
that lead to development of network technique ?

b. What do you mean by CPM and PERT ? Illustrate with

examples the differences between CPM and PERT.
4. Attempt any one part of the following : (7 × 1 = 7)
a. What do you mean by cash flow diagram ? How it is
classified ?
b. Differentiate between breakeven point and minimum cost
point.

5. Attempt any one part of the following : (7 × 1 = 7)

a. What are the various steps for evaluation of tenders ?

b. What are the general guidelines for monitoring the extra

item on construction site ?

6. Attempt any one part of the following : (7 × 1 = 7)

a. With the following data of activities of a project. Develop a
suitable network for programming by CPM
Activity A B C D E F G
Predecessors – A B B D C, E F
Duration (days) 5 6 14 8 5 9 6

A and G are terminal activities.

Determine : Project completion time, the critical path and
total float for each activity.
b. Differentiate between variation of direct and indirect cost.
7. Attempt any one part of the following : (7 × 1 = 7)
a. Write the short notes on the following :
i. Earnest money deposit.
ii. Security money.

b. Write a short note on labour safety in construction

industry.

Quantity Estimation and Management SP–3 A (CE-Sem-5)

SOLUTION OF PAPER (2019-20)

Note : Attempt all sections. If require any missing data; then choose suitably.
Section-A

1. Attempt all questions in brief. (7 × 2 = 14)

a. Define most likely time and mean time.
Ans. Most Likely Time : It expressed as ‘tm’, represents estimate of
time for completion of an activity, which is neither optimistic nor
pessimistic, assuming that things should go in a normal way, and if
the activity is repeated several times, in most of the cases, it will be
completed in time represented by t.
Mean Time : The expected mean time (te) (duration) of a project is
calculate by formula,
to  4 tm  t p
te =
6

b. Define contract.
Ans. As per the Indian Contract Act, 1872, a ‘contract’ is an agreement
enforceable by law. The agreements that are not enforceable by
law are not contracts.

c. Differentiate between free float and total float.

Ans.
1. Total Float :
i. It is the time span by which the starting or finishing of an activity
can be delayed without affecting the overall completion time of the
project.
ii. Total float = FTij = (TLj – TEi) – tij
 FT = LST – EST
Similarly, FT = LFT – EFT
2. Free Float :
i. Free float is that duration by which an activity can be delayed
without delaying any other succeeding activity. Free float is a portion
of the total float.
ii. Free float = FEij = TEj – (TEi + tij)
 FF = FT – Sj
= TLj – TEj
Sj = Head event slack.

d. Enlist the main items of work used in estimation of

buildings.
Solved Paper (2019-20) SP–4 A (CE-Sem-5)

Ans. Items of Works : Following are the main items of works and their
measure units :
i. Earthwork
ii. Concrete in Foundation
iii. Soiling
iv. Damp Proof Course (DPC)
v. Masonry

e. What do you mean by critical path of a project network ?

Ans. Critical Path : The path joining the critical events is called a
critical path of the PERT network. Timewise, the critical path is
the longest path connecting the initial event to the final event.

f. Differentiate between event and activity.

Ans.

S. No. Event Activity

1. Event is a point when certain Activities take place between
conditions have been fulfilled, events.
such as the start or completion
of one or more activities.
2. An event consumes neither Activity is an ite m of work
time nor any other resource. involving consumption of a finite
quantity of resources and it
produces quantitative results.

g. What do you mean by land acquisition ?

Ans. Land acquisition refers to the process by which the union or a state
government in India acquires private land for the purpose of
industrialization, development of infrastructure facilitates or
urbanization of the private land and provides compensation to the
affected land owners and their rehabilitation and resettlement.

Section-B

2. Attempt any three of the following : (7 × 3 = 21)

a. What are different types of construction contracts and state
their main attributes ?
Ans. Types of Contract : The following are the various types of
contracts for execution of civil engineering works, with their
relative merits and demerits :
1. Item Rate Contract :
i. Item rate contract is also known as unit price contract or schedule
contract.
ii. A contract undertakes the execution of work on an item rate
basis.
Quantity Estimation and Management SP–5 A (CE-Sem-5)

iii. He is required to quote rate for individual item of work on the

basis of schedule of quantities (i.e., bill of quantities) furnished by
the department.
iv. The amount to be received by the contraction depends upon the
quantities of work actually performed.
v. The payment to the contractor is made on the basis of the detailed
measurement of different items of work actually executed by
him.
Merits :
i. This method ensures a very detailed analysis of cost and payment
to the contractor and is based upon detailed measurements of each
item actually done, so this method is more scientific.
ii. Changes in drawings and quantities of individual item can be made
as per requirements within agreed limits.
Demerits :
i. The total cost of work can only be known after completion. As such
the owner may face financial difficulty if the final cost is substantially
high.
ii. Additional staff is required to take detailed measurements of work.
iii. The scope of saving with use of inferior quality materials may
prompt the contractor to do so.
2. Percentage Rate Contract :
i. In this form of contract, the department draws up ‘item rate tender’
i.e., bill of quantities with rate, amount and total amount.
ii. The contractors are required to offer to carry out the work as per
with the rates shown in the specific price schedule or some
percentage above or some percentage below the rate indicated in
the schedule of work attached with the tender.
iii. The percentage above or below or at par is applicable on the overall
cost of the work also.
Merits :
i. The ranking amongst the contractors is easily known just on the
opening of the tenders.
ii. As there is no provision to quote contractors own rate for an
individual item, benefit due to increased quantity with a beneficial
rate cannot be availed by the contractor. The chance of unbalanced
tender gets eliminated.
Demerits :
i. A contractor is required to write down only the percentage above
or at par or below, it is very easy to write such a rate in few minutes
before the time of submission of the tender.
ii. By negotiating among the contractors, two or more may quote the
same rate in order to get a part of the work at a high rate. It may be
difficult to divide the work at equal amount among the contractors.
3. Lump-Sum Contract :
i. In this type of contract, a contractor is required to quote a fixed sum
for execution of work complete in all respect in the stipulated time
Solved Paper (2019-20) SP–6 A (CE-Sem-5)

according to the drawing, design and specifications supplied to him

with the tender.
ii. The departmental schedule of rate for various items of work is also
provided which regulates the payment of the contractor in respect
of any additions and alterations which are made over the original
work.
iii. On the completion of the work, no detailed measurement of different
items of work is needed but the whole work done must be compared
and checked with the drawings and specifications.
Merits :
i. As the total cost of the work known before hand, the owner can
arrange the fund in time.
ii. Detailed measurements of the work done are not required except
in respect of additions and alterations.
iii. The contractor’s profit mainly lies in the completion time. Hence
for getting more profit the contractor tries to complete the work as
early as possible.
Demerits :
i. It is very essential that the work must be defined accurately,
specifications must be fully specified and the site conditions must
be fully explained otherwise disputes can arise later on.
ii. For any intermediate payment, the value of work done should not
be less than the payment being made.
4. Labour Contract :
i. In labour contract, the contractor undertakes contract for the labour
portion only excluding the materials which are arranged and
supplied at the work site by the department/owner.
ii. The contractor engages the requisite labour and gets the work
done as per drawings and specifications.
iii. It is an item rate basis for labour portion only and the contractor is
paid for the quantities of work done on measurement of different
items of work at the stipulated rate in the contract agreement.
Merits :
i. The materials stored by the department are thus utilised.
ii. The work done through labour contract is of superior quality as
better quality materials are arranged by the owner.
iii. The overall cost of construction may be less, as no profit is paid on
the cost of materials.
iv. This system is very convenient for private building construction.
Demerits :
i. A large storage area is required to store the various kinds of
materials to be used in the construction under a constant guarding.
ii. This system is not suitable for government department. Because of
lengthy formalities in procurement of materials, it is very difficult
to supply each and every material readily to the labour contractor.
Quantity Estimation and Management SP–7 A (CE-Sem-5)

5. Cost Plus Percentage Rate Contract :

i. In this type of contract, a contractor agrees to take the work of
construction on the actual cost of work plus an agreed percentage
in addition, for his services.
ii. It is generally adopted when the labour and material costs are liable
to fluctuate heavily in the market.
iii. The contractor arranges materials and labour at his cost and keeps
proper account which is paid by the department or owner with
certain percentage (say 10 %) of the cost of construction as his
profit. An agreement is made accordingly in advance.
Merits :
i. The contract can be quickly drawn up and agreed and work can be
completed in the shortest possible time.
ii. It is particularly suitable when work cannot be executed by other
types of contracts due to uncertainty and fluctuations in the market
rates of labour and materials.
Demerits :
i. The contractor’s only aim is to make the cost of the project as high
as possible in order to seek greater margin of profit.
ii. A proper control over purchase of materials and of labour shall
have to be exercised by the department or the owner.
b. Explain the different types of specifications and their
importance in construction project.
Ans. Types of Specification : Following are the two types of
specification :
1. General Specifications :
i. In general specifications, nature and class of works and names of
materials that should be used are described.
ii. Only a brief description of each and every item is given. It is useful
for estimating the project.
iii. The general specifications do not form a part of contract document.
2. Detailed Specifications :
i. The detailed specifications form a part of a contract document.
ii. They specify the qualities, quantities and proportions of materials
and the method of preparation and execution for a particular item
of works in a project.
iii. The detailed specifications of the different items of the work are
prepared separately and they describe what the work should be
and how they shall be executed.
iv. While writing the detailed specifications, the same order sequence
as the work is to be carried out is to be maintained.
Importance of Specifications : Following are the importance
of specifications :
1. The cost of a unit quantity of work is governed by its specifications.
2. Specification of a work is required to describe the quality and
quantity of different materials required for a construction work
and is one of the essential contract documents.
Solved Paper (2019-20) SP–8 A (CE-Sem-5)

3. This also specifies the workmanship and the method of doing the
work.
4. A work is carried out according to its specification and the
contractor is paid for the same. Any change in specification changes
the tendered rate.
5. As the rate of work is based on the specification, a contractor can
calculate the rates of various items of works in tender with his
procurement rates of materials and labour. Thus tender rate
without specification of works is baseless, incomplete and invalid.
6. Specification is necessary to specify the equipment tools and plants
to be engaged for a work and thus enables to procure them
beforehand.
7. The necessity of specification is to verify and check the strength
of materials for a work involved in a project.
Importance of General Specification :
Following are the importance of general specification :
1. It provides clear instructions on the intent, performance and
construction of the project.
2. It can reference the quality and standards which should be applied.
3. Materials and manufacturers products can be clearly defined.
4. The requirements for installation, testing and handover can be
identified.
5. Classification in the specification can be used to support handover
and running of the asset.
6. The drawing or model does not need to be overloaded with detailed
information, which can sometimes be difficult to identify.
7. It can be used to support the costing of a project : not only the
materials and products but also the performance and workmanship
8. The specification forms part of the contractual documents, along
with the drawings, and therefore can help minimise project risk
and provide support should there be any legal disputes.
9. It supports the interpretation of the client brief and gives the client
assurance that the asset which they commissioned is being delivered.
10. It is not only essential for the construction phase but also used as
part of the soft landing process, subsequent asset management and
the lifecycle plan.

c. Briefly describe various equipments, which are used for

placing concrete along with their comparative advantages
and disadvantages.
Ans.
A. Concrete Placement Equipment : Following are the equipment
used for concrete placement :
1. Paving Mixers :
i. Paving mixers are used for concreting the pavement of highways/
runways to have mobility of the mixer along with the placement of
concrete.
Quantity Estimation and Management SP–9 A (CE-Sem-5)

ii. They are mounted on crawler tractors. They may have single
compartment drums or double compartment drums.
2. Bottom-Dump Bucket : It is a common equipment used for placing
concrete. These buckets can be used for both vertical and horizontal
movements.
3. Wheelbarrows : These are usually used to transport concrete in
the horizontal direction, provided there is a smooth and rigid runway
to operate on.
4. Hand Buggies : These are safer compared to wheelbarrows
because they have two wheels while wheelbarrows have only one
wheel. These means of horizontal transportation are preferred
when the distance to be covered is less than 60 m.
5. Drop Pipes and Chutes : These are used to transfer concrete
from higher elevations to lower elevations.
i. The chutes used are round-bottomed and have sufficient slopes to
allow the free flow of concrete.
ii. Drop pipes are used in wall or column constructions to avoid the
segregation of concrete by allowing the free flow of concrete through
the reinforcement.
6. Conveyor Belts : They are used to transport low slump concrete.
They provide rapid movement of fresh concrete.
7. Pump : They are commonly used simple equipment. By applying
appropriate pressure, concrete can be moved through large distances
in both horizontal and vertical directions provided a proper
lubricating layer is provided within the pipe.
Pumps are generally of three types :
i. Piston pump.
ii. Square pressure pump.
iii. Pneumatic pump.
8. Vibrators :
i. Concrete is consolidated to remove the entrapped air and improve
the quality of concrete.
ii. This consolidation can be done by vibration, for which three types
of vibrators are used.
ii. Following are three types of vibrators :
a. An internal vibrator : As the name indicates, is immersed
into the concrete and vibrated. It has a vibrating casing and
head which is immersed into the concrete and made to vibrate
at high frequency (10,000 to 15,000 vibrations/min). The
internal vibrator is normally preferred in all construction sites.
b. Surface vibrators : They are used in slab construction. These
vibrators are used for consolidation only from the top surface.
Their vibration speed is about is about 3000-6000 vibrations/
min.
c. A form vibrator : It is an external vibrator. As the name
indicates, these vibrators shake the entire form (vibrate the
entire form). They are attached to the outer surface of the
form. Form vibrators are used in large panel construction.
Solved Paper (2019-20) SP–10 A (CE-Sem-5)

B. Uses of Concrete Placement Equipments :

1. Paving Mixers :
Advantages : Readily available equipment can be used.
Disadvantages :
i. It has depth-control problems.
ii. Removal of entire AC layer is necessary.
iii. It has limited width operations.
iv. It has slow production rates.
v. It has traffic control problems.
2. Bottom-Dump Bucket :
Advantages :
i. It has higher speed on flat hauls.
ii. It is mobile and flexible in moving around working area.
Disadvantages :
i. Better on flatter gradient less than 5 %.
ii. It requires good roads.
iii. It requires a drive over dump hopper to discharge.
iv. It is suited to lighter and finer materials due to light trailer and
dump doors (e.g., coal, bauxite).
3. Wheel Barrows :
Advantages :
i. It is more powerful equipment.
ii. It allows one person to move heavy payloads.
iii. It handles very heavy loads.
iv. It is great for carrying loads up slopes.
Disadvantages : Balancing is a major factor, especially when
ascending or descending a slope.

d. Describe the various types of estimation that are used in

estimation of building.
Ans. Types of Estimates : Estimates can be grouped into two main
categories :
A. Approximate Estimates : An approximate estimate is an
approximate or rough estimate prepared to obtain an approximate
cost in a short time.
B. Detailed Estimates :
1. A detailed estimate of the cost of a project is prepared by determining
the quantities and costs of everything that a contractor is required
to provide and do for the satisfactory completion of the work.
2. It is the best and most reliable form of estimate.
3. A detailed estimate may be prepared in the following two ways :
i. Unit-quantity Method :
a. In the unit-quantity method, the work is divided into as many
operations or items as are required.
b. A unit of measurement is decided.
c. The total quantity of work under each item is taken out in
the proper unit of measurement.
Quantity Estimation and Management SP–11 A (CE-Sem-5)

d.The total cost per unit quantity of each item is analysed and
worked out.
e. Then the total cost for the item is found by multiplying the
cost per unit quantity by the number of units.
f. This method has the advantage that the unit costs on various
jobs can be readily compared and that the total estimate can
easily be corrected for variations in quantities.
ii. Total-quantity Method : In this method, an item of work is
divided into the following five subdivisions :
a. Materials,
b. Labour,
c. Plant,
d. Overheads, and
e. Profit.
The total quantities of each kind or class of material or labour are
found and multiplied by their individual unit cost. Similarly, the
cost of plant, overhead expenses and profit are determined.
e. Estimate the quantities of brickwork and plastering
required in a wall 4 m long, 3 m high and 30 cm thick.
Calculate also the cost if the rate of brickwork is Rs. 320.00
per cum. and of plastering is Rs. 8.50 per sq.m.
Ans.
Given : Length of wall, L = 4 m, Height of wall, H = 3 m, Thickness,
B = 30 cm = 0.3 m, Rate of brickwork = Rs. 320 per m3, Rate of
plastering = Rs. 8.50 per m2.
To Find : i. Quantity of brickwork and plastering.
ii. Total cost.
i. Quantity of brickwork = L × B × H = 4 × 0.3 × 3 = 3.6 cum
ii. Quantity of plastering (two faces) = 2 × 4 × 3 = 24 sq.m
iii. Cost of plastering = 24 × 8.5 = Rs. 204.00
iv. Cost of brickwork = 3.6 × 320 = Rs. 1152.00
v. Total cost = Rs. 1152 + 204 = Rs. 1356
Section-C
3. Attempt any one part of the following : (7 × 1 = 7)
a. Explain bar chart. What were the problems in the bar charts
that lead to development of network technique ?
Ans. Bar Chart : A bar chart or bar graph is a chart that presents
categorical data with rectangular bar with height or length
proportional to the values that they represent.
Limitations of Bar Chart : These are the following limitations of
bar chart :
1. Only major activities are shown in bar chart and sub activities
cannot be separated out. Hence effective control over the activities
in big projects cannot be achieved.
2. A bar chart does not show progress of work hence it cannot be used
as a control device.
Solved Paper (2019-20) SP–12 A (CE-Sem-5)

3. It does not show the interdependencies between the various

activities clearly.
4. Delays in the work cannot be detected.
5. Bar chart cannot distinguish between critical and non-critical
activities. Hence resource smoothening and resource levelling
cannot be done.
6. The financial aspect involved is not known i.e., whether the project
cost is within the estimated one or exceeded.
b. What do you mean by CPM and PERT ? Illustrate with
examples the differences between CPM and PERT.
Ans. CPM (Critical Path Method) : The critical path method is step by
step project management technique for process planning that defines
critical and non-critical tasks with the goal of preventing time-
frame problems and process bottlenecks.
PERT : PERT is a management tool used for planning, controlling
and reviewing a project. It is an event oriented process.
Difference between CPM and PERT :
S. No. CPM PERT
1. It is basically having deterministic It is basically having
approach in the de sign o f probabilistic approach in the
network. design of network.
2. Only one time estimate is required Three time estimate (in the
for each activity. form of Pessimistic time,
Optimistic time and Most likely
time) for each activity.
3. It is built-up of activity-oriented It is built-up of event-oriented
diagram. diagram.
4. Time and cost both are controlling Time only is the controlling
factors. There is an optimum factor and the cost is assumed
duration of the project at which proportional to the project
the project cost is minimum and duration.
this can be obtained by crashing
the network.
5. Critical events must have zero Critical events may be positive/
slack. zero/negative depending upon
the project sche dule d
completion time.
6. It is recommended for repetitive It is re co mmende d fo r
nature o f wo rk whe re past research and development
e xperie nces are ade quately project where no past
available. experiences are available or
where great uncertainty lies
in the time estimation.
Quantity Estimation and Management SP–13 A (CE-Sem-5)

4. Attempt any one part of the following : (7 × 1 = 7)

a. What do you mean by cash flow diagram ? How it is
classified ?
Ans. Cash Flow Diagram :
1. The graphical representation of the cash flows i.e., both cash
outflows and cash inflows with respect to a time scale is generally
referred as cash flow diagram.
2. A typical cash flow diagram is shown in Fig. 1. The cash flows are
generally indicated by vertical arrows on the time scale as shown in
Fig. 1.

Cash inflow End of year 1 P1 P2 S

End of year 10
Time 0 1 2 3 4 5 6 7 8 9 10

Year 1 Year 7

Cash outflow P F1 F2

Fig. 1. Cash flow diagram.

3. The cash outflows (i.e., costs or expense) are generally represented
by vertically downward arrows whereas the cash inflows (i.e.,
revenue or income) are represented by vertically upward arrows.
4. In the cash flow diagram, number of interest periods is shown on
the time scale. The interest period may be a quarter, a month or a
year.
Classification of cash flow diagrams : Following are the five
categories of cash flow diagrams.
1. Single Payment Cash Flow : This involves a single present or
future cash flow.
2. Uniform Payment Series Cash Flow : It involves a series of
flows of equal amounts at regular intervals.
3. Linear Gradient Series Cash Flow : It is a series of flows
increasing or decreasing by a fixed amount at regular intervals.
4. Geometric Gradient Series Cash Flow : It is a series of flows
increasing or decreasing by a fixed percentage at regular intervals.
5. Irregular Payment Series : It is one that exhibits no regular
overall pattern of cash flow.

b. Differentiate between breakeven point and minimum cost

point.
Solved Paper (2019-20) SP–14 A (CE-Sem-5)

Ans. Difference between Breakeven Point and Minimum Cost

Point :
S. No. Breakeven Point Minimum Cost Point

1. The breakeven occurs at the All organizations aim for maximum

point where revenues just output with minimum cost. To
equal costs. We can also think achieve this goal they like to derive
of it as the point where losses the point where optimum output
end and profit begins. A can be produced with the given
breakeven point is computed amount of input factors and with a
using the formula, minimum average cost. This point
Breakeven point = Fixed is minimum cost point.
cost/ (Price – Variable costs).
2.

Input factors
Costs and Revenues

t
Breakeven point ofi
Pr AP
Revenues = Costs
MP
O MC
Cost of production

Variable costs
AC

ss
Lo Fixed costs

Unit sales O Output

Fig. 2. Fig. 3.

5. Attempt any one part of the following : (7 × 1 = 7)

a. What are the various steps for evaluation of tenders ?
Ans. Following are the various steps for evaluation of tenders :
1. Preparation Before Issuing the Tender :
i. The evaluation of tender to be defined well prior to the ending out
the bid document or proposal request.
ii. The tender evaluation criteria should reflect the risk and value of
the contract,.
iii. The casting template for the bidders should be provided and
completed such that the bids are compared easily without lengthy
calculation and analysis process.
2. Cost vs. Price :
i. The cost is generally more than the base price as it includes delivery
installation and transportation charges if they are not separately
specified.
ii. The costing template in the tender should allow for and encourage
bidders to include the costs associated with the commodity over its
whole life.
3. Quality Requirements :
i. The bid document should also consider all the non cost criteria
definitions.
Quantity Estimation and Management SP–15 A (CE-Sem-5)

ii. The tender evaluation process criteria vary depending on the goods
or services being sourced.
iii. It includes technical issues functional ability, delivery ability legal
compliance and statutory, training requirements.
4. Weightings Criteria :
i. The relative importance of each area, to be disclosed in the RFP to
be allocated by percentage or number of marks by each separate
criterion.
ii. The bids should be assessed only against the criteria issued in the
invitation and no new assumptions to the made where performing
a tender evaluation.
5. Tender Response Assessment :
i. The format and important step in the process is to ensure that the
bidders should meet the overall basic requirements.
ii. The bidders should understand the implications and the risks of
implementing the service of delivering the goods.
iii. The template layout to be provided so that the supply is clear,
response scoring is easy and the evaluation of tenders should be
straight forward.

b. What are the general guidelines for monitoring the extra

item on construction site ?
Ans. Following are the general guidelines for monitoring the extra item
on construction site :
1. Extra item on construction site are kept to ensure all materials or
equipment are available when needed.
2. Large number of materials is required depending on the magnitude
of the project.
3. The term storage space implies both enclosed and open space that
can be used to keep materials of work safe until the need for it
arise.
4. A temporary storage is constructed for safe keeping the extra item
on construction site.
5. Bar codes and RFID are used for materials and inventory
management.
6. All materials need protection against many threats such as pilferage,
theft, damage or loss.
7. Material such as aggregates, bricks/blocks requires proper outdoor
positioning and stacking.
8. Other materials such as reinforcement bars, steel columns, and
galvanized steel must be protected against contact with water in
order to avoid rust/corrosion.

6. Attempt any one part of the following : (7 × 1 = 7)

a. With the following data of activities of a project. Develop a
suitable network for programming by CPM
Solved Paper (2019-20) SP–16 A (CE-Sem-5)

Activity A B C D E F G
Predecessors – A B B D C, E F
Duration (days) 5 6 14 8 5 9 6

A and G are terminal activities.

Determine : Project completion time, the critical path and
total float for each activity.
Ans.
Given : Activity and time shown in table.
To Find : Project completion time, critical path and total float.
1. Network :

0 0 5 5 11 11 25 25 34 34 40 40
A B C F G
1 2 3 5 6 7
5 6 14 9 6
8 5 E
D
4
19 20

2. Project completion time = 40

3. The critical-path of activity = A – B – C – F – G
4. Total float is given by,
(TF)i – j = [(LOT)j – (EOT)i] – ti – j
i. Total float of activity, G = 40 – 34 – 6 = 0
ii. Total float of activity, F = 34 – 25 – 9 = 0
iii. Total float of activity, E = 25 – 19 – 5 = 1
iv. Total float of activity, D = 20 – 11 – 8 = 1
v. Total float of activity, C = 25 – 11 – 14 = 0
vi. Total float of activity, B = 11 – 5 – 6 = 0
vii. Total float of activity, A = 5 – 0 – 5 = 0

b. Differentiate between variation of direct and indirect cost.

Quantity Estimation and Management SP–17 A (CE-Sem-5)

Ans. Difference between Direct Cost and Indirect Cost :

S.No. Basis for Direct Cost Indirect Cost

Comparison

i. Meaning A co st that is e asily Indirect cost is defined

attributable to a cost as the cost that cannot
object is known as direct be allocated to a
cost. particular cost object.
ii. Benefits Specific projects Multiple projects
iii. Aggregate When all the direct costs Total of all the indirect
are taken together they costs is called as
are kno wn as prime overheads or oncost.
costs.
iv. Traceable Yes No
v. Classification Direct material, direct Indirect mate rial,
labour, direct expenses indirect labour, indirect
overheads

7. Attempt any one part of the following : (7 × 1 = 7)

a. Write the short notes on the following :
i. Earnest money deposit.
ii. Security money.
Ans.
A. Earnest Money Deposit :
1. Earnest money is an assurance or guarantee on the part of the
contractor to keep the offer for consideration and to confirm his
intention to take up the work if accepted in his favour for execution
as per terms and conditions in the tender.
2. Following are the importance of earnest money :
i. Compensation : In case, the contractor refuses to take up the
work or runs away when his tender is accepted, the work can be
allotted to the next lowest bidder. The earnest money forfeited
compensates the loss of owner/department to a great extent.
ii. Punishment : In case the contractor quotes lower rate without
intention of doing the work, the earnest money shall be forfeited as
a punishment.
iii. Restriction on Unnecessary Competition : The provision of
earnest money will restrict the entry of many contractors who may
not have enough resources to do the work.
2. Security Money :
i. The contractor whose tender has been accepted is to deposit 10 % of
the tendered amount as security money with the department
inclusive of the earnest money already deposited.
Solved Paper (2019-20) SP–18 A (CE-Sem-5)

ii. This amount is kept as a check so that the contractor fulfils all the
terms and conditions and carries out the work satisfactorily within
the prescribed time limit.
iii. If the contractor fails on this part, his whole or part of the security
money is forfeited by the department as a punishment.
iv. The security money also serves as a security against the materials
or the tools and machineries provided by the department to the
contractor on loan.

b. Write a short note on labour safety in construction

industry.
Ans.
1. Construction sites are dangerous places where injury or death or
illness can cause to workers. These can happen due to injuries
from tools, equipment and machines etc.
2. Hence the plans for labour safety are to be considered right from
the design stage till the completion and handing over of the project.
3. The following guideline give plans for labour safety on construction
site :
i. Managing Safety and Health on Construction Sites : The
employer should make a suitable and sufficient assessment of any
risk to the safety and health to which any employee is exposed
whilst he is at work.
ii. Organising the Site : Make a good planning by gathering as
much information about the project and the project site before
works begin to ensure safety during construction phase.
iii. Excavations : Locate and identify all utility services, such as
electrical, water and sewer in the area before beginning to excavate.
iv. Working at Height : Ensure that working platform is secure and
check that it will support the weight of workers using it and any
materials and equipment they are likely to use or store on it.
v. Moving, Lifting and Handling Loads : Work site and storage of
materials should be planned so that manual handling is reduced to
a minimum.
vi. Site Vehicles and Mobile Plant : Provide safe site entry and exit
points with adequate turning room and good visibility for vehicle
drivers.
vii. Protective Equipment : Employees on construction sites need
specific Personal Protective Equipment (PPE) to ensure their safety
and health.
viii. Emergency Procedures : Where an employee has suffered injury
or illness at work necessitating his removal to his home or to a
hospital or other similar institution, the employer shall provide an
appropriate means of conveyance for the employee.

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