Jul 6, 2020

Why Estimation is Important?


Is our last few blogs we have covered many topics related to an estimation and its some internal important point-like, Rate Analysis, Material Constant, Guidelines, Thumb rules, Drawing study, Etc. But after doing a study of all the topics and actual study of the site engineer who is directly working on site the result is so different. what is the result?

During the COVID 19 lockdown, we take an online survey about the estimation and its topics we observed that more than 40-50% site engineers are not aware of an estimate, some have given interesting answers to us like "Management doesn't want to involve in the estimate, they want site engineer needs to work on the only site". So funny you know.

We asked a few questions during the survey

Is Estimation is Important?
Is it necessary?
Did you prepare any estimate?
Do you know about all requirements for estimation?
Do you have any idea of the material rate and labor rate in your area?
Can you prepare various formats to prepare estimate?
Can you remember the Constant?
Do you like to learn how to prepare an estimate?

And See the results are here

We shocked after seen these results of the site engineer, who knows about an estimate, knows about its necessity and needs but facing a lot of problems to prepare the estimate. so how we can solve these problems. a lot of engineers are interested to learn about the estimation and all the details. 

So after discussion with a lot of our readers we get the clear point of all the engineer what he wants, therefore we divided the engineers into 2 batches, our estimation will divide an into 2 types as follows.

1 Private work Estimate

2 Government Work Estimate

What is the difference between both types? let's see how we can differentiate those estimates in Private and government. 

1 Private Work Estimate:

1. The budget of the Private work Estimate is flexible.

2 Private works are as per requirement are not fixed. 

3 Specifications are not frozen, if frozen during estimation it will change at the time of execution.

4 Need to lot of on Material Rates and labor rates.

5. The Overhead of Private work is measurable, but not fixed.

6. Constants of material consumption are fixed during execution but various changes at the time of execution.

7. Private projects are time-bounded, therefore estimate needs to prepare as the given schedule, but if any calamities need to re-estimate.

8. Private work is started very quickly without preparing for it. due to that after estimate many time times drawings, decisions changed due to that you will get a huge difference in the estimate and actual execution.

9 Drawing not getting on time.

2 Government work Estimate

1 The budget of Government tender is fixed before start the work.

2 Tender is prepared after studying all the possibilities of work requirements and estimate prepared according to this.

3. All specifications are approved and finalized by the authorized officers.

4. All the drawings are approved and given it with a work order.

5. Not need to calculate other overheads. but some hidden overheads need to consider.

6. Need to work on Government charges and overheads.

7. If found extra work than tender need to approve this work item rate estimate from the authorized officer, but this will happen in 1 or 2 Case's otherwise most of the tender are approved, finalized.

8. Need to work according to the given time but if found any natural calamities or issues only time will extend but budget, estimate, and tender remains the same.

9. All rates of each and every item are considered as per DSR, and those rates are never changing at any cost. it needs to change you need to take a lot of special approvals from authorized officers but Need to those types of specialized work and items not listed in DSR with the specification. but this will happen for some special items and some special requirements from the government.

Above are some differences which are helpful to differentiate the estimation process in the Government Sector and Privet Sector. with the help of the above point, we are going to learn how to prepare a privet work estimate. and How to prepare government work estate.

Following some points are covered in the Estimate

Private Estimate

1. Sanction if Required
2. Drawing Study
3 Specifications and Requirements
4. Quantity Survey
5. Estimate Preparation
6. Preparation of BOQ
7. Budget
8. Searching for Contractor
9. Searching of Suppliers
10 Issuing Work order to Contractor
11. Purchase Order sending to Suppliers.

Government Work Estimate

1. Drawing Study
2 Project Requirements
3. Specification's
4. Quantity Survey
5. Estimation Preparation
6. Preparation of DTP
7. Approval of DTP
8. Approval of Budget
9. Preparation of Tender
10. Publication of Tender
11. Bidding of Tender
12. Finalization of Contractor
13. Issue of Work Order

Some points in Privet work and Government work are the same but at the time of execution, it will change you will found a huge difference in both the works process, rate, etc.at the time of execution.
Now We request all the engineers as please final your work criteria, which will usefully to learn your scope which can easily understand for you. If you are working in the Privet sector then study only a privet work estimate and if you are Government Contractor, Unemployed Engineer with License, Government registered Company so you can study Government Work Estimate.

There is a lot of Scope in both types of estimations for Job as well as you can start your own company of consultant. we are providing all the solutions to start your own consulting company anywhere in India.

In the upcoming week, we are offering an 8 hrs estimate course on the online platform where we will cover all the topics in this with all the details as well as we can solve some problems which are facing by our site engineer.

We are eager to request you as please take proper knowledge about estimation, tendering, contractor billing, rate analysis of materials, format preparation in excel, presentation of estimation, etc. again we request you as knowledge can never get you in trouble, so please take charge and start study about how to prepare the estimate? we are ready to show you and ready to give you all the details about it.


Construction Board