CEP Lectures by Sir Ammad Hassan

Project and Contract Management

Outlines
1- Introduction to Contracts and Tendering Pre-qualification
2- Network Analysis for the Project Planning
3- Technical Construction Specifications
4- Estimation and Rate Analysis
5- Technical Report
6- Direct and Indirect Cost in Contract and Project Management
7- Introduction to Engineering Economy
8- Oral Presentation
Introduction to Contracts and Tendering Pre-qualification
Project
A project is the management of combination of resources within specified time and
budget. Major resources comprise of material, machinery, manpower, and money (4 M’s).
In effective project management, the maximum efficiency from the resources is required.

Types of Project
For any engineering a project is the combination of various engineering and non-
engineering technologies. To differentiate between an engineering project and a
construction project for a civil engineer is necessary.
If the scope of construction work in any project is more than the scope of other
engineering and non-engineering technologies then such a project is called as construction
project. If the scope of any other technical discipline or technology is more than the scope
of construction within a project then the project is called as engineering project.
Few examples of construction projects are; high rise buildings, roads and highways,
dams and barrages, canals and hydraulic structures, airport runways and railway line
projects, irrigation and water resource engineering projects, steel structures etc.
The examples of few engineering projects include power plants, power generation
projects, mining or oil exploration projects, substations and transmission line projects,
telecommunication sector projects.
Both construction as well as engineering projects comprise of following
components;
1- Scope ( Nature of work)
2- Schedule ( Time required for completion)
3- Budget ( Finance required for completion)

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Parties involved in the Project

In projects normally four parties are involved;
1- Client/Owner/Employer
2- Design Consultant
3- Contractor
4- Supervision Consultant
All these parties of the project in professional practice of engineering should be in
the form of organization or company.
1- Client
Client is the sponsor or financer of the project. The two types encountered are;
a) Government Sector Client
b) Private Sector Client
In the Government sector, clients are of two types;
 Federal Government Client
 Provincial Government Client
Some major government clients are;
o Water & Power Development Authority (WAPDA)
o National Highway Authority (NHA)
o Communication & Works Department (C & W)
o Planning & Development Department (P & D)
o Irrigation & Power Department
o Pakistan Railways
o Military Engineering Service (MES)
o Public Health Engineering Department etc.

2- Design Consultant
The work of design consultant is to prepare the tender documents i.e.
i. Contract and conditions of contract
ii. Project Drawings
iii. Technical Specifications
iv. Bill of quantities (BOQ)
v. Tendering process
vi. Design and analysis of calculations
vii. Addendum (if any)
Major consultants working in Pakistan include NESPAK, Associated Consulting
Engineer (ACE), Republic Engineering Consultant (REC), MMP, Progressive Consultant,
Indies Consultant, HALCROW, International etc.
3- Contractor
The major rule of contractor company is to provide the construction services.

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Leading contractor companies of Pakistan include DESCON Engineering, Izhar

Private Ltd, Saadullah Khan & Brothers (SKB), Khalid Rauf & Company, Echo West
International, Habib Rafique Ltd, MAKKSON’s, Hasnain Cortex, National Logestic Cells
(NLC), Frontier Works Organization (FWO).
4- Supervision Consultant
All the organizations mentioned under design consultant perform the work of
supervision consultancy. Also a supervision consultant is engaged with the client to
monitor and check the performance of contractor. It is preferable to give the task of
supervision consultancy to design consultation. However, in practice every one of these
companies are different also.
The major role of supervision consultancy is to implement the tender documents
prepared by the design consultants.

Assignment: Pre-qualification notice in newspaper

Pre-qualification Notices
Pre-qualification means the selection of company to hand over the project to be executed.
Client

Design Consultant
(Pre-qualified by client)

Contractor
(Pre-qualified by client & design consultant; client can take opinion from design
consultant)

Supervision Consultant
(Pre-qualified by client or client and design consultant)

Pre-qualification in Civil Engineering

Parties of the project are;
1. Client
2. Design Consultant
3. Contractor
4. Supervision Consultant
Two major criteria for pre-qualification in Civil Engineering are;
1. Technical ability

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2. Financial ability
Major considerations required in technical ability evaluation are;
1. Registration of the company or firm
2. Registration of company with Pakistan Engineering Council
3. Registration of company with any government or private client
4. List of past projects
5. List of present projects in hand
6. List and contacts of all present and past clients
7. List of technical staff
8. List of equipment and machinery (For contractors only)
9. List of registered office and branch offices with telephone, fax and email addresses
Major considerations for the financial ability evaluation are;
1. Branch reference certificate (For the successful maintenance of companies account)
2. Latest branch statement
3. Income tax registration certificate
4. Sales tax registration certificate
5. National tax no. (NTN)
6. List of the cost of all present and past major projects
7. Detail of joint venture if any with share of each partner
8. Litigation or arbitration certificate
9. Annual turnover supported by the auditor’s report

Technical Ability Financial Ability

Sr. No.
Total Achieved Total Achieved
1 5   5  
2 5   5  
3 10   5  
4 5   5  
5 5   5  
6 5   5  
7 5   5  
8 5   5  
9 5   10  
Total 50   50  

Joint Venture
If a single company does not have enough financial or technical resources to
participate in pre-qualification of tendering of the project then often more than one
company join together to participate in a project called as joint venture.

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Examples:
Islamabad-Peshawar Motorway
24,000,000,000/-
24 months , Pakistan Motorway Company (PMC)
All the major points in technical and financial ability are assigned with certain
numeric points which are taken as guideline numbers and with respect to those technical
and financial ability of each company, is ranked. Based on this ranking the companies are
either technically or financially pre-qualified or disqualified. The client conducting the pre-
qualification must acknowledge in writing about the decision of prequalification or
disqualification to all the parties who have submitted their applications.

Assignment: Tender Notice (Design Consultant/Contractor)

Tendering Process in Civil Engineering

Project
Tendering/Bidding
Pre-qualification
Client
Design Consultant - - - - - - - - - - - - - - - - 100 10 F/C 1
Contractor - - - - - - - - - - - - 200 15 F/ C 1
Supervision Consultant

After the prequalification of selected companies, these companies are broad in the
stage of tendering or financial competition. Tendering stages in civil engineering projects
are;
1. Tendering of Design Consultant
2. Tendering of Contractor
3. Tendering of supervision consultant

1- Tendering of Design Consultant

Tendering of design consultant can be carried out immediately after
prequalification. The tender price (fee) of design consultant is based on either lump-sum
basis or percentage against total cost of the project. The minimum design consultancy fee
asked by the prequalified consultant is selected as design consultant of the project and a
formal contract is established between client and design consultant. The major job of
design consultant is to prepare the tender documents (discussed earlier). The client is
providing his scope requirement, his budget information and time requirement for
carrying out the tender documents.

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Vetting Consultant
The vetting consultant is hired as one of the prequalified design consultant company
for checking the work of design consultant (the tender documents). The fee of vetting
consultant can be on the lump-sum basis or percentage against the total cost of the project.

2- Tendering of Contractor
After the preparation of tender documents by design consultant and selection of
contractor through prequalification, the client or design consultant enter in the stage of
tendering of contractor. The client issues the advertisement in newspaper titled as Tender
Notice and also sends official letter to the prequalified companies for participation in the
tender. The following major considerations are taken care of handling the tender process.

a) Tender Fee
Tender fee is taken from the contractor to cover the cost of printing of tender
documents and to shortlist the interested companies within the project. Sometimes tender
fee also includes the cost for holding the tender event.

b) Holding the Tender Event

In the tender notice advertisement following things are described by the client;
i. Date, time and place of tender opening
ii. Conditions for the presence of contractor representatives or the tender opening
event
iii. All the tender documents are required to be signed and stamped by the contractor
iv. Tenders should be sealed
v. Tenders should be accompanied by earnest money

Tender Security or Earnest Money

The contractors are required to submit 2-5% of tender cost as tender security called
as earnest money. The earnest money can be in the form of demand draft or guarantee
certificate, stamp paper issued by bank or insurance company.
The guarantee or draft of successful company is retained by client and for other
companies, it is returned within 90 days after tender opening event.

c) Responsive and Non-responsive Tenders

Responsive Documents
Any submitted tender within requirement of published tender notice advertisement
is called responsive tender.
When contractor is checking and preparing rate from tender documents, if
contractor company finds any mistake or any question or any inquiry for document, it is

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forwarded to client. The client is forwarding this inquiry to design consultant and official
reply is always prepared for such an inquiry called as addendum. This official reply called
as addendum is forwarded later on by client to all companies participating in tender. This
reply also becomes part of official tender documents.

Non-responsive Documents
Any tender unsealed or without earnest money or without any or all tender
documents, any late submitted tender is called non-responsive tender. Such tenders are
not considered by client in tendering process.

Assignment: Discuss tendering process for contractors based on comparison on tendering

in Pakistan and other country of choice.

3- Tendering for Supervision Consultant

It is always preference of client that design consultant and supervision consultant
company should be same companies. However, these companies can be different due to
following reasons;
1- Charges for supervision consultancy by design consultant company are very high
2- If design consultant doesn’t have in house supervision capability
3- If design consultant is overloaded with work he himself say to hire supervision
consultant
4-

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Contract in Civil Engineering

Contract in civil engineering is a legal agreement between parties of project. These
types of contract are established in any project.
o Contract between client and design consultant
o Contract between client and contractor
o Contract between client and supervision consultant
The contract and conditions of contract are always written on legal documents
(stamp papers) and dully signed by both parties of contract.
The contract remains as legal document throughout the life of project. There are two types
of contract currently present in construction practice in Pakistan;
i. Local Contract
ii. International Contract (FIDIC)

i. Local Contract
If all the parties of project including client, are local companies of country then
contract and conditions of contract is local contract. The currency of exchange in local
contract is Pakistani Rupees.

ii. International Contract (FIDIC)

If the international company is present as any design consultant, contractor and
supervision consultant of project with any local client, the contract and international
company will be on FIDIC contract. The currency of exchange and contract in FIDIC
contract is US Dollar. In FIDIC contract any arbitration or litigation is carried out at neutral
country or neutral venue.

Types of Contract
1. Item Rates Contract
2. Schedule Rate Contract
3. Non-schedule Rate Contract
4. Lump-sum Contract
5. BOQ Contract
6. Cost plus Percentage Contract
7. Cost plus Fixed Fee Contract
8. Build Operate and Transfer (BOT) Contract
9. Turnkey Project
10. Design Build Contract
11. Labor Contract
12. Material Contract
13. Machinery Contract
14. Serial Contract
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1- Item Rates Contract

This is the type of contract between client and consultant or contractor or
supervision consultant in which terms and conditions of contract are settled based on the
various items required in the project;
a. Building design
b. Architectural design
c. Structural design
d. Public health design
e. EM design
f. Building construction

1. Basement work 20%

2. Ground Floor 30%
3. First Floor 30%
4. Second Floor 20%
The items in this type of contract are related with rate to come on final cost of
project. That is why it is called item rate contract.

2- Schedule Rate Contract

This is the type of contract normally carried out only for government sector project
in Pakistan. Various government client organizations of Pakistan like WAPDA,
Communication and Works department, Building department, Pakistan Railways, Military
Engineering Service (MES) etc have developed their an analysis of rates and estimates of
projects.
It is normally carried out between client and contractor. The estimate or rate
analysis established by different clients is called as schedule of rates. These schedules of
rates are in the form of booklets published independently by various government
organizations. These organizations are keeping these schedule booklets updated time to
time, to accommodate any price changes effect. Various commonly available schedule
booklets include;

 MES schedule of rates

 Pak Railway schedule of rates
 WAPDA schedule of rates
 C & W schedule of rates

Assignment:

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In schedule rate contract, the schedule cost of project is already known to all
contractors participating in tendering. In tender of such contracts it is asked if contractor
company is willing to execute project on same schedule cost or less than cost or more than
cost. Any cost more than schedule cost is called premium and less is called rebate.
BOQ
Sr. No. Description Quantity Unit Rate Amount
1 Excavation 1500 m³ 100 150,000
2 Compaction 1000 m² 50 50,000
Termite
3 Proof 1000 m² 200 200,000
4 Brick work 500 m³ 100 50,000
5 DPC 100 m² 100 40,000

3- Non-Schedule Contract
Non-schedule rate contract is for those items of work which are not present in the
original schedule booklet with modernization in construction and a lot of advanced
technology transfer from abroad, often it happens that not all the construction aspects of
the project are documented in schedule booklet.
In non-schedule contract, the cost of various items in the project is asked from
contractor in tendering. The tendering of project is composed of two parts;
i. Schedule items
ii. Non-schedule items
The premium or rebate is asked on schedule items and cost or rate of each non-
schedule item is asked. If the total cost of schedule item is more than the cost of non-
schedule items of project. The contract is referred as schedule rate contract and otherwise
non-schedule contract.
The non-schedule contract is always between government sector client and
contractor only.

4- Lump-sum Contract
This is the type of contract between client and design consultant or contractor or
supervision consultant, in which the breakup items of project are not specified. The
breakup cost of items in such contracts is also not mentioned.

5- BOQ Contract
If the contract is established between client and contractor based on BOQ then the
type of contract is called BOQ. It is one of the mostly used types of contract between client
and contractor universally. BOQ is provided along with tender documents to contractor
and contract is established based on quantities, rates and amounts specified in BOQ.

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6- Cost plus Percentage Contract

This is a type of contract between client and design consultant or contractor or
supervision consultant in which standard direct cost of project is first established then this
standard direct cost is used to assign percentage of profit or share of organization. Cost is
referred to the value of any item without profit.

7- Cost plus Fixed Fee Contract

A cost-plus fixed fee contract is a specific type of contract wherein the contractor is
paid for the normal expenses for a project, plus an additional fixed fee for their services.  
These allow the contractor to collect a profit on the project, and they encourage economic
production in various industries.
In general, the expenses in a cost-plus fixed fee are calculated according to market
values.  However, the “fixed fee” portion of the contract may be subject to negotiation
between the parties, and can therefore vary according to the needs in each project.  Cost-
plus fixed fee contracts are sometimes referred to as CPFF contracts, cost-plus contracts,
cost-reimbursement contracts, and cost + fixed fee contracts. (Internet)

8- Build Operate and Transfer (BOT) Contract

BOT is a new technique recently introduced in construction contract management. If
the client does not have finances for making development on its land, it can hire the
services of company or joint venture for making the development on the land. The
company or joint venture operate that development for certain period of time and then
return it to client in running condition.
The reliability of client in case of BOT project is very important in Pakistan. In most
of the past and present BOT projects implemented by the Government of Pakistan
remained as client.
The major BOT contracts established in Pakistan are Lahore-Sheikhu Pura dual
carriage way, development of Grain Terminal Complex at Port Qasim (Karachi),
construction of General Bus Stand at Thoker Niaz Baig, 3D Max cinema at MM Alam Road,
Parks & Horticulture Authority Lahore (PHA).

9- Turnkey Contract
Often it happens that client of the project does not have time and capability to deal
with design consultant, contractor and supervision consultant. In case client wants only
one party with which all the matters of construction is carried out. This arises the need of
turnkey contract.
The turnkey contract is between client and single party and single party is
responsible for design consultant, contractor and supervision consultant.
This type of contract has lot of legal disciplines and is normally adopted for small
scale jobs. Most of the architectural design forms of Pakistan are using this type of contract

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for small scale construction of houses, buildings and infrastructures. The various
companies in Pakistan offering the services of turnkey contract include;
 Nyer Ali Dada & Associates
 Abid Ali & Associates
 Mansoor Durani & Associates
 Mansoor Mazhar & Associates

10- Design Build Contract

This is another new type of contract technique recently introduced also known as
Engineering Procurement Contract (EPC).
In this type of contract the client offers design and construction job to a contractor
company and a supervision consultant is hired for vetting of design and supervision of the
construction. EPC contract was successfully used by WAPDA in construction like Mirani
Dam, Satpara Dam in Sakerdu and Sbakzai Dam in Zhob (Balochistan).

11- Labor Contract

If the client has in house facility for design and procurement of materials than often
from contractor only labor services are required. Such kind of contract is called as labor
contract e.g. Behria Developers, Tricon Developers, Pace Pakistan. The labor contract lost
its popularity in previous three years in Pakistan due to shortage of skilled labor and extra
ordinary increase in the wages of labor. The leading contractors are accepting any job in
labor contract. In recent years one modification of labor contract on mega projects of
Pakistan is observed. In this change, three or four major materials of the project like steel,
cement, diesel and crush is provided by client and all other materials are responsibility of
executing contractor. So the contract type is on semi-labor terms and conditions. Such
contract is acceptable even by the leading contractor companies.

12- Material Contract

If the client has in house facility for design, construction and supervision than it
often hires the services of material suppliers for the supply of construction materials. Such
contract between client and material supplier is called as material contract. The material
contract normally covers the type, size, brand and other related specifications
requirements of the material. The warrantee and defected materials detail is also covered
in this contract.
An advanced form of material contract is the contract between contractor and
material supplier also. Such projects are carried out in the projects when the contractors
are responsible for the supply of materials.

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13- Machinery Contract

The machinery contract is between client and machinery supplier. This contract is
also possible between contractor and machinery supplier. Machinery supplier is supplying
machines on rental basis. If machinery required is with or without operator, machinery
daily minimum and maximum usage, time and maintenance aspects are normally covered
in this contract clause.

14- Serial Contract

If the design consultant or contractor or supervision consultant of a project are in
good relation of performance with client then for any upcoming new project of client, the
client is asking from the company about their willingness of job before going in any
prequalification or tendering process. Such type of contract is known as serial contract.
Serial contract can be on the same conditions of contract as the previous contract and it
may vary also. Serial contract can be adjoining to the running project in another city or
sometimes in other country also.

In all the above mentioned contracts, important conditions of contract include;

1. Mobilization Advance
2. Performance Bond
3. Defect Liability Period
4. Escalation (Price Changes)
5. Completion Time of Project
6. Project Start & Finish Date
7. Bill & Invoices
8. Liquidated Damages
9. Unforeseen Circumstances
10. Retention Money
11. Program of Work
12. Secured Advance

1- Mobilization Advance
As a general practice of construction, an advance is always given by the client to
contractual parties. This advance varies from 5-25% of the total cost of the project. The
advance is always issued by the client on the submission of bank guarantee deposited by
contractual parties. The bank guarantee states that if the contracting party will not ready to
perform the project and refunding of that advance.
The bank will pay the equivalent amount to the client. The mobilization advance
condition of contract is provided to assist the contractor, design consultant or supervision
consultant to make necessary start up arrangements for the execution of the project.

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2- Performance Bond
Before the execution of any project and sometimes even before releasing the
mobilization advance, the contract is entitled to submit a bank guarantee of reasonable
amount against the performance of his work. Performance bond is a kind of warrantee
taken by the client from the contract that if during the construction and in the
maintenance period, any part of work of the project become fail or out of order or any
substandard work if is required to redo by contractor then the contractor will do it
without any charges( free of charge).
Performance bond is dependent on maintenance period which is also called as the
warrantee period of the project. This warrantee period in buildings project is years and in
roads & highway projects it is 1 year after completion of the project.

Maintenance/Warrantee Time

0 2 years

Construction Time

The validity of performance bond guarantee is equal to the total project duration
plus the maintenance period. After the expiration of validity period the mobilization
advance guarantee is released by the client.

3- Defect Liability Period (Maintenance Period)

The contractor has to give the guarantee for his execution for a certain period of
time called as defect liability period. The client has to check that the project is defect less in
this defect liability period. If any defect arises in defect liability period than the contractor
will be responsible for making required maintenance period. For normal building project
defect liability period is 2 years. For power plants defect liability period is 2 years.

4- Escalation (Price Changes)

In developing countries like Pakistan there are many factors that are directly
affecting the price control of material, manpower and even construction machinery.
In current situation the economy of Pakistan is facing serious price changes which is
one of the major reasons of uncontrolled prices in construction. The Government of
Pakistan relates the oil prices within the country directly with the international market. Oil
being the most important consumable item involved in construction project as
transportation of material, running of execution plants angh d execution of construction
project work through machinery.

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According to FIDIC clause of escalation if there is any increase in the price of any
resource with respect to the standard tender price of the project then this price increase is
claimable by the contractor. If there is any reduction in price of any resource with respect
to the standard tender price then that reduction is chargeable by client from the
contractor. In some projects, in recent years in Pakistan, to avoid the complexities
associated with escalation only selected items of the project are entitled for the escalation.
The composite schedule of rates (CSR) is also allowing escalation only on the major project
materials. These major materials include diesel, bitumen, cement, steel, electric cables etc.

5- Completion Duration of the Project

The actual duration for the completion of project should always be properly
described in the project. The defect liability, duration of performance bond and liquidated
damages are governed in the contract based on this condition of contract.
Assignment: Report regarding comments on tender of boys hostel Faisalabad Campus
(Drawing, contract and conditions of contract, BOQ items).

6- Project Start & Finish Dates(Time)

Project Finish Time= Project start time + Duration
Actual Days (490)

Duration

Working Days (365)

The start and finish dates of the project should be clearly mentioned in the
conditions of contract. The final duration of the project is based on these starting dates as
well as the duration of the project which can be on actual basis or working time basis.

7- Unforeseen Circumstances
These unforeseen circumstances arise from natural disaster which include
earthquake, floods spreading of any disease etc. The FIDIC is governing the guidelines of
such happenings. Normally all the parties of project are required to share the disaster in
reconstruction in their own capacity. This sharing can be in the form of reduction in profit
margins and discount on the services provided.
8- Liquidated Damages
If the design consultant or contractor are unable to finish their job within specified
time as per contract then they are subjected to liquidated damages from the client. The
liquidated damages are in the form of penalty money against each single date delay in the
completion of project. For the projects of high importance the liquidated damages per day
are up to 500,000/- and for general projects it ranges from Rs. 5000-50,000/- per day.

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9- Bill and Invoices

The time frame of the processing of bills and invoices should be clearly
documented in the contract. The process includes the realistic evaluation of the bill or
invoice up to the stage of payment. The frame in each processing step is clearly indicated
in the contract document. Following are the steps of this process;
1. Submission of bill by contractor to client
2. Review of bill by supervision consultant
3. Submission of bill to client after review and comments by the supervision consultant
4. Administrative approval and account formalities
5. Releasing of cheque (payment) to contractor

 On any project, representative of

Client = Project Director (PD)
Contactor = Project Manager (PM)
Supervision Consultant = Resident Engineer (RE)

④ Will make review

Forward To PD Submit Bill

PM① ③

RE ② Check & Comment

Head Office (Purpose is to administrative approval and account formality)

The maximum duration against each step of the process is defined, so the parties of
the project get the idea that after how much time it can receive its invoice bill. Additionally
under the same clause it is specified that after how much time interval the contractors are
entitled to submit their bills.

10- Retention Money

Any amount retained from the running invoices of the contractor in account of
mobilization advance, secure advance or any over-billing in the bill is termed as retention
money. As the condition of contract the maximum percentage of retention money retained
by the client is described additionally the mode of recovery of any kind of advances paid to
the contractor by the client is also described.

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Bill Release Balance

B1 3 2.7 0.3
B2 5 4.1 0.9
B3 7 6.2 0.8
B4 8 7.6 0.4

11- Program of Work

The contractor is required to submit the detailed layout program of the project
execution to client through supervision consultant. This layout program includes bar
charts, activity details and major mile stones. These mile stones and activities are
presented with respect to schedule and budget within the program.

12- Secured Advance

If the contractor is bringing the material at the project site in bulk, 70% or more
than 70% of cost of the material can be charged from client by contractor through the
clause of secured advance. Secured advance is a very helpful tool for contractors to
manage the problem of price changes, summer or winter price variations or in case of
shortage of any material in the market. The secured advance is only claimable by
contractor after the presentation of original invoices of material and checking of material
by the supervision consultant and client. The recovery of secured advance is in the form of
retention of money from the running bills of the contractor.

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Network Analysis
Network analysis is used to plan the project with respect to time. Normally in
modern construction management, the planning of project is carried out before the
commencement of the project. This time base planning depends upon break down of the
project in major mile stones and its subsequent activities. All the modern software of
project planning like Primavera Project Planner P3, MS Project use the same network
technique for the computer base planning. The advance form of the network analysis
technique is called Programme Evaluation and Review Technique (PERT) also called
Project Evaluation and Review Technique. PERT form is based on classical network
analysis technique called as Critical Path Method (CPM).

Critical Path Method

CPM is the classical method of network analysis used in construction. The
understanding of CPM depends on understanding of following terminologies;

1- Activity/Task
Any work which requires time and resources for its completion is called as activity.
In CPM it is represented by an arrow sign ( ).
Activity

Time 4M’s

2- Event
Event is described as start and finishing time of an activity is called as event. Event
is represented by , , ,

Excavation

ST

ST 5 days FT

EST EFT
01 jan 2011 05 jan 2011
LST LFT
03 jan 2011 13 jan 2011

EFT = EST + Duration (Activity)

LFT = LST = Duration

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Possible types of events can be;

1. EST Early starting time
2. EFT Early finishing time
3. LST Latest starting time
4. LFT Latest finishing time

3- Dummy Activity
Any activity having zero duration is termed as dummy activity. This term is
introduced in the network to maintain the rules of network drawing. However this activity
does not have any direct effect on the evaluation of the project. Dummy activity is
normally represented by ⇢

4- Critical Activity
Any activity falling on critical path of the network having total float zero and for
which EST = LST and EFT = LFT called as critical activity. Any change in the duration of
critical activity can change the total project duration.

5- Non-Critical Activity
Any activity for which total float is not equal to zero is called as non-critical activity.
If any kind of delay comes in these activities (reasonable or permissible) then the total
project duration remains unchanged.

6- Network
This is the combination of activities, dummy activities and events in logical
sequence according to the rules of drawing networks.

7- Total Float
Total float is the extra time available with the activities for its completion.

8- Float
Float is associated with activities (non-critical as the spare time). By definition of
network analysis critical path can not have any float. There are three types of float;
i. Total Float
This is the amount of time on network path of the activities, which can not affect the
total project duration.
TF = LFT – EST – Duration
ii. Free Float
This is the amount of time an activity can be delayed without affecting the
commencement of a subsequent activity but may affect the float of previous activity.

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iii. Independent Float

This is amount of time an activity can be delayed when all preceding activities are
completed as late and all coming activities are completed as early.
For civil engineering purposes the most proper type of float is total float because it
is involved with overall duration of project. If float is required without mentioning total,
free or independent type then it is basically total float.

How to Evaluate the Activity Duration?

The evaluation of any activity duration, in construction planning and management is
always based on quantity of involved resources. If properly managed and monitored, then
more are resources, lesser is the time required for the completion of activity and if lesser
are the resources, more is the time required for completion of activity.
The analysis of activity duration is carried out based on three possible times
1. Optimistic time
2. Pessimistic time
3. Most likely time

OT + PT +4 ML
Activity Duration =
6

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Technical Construction Specifications

Technical specifications are of two types;
1- General Specifications
2- Detailed Specifications

1- General Specifications
These are normally provided in drawing and BOQ in which very brief information
regarding quality of material or finished product is described. The general specifications
are not describing any detail related to the materials or product quality and usage
requirement.
The general specifications are referring to the detailed specifications which are the part of
tender documents.

2- Detailed Specifications
Detailed specifications as the part of tender documents are in the form of a booklet. The
detailed specifications are covering all the major and minor materials and products,
quality and usage requirement for that specific construction work.
Detailed specifications should be properly noted by the contractor for the evaluation of
project rates. Without the proper understanding of detailed specifications the contractor
are unable to provide their rates.
Detailed technical specification booklet for any construction project comprise following
chapters(only for building projects);
 Civil Works
 Architectural Works
 Plumbing and Sewerege Works
 Electromechanical Works
Civil Works
Concrete
The technical specifications of concrete refer to
1- Mixing of Concrete:
Concrete ingredients are mixed in two ways
a) Mixing by volume
b) Mixing by weight
If the mixing by volume then either manual mixing or mixing by concrete mixer is carried
out. And if mixing by weight then concrete batching plant is required.
2- Grades of Concrete
Normally refers to compressive strength of concrete.

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3000psi C2
. .
. .
. .
12000psi A

The grade of concrete normally refers to concrete class and its compressive strength.
Mostly used concrete classes include Class A, B, P1, P2, C, C1 and C2. These classes refer to
the compressive strength of concrete.
In modern ongoing projects, minimum compressive strength requirement is grade C2
which is reflecting a concrete compressive strength of 3000psi.
By volume mixing we can not make concrete of Grade C2. In concrete batching maximum
achieved strength is 5000psi.
For Grade A chemicals are added.
3- Admixtures Required for Concrete
Admixtures are chemicals used in concrete to improve its physical and chemical properties.
4- Curing Requirement of Concrete
For footing normally 7 days( G factor) curing is required, column members also need 7
days for curing. Beams need curing of 14 days and slabs 28 days.
In modern contruction, this time duration can be reduced by adoptation of steam curing.
5- Shuttering/Formwork Requirement of Concrete
Types of shuttering;
a) Steel shuttering
b) Wooden shuttering
c) Synthetic wooden shuttering
6- Vibration or Compaction Requirements
Compaction is done either by manual vibration or vibration by concrete vibrator.

Steel
Technical specification includes;
1. Yield and ultimate strength
2. Hot rolled or cold formed steel
3. Tor or deformed steel
4. Bending and cutting requirement of steel
5. Grade of steel ( G60, G40)
6. Brand of the steel
Mughal Steel, Prime Steel, Ambreli Steel, Malik Steel, Ittafaq Steel etc.
7. Lap requirement of steel

Note: Quality of Concrete = Quality of Manpower + Material Quality

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Brickwork
Price of
 First Class Brick = 6 Rs/B (2011)
 Second Class Brick = 3.5 Rs/B
 Third Class Brick = 2.75 Rs/B
 Underburnt Brick = 1 Rs/B
 Overburnt Brick = 1.5 Rs/B

Original dimensions of brick = 9” X 4.5” X 3”

Volume of the brick = 121.5 in3

Reduced dimensions of brick = 8.7” X 4.3” X 2.85”

Volume of the brick = 106.62 in3

Let,
Quantity of brickwork = 5000 ft3
= 8640000 in3
No. of bricks = 8640000/121.5
= 71,111 (for original size)
= 8640000/106.62
= 81036 (for reduced size)

In Pakistan, 99% bricks available are under dimension.

Volume of kiln = 20’ X 50’ X 50’
= 50,000 ft3
= 8,64,00,000 in3
No. of bricks in kiln = 7,11,111 bricks (Standard Size)
= 8,10,354 bricks (Reduced Size)

It is the benefit of kiln to have lesser size of the brick. Bricks are sold at original size and
more available bricks are sold.

Technical Specifications of Bricks comprise of;

1- Class of Brick
Class of brick represents how much heated the brick. Bricks are of first class, second class,
third class and under burnt and over burnt bricks.

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Bricks Compressive Strength

1 Class Bricks
st
≥1800 psi
2nd Class Bricks 1700-1800 psi
3rd Class Bricks <1200 psi

For load bearing Structures 1st class bricks are suitable and for partition walls 2 nd/3rd class
bricks are suitable.

2- Porosity of Bricks
It represents how much water is absorbed by brick when soaked in water for 24 hrs.

3- Efflorescence
It represents effect of salts. Bleeding of slat from bricks is efflorescence.

4- Size and Dimension

Size and dimension (standard or reduced) have the effect on technical specifications.

Cement
Technical specifications comprise of;
1- Brand of Cement (Grey Cement)
The leading brands of cement available in Pakistan are Maple Leaf Cement, Askari Cement,
Pioneer Cement, DG Cement, Foji Cement, Kohat Cement, Fecto Cement, Bestway Cement
etc.
Maple Leaf Cement is more authentic , 10-15% Rs/- more price than other brands. Maple
Leaf Plant was established in 1975-1977.
Physical & Chemical properties including compressive strength, soundness, durability,
slump requirement, water cement ratio, initial and final setting time etc.
2- Types of Cement
o Silica Cement
o Pozzolanic Cement
o Grey cement; weight = 50kg , price = Rs/- 400 , strength = more
o White Cement; weight = 40 kg , price = Rs/- 775-800 , strength = less , leading
brands are Maple Leaf, Kohat, Anwar Zaib Cement.
o Sulphate Resistant Cement

Sand
Technical specifications include;

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1- Types
Major types of sand used are;
 Ravi Sand
 Chenab Sand
 Lawerencepur Sand

2- Gradation Requirement for Sand

Sieves; #4 - #200
Coarse, Medium and Fine sand
Cc & Cu
This requirement is for filling and utilization in concrete.

3- Specific Gravity

4- Shear Strength
Soils/sands are subjected to shear forces(sliding).

Cohesion in clays and angle of internal friction are governing principles for evaluation of
shear strength of soils.

5- Compaction Requirements
Sand is used as a filling material. Its maximum density and moisture content is required in
this case.

6- Permeability
How much water is allowed to flow.

Crush
Major sources of crush are Margla, Sargodha, Sakhi Sarwar and Dena (Rohi Crush). The
requirements for crush are;
 Specific gravity and water absorption requirement
 Soundness requirement
 Loss Angles Abrasion value requirement
 Moisture Content and max density for crush mixes
 Gradation requirement; #4 (last sieve)
 Alkali reactivity and Chloride content (Chemical Test)
 Impact value test
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 Flakiness Index and Elongation Index test value

 California Bearing Ratio (CBR Value)

Architectural Work Detailed Specifications

Architectural works technical specifications include;
Flooring
Technical specifications covers;
Types of Floor
 Marble flooring
 Tile flooring
 Chips flooring (White cement + Marble powder and Marble chips)
 Terrazzo flooring (Cement + Coarse sand mix)
Laying of Floor
Apply in strips
Flooring by white or by grey cement
Fixing of marbles or tiles (White or grey tiles)
As a modern aesthetic work requirements pigments are used but costly.

Same Color

Pigment
Size of Tile and Marble
Standard size of tile or marble in market is 1’X1’=500 Rs/sq ft
In Lahore commercial places size is more
2’X2’ = 1100 Rs/-
3’X3’ = 1800 Rs/-
Skirting Requirements
Borders – Strips of different colors in floor.
Cutting Work of Tiles and Marbles for Installation

Major Sources of Marble

Boticina, China, Verona, Indian Green, Ziarat white and Ziarat grey. (550 Rs/ft 2 , 450
Rs/ft2)
1’X1’ = 29 Rs/-
2’X2’ = 120 Rs/-
Major Sources of Tiles
Local tiles, Master, Emco, Forte, Sonex, Major important brands coming from China.

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For cement floor both in terrazo or chips ratio of white and grey cement, marble powder or
sand. Option of flooring with or without marble or glass strips (No cracks).
Grinding Requirement
Terrazo, chips, marble floor are always grinded and polish is applied on it
Two types available
1. Wax polish
2. Chemical polish
Avg rate = 400 Rs/ft2

Wood
Technical specifications of wood comprise of;
Sources of Wood
1- Natural Wood
In natural wood types/qualiy of wood includes teak, Partal and Diar.
Teak: For doors, Showcases
Partal: It is most cheapest, seasoned but with passage of time gets moisture; swells and
deflects.
Diar: It is 2-3 times costly than Partal. Good material in construction.
2- Artificial Wood
It is man made wood.
Artificial Milk is extracted from Soyabeen.
Major artificial wood includes Formicas, Winpoard, Gypsum boards, Lasani boards,
Malaysian wood, Ply wood and Chip boards.
Lasani woods is used in cabinets, kitchen cabinets.
Artificial wood products are very cheapest so are being used in commercial buildings.

Treatment of Wood
It comprises of
 Painting
 Polishing
 Termite Proofing

Types of Wooden Finishing

1. Hollow finishing
2. Solid finishing

Steel Work
Steel Sheets

Single Angle Section

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Channel Section

I Section

Tee Section

Architectural steel work majorly used in constructionforrailings, doors, frames, Grills

Stands.
Architectural steel work comprises of
Bonding of steel

Gauge (thickness) of steel

In Pakistan
G20 (Thin)
G12 (Thick)
Gauge of the steel sheet refer to the thickness of sheet. G20 sheet is thinner than G12 sheet.

Protection of the Steel Sheets

Protection from corrosion is achieved by
 Painting
 Oiling
 Greasing

Dimensional Requirement of Steel Sections

More dimensions of sections have more capacity indicating more strength.

Punching and Impact Requirement of Steel Sheets

Note: Nowadays steel is replaced by aluminum sheets because it is not corrodible. Steel is
three times costly than aluminum.

Painting
Technical specifications of painting comprise of
Types of Paints
a. White wash
b. Distemper Cheapest
c. Warnish paint
d. Weather shield For sunlight protection

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e. Emulsion Paint
f. Plastic Emulsions Resistant to dust, cleanable
Grinding stone is applied to rough surface of plaster (structure), plaster of Paris is applied,
pores are filled and first coat of paint is applied. Then second and third coat of paint is
applied after grinding. Emulsion is applied for good appearance.
Major brands of paint include Burjer, ICI, Blackhorse and Master.
Solvent of the Paint
1. Water based paints
2. Oil based paints (Turpentine Paint)
Pigments Requirement
Pigments are mixed in paints to achieve particular aesthetic shade. Pigments are costly.
Surface Preparation Requirement
1. Civil Works
2. Architectural Works
3. Environmental Engineering Works

Plumbing And Sewerage Work

Plumbing: System of water supply and gas works.
Sources of Water
1. WASA (Water and Sanitation Authority)
2. Underground water – Direct pumping
3. Any water storage like underground or surface water tanks
 Rawal Lake is a source of water for Rawalpindi.

Valves and Water Supply Accessories Requirement

Accessories include Bends, Collar, Reducers, Elbows, Tee’s, Diffuser
Water Supply Pipes Requirement
Types: Two types are available
1. GI5 – Galvanized Iron Pipe
2. PP – Polypropylene Pipe
It is fiber glass, greenish in color, rust free, costly and no protection against corrosion.
Grade of Pipe: Commercially three grades are available in market;
1. HD (High Density)
2. MD (Medium Density)
3. LD (Low Density)
Grading is based on pressure requirement. Pipes design is based on pressure requirement.
1000 HD Turbines/Water Boilers
600 MD High pressure of gas, power plants
300 LD have capacity of high pressure buildings, houses

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For GI pipe protection against corrosion or rusting is provided through paint or asbestos
raping (Black material).
Geyser or Water Heating Requirement
Three types are available;
1. Gas Based
 Insta Geysers
 Traditional Geysers
2. Sunlight Based
 Solar Geyser
3. Electricity based
 Electric Geyser

Sewerage System
To drain out water
Technical specifications include;
Types of Pipes
 RCC Pipes
 PVC Pipes
 Cast Iron Pipes

K
. Sewer Line
.

B
.
. B BB
.
. Manhole
Direction of Flow

Septic Tank

Manhole Requirements
a) Brick
b) Concrete

Manhole Covers
a) Cast Iron

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b) Concrete
c) PVC Material
Septic Tank Requirements
a) Brick
b) Concrete
Sockage Pit Requirement
Local Term – Gherki
10-12 m deep pit
Connection of Sewer Pipes

Surface Protection for Cast Iron Pipes

Strong Water Drained Pipes

a) PVC
b) Cast Iron
To drain out rain water. These pipes can be clamped with wall or unclamped.

Technical Specifications for Electric Work

Electric Cable
1. Cable of greater capacity has more no. of cores.
2. Cable is hot due to losses of electricity.
3. Electric cable quality depends on
 No. of cores in the cable
 The purity of cable X-Section of Cable
 Concealed or unconcealed cable.

Electric Cable Conduct Pipes

Electric Switches

Circuit Breakers
 Main key of main panel.
 To control the fluctuation of current.
 The capacity of circuit breakers is based on ampere. In market commercial based
circuit ranges from 2A minimum up to a maximum of 2000A.
The leading brands are
 Ketachi
 Parasaki
 Lagrand

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 Marlingerlin
 A lot of Chinese brand

Distribution Boards
Panel boards having phase indicator, voltmeter, M-meter, gauges, circuit, circuit breakers,
as well as main On/Off switches. These may be of metallic or acrylic material with a glass
door.

Lights, Fans, Air Conditioners, and other Electric Accessories

Earthing System

SP-2

SP-1
Switch Board Main Panel Electric
Meter

SP-3
250 V

SP-1 Upstairs and First floor

SP-2 Controlling electricity on ground floor

Light

Gauge

Master Breaker

Circuit Breaker

In main panel higher capacity of circuit breakers are used and in SP, breakers of lesser
capacity are used.

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Technical Specifications for Mechanical Works

It’s technical specifications include;
1- Pumps, Motors
 Rating of pump or motor is based on horse power (hp or KVA).
 hp indicating output efficiency of motor. It is written on motors “hp”
 KVA indicates how much electric supply is required to pumps and motors.
2- Escalators and Lifts
 Capacity of lifts
 Types
a) Hydraulic lift
b) Mechanical lift
c) Electrical lift
3- Maintenance of Mechanical Work
Motor, pump and mechanical accessories
Mechanical item’s life
4- HVAC System
For air conditioning and heating system for building.

5 Air Conditioning Plant

Square Duct Pipe 4

Building

Capacity: 200 ton, 500 ton

Brands:
 Pell 20,000-22,000 Rs/-
 Waves
 LG 40,000 Rs/-
 Super Asia
Ducting Requirement
 One directional

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 Two directional
 Multi directional
Location for Placement of HVAC System
 Base
 Top of the building

Rate Analysis
Rate Analysis for Excavation
Standard Quantity = 1m3

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i. Material
ii. Manpower
a) Labor = 0.6 D
b) Mate = 0.06 D
Mate is representative of labor who is relatively skilled.

Descriptio
Sr. No. n Quantity Unit Rate (Rs/-) Amount (Rs/-)
1 Labor 0.6 D 400 240
2 Mate 0.06 D 450 27
        Total 267

Sundries @ 7.5% of total = 20 Rs/-

Water charges @ 10% of total = 27 Rs/-
Sub Total = 314 Rs/-
Contractor profit @ 15 %
of subtotal = 47 Rs/-
Grand Total = 361 Rs/-

Rate Analysis for Excavation Using Excavator

Standard Quantity = 1 m3
i. Material
ii. Machinery
Excavator = 0.007 D
= 0.007 X 8 = 0.056 hr
= 0.056 X 60 = 3.3 min
Efficiency of excavator for 1m3 is 3.36 min.
iii. Manpower
Mate = 0.06 D

Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Excavator 0.007 D 7000 49
2 Mate 0.06 D 450 27
Total 76
Add
Sundries @ 7.5% of total = 6 Rs/-
Water charges @ 10% of total = 8 Rs/-
Sub Total = 90 Rs/-

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Add
Contract profit @ 15% of
subtotal = 14 Rs/-
Grand Total = 104 Rs/-
Note: Diesel, operator wage and other maintenance cost is included in 7000 Rs/-

Rate Analysis for Preparation of Mortar (1:2) Using OPC and Ravi Sand
Standard Quantity = 1m3
Ratio = Dry Volume/Wet Volume = 1.42
i. Material
Cement = 1/3 X 1.42 = 0.473 m3
0.473/0.035 = 13.5 bags
Sand = 2/3 X 1.42 = 0.946 m3
ii. Manpower (Unskilled)
Labor = 0.75 D
Water man = 0.07 D

Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Cement 13.5 Bags 400 5400
2 Sand 0.946 m3 512 484
3 Labor 0.75 D 400 300
4 Water Man 0.07 D 300 21
Total 6205
Add
Sundries @ 7.5% of total = 465 Rs/-
Water charges @ 10% of total = 621 Rs/-
Sub Total = 7291 Rs/-
Add
Contractor profit @ 15% of
Subtotal = 1094 Rs/-
Grand Total = 8385 Rs/-

Rate Analysis for Mortar (1:6) Using OPC and Chenab Sand
Standard Quantity = 1 m3
Ratio = Dry Volume/Wet Volume = 1.42
i. Material
Cement = 1/7 X 1.42 = 0.203m3
= 0.203/0.035 = 5.8 bags
Sand = 6/7 X 1.42 = 1.217 m3

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ii. Manpower
Labor = 0.75 D
Water man = 0.07 D
Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Cement 5.8 Bags 400 2320
2 Sand 1.217 m3 750 912.75
3 Labor 0.75 D 400 300
4 Water Man 0.07 D 300 21
Total 3553.75
Add
Sundries @ 7.5% = 266.53 Rs/-
Water charges @ 10% = 355.38 Rs/-
Subtotal = 4175.65 Rs/-
Add
Contractor profit @
15% of subtotal = 626.35 Rs/-
Grand Total = 4802 Rs/-

Rate Analysis for Brickwork with Cement Sand Ratio (1:4) Using OPC and Ravi Sand
Standard Quantity = 1 m3
75% of volume will be covered by bricks and 25% by mortar.
i. Material
Cement = 1/5 X1.42 X 0.25 X 1/0.035 = 2.028 bags
Sand = 4/5 X 1.42 X 0.25 = 0.284 m3
Bricks = 500 No.
ii. Manpower
For Mortar
Labor = 0.25 X 0.75D = 0.188 D
Waterman = 0.25 X 0.07D = 0.0175 D
For Brickwork
Mason = 0.12D
Labor = 0.2D
Waterman = 0.07

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Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Cement 2.028 Bags 400 811.2
2 Sand 0.284 m3 512 145.408
3 Brick 500 No. 5 2500
4 Labor 0.388 D 400 155.2
5 Water Man 0.0875 D 300 26.25
6 Mason 0.12 D 750 90
Total 3728.058
Add
Sundries @ 7.5% o total = 280 Rs/-
Water charges @ 10%
of total = 373 Rs/-
Scaffolding @ 3.5% of
total = 130 Rs/-
Subtotal = 4510 Rs/-
Add
Contractor profit@ 15%
Of subtotal = 677 Rs/-
Grand Total = 5187 Rs/-

Rate Analysis for Brickwork using Cement Sand (1:8) with OPC and Lawerencepur
Sand

Standard Quantity = 1 m3

Ratio = Dry weight/Wet weight = 1.42

75% of volume will be covered by bricks and 25% by mortar.

i. Material
Cement = 1/9 X 1.42 X 0.25 X 1/0.035 = 1.126 bags
Sand = 8/9 X 1.42 X 0.25 = 0.32 m3
Bricks = 500 No.
ii. Manpower
For Mortar
Labor = 0.25 X 0.75 D = 0.188D
Waterman = 0.25 X 0.07 = 0.0175D
For Brickwork
Mason = 0.12D
Labor = 0.2D

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Waterman =0 .07D

Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Cement 1.126 Bags 400 450.4
2 Sand 0.32 m3 1000 320
3 Brick 500 No. 5 2500
4 Labor 0.388 D 400 155.2
5 Water Man 0.218 D 300 65.4
6 Mason 0.12 D 750 90
Total 3581
Add
Sundries @ 7.5% of total = 269 Rs/-
Water charges @ 10% of total = 358 Rs/-
Scaffolding @ 3.5 % of total = 125 Rs/-
Subtotal = 4332 Rs/-
Add
Contractor profit @ 15% of Subtotal = 649 Rs/-
Grand Total = 4230 Rs/-

Rate Analysis for PCC (1:1.5:3)

 Type of sand is determined through technical specification. Let we take the
Lawerencepur sand and Margla crush.
 Here the factor to be used is 1.54 because there is more reduction in volume due to
settlement of aggregates.
Standard Quantity = 1 m3
Ratio = Dry Volume/Wet Volume = 1.54 m3
i. Material
Cement =1/5.5 X 1.54 X 1/0.035 = 8 bags
Sand = 1.5/5.5 X 1.54 = 0.42 m3
Crush = 3/5.5 X 1.54 = 0.84 m3
ii. Manpower
 For preparation of PCC
Crew = 1 LS
The preparation of PCC is normally carried out by the crew (Concrete crew). This crew
comprises of the requisite machinery and the labor required for the preparation of
concrete. Normally this crew has labor for the transfer of cement, sand and crush from
their deposits to concrete mixers, the labor for running and operation of concrete mixer,
concrete lifts and buckets.
 For laying of PCC

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Mason = 0.1 D
Waterman = 2.13 D (28 days curing)
Labor = 0.7 D
iii. Machinery
Crew = 1 LS
Vibrator = 1 LS
The standard efficiency of this concrete crew is 7000ft 2 of concrete with the thickness of
concrete 6”.
The crew of concrete is covering 100m3 per 25000 Rs/- for one day.
For 1 m3 = 250 Rs/-

Rate of Margla crush = 45 Rs/ft3

Rate of Lawerencepur sand = 28 Rs/ft3
Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Cement 8 Bags 400 3200
2 Sand 0.42 m3 988 414.96
3 Crush 0.84 m3 1590 1335.6
4 Mason 0.1 D 750 75
5 Labor 0.7 D 400 280
6 Water Man 2.13 D 450 958.5
7 Crew 1 LS 250 250
8 Vibrator 1 LS 25 25
Total 6539.06
Add
Sundries @ 7.5% of subtotal = 490.42 Rs/-
Water charges @ 10% of subtotal = 654Rs/-
Sub total = 7683.48 Rs/-
Add
Contractor profit @ 15% of total = 1152.45 Rs/-
Grand Total = 8836 Rs/-

Assignment: Prepare the rate analysis of PCC (1:2:4) using Ravi sand and Sargodha crush
(41 Rs/ft3)

Rate Analysis of RCC (1:2:4) Including Mixing and Placing with Cast of Formwork and
Steel Using Lawerencepur Sand and Margla Crush
Standard Quantity = 1 m3 (Wet Qty)
Dry Volume = 1.54 m3
i. Materials

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Cement = 1/7 X 1.54/0.035 = 6.29 bag

Sand = 2/7 X 1.54 = 0.44 m3
Crush = 4/7 X 1.54 = 0.88 m3
Steel = (0.8-1.2)% of concrete volume. The volume of steel is negligible.
The structural load in RCC structures is transferred as
Load

Slab

Beams

Columns

Foundation
Load carrying capacity increases downward so steel in slabs is used as 0.8% of concrete
volume and 1.2% in columns.
Quantity of concrete = 1 m3
Quantity of steel = 0.01 m3 X 7850 kg/m3 = 78.5 kg
ii. Manpower
Mason = 0.24 D
Water man = 2.13 D Preparation and Laying
Labor = 2.5 D
Steel fixer = 0.2 D
Steel bender = 0.2 D
Shuttering fixer (Carpenter) =0.2 D
Carpenter bender = 0.2 D
iii. Machinery
Concrete mixer = 0.11 D
Lift = 0.11 D
Vibrator = 0.11 D
Sr. No. Description Quantity Unit Rate Amount
1 Cement 6.3 bags 450 2835
2 Sand 0.44 m3 988 434.72
3 Crush 0.88 m3 1695 1491.6
4 Steel 78.5 kg 90 7065
5 Mason 0.24 D 750 180
6 Water Man 2.13 D 400 852
7 Labor 2.5 D 450 1125
8 Steel Fixer 0.2 D 750 150
9 Steel Bender 0.2 D 750 150

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10 Shuttring Fixer 0.2 D 750 150

Carpenter
11 Bender 0.2 D 750 150
12 Concrete Mixer 0.11 D 3000 330
13 Lift 0.11 D 1500 165
14 Vibrator 0.11 D 500 55
Total 15133
Add
Sundries @ 7.5% of total = 1135 Rs/-
Water charges @ 10% of total = 1513 Rs/-
Steel shuttering @ 25% of total = 3784 Rs/- (For wooden shuttering = 15%)
Subtotal = 21565 Rs/-
Add
Contractor profit @ 15% of subtotal = 3235 Rs/-
Grand Total = 24800 Rs/-

Assignment: Prepare rate analysis for RCC (1:2:4) to be used in columns using Chenab
sand and Sargodha crush. (Rate of Chenab sand = 24 Rs/ft 3)

Rate Analysis for Plastering Using Cement Sand Mortar (1:4)

Standard Quantity = 10 m2
Factor = Dry Qty/Wet Qty = 1.42
Wastage/Joint filling factor = 1.30
Using OPC and Ravi sand
Actual Quantity = 10 X 1.42 X 1.30 = 18.46 m2

Quantity of mortar for plastering = Plastering area X Thickness

Normally thickness is ½” = 12 mm
Standard Quantity = 10 X 12/1000 = 0.12 m3
1st Factor = 0.12 X 1.42 = 0.1704 m3
2nd Factor = 0.12 X 1.30 = 0.156 m3
Total = 0.33 m3
i. Material
Cement = 1/5 X 0.33/0.035 = 1.9 bags = 2 bags
Sand = 4/5 X 0.33 = 0.264 m3
ii. Labor
 For Preparation
Labor = 0.75 D (0.75X0.12)
Water man = 0.07 D
 For Applying

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Mason = 0.8 D
Labor = 1.0 D
Waterman = 1.0 D

Quantit
Sr. No. Description y Unit Rate (Rs/-) Amount (Rs/-)
1 Cement 2 Bags 400 800
2 Sand 0.264 m3 512 135.168
5 Labor 1.75 D 400 700
6 Water Man 1.07 D 300 321
8 Mason 0.8 D 750 600
Total 2556.168
Add
Sundries @ 7.5% of total = 192 Rs/-
Water charges @ 10 of total = 256 Rs/-
Subtotal = 3004 Rs/-
Add
Contractor Profit @ 15% of subtotal = 450 Rs/-
Grand Total = 3454 Rs/-

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Engineering Economy
Direct and Indirect Cost in Contract and Project Management
The cost which we are evaluating from rate analysis is called as direct cost.
For running of any construction project not only direct cost is required but a
comprehensive evaluation of indirect cost is required. In mega project or projects in
remote areas very often the indirect cost of the cost of project is greater than the direct cost
of project.
In recent years a new discipline in contract and project management is getting very
quick popularity related to the indirect cost called as Cost Control Engineering.
Cost control cannot be achieved from direct cost. It is only achievable in the indirect
cost. Any cost in contract and project management which is not directly used for the project
or its tasks is called as indirect cost.
The indirect cost includes;
1- Project Technical and Engineering Staff Salaries + Allied Benefits (Transportation,
Food, Residential Facilities)
2- Project Utilities
Any project needs electric connection, telephone, sewer, sui gas, cable, water supply
connection. These items and connection fee of all these utilities are covered under
project utilities.
3- Project Utilities Monthly Expenses in the Form of Bills

4- Project Offices
Establishing and running (Furniture, AC’s, Computers, Telephones, Fax Machines,
Photo Copier Machine etc)

5- Project Transportation Facility

It comprises of transportation facility to staff members once or in the form of shifts.
This facility can be in the form of buses, wagons.
6- Project Food/Kitchen Facility
Now this is not affordable.

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7- Running and Maintenance of Client and Consultant Offices and Transportation

Facility

8- Bank Charges, Letter of Credits and Interest Values

 Letter of credit – Documents for import materials
 Loan against interest

Total Project Cost

The cost of any project always comprise of direct and indirect cost.

Direct
Total Project Cost
Indirect Cost Control

Engineering Economy
Engineering economy is the discipline concerned with the economic aspects of engineering
projects. It involves systematic evaluation of cost and benefit of engineering projects
Engineering Project

Cost Benefit

For any civil engineering project to be successful it must be technically sound and produce
some benefits. Engineering economy is coupled with technical analysis and economic
feasibility to determine best course of action for various engineering scenarios.

Principles of Engineering Economy

The technical analysis and economic feasibility of any constructional project is carried out
based on the principles of engineering economy. These principles include
1. Development of alternatives
2. Focus on differences
3. Use of a consistent view point
4. Use a common unit of measurement
5. Consider all relevant criteria
6. Make uncertainty explicit
7. Revisit decision
Exp: Development of alternatives
Excavation

Manual Manual + Mechanical Mechanical

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JCB Shovel Excavator

Exp: Water and Power Development Authority in Pakistan is facing serious deficit of power
generation around 5000 MWatts in country. WAPDA tends to explore possible technically
sound solutions for power generation. Discuss the project based on principle of
engineering economy.

Solutions:
1. Development of Alternatives
Hydro power, Thermal power( coal as well as gas), Nuclear power, Wind power, solar
power, waste reclamation( recycling) power, Rental power, Outsource from neighbor
countries.

2. Focus on Differences
General difference and detailed differences among the above alternatives
3. Use of Consistent View Point:
Establish consistent view point. The possible consistent view point areas will be;
a. Useful Life:
Dam
Wind
Thermal Less
Solar (2 years)
b. Initial Investment:

c. Payback Duration:
It means when you invest some amount on some project and it returns the same
amount.
d. Environmental Impact Assessment
Friendly or unfriendly

Exp: Union Developers Private Limited a USA, UK joint venture investment organization
want to invest 100 million US dollars (100,000,000 US$) in construction industry of
Pakistan. Evaluate the project based on the principles of engineering economy.

Money Time Relations in Engineering Economy

Majority of construction projects involve commitment of capital for extended period of
time.
The money time relationship depends on the concept of capital and interest.

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The capital is of two types;

Equity Capital – Personal
Debit Capital – Loan
Capital is the initial investment required for carrying out the project. e.g. for
Bhasha Dam = 25 billion PKR
KSK Campus = 20 karor
Faisalabad Multan highway – M4 = 5 billion PKR

Sources of Capital
Personal
Debit – Bank Reputation, Time, Interest
Bank- Debit 1 billion loan @ 10% annual interest for 5 years
After 5 years 1.5 billion is returned.

In debit, project profit margin must be greater than loan interest.

Bank – 99.9% Non Islamic
Interest (Profit) = Sood (Annexe, Riba, Interest) , Halal (Lawful, Legitimate)

The reasons of taking interest on capital is

1- Investor takes it as incentive to its invested capital
2- Interest and profit are the payment for the associated risk the investor takes in
permitting another person or party to use his money.
China – 0.001%
Japan – 0.01%
America – 1.5%
Europe – 2%
Pakistan – 20-25%

Types of Interest
There are two types of interest commonly used in CEP
1- Simple Interest
2- Compound Interest

1- Simple Interest
If the interest rate in project remains same based on the initial capital the interest is
called as the simple interest.
I = PNi
Where I = Total interest

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P = Principal (Loan amount/Borrowed amount)

N = No. of years for loan required to be taken
i = Effective interest rate charged by the party who is giving the loan
Exp: Bank gives loan 100,000 Rs. @ 12% per 5 years.
Solution : I = PNi
I = 100,000 X 5 X 0.12
= 60,000 Rs/-
Alternative Solution:
Interest Rate = 12%

Interest
Year Amount (P) (I)
1 100,000 12000
2 100,000 12000
3 100,000 12000
4 100,000 12000
5 100,000 12000
Total 60000

Note: The company will repay the amount to the bank is P+I
2- Compound Interest
If the interest charge each year is not on principal amount but on principal and interest
amount, the type of interest is called as compound interest.
Exp: Above example
Solution:

Amount Interest
Year (P) (I) P+I
1 100,000 12000 112,000
2 112,000 13440 125,440
3 125,440 15052.8 140,493
4 140,493 16859.16 157,352
5 157,352 18882.24 176,234

Cash Flow Diagrams in Contract and Project Management

The money time relationship of any engineering project is represented through cash flow
diagrams. CFD’s are the graphical representation of cost in flow and out flow from the
project w.r.t. time i.e. graph between cost and time.

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The following terms are normally used in application of engineering economy, develop the
cash flow diagram.
i = Effective interest rate per time period
N = no. of time periods in unit of years
P = Present sum of money also called as present worth or present
F = Future worth of money also called as future worth or future
A = End of time period cash flow in series

Beginning
of Project
End of Project or
1 2 3 4 5 6 7 8 Time Period

P Time (N years)

Cash flow diagram depends on the point of view e.g. this cash flow diagram is for the point
of view of construction company.

Among the notations of CFD ‘i’ and ‘N’ are compulsory requirement. Out of other three
parameters if anyone parameter is known then other two parameters are estimated.

Finding F when Given P

F = P (1+i)N

Finding P when Given F

P = F (1+i)-N

Finding the Interest Rate Given P, F and N

i = N√ F / P−1

Finding N when Given P, F and i

F = P (1+i)N

(1+i)N = (F/P)

Using logarithms,

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N log(1+i) = log (F/P)

F
log ( )
And N= P
log ⁡(1+i)

Finding F when Given A

F = A ((1+i)N – 1)/i

Finding P when Given A

P=A ((1+i)N – 1)/i(1+i)N

Finding A when Given F

A=F i / ((1+i)N – 1)

Finding A when Given P

A = P i(1+i)N/((1+i)N – 1)

Exp 1: How much money a construction company should deposit now to get 10 end of
years with drawls of 3600/- Rs. at an effective interest rate of 14%.

Solution: Finding P given A

Exp 2: The managing director of Descon engineering wants to send his son for higher
studies abroad. For which the expected expenditure after 20 years is 2 million US dollars.
What uniform annual amount should be deposited in bank by the managing director at an
interest rate of 12% per year. The first deposit is made at first birthday anniversary of his
son.

Solution: Finding A given F

Exp 3: A construction company wants a new car on lease for business project manager
from city bank on zero percent down payment. The bank leases a new car for the period of
5 years at interest rate of 15%. The market price of car is 1 million rupees. What
installment the company has to pay at the end of each year.

Solution: Finding F given P

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