THE REQUIREMENT AND USES OF THE BUILD-UP RATES

During the design stage, QS need to do the estimating process in

order to:
• Know the clients financial budget
• To determine the suitability of the design according to the limits
permitted by the employer
• as an information and records for projects reference and
budget in the future.
THE PRINCIPLES OF THE BUILD-UP RATES
1. MATERIAL COST
2. LABOUR COST
3. WASTAGES
4. PLANTS AND MACHINERY COST
5. OVERHEAD
6. PROFITS
However, not all works considered the factors above. It depends on the type and nature of work to be
performed at site.
For example:

EXCAVATION WORK (USING HAND)

• Labour cost, overhead and profit

CONCRETE WORK (USING HAND)

• Material cost, labour cost, overhead and profit.

CONCRETE WORK (USING MIXING MACHINERY)

• The five above cost should be taken

BRICKWORKS
• Material cost, labour cost, overhead and profit.
MATERIAL COST

Factors contribute to material cost;

1) Initial Cost
Cost that is not including profits, transportation cost and other additional cost.
Basically this is an initial cost which come straight from the factory. Market price
usually will change/vary from time to time and from one place to another.
MATERIAL COST

2) Transportation cost
Includes the add on price for transporting construction material to site. Supplier
will determine the construction material cost according to where the material
will be sent. Transportation cost also includes how the materials are moved
whether by manpower, fork lift or other method.
MATERIAL COST

3) Storage cost
Cost of storage of construction material such as cement, glass, tiles and also
flammable material.
MATERIAL COST
4) Waste and material damage
Waste and material damage is calculated starting from the material delivered out
from the factory until it reach to the construction site. The percentage of wastage
and material damages are as follow:
✔ Cement 5%
✔ Tiles 2%
✔ Timber 5%
✔ Steel 10%
LABOUR COST
Labour costs are the total amount of money paid to employees/workers for a
period, such as a week or a month.
Skilled worker
A skilled worker is any worker who has special skill, training, knowledge, and
(usually acquired) ability in their work. A skilled worker may have attended a
college, university or technical school. Or, a skilled worker may have learned their
skills on the job. (carpenter, artisan, tiler, plumber, draftsman, engineer etc)
LABOUR COST
Semi skilled worker
Semi-skilled employee is one who has sufficient knowledge of the particular trade
or above to do respective work and simple job with the help of simple tools and
machines.
Laborers
Person employed to do unskilled work.
LABOUR COST

Foreman
A foreman, forewoman or foreperson is a supervisor, often in a manual trade or
industry. Foreman may specifically refer to Construction foreman, the worker or
tradesman who is in charge of a construction crew.
PLANTS, MACHINERY AND EQUIPMENT
Plant
A place where things are made or where an industrial process takes place . eg; batching
(concrete) plant.(rented or bought)
Machinery
Machinery is defined as a mechanical device or the parts that keep something working. Eg;
excavator, tower crane, mobile crane, bending machine etc. (Rented or bought)
Equipment
Basic equipment such as wheelbarrow , scaffolding, hand tools etc. (rented or bought)
OVERHEADS
Overhead or overhead expense refers to an ongoing expense of operating a business; it is also known as an
"operating expense“. Overhead is those administrative expenses of a business that are required to operate general
corporate functions, and which cannot be definitively attributed to any revenue-generating activities or units of output
(such as products to be sold). Examples of overhead expenses are as follows:

• Accounting
• Administrative salaries
• Insurance
• Legal
• Rent
• Utilities (water, electricity, telephone etc)
PROFITS

Profit is the money a business makes after accounting for all the expenses. (usually
10% of the total cost)
BUILD UP RATE FOR CONCRETE WORKS
There are two types of concrete works commonly used;
• Concrete mixing using hands
- Material cost, labour cost, overhead and profits
• Concrete mixing using machine
- Material cost, machine cost, labour cost, overhead and profit
Build-up rate for concrete works using
hands
⮚ Concrete mix ratio ⮚ Quantity of cement (bag) per 1 m3
Eg: 1 : 2 : 4
1 m3 of cement
4 = 1436 kg
1 bag of cement
m3 aggregates = 50 kg
2 m3 sand
1 m3 cement Quantity of cement bag in 1 m3 =
= 28.7 bags
Other factors to be considered in calculating cost of concreting works

• Wastage and shrinkage of concrete

✔Wastage during transporting and pouring concrete
✔Shrinkage of concrete during mixing and pouring ( into formwork )
• Wastage and shrinkage additional cost = 50%
Labour constant (using hand)
Examples of rates;
⮚ Concrete mixing manually, transporting = 4.00 hrs/m3
⮚ Pouring lean concrete = 1.31 hrs/m3
⮚ Vibrating and compacting = 0.65 hrs/m3
⮚ Levelling = 0.09 hrs/m3
Example 1
Calculate the build up cost for mixing concrete work manually.
Given:
concrete grade 25 (1:2:4)
1m3 cement 50kg = 28.7 bags
Material:
• cement = RM20.00/bag
• sand = RM26.00/m3
• Aggregates = RM40.00/m3
Labour:
• Concrete mixed manually = 2.50hrs/m3
• Transporting and casting = 8.00hrs/m3
Others:
• Labour fees = RM45/day
• Overhead and profits = 20%
(Ans: RM273.03/m3)
MACHINERY COST
Example: Calculate the built up rates for machinery type 7/5 according to the
information given:

Nos of driver & labour Concrete

Diesel/ Lubricant/
Types (m3) mixed/hrs
Driver Labour day (liter) day (liter)
(m3)
5/3.5 1 2 1.15 4 0.3
7/5 1 4 2 9.1 0.3
10/7 1 4 3.4 13.7 0.6
14/10 1 6 3.8 16 0.6
DATA:
Material:
• cement = RM18.00/bag
• sand = RM22.00/m3
• aggregates = RM35.00/m3
Machine:
• Machinery cost = RM15,000.00
• Profit gain in 5 years = 10%/year
• Maintenance (5 yrs) = 10%
• Transportation (5 yrs) = 5%
• Machine works 200 days in a year
Labour:
• Driver (1 person) = RM90/day
• Assistant (3 person) = RM40/day
• Working hour = 8 hours
Fuel:
• Diesel = 12.8 liter/RM1.70/day
• Lubricant = 0.48 liter/RM20.00/day
Machine production:
• The ability of machine= 3.44m3/hr
• Profit and overhead = 15%
Solution:
Material cost

Capital cost
Machinery cost = RM15,000.00
Investment return on capital 10% per year x 5 years x RM 15,000.00 = __________
Maintenance cost for 5 years 10% x RM 15,000 = _________
Transportation cost for 5 years 5% x RM 15,000.00 = _________
Total capital cost in 5 years = __________
Total capital cost in a year = __________
Total capital cost in a day = __________
Total capital cost in an hour = __________
Labour cost
Driver (1 person) = 1 x RM90/8hr = __________
Assistant (3 person) = 3 x RM40/8hr = __________
Total = __________
Fuel cost
Diesel = 12.8 litre x RM1.70/8hr = ________
Lubricant = 0.48 litre x RM20.00/8hr = ________
Total cost by using concrete mixer:
= capital cost + labour cost + fuel cost
= __________ + ___________+ ________
= RM__________/hr
Production of machine
Concrete mixer can mix 3.44 m3 for 1 hour
3.44 m3 = RM ________
For 1 m3 =
Total cost of 1m3 concrete = Material cost + production of machine=______
Add 15% profit and overhead = 15% x ______
Rate for 1m3 concrete works = ____________
BUILD UP RATES FOR BRICK WORK

• Calculated in m2
75 mm
• Things that need to considered
• Material cost 215 mm
102.5 mm

• Labour cost
• Profit and overhead
Brickwork is masonry produced by a bricklayer,
using bricks and mortar (usually 10mm thick).
Typically, rows of bricks are laid on top of one
another to build up a structure such as a brick
wall.

Length (mm)
Width (mm)
Brick Size 215
65
Mortar 10
10
225
75

Surface area of brick = 225 x 75

= 160875
mm2

Number of bricks in 1m2 =

= 60 pcs per
1m2
MATERIAL COST
If cement = RM 18.00/bag and
1 m3 sand = RM 30.00,
Mortar mix ratio (1:3)
Wastage of 1/3 of material cost
Then,
1m3 cement : 28.7 bags x RM18.00 = RM516.60
3m3 sand : 3 x RM30.00 = RM 90.00
Total = RM 606.60
Add wastage of 1/3% = (1/3) x RM 606.60 = RM 202.20
So, for 4 m3 of mortar = RM 606.60 + RM 202.20 = RM 808.80
For 1 m3 of mortar = RM 808.80 / 4 = RM 202.20
LABOUR COST
If bricklayer and laborer paid RM 4.00/hr and RM 2.75/hr respectively for , how
much is the labour cost if the Bricklayer work for 4 hours and the labourer works for
2 hours to finish up 1m2 brick wall .
Solution,
Bricklayer 4 hours x RM 4.00 = RM 16.00
Labourer 2 hours x RM2.75 = RM 5.50

Labour cost for 1m2 brick works = RM_________

EXAMPLE 1

Build up rates for 115mm thick brickwall according to the following details;
Material:
63 nos of bricks = RM0.25/brick
0.03 m3 mortar = RM202.20/m3
Labour:
Bricklayer works for hrs and paid RM80/day
Labour works for hrs and paid RM40/day
Profits and overhead = 10%
SOLUTION
Material cost
Brick 63pcs x RM0.25 = RM________
Mortar 0.03m3 x RM202.20 = RM________
Labour cost
Brick layer 1.5 hrs x RM 80/8hr = RM________
Labour 0.9 hrs x RM 40/8hr = RM________

(A) Total cost of brick works = material cost + labour cost = RM________
(B) Add profit and overhead = 10% x RM________

(A+B) Rate of brick works = RM________

EXAMPLE 2

Build up rates for 230mm thick brick wall according to the given detail:
Material:
124 nos of bricks = RM0.25/pc
0.05 m3 mortar = RM202.20/m3
Labour:
Bricklayer works for 2.4 hrs and paid RM80/day
Labour works for 1.2 hrs and paid RM40/day
Profits and overhead = 10%
EXAMPLE 3
Estimate the quantities of brickwork and plastering required in a wall 4m long, 3m high
and 30 cm thick. Calculate also the cost if the rate of brickwork is RM320.00 per cu.m and
of plastering is RM 8.50 per sq.m
• Quantities of brickwork =
• Quantity of plastering (two faces) =
• Cost of brickwork =
• Cost of plastering =
• Total cost =
EXAMPLE 3
Estimate the quantities of brickwork and plastering required in a wall 4m long, 3m high and 30 cm thick. Calculate also the cost if the rate of brickwork
is RM320.00 per cu.m and of plastering is RM 8.50 per sq.m

• Quantities of brickwork = lxbxh

= 4m x 3m x 0.30m

= 3.6 cu.m

• Quantity of plastering (two faces) = 2 x 4m x 3m

= 24sq.M

• Cost of brickwork =3.6 x RM320.00

= RM1152.00

• Cost of plastering = 24x 8.50

= RM 204.00

• Total cost =1152.00 + 204.00

= RM1356.00
BUILD UP RATES FOR EXCAVATION WORKS

• Manually – using hand and tools such as hoe and shovel

• Machinery – using machine like excavator, tractor and bulldozer

When the soil is excavated and disposed to elsewhere, the volume of the soil will
increase. We should taking into account the increase in the volume of soil when
calculating the rate of excavation works. The percentage of increase of soil in
volume by type is as follow;

Type of soil Percentage of increase in volume

(%)
Sand 10
Clay 20
Ordinary soil 25
Aggregates 50
The Cost calculation for excavation works should consider the following;
• Excavation cost
• Cost of transporting and dumping the excavated soil
• Cost of filling and leveling
• Cost of compacting and backfilling
• Cost of Strutting (if any)
• Profit and overhead Strutting
BUILD UP RATES FOR EXCAVATION WORK
(MANUAL)

Labour constant and labour wages are need to be considered when calculating
the excavation work. The labour constant is an assumption only for the purpose of
calculation.
Item Work Description Unit Constant (hour)
1. Excavation of ordinary soil m3 1.20

2. Excavation of trench not exceeding m3 1.74

1.5m depth

3. Excavation of trench exceeding 1.5m m3 2.61

but not exceeding 3.0m depth

4. Transporting soil from site not

exceeding 100m m3 1.20

5. Fill soil into the truck m3 1.00

6. Excavation of basement not m3 1.63

exceeding 1.5m depth

7. Excavation of basement exceeding m3 3.27

1.5m but not exceeding 3.00m depth
Item Work Description Unit Constant (hour)
8. Bulk excavation m3 1.31

9. Clay Excavation m3 5.23

10. Sand Excavation m3 7.84

11. Rock Excavation m3 10.45

12. Pouring and leveling of hardcore m3 1.31

(lapisan atas)
EXAMPLE 1

Build up rates the excavation works of trench not exceeding 1.5m depth, filled into
truck and dumped on site not exceeding 100 m based on the information given.
SOLUTION
Labour cost
Time to excavate trenches not more than 1.5m = 1.74hrs
Time to transport and remove soil = 1.00 hr
Excavate at a distance of not more than 100m
Increase of soil in volume = 25% (assume as ordinary soil)
= 0.25 x 1 hr = 0.25 hrs
Total time taken to excavate, transport and dump = 2.99hrs
Assume, working fees = RM 40.00 per day
So, Labour charge per hour = RM40.00/8 hours
For 2.99 hours, the charge would be = 2.99 hrs x RM 5
= RM 14.95
Profit and overhead (10%)
= 0.10 x RM14.95 = RM 1.50

Total rate of excavation work = RM 16.45

BUILD UP RATES FOR EXCAVATION WORK
(MACHINERY)
Operation Types of machine Ability / size (m3) Production (per hour)
Leveling Tractor crawler 1.00 30 – 40 m3

Basement Face shovel 0.60 40 – 50 m3

excavation
Dragline 0.50 25 – 35 m3

Backacter 0.50 20 – 30 m3
(digger)

Trench excavation Backacter/backhoe 0.40 15 – 20 m3

Excavation Backacter 0.40 10 – 15 m3

Bowl size Average production Fuel (liter / hours)
per day Diesel Lubricant
0.2 8.41 3.41 0.11

0.3 13.76 4.55 0.20

0.4 19.11 4.55 0.24

0.6 32.76 6.82 0.33

MACHINERY COST
Example 2
As a quantity surveyor in one of contractor companies, you are assigned to calculate the rate
for excavation work using excavator. Your calculations shall be based on the following data:

Pad Foundation
Pad Foundatiom size 1.20m x 1.20m x 0.6m thick
Excavation depth 1.60m
Bil of pad foundation 8
Types of soil ordinary soil

Excavator
Rental RM250.00/hour
Machine output 3.00m3/hour
Operator 1 person
Assistant operator 2 persons
Working Period 8 hours/day

Others:
Operator wages RM120.00/day
Assistant Operator wages RM60.00/day
Profit and Overhead 15%
Diesel 4.55litre/hour; RM2.10 /litre
Lubricant oil 0.24itre/hour; RM5.50 /litre
SOLUTION

Machinery cost (Backhoe)

Rental rate = RM

Labour cost

Fuel Cost

Total cost of machinery per hour = Machinery cost + Labour cost + Fuel cost
Productivity

The productivity of machinery is ……………… per hour.

Cost of machinery to excavate ………….m3 soil = RM

So, cost to excavate 1m3 soil = RM /
= ________

Overhead & Profits = 10% x …………………………

Rate per cubic meter (m3) = ___________

BUILD UP RATES FOR REINFORCEMENT WORK

Reinforced concrete is a composite material. The concrete provides the material's

compressive strength, while the steel — in the form of embedded reinforcing bars
— provides tensile strength.

Concrete is very good with compressive loads, but very poor for tensile loads. The
steel makes a composite material, where the steel handles most of the tensile load
and the concrete handles the compressive load.
FACTORS TO BE CONSIDERED WHEN CALCULATING THE COST OF REINFORCEMENT WORK

• Labour cost
- Handling, cutting, bending, transporting the bars to the site and fabricating
(Includes welded wire mesh and reinforcing bars)
• Material cost
- The cost of reinforcing concrete (wire mesh or bars) depends on the size,
diameter and the type of coating
- The reinforcement cut according to the specification and wastage of
material is unavoidable. Usually, when calculating the cost of material, 5% of
wastage should be included.
EXAMPLE 1
Calculate the build up rate for reinforcement work of building foundation using 10
mm steel bar. Cost includes cutting, bending and transporting steel bar to site.
How much is the cost for 1kg of the reinforcement work?
- Price for 1 tonne of 10mm steel bar = RM1850.00
- Skilled worker (1 person) = RM40/day
- Labour (1 person) = RM25/day
- Total time to cut and bend 50 kg of 10mm steel bar = 2.5 hrs
- Total time to transport and fabricate steel bar = 2.5 hrs
Wastage and profit are 5% and 10% respectively
EXAMPLE 2
Calculate the build up rate for reinforcement work of building foundation using 12
mm steel bar. Approximately, 35kg of 12mm diameter steel bar is used to fabricate
1 no of pile cap. Calculate the cost of reinforcement work if there are 8 pile caps
in the construction site. Assume, price for 1 tonne of 12mm steel bar is RM1250.00.
- Skilled worker (1 person) = RM40/day
- Labour (1 person) = RM25/day
- Total time to cut and bend 50 kg of 12mm steel bar = 2.5 hrs
- Total time to transport and fabricate steel bar = 2.5 hrs
Wastage and profit are 5% and 10% respectively