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ESTIMATION

CONTRACTS
BILLING

PRESENTATION BY:
MR. ANAND PARCHURE

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CONTENT OF PRESENTATION
ESTIMATION:
Brief about Estimate

Types of Estimates

Definition of carpet, built up and Saleable area &


Difference between them
Rate Analysis

Direct and Indirect Cost

Thumb Rules

Common mistakes in costing

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CONTRACTS:
Type of Contracts

What is LOI, Work order & purchase order

Taxes prevalent in industry

Brief about Tax Invoice

BILLING:
Checking of bills

Reference with IS codes & Work Order

Certification process & approval

Reconciliation

Inventory Management

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ESTIMATION
Life cycle of a project: Land survey to Hand over
Different Role of Civil Engineer in Organization

Estimation: An evaluation of all the cost of the


element of a project as per agreed scope
Role of Quantity Surveyor

Types of Estimates: Approximate method, plinth


area estimate, cubic meter, approx qty, detailed
method, revised estimate, supplementary
estimate, repair/maintenance estimate

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Common terminology used in budgeting, contracts and billing.
Built up area For costing & for Town planning
Carpet Area
Saleable area/Chargeable Area

Data require to prepare estimate:


drwg,
specification,
basic material rates,
current minimum wages rates of labour,
quantities,
marketing brochure.

Estimate is useful for:


requirement of material,
requirement of labour or machinery,
cash flow,
feasibility,
for contracts in inviting tender etc.,
monitor contracor qty. and payment against individual item.
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Qty calculation
Mode of Measurement/ Unit
Sample of Estimation with all items of work
Rate Analysis
IS code 1200 : From Part 1 to 28
IS for Labour Productivity: 7272
IS for Material Constants: 10067
Cost of items and project on various areas
Direct & indirect cost

Taxes
ST,
VAT,
WCT,
Excise,
Custom duty,
port clearence,
CST,
New will be GST.

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Estimate Sample: explaining all activities

Small Exercise

How to calculate weight of steel bar, angle, ms


plate.
Labour and material proportion in general.

Specialize items rate finalization.

How to convert m3 rate to m2, and rmtr

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Commonly used software are: Autocad, SAP,
ERP, Newton, MS Project.

Estimate can be useful in valuation, rent


fixation, for insurance.

Thumb Rules: rate per unit- hvac, electrical


equipment like transformer, dg, ugwt, concrete,
steel on bua and on individual

Common mistakes in costing :


omission of item,
unit rate wrongly pick up,
transport not cosidered,
wastage not considered in analysis,
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construction power and water.
CONTRACT
Type of contracts:
Item rate,
lump sum,
Cost plus percentage contract

LOI
Work order

Purchase order

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Steps for work order / Purchase Order
Tender document with all specs & qty
Received quotation
Preparation of comparative statement (Sample)
Approvals
Preparation of order with detailed BOQ and terms
Sample order Purchase & work order

Special economic zone - benefits


Material from Union territories

Bank guarantee, workman compensation policy,


labour license.

Type of Consultant involved and their orders. 10


BILLING
Checking of bills with reference to IS codes &
contract.
Risks associated with Poor Contract / Order.
Ex:- BUA of consultant/contractor without inclusion
and exclusion.
Tax invoice should come with Measurement
Sheet
Tax Invoice sez

Certificate of Payment (COP)

Reconciliation

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THANK YOU

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