Estimating, Cost and Valuation MCQ Quiz - Objective Question with Answer for Estimating, Cost and Valuation - Download Free PDF

Explanation:

Sinking Fund:

• A sinking fund is a financial reserve created to accumulate funds over time for major capital expenditures like rebuilding or replacing a structure after its useful life ends.

• It is commonly used in housing societies, buildings, and infrastructure projects where the cost of full replacement is large and cannot be borne suddenly.

• The fund is built by contributing small, regular amounts (monthly or annually), which are invested to gain interest and grow until needed for rebuilding.

• It ensures that the property owner or group has sufficient funds available when the structure reaches the end of its economic life, typically 30–60 years.

 Additional Information

Maintenance Fund:

• This is a separate reserve meant to cover routine and periodic maintenance expenses like painting, plumbing repairs, cleaning, and minor works.

• It prevents sudden financial burdens on owners and ensures operational upkeep of the property without interruptions.

• It does not cover structural rebuilding, which is handled by the sinking fund.

Reserve Fund:

• A broader term that includes various types of financial reserves such as sinking fund, maintenance fund, and contingency fund.

• It is used to handle unforeseen or planned expenses related to structure enhancements, regulatory modifications, or emergencies.

• Reserve funds may be mandated by housing societies or local laws for financial security and planning. 

Explanation:

Open Tender 

• In an open tender, the invitation is made public, allowing any qualified party to submit a bid.

• It ensures maximum competition and transparency in procurement.

• Commonly used in government and public sector projects.

 Additional InformationLimited Tender

• A limited tender is sent only to a select group of vendors, often pre-qualified or registered.

• It is used when the scope is limited or time is constrained, and competitive bids are still desired but not from the general public.

• Increases speed while maintaining some competition.

Single Tender

• A single tender is issued to only one party, typically when the item is proprietary or only one source is known.

• It is a non-competitive procurement process.

• Used in emergency situations or when only one supplier is capable of fulfilling the requirement.

Security Deposit

• It is an amount withheld or deposited by the contractor as a form of financial guarantee to ensure proper execution of work.

• It is refundable after the defect liability period or maintenance period is successfully completed, provided no issues arise.

• The idea is to protect the client against poor workmanship or contract breaches, not to permanently forfeit the contractor’s money.

Retention Money

• A portion of the payment (commonly 5-10%) withheld from running or final bills to ensure satisfactory completion and to cover any defects during the maintenance period.

• Not automatically forfeited — it is released back to the contractor after final completion and rectification of any defects.

• Forfeiture occurs only if contractual obligations are not met or defects are not rectified within the specified time.

Additional Information

• These mechanisms serve as incentives for quality work and compliance with contract conditions.

• They are standard practices in government and private construction contracts globally.

Explanation:

Book Value

• It is the net value of an asset, calculated as the original cost of the property minus accumulated depreciation.

• Represents the value of the asset on the company’s financial records at a given time.

• Important for determining tax liability, resale value, and profitability of assets.

• Book Value = Original Cost – Accumulated Depreciation

Additional Information

Capital Value

• Capital Value refers to the present worth of all future net income expected from a property or investment over its useful life.

• It is commonly used in real estate and investment appraisal to assess profitability and return on investment.

• It is calculated by discounting future income streams to their present value using an appropriate discount rate.

Salvage Value

• Salvage Value is the estimated residual or scrap value of an asset at the end of its useful life.

• It is the expected amount the owner can recover after the asset can no longer be used for its original purpose.

• Salvage value is used in calculating depreciation during the asset’s life.

Market Value

• Market Value is the current price that an asset would fetch if sold in an open and competitive market.

• It reflects present economic conditions, supply and demand, and the asset’s perceived usefulness or desirability.

• Market value may be higher or lower than book value, depending on various factors such as technology changes, condition of the asset, or market demand.

Explanation:

• A standard modular brick has nominal dimensions of 190 mm × 90 mm × 90 mm.

• With 10 mm mortar thickness, the overall size becomes 200 mm × 100 mm × 100 mm (0.2 m × 0.1 m × 0.1 m).

• Volume of one brick with mortar = 0.2 × 0.1 × 0.1 = 0.002 m³

• Number of bricks per m³ = 1 / 0.002 = 500 bricks

 Additional Information

Standard Modular Brick:

• Defined by BIS (IS 1077), with actual size 190×90×90 mm and nominal size 200×100×100 mm.

• The extra size accounts for the mortar joint thickness (10 mm) on all faces.

• In masonry, mortar occupies 20–25% of the total volume.

• Calculations include mortar to estimate gross volume of brickwork.

• For conventional bricks (actual size: 230×110×76 mm), about 500–520 bricks are used per m³ depending on mortar thickness.

• IS Code Reference:

  • IS 1077:1992 – Common Burnt Clay Building Bricks – Specification.

  • IS 2212:1991 – Code of practice for brickwork.

Explanation:

General rules for measurement are:

All works shall be measured subject to the following tolerances:

(i) Dimensions shall be measured to the nearest 0.01 meter.

(ii) Areas shall be measured to the nearest 0.01 sq.m.

(iii) Cubic contents shall be worked up to the nearest 0.01 cum.

Except: 

1. The woodworks should be measured nearest to 0.002 m.

2. Thickness of slab which shall be measured to the nearest 0.005 m.

3. Structural steelworks to the nearest 0.001 m. 

4. Thickness of roadwork (where the thickness is less than 200 mm) to the nearest 0.005 m.  

Explanation:

The capacity of doing work by artesian or skilled labour in the form of quantity of work per day is known as out turn of the labour.

Concept:

Central line method

It is one of the methods for preparing an estimate.

Calculation of length of the wall is done first, and then multiply it with the breadth and depth of the wall to find out quantity.

This is a method that is suitable for rectangular, circular buildings having no inter or cross walls. Hence it is suitable for a wall having the same width.

Calculation:

Center to center length of wall = 5 + 0.3 = 5.3 m

Center to center width of wall = 4 + 0.3 = 4.3 m

So, Total centre line perimeter = 2 × 5.3 + 2 × 4.3 = 19.2 m

Total volume of brickwork = Total center line perimeter × width of wall × height of room - Volume of door opening

Explanation:

The different forms used in the Central Public Works Department are as follows:

Form 21

• It is related to the muster roll.

Form 22

• It is related to casual the labour roll.

Form 23

• It is related to the measurement book.

Form 24

• It is related to the first and final bill.

Concept:

Dry volume of cement mortar = 1.33 × wet volume of cement mortar

Bulk density of cement = 1440 kg/m3 

Weight of 1 bag of cement = 50 kg

Calculation:

Given, L = 5 m, H = 3.5 m, T = 0.3 m, Plaster thickness = 0.012 m

Plaster required for both side of wall = 2 × 5 × 3.5 × 0.012 = 0.42 m3 

Dry volume of cement mortar = 1.33 × 0.42 = 0.5586 m3 

Volume of cement required = 0.5586/4 = 0.13965 m3 

Cement bags required = 0.13965/50 × 1440 = 4 bags

 The capacity of doing work by artesian or skilled labour in the form of a quantity of work per day is known as outturn of the labour.

Explanation:

Lead:

• The distance between the source of availability of material and the construction site is known as Lead
• Lead is measured in km
• The cost of conveyance of material depends on lead

The environment lead on the metalled roads are arrived at by multiplying by a factor as follows:

•  For Sandy tracks – Lead × 1.4
•  For metal tracks – Lead × 1.0
•  For cartze tracks – Lead × 1.1

Concept:

The following is parameters and properties of cement:

1. Bulk density of cement = 1440 kg/m3

2. Specific gravity of cement = 3.15

3. Weight of one bag of cement = 50 kg

4. Volume of cement bag = 50/1440 = 0.035 m3

5. Number of cement bags in 1 m3 = 30 approx.

6. Volume of dry mortar is 30% more than the volume of wet mortar.

∴ The volume of dry mortar = 1.3 × volume of wet mortar

Calculation:

1 m³ of wet cement mortar will correspond to 1.30 m³ of dry mortar

Sum of proportions = 1 + 5 = 6

Cement =\(\rm{\frac{{1.3}}{6} = 0.216\;{m^3}}\)

1 m³ of cement = 1440 kg

So, 0.216 m³ to cement = 312 kg

Sand = \(\rm{\frac{{5\;\times \;1.3}}{6} = 1.08\;{m^3}}\)

Explanation:

Rules for the deduction for openings as per IS - 1200 for brickwork:

No deduction is made for the following:

i) Bearing of floor and roof slabs are not deducted from the masonry in the superstructure. 

ii) Opening up to 0.1 m2

iii) Ends of the beam, posts, rafters, purlin, etc. chajjas where thickness does not exceeds 10 cm.

iv) Bed plates, wall plates, bearing of chajjas where thickness does not exceed 10 cm. 

Deduction in plastering are made in the following manner:

i) No deduction is made for ends of beams, posts, rafters, purlin, etc.

ii) No deduction is made for opening up to 0.5 m2 and no addition is made for jambs, soffits, and sills of these openings. 

iii) For opening more than 0.5 m2 and up to 3 m2 the deduction is made for one face only. No addition for jambs, soffits, and sills of these openings.

iv) For opening above 3 m2 the deduction is made for both faces of openings and the jambs, soffits, and sills shall be added.

Explanation:

Material statement: The total quantities of all the items of materials required for the completion of the construction is shown in Material statement.

Bar bending schedule: Bar Bending Schedule, commonly referred to as “BBS” is a comprehensive list that describes the location, mark, type, size, length and number, and bending details of each bar or fabric in a Reinforcement Drawing of a Structure.

Work charged establishment: The work charged establishment will include the temporary establishment as are employed for the execution or the immediate technical supervision or departmental stores in connection with the specific work.