Estimating
It is the forecast of the probable cost of the building or a project prior to the commencement of the job.
Plinth Area Estimate
In this plinth area rate is arrived at by dividing the cost of existing structures with similar specification and construction in that locality by the plinth area. Now the estimated cost of the proposed structure is calculated by multiplying the plinth area of the structure with the planks area rate.
The Cube Rate Estimate
It is made by multiplying the cubical contents of the proposed building by the cube rate which is reduced from the cost of the similar buildings having similar specifications and construction in the locality.
Both plinth area and cube rate estimates are approximate.
Valuation
The technique of determining the fair price or value of a property such as a building, factory, land etc. is called as the valuation. There is a clear distinction between cost and value. Cost means original cost of construction or purchase while value means the present saleable value which may be higher than or lower than the cost.
Book Value
It is the original investment less the depreciation for the period of existence.
Salvage Value
It is the value at the end of useful life period without being dismantled.
Scrap Value
It is the value of the dismantled material less the cost of dismantling.
Annuity
It is annual periodic payments for repayment of the capital amount invested.
Analyses of Rates
The determination of rate per unit of a particular item of work from the cost of quantities of materials, the cost of labourers and other miscellaneous petty expenses required for its completion is known as the analysis of rates.
Depreciation
It is the decreases in the value of the property because of use or wear and tear etc.
Task or Out-run Work
The capacity of doing work by an artisan or skilled labour in the form of quantity of work per day is known as the task-work or out-turn of labour.
