Bill Of Quantities And Cost Estimates
Feasibility ReportMadian Hydropower Project9Bill of Quantities andCost Estimates7166P02/Vol. II, BoQ and Cost Estimates
Feasibility ReportMadian Hydropower ProjectTable of Contents9. Bill of Quantities and Cost Estimates9-19.1General9-19.2Methodology Applied to Estimation of Project Costs9-29.3Basis of Cost Estimation9-39.4Estimation of Direct Project Costs9-39.59.69.4.1Estimation of Civil Costs9-49.4.2Estimation of Costs of Hydraulic Steel Structure Equipment9-99.4.3Estimation of Costs of Electro-mechanical Equipment9-109.4.4Estimation of Costs of Electrical Equipment9-11Estimation of Indirect Project Costs and Contingencies9-129.5.1Consideration of Indirect Costs and Contingencies9-129.5.2Consideration of Import Charges9-14Estimation of Costs for Project Development9-149.6.1Estimate for Cost of Engineering and Administration9-149.6.2Estimate for Cost of Client’s Own Costs9-149.7Bill of Quantities9-159.8Total Construction Cost and Basic Project Cost9-159.9Disbursement of Costs – Cash Flow9-169.10 Operation, Maintenance and Repair Costs9-187166P02/Vol. II, BoQ and Cost Estimates
Feasibility ReportMadian Hydropower ProjectList of Annexes:Annex A-9.1:Quotation of Material Unit Prices of Manufacturers /SuppliersAnnex A-9.2:Cost of Construction Equipment - Monthly RentalAnnex A-9.3:Comparative Statement of Unit Rates of 6 Hydropower ProjectsAnnex A-9.4:Bill of Quantities of Madian Hydropower ProjectAnnex A-9.5:Cost Estimate of Hydraulic Steel Structure EquipmentAnnex A-9.6:Cost Estimate of Electro-mechanical EquipmentAnnex A-9.7:Cost Estimate of Electrical Equipment7166P02/Vol. II, BoQ and Cost Estimates
Feasibility ReportMadian Hydropower Project9. Bill of Quantities and Cost Estimates9.1GeneralThis report summarizes selected key parameters for the estimation of costsof the Madian Hydropower Project and the cost estimate itself for all itsmajor components. During the pre-feasibility stage the Consultant setup apreliminary unit cost data base and carried out the cost estimates forassessment of the alternative project layouts. At the beginning of thefeasibility study the Consultant updated all relevant economic key parameterin co-ordination with the Project Sponsor and elaborated a detailed Projectunit cost data base. At the time of submission of the draft feasibility reportthe Consultant escalated the respective unit rates and costs to the level at theend of the fiscal year 2007-2008.Basic costs of labour, material, consumables and equipment were inquired,unit costs calculated and compared with unit rates of hydropower projects ofsimilar size and type presently under development in Pakistan. These unitrates were used for the optimization of the installed capacity and thedimensions of the major project structures.Based on the feasibility design as documented by the corresponding designdrawings the Consultant determined the quantities of the major civil projectstructures and equipment components. For minor works provisions in termsof the item miscellaneous are made. In accordance with common practicethe cost estimate is based on the concept of direct and indirect costs andprovisions for unforeseen items and costs (contingencies). The cost estimateincludes the following main plant components and cost elements: land acquisition(according to Resettlement Action Plan, Feasibility Study, Vol. VI-b);land clearing and access;mobilisation cost and site infrastructure;surveys and investigations (e.g. hydraulic model tests);civil works: weir with spillway & flushing outlet, power intake,headrace tunnel, surge tank, pressure shaft and tunnel, powerhouse, andtailrace system;material disposal sites;manufacturing, transport erection, installation, testing andcommissioning of:- hydraulic steel structures,- electro-mechanical and electrical equipment,environmental and social impact mitigation costs;taxes and import duties;administration and legal costs;engineering and supervision costs;finance and insurance;Sponsor’s costs prior to commercial operation; etc.7166P02/BoQ and Cost Estimates9-1
Feasibility ReportMadian Hydropower Project9.2Methodology Applied to Estimation of Project CostsThe methodology applied to the estimation of cost for the MadianHydropower Project is carried out proceeding the following steps inaccordance with the requirements of a bankable feasibility study.1.Define Basis of Cost Estimation2.Estimate Basic Project Costs expressed in terms of Direct Costs:2.12.22.32.4Estimate Direct Costs for Civil Works;Estimate Direct Costs for Electro-mechanical EquipmentEstimate Direct Costs for Electrical EquipmentEstimate Direct Costs for Steel Structure Equipment3.3.1.Estimate Contingencies and Indirect CostsEstimate Costs for Land Acquisition4.Cost of Project Development4.14.2Estimate Costs of Engineering and AdministrationEstimate Owners Own Costs5.Determine Bill of Quantities6.Estimate Total Project Costs7.Estimate Operation and Maintenance CostsIn addition to the basic cost items of each civil structure in terms of theirdirect costs, the Consultant considered certain contingencies. Thesecontingencies play an important role for the project viability, they includeboth physical and price contingencies. Physical contingencies result fromthe fact that the estimated quantity of certain items might have beenunderestimated. Additional minor items or quantities and components willultimately be required which were based on the knowledge available at theparticular planning level originally not included in the estimate. Certainadjustments are commonly required with advancing level of planning andduring the implementation phase, etc.Price contingencies are included to account for variation in prices, i.e.inflationary tendencies, during the implementation period. Physicalcontingencies will be estimated as a percentage of the base price ofequipment and engineering services, whereas price contingencies will bedetermined on the basis of the forecast rate of inflation for both the local andforeign currency portions.The following sections describe the methodology of the approach to costestimation described above for each activity in the required detail.We will split the cost estimate into local and foreign currencies. Moreover, adisbursement plan will be included that provides the necessary informationon when particular investment payments are due.7166P02/BoQ and Cost Estimates9-2
Feasibility ReportMadian Hydropower Project9.3Basis of Cost EstimationThe following assumptions were made by the Consultant based on hisexperience in coordination with the Project Sponsor as the basis for thepresent Feasibility Study:June 30th 2008Table 9.1:1 US 67.98 Rps. (PAK)Basic Exchange Rate for Local to Foreign CurrencyAll costs will be expressed in the foreign currency US . Local market pricesand rates will be converted to foreign currency applying the exchange rateof the Central Bank of Pakistan at the selected reference dates. In coordination with the Project Sponsor the reference date applied to the presentfeasibility study is June 30th 2008, which corresponds to the end of the fiscalyear 2008.Costs are presented by their local and foreign cost component for theindividual unit rates and the overall cost of civil works and equipment.The composition of the local and foreign cost component was derived fromhydropower projects presently under development in Pakistan.9.4Estimation of Direct Project CostsThe direct costs of a hydropower project are commonly estimated separatedfor the following major components based on the major items/elements.a)b)c)d)Civil works;Hydraulic steel structure equipment;Electro-mechanical andElectrical equipment;The civil costs comprise more than 70 % of total project costs in theparticular case of the Madian HPP. Therefore, determination of thecorresponding unit rates is discussed in detail in the following chapter in therequired detail.Cost of permanent equipment is based on tender costs of hydropower andthermal power (electrical equipment only) projects of similar type andmagnitude.In view of the tight market situation the willingness of manufacturers /suppliers to provide quotations for the equipment specified for the MadianHPP has fallen to a low level since most of the established manufacturersstate having orders for more than one year of their production capacity.7166P02/BoQ and Cost Estimates9-3
Feasibility ReportMadian Hydropower Project9.4.1Estimation of Civil CostsThe cost estimates forms the basis of the economical and financialevaluation of the project. It shall be prepared on the basis of representativeunit rates for the various construction activities and the respective quantities.In order to comply with the requirements on accuracy of the cost estimatesas established in the Terms of Reference, the Consultant followed thefollowing approach:9.4.1.11.Collect basic costs of materials, fuel, energy, consumables, labour,equipment etc ex factory and at site (cost of transport).2.Calculate unit rates for relevant items of civil works for applicationto the BoQ;3.Collect unit rates used in feasibility studies and tendering ofHydropower Projects of similar type and magnitude; escalate theseunit to the reference data of the cost estimate;4.Compare, analyse and conclude on most appropriate unit rates forapplication.Cost of Major Material ItemsThe Consultant contacted potential manufacturers and suppliers of the majormaterial items required for construction of the Madian HPP such as cement,reinforcement steel, diesel fuel, explosives, gabion mesh, geotextile etc. TheSuppliers were requested to provide a unit rate ex-factory/store and at site toaccount adequately for transport cost.Material Item Manufacturer UnitSupplierCementAskari CementRs / tonCherat CementRs / tonReinforcementSteelCost of MaterialExFactory FreightRps.Rps4,350.0600.04,500.0574.0At 0.01026.4943.93039.02640.677.279.2Fazal SteelAmreli SteelsRs / tonRs / tonExplosivesAnfoWAH NOBELWAH NOBEL194,792.0169,252.0DetonatorDetonatiungCordWAH NOBELRs / ton191,980.0 2,812.0Rs / ton166,440.0 2,812.0Rs / 100units6,325.028.16,353.199.1WAH NOBELRs/1000m 16,820.02,812.019,632.0306.3GeomembranUSA LiningRs / m²125.617.5143.12.2Rs / m²106.2126.0232.23.664.31January 2008Gabion mesh1 US Rs.2,190.05,000.0US Table 9.2: Material Unit Rates Inquired from Suppliers and Manufacturers7166P02/BoQ and Cost Estimates9-4
Feasibility ReportMadian Hydropower ProjectSince the Project Sponsor is a cement manufacturer, cost of at least onealternative supplier has been inquired from the list of potential suppliers.Information such as distance of each factory from project site, capacity ofproduction and type of cement produced has been taken into account in theassessment. The cement factory at Nowshehra is, e.g. within a distance of275 km from Madian town.The corresponding quotations for the respective construction materials aregiven in Annex A-9.1 and are summarized in Table 9.2. For the items listedin Table 9.2 rates were provided in local currency (Rupees) and converted inunit prices in USD.The Consultant further inquired the cost of bore piling with D 0.8 mdiameter bore piles with two Contractors, a foreign contractor and aPakistani contractor resulting in the following unit rates :KELLER, Germany250 Euro/m²350 Euro/m²308 US /m352 US /m(single piles)(overlapping piles)(incl. concrete and reinforcem.)(including mobilization.)DEEPWELL, Pakistan15,000 Rps/m233 US /m330 US /m(drilling only)(drilling only)(incl. concrete and reinforcem.)For the present cost estimate a unit rate of US /m 352 is applied.Drill bits, rods and other drilling consumables will have to be importedwhich will include custom duties & Govt. Taxes. Cost of these items isshown as under the respective unit rates.9.4.1.2Cost of Transportation of Construction MaterialProvision for transport of heavy permanent equipments such as turbinesgenerators, transformers & spillway gates, valves, steel liner etc isconsidered in the cost estimate of the hydraulic steel structure and electromechanical and electrical equipment.Cost of transport of construction equipment if any is considered as part ofmobilization (indirect costs). Cost of transport to project site need to beconsidered for the transport of construction material and consumables. Thecorresponding cost is estimated based on the distances and specific transportcosts as follows:By Railway & Road:From Karachi to Dargai be train andfrom Dargai to Project site by roadBy Road:From Karachi to Project site roadTotal Distance approximately 1,800 km.7166P02/BoQ and Cost Estimates9-5
Feasibility ReportMadian Hydropower ProjectItem DescriptionBy RoadBy RoadReinforcement5.32 Rps/ton km0.08 US /ton kmCement7.60 Rps /m³ km0.11 US /m³ kmTable 9.3:9.4.1.3Unit Rates for Transport of Material to Project SiteCost of LabourThe financial cost of labour rate was obtained from basic salaries used fordifferent categories of labours on projects near Swat in NWFP as shown inNational Statistical Bulletin issued by the Federal Government of Pakistan.The corresponding rates are shown in table 9.4. At the time of preparation ofthis feasibility report the figures for the reference date 30. June 2008 werenot yet published and, therefore, adequately / hrRps/ nD/ShiftN/ShiftRps/hrUS /hrUS /hr1822092.993.44F-1Foremen1st 871.00SSISemi 21.882.1924.0732370.530.621 US Rs.Table 9.4:60.63June 2007Cost of Local Labour in Pakistan (as per 30. June 2007)The above given labour costs reflect data on local labour only. TheConsultant assumes that in particular foreman, machine operators andskilled workers will be experienced staff of the appointed foreign contractorand thus higher hourly rates apply. The corresponding adjustments are madeto the cost of labour to account for a mix of foreign and local labour withlargely foreign staff for the highly qualified work and predominantly localstaff for the semi and unskilled working activities.7166P02/BoQ and Cost Estimates9-6
Feasibility ReportMadian Hydropower Project9.4.1.4Calculation of Unit RatesBased on the collected cost of labour, materials, consumables and theadjustment of the Consultant’s list of equipment, calculation of unit rates forthe major construction items was performed. The Consultant used its unitcost data base program and calculated unit rates based on the abovementioned components (labour, material, consumables, equipment) andapplying the respective combination of these components required forexecution of a unit of all relevant civil work activities in a similar way as aContractor does in his calculation.Annex A-9.4 contains the relevant unit rates for the civil cost items of eachmajor project structure together with the corresponding quantities. Theserates where then checked with rates arrived at by using hourly rates oflabour, equipment, material and fuel cost for common items constitutingmajor part of the structure line excavation, concrete and dewatering,adjusted to site condition and other factors.The above mentioned cost estimate is based on in-house databases, whichhave been developed from Fichtner’s experience in this field. Also,negotiated prices available from our activities on other projects will be usedas reference. The construction costs will be determined on the basis of aquantity survey and adopting unit costs calculated by using material andlabour costs valid for the project region. About 70 % of the totalconstruction costs will be computed using a contractor's approach tocalculate prices. The remaining 30% of the costs will be estimated based onexperience.9.4.1.5Unit Rates of Similar Hydropower ProjectsThere is a large number of hydropower projects under development inPakistan. The cost estimates and unit rates derived from the tenderdocuments and the Contractor’s proposals of other hydropower projects ofsimilar type and magnitude provide a reasonable orientation for theplausibility of the calculated unit rates. Site, contract and other specificconditions may, however, cause significant deviations in the unit rates forthe same construction activity from one hydropower project to the other.The Consultant collected and analysed unit rates of civil works of thefollowing hydropower projects to a reasonable extent similar in type andsize to the Madian HPP:1.)2.)3.)4.)5.)6.)Malakand-III,Patrind HPPGolen Gol HPPDiamer Basha Dam ProjectDubeer Khawar HPPKhan Khwar HPP7166P02/BoQ and Cost Estimates9-7
Feasibility ReportMadian Hydropower ProjectSince the units rates presented in the BoQ of the six above projectsrefer to different reference dates, they were escalated to the level ofJune 30, 2008 applying an appropriate inflation rate per annum on local andforeign currency rates and the corresponding currency exchange rate of theCentral Bank of Pakistan. The comparison of the individual unit rates of thesix hydropower projects for the major activities of civil construction aregiven in Annex A-9.3. Following the comparison and analysis of the unitrates of other projects, the unit rates given in Table 9.5 are recommended forapplication:No1234a4b4c56789Cost ItemOpen Excavation in overburdenOpen Excavation in rockOpen Excavation in rockfor pits and trenchesUnderground rock excavation, Rock Type Aincl. Disposal of muckUnderground rock excavation, Rock Type Bincl. Disposal of muckUnderground rock excavation, Rock Type Cincl. Disposal of muckBackfill with excavation materialShotcreteReinforcementConcrete lining incl. FormworkReinforced Concrete incl. FormworkTable 9.5:UnitUnit RateUS m³m³tom³m³5.80172.001240.00174.00170.00Unit Rates for Civil Works from Other Hydropower Projects7166P02/BoQ and Cost Estimates9-8
Feasibility ReportMadian Hydropower Project9.4.1.6Civil Cost of Madian Hydropower ProjectBased on the unit rates established in the Consultants unit cost data base andthe detailed Bill of Quantity of the Project (see Annex A-9.4), the cost of thecivil works was estimated as given in Table 9.6MADIAN HYDROPOWER PROJECTCOST IN (USx1000)LOCALFOREIGNDIVERSION WORKSU/S coffer DamD/s Coffer DamDiversion 56,78,790CONCRETE WEIRMain W eir BodyFoundation Treatment 03.990,42.313,2784,412,9838,5213,0361,426RESERVOIR PROTECTION tion ,5838,8113,580Desander CavernCavernsConstruction ILRACE TUNNELDraft tube Extension & Tailrace TunnelTailrace tunnel & Power URGE TANK2.482,13.487,95,970POWERHOUSE CAVERN,TRANSFORMER & SWITCHYARD GALLERYPowerhouse CavernTransformer & Switchyard CavernCable TunnelAccess 185.359,2PRESSURE SHAFT / TUNNELPressure ShaftPressure TunnelManifoldsACCESS ROADS & BRIDGESTable 9.6:9.4.2COST INMillion US TOTALTOTALCosts of Civil Works of Madian Hydropower 2Estimation of Costs of Hydraulic Steel Structure EquipmentThe cost estimate of the hydraulic steel structure equipment for the MadianHPP is based on tender costs of hydropower projects of similar type andmagnitude worldwide. In view of the tight market situation the willingnessof manufacturers / supplies to provide quotations for the equipmentspecified for the Madian HPP is low.Equipment costs were estimated based on the cost of material thatinternational manufacturers pay for purchase of material and thecorresponding charges for design and manufacturing, transport, insuranceand erection etc. as known from tender prices of similar type of equipment.7166P02/BoQ and Cost Estimates9-9
Feasibility ReportMadian Hydropower ProjectIn Table 9.7 the major components of the hydraulic steel structureequipment and their corresponding costs are given. A detailed list ofequipment part and their corresponding rates and quantities is given inAnnex A-9.5. The level of the prices is 30. June 2007.No.123456789DESCRIPTIONLocalUS Diversion Tunnel Intake StoplogsSpillway Gates and StopglogsFlushing Outlet - Steel Liner and GatesPower Intake, Gates, Stoplogs, Raking MachineDesander gatesHeadrace Tunnel Maintenance GatePressure Shaft/Tunnel Steel LinerPowerhouseTailrace OutletSUBTOTALTable 9.7:UNIT RATEForeignUS 5TotalUS 216.655443.363257.25011.944.249Cost of Hydraulic Steel Structure Equipment for the Madian HPPThe Consultant inquired/estimated actual rates as per 30. June 2008. Anincrease of costs of approximately 15 % within one year was observed. Inview of establishing additional steel production capacities in China andIndia, predictions are reported that in the near future escalation of costs willbe moderate or even stagnant.9.4.3Estimation of Costs of Electro-mechanical EquipmentThe cost estimate of the electro-mechanical equipment is based on tendercosts of hydropower projects of similar type and magnitude worldwide. Inview of the tight market situation the willingness of manufacturers / suppliesto provide quotations for the equipment specified for the Madian HPP islow. Leading manufacturers state having orders for more than one year oftheir production capacity.The equipment costs were estimated based on recent tender prices ofprojects of similar type of equipment from qualified manufacturers on thebasis of equipment lists broken down into CIF prices, transportation to site,erection and nesButterfly valve, D 2.5mCooling Water SystemDrainage and Dewatering SystemLow Pressure Compressed Air SystemLow Pressure Compressed Air SystemAir Conditionning and Ventilation SystemOil Treatment PlantMechanical Workshop EquipmentEOT Crane Powerhouse 210 tElevatorFire Fighting SystemAuxiliary Francis unit - 520kWSubtotal-Miscellaneous itemsTOTALTable Lumpsum%in1111111111111LocalUS .57931.905118.13433.28199.575150.7993.190.287UNIT RATEForeignUS 9222.332.0082,5US TotalUS 9025.522.295638.05726.160.353Cost of Electro-mechanical Equipment for the Madian HPP7166P02/BoQ and Cost Estimates9-10
Feasibility ReportMadian Hydropower ProjectIn Table 9.8 the major components of the electro-mechanical equipment andtheir corresponding costs are summarized. A detailed list of equipment partsand their corresponding rates and quantities is given in Annex A-9.6.The Consultant inquired/estimated actual rates as per 30. June 2008 (oneyear later) and observed an increase of costs of approximately 20 %. It isdifficult to make predictions on future development of equipment prices.The Consultant believes that in the near future escalation of costs will bemoderate.9.4.4Estimation of Costs of Electrical EquipmentThe cost estimate of the electrical equipment is based on the tender costs ofhydropower and thermal power projects worldwide. In view of the tightmarket situation the willingness of manufacturers / supplies to providequotations for the equipment specified for the Madian HPP is low. Leadingmanufacturers state having received orders for far more than one year oftheir production capacity.The equipment costs were estimated based on recent tender prices ofprojects with similar type of equipment on the basis of equipment lists fromqualified manufacturers and broken down into CIF prices, transportation tosite, erection and commissioning.In Table 9.9 the major components of the electrical equipment and theircorresponding costs are summarized. A detailed list of equipment parts andtheir corresponding rates and quantities is given in Annex A-9.7.No.12345678910DESCRIPTIONSynchronous generators 63 kVA, 333Step-up transformer 230/13.8 kV220 kV SF6 Switchyard220 kV Terminal Gantry & Auxil.13.8 kV generator busbars & auxil.Protection SystemsControl and Monitoring SystemElectrical Equipment at Dam SiteEl. Equipment at Desander CavernEmergency Diesel 630 kVASubtotal-Miscellaneous itemsTable 9.9:UNITr umpsumLumpsumLumpsum%inQUANTITY1111111111UNIT RATELocalForeignUS US 2.525.473 17.678.311882.853 6.179.969742.180 5.195.25976.431535.017353.368 2.473.575261.487 1.830.407332.464 2.327.247171.090 1.197.62992.523647.66454.576382.0310US TotalUS 39.553Cost of Electrical Equipment for the Madian HPPThe Consultant inquired/estimated actual rates as per 30. June 2008. Anincrease of costs of approximately 25 % within one year was observed. It isdifficult to make predictions on the future development of equipment prices.The Consultant believes that in the near future escalation of costs will bemoderate.7166P02/BoQ and Cost Estimates9-11
Feasibility ReportMadian Hydropower Project9.59.5.1Estimation of Indirect Project Costs and ContingenciesConsideration of Indirect Costs and ContingenciesThe cost estimate for a hydropower project comprises major constructionactivities and cost items with their corresponding unit rates and quantities orwhere applicable lump sum cost. The total construction cost is determinedas the sum of the direct and indirect costs plus contingencies. The basicproject cost is calculated as the total construction cost plus charges forengineering, administration and supervision as well as client's own costs, thelatter two expressed as a percentage of the total construction costs.Indirect costs, as outlined below in detail, are costs other than investmentand recurrent costs and concern activities which will be required as a resultof the construction of the project infrastructure. They will depend on thefinal project development plan recommended for implementation, and willbe determined on the basis of the results provided by the social studies,institutional support requirements and the Environmental ImpactAssessment, including necessary compensation or mitigation measures toalleviate negative impacts, where applicable.9.5.1.1Consideration of Indirect CostsAs common practice in bankable feasibility studies, the concept of indirectcosts is applied to civil costs and includes preparation of the constructionsites, camp installation, site administration as well as bonds, insurance andcontractor’s profits. Indirect costs are taken to 25 % of the direct cost,estimated as follows:- 10% for site installation cost not included in the direct cost such as: move in, move out, erection, operation, maintenance and repair of general equipment, machinery, work-yards, stores, offices and housing facilitiesmove in and move out and all other relevant cost of personnelgeneral services such as electric power, water, sewage, traffic,communication,camps, canteen, special installations, first-aid, fire fighting, etc.temporarily required roads and bridges- 15% for the contractors indirect cost consisting of: site overheads for key personnel and local staff expenses head office services bonds and insurance pre-financing cost miscellaneous general services risk and profit2.0%2.0%2.0%5.0%1.0%3.0%In addition costs related to land acquisition, compensation payments andresettlement are to be taken into account.7166P02/BoQ and Cost Estimates9-12
Feasibility ReportMadian Hydropower ProjectRelevant corresponding costs may include: Land acquisition costs and compensation payments for loss ofagricultural production; these were determined as part of theResettlement Action Plan (RAP, see Volume VI-b);Resettlement costs for households to be resettled due to the constructionproject components, dumping of excavation material, these weredetermined as part of the Resettlement Action Plan (see Volume VI-b);The costs related to land acquisition, compensation payments andresettlement were determined to amount toRAP Cost: 129.395 million Rupees equivalent to 2.134 million USDIn addition the Consultant considers some minor additional annual costs formonitoring of water quality and supply of drinking water to affectedhouseholds as outlined in detail in Volume VI-b of this Feasibility Study. Thecorresponding costs are included in the estimate of Operation andMaintenance Costs.9.5.1.2Consideration of ContingenciesIrrespective of the level of planning, some element of uncertainty will stillremain in the estimation of quantities and costs, for which usually physicalcontingencies are included in the cost estimates to cover, for example, thefollowing:-unforeseen construction items,errors or inaccuracies in the quantity calculations,unforeseen deviations from expected geological, topographical orhydrological values.The percentage additions to the direct cost to account for physicalcontingencies are defined in the Bill of Quantities. For the feasibility study ofthe Madian HPP the following values were taken (Contingencies cover boththe physical and financial components). For the level of a bankablefeasibility study the following provisions are made to account forunforeseen
Feasibility Report Madian Hydropower Project 7166P02/Vol. II, BoQ and Cost Estimates List of Annexes: Annex A-9.1: Quotation of Material Unit Prices of Manufacturers /Suppliers Annex A-9.2: Cost of Construction Equipment - Monthly Rental Annex A-9.3: Comparative Statement of Unit Rates of 6 Hydropower Projects Annex A-9.4: Bill of Quantities of Madian Hydropower Project
Method of Measurement for Road Works Preparation of Bill of Quantities March 2011 3 Preambles to Bill of 9 The matters set out under the heading “Preambles to Bill of Quantities” Quantities (1-17) hereafter are always to be included as a preamble to the Bill of Quantities. Ad
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