KRB Roads

COST ESTIMATION MANUAL
for PERFORMANCE BASED

ROAD MAINTENANCE CONTRACT
Volume 2: Manual for Government Cost Estimators
© Japan International Co-orporation Agency
First Edition
Year of publication 2016
Nairobi
Artwork by John Agutu

Email: [email protected]
Printed by Franciscan Kolbe Press, P.O. Box 468 – 00217 Limuru KENYA
Contents
Foreword...................................................................................................................................................... v
Abbreviations and Acronyms........................................................................................................................ vi
Glossary of Terms.......................................................................................................................................... vi
1. Introduction.......................................................................................................................................... 1
1.1 Background and Objectives......................................................................................................... 1
1.2. Structure of Cost Estimation Manual........................................................................................... 1
1.3. PBC Works and Instructed Works............................................................................................... 1
1.4. Cost Structure for Estimation...................................................................................................... 3
1.5. Definition of SRUQ and P/R......................................................................................................... 4
2. Importance of Cost Estimation............................................................................................................. 5
3. Role of Government Cost Estimators................................................................................................... 5
4. Cost Estimation Methods of PBC Works............................................................................................. 5
5. Cost Estimation Procedure................................................................................................................... 6
5.1 Cost Estimation Flow................................................................................................................... 6
5.2. Cost Estimation Structure............................................................................................................ 7
5.3. Estimation Procedure on Direct Cost.......................................................................................... 8
5.4. Estimating Procedure on Indirect Cost/Overhead & Profit......................................................... 22
5.5. Estimating Procedure on VAT...................................................................................................... 22
Appendix 1 Cost Estimation System for PBC 2015 For Government Cost Estimators........................... 25
Appendix 2 Cost Estimation Parameters 2015......................................................................................... 45
Appendix 3 Example of Cost Estimation by COSTES for PBC 2015....................................................... 48
Appendix 4 Information on Volume 3 for Contractors’ Reference Use................................................... 82
Appendix 5: Recommendations by KRB on Indirect Cost, Overhead/Profit and Build-up of Unit Rates... 83
Volume 2: Manual for Government Cost Estimators iii

Foreword
The concept of performance based contracting in road maintenance and management has been adopted in
Kenya and was commenced in 2010 on a pilot basis. However, the method of estimating cost of works under
performance based contracts was not clear as it was based on traditional method of road maintenance. It was
therefore noted that a more scientific and accurate way of cost estimation of PBC road maintenance contracts
need to be formulated since these types of contracts differ from the traditional maintenance contracts. To
this end, JICA under the Project for strengthening of capacity on road maintenance and management through
contracting (phase 2), embarked on the noble task of developing this manual.
The manual has been prepared based on surveys conducted on the ongoing performance based contracts and
wide stakeholder consultations. The manual does not only provides scientific method of estimating the cost of
PBC road maintenance works but also provides survey techniques for collection of data necessary for regular
updating of the manuals. The manual consist of three volumes. Volume 1 is tailored to be used by the Road
Administrator (KRB) who provide estimation parameters and will be in charge of updating of the database. Volume
2 will be used by the road authorities for estimation of Project Cost i.e. determining the ceiling price for purposes
of budget allocation, planning and tendering. Volume 3 has been prepared specifically for contractors who will be
interested in tendering for PBC works. In volume 3, a deliberate move was taken to exclude information on unit
prices and percentages of indirect cost, overheads/profits which the contractors are required to provide during
the tendering processes. A computer program known as COSTES for PBC 2015 was also developed with data
collected from surveys on the ongoing PBC contracts. The computer program will be used with the manual to
ease rigorous computation processes. Explanations on how to operate the program have been appended in the
manual.
It is hoped that this manual will be very useful in implementation of this new concept of road maintenance and
will be beneficial to both the clients and the contractors.
I urge all stakeholders to make proper use of the manual in costing of PBC road maintenance works to arrive at
more accurate cost of PBC contracts, thus guaranteeing value for money and best return to the taxpayer.
Finally, I recognize and acknowledge with appreciation the National Working Group and Sub-Working Group
members who provided their valuable advice through a series of meetings during the period of formulating this
manual. I am particularly grateful to the JICA team for their technical assistance in achieving this milestone and
for their overall assistance in capacity building for road maintenance and management. Special gratitude goes to
all road authorities and other government agencies which include KRB, KeNHA, KURA, KeRRA, KWS, KIHBT,
NCA and PPOA for their valuable support in the development of this manual.
Eng. Patrick Mwinzi

Chief Engineer (Roads)
Ministry of Transport and Infrastructure
Volume 2: Manual for Government Cost Estimators v

Abbreviations and Acronyms / Glossary of terms
Abbreviations and Acronyms
IMP — Initial Mobilization Period

P/R — Productivity Rate
RA — Road Authority
RMP — Routine Maintenance Period
SRUQ — Standard Resource Usage per (Unit) Quantity
Glossary of Terms
Actual Quantity Refers to the actual quantity of work and service for each service criteria executed
by the contractor to achieve the specified service level.
Simple Quantity Refers to the targeted quantity of work and services for each service criteria to
be executed by the contractor as per the contract drawings.
General Maintenance Refers to all works and services (mainly off-carriageway) required to be performed
by the contractor under the performance based contract.
Initial Mobilization Period This is the period during the initial stages of the contract when the contractor
makes interventions to bring the road to maintainable conditions.
Routine Maintenance Period This is the period after the expiry of the initial mobilization period when the
contractor undertakes routine maintenance activities. The activities are
performed to maintain the performance standards of the road and to achieve
specified service levels.
vi Cost Estimation Manual for Performance Based Road Maintenance Contract

Introduction
1. Introduction
1.1 Background and Objectives

Performance Based Contract (PBC) is a new type of contract, which was introduced in Kenya recently but is
increasingly becoming very common as a contract method for road maintenance. The main payment method
in PBC projects is based on a km-lump sum utilizing set service levels to be achieved by contractors. PBC is a
term contract which covers both the wet seasons when frequent works are required, and the dry seasons when
lesser works may just be sufficient. In spite of the widespread use of PBC’s in road maintenance, no standard
cost estimation method has been developed. This creates a situation that no scientifically based judgment can be
made when the Engineer’s cost estimate is very different from the actual tender price.
Therefore, the need for development of such standard cost estimation method is vital for sustainable application
of PBC. Utilizing the standard cost estimation method is one of the basic fundamentals of project management of
PBC’s and will enable staff in various road authorities to have proper understanding of the tender price.
This Cost Estimation Manual for Road Maintenance under Performance Based Contracts (hereinafter referred
to as “the Manual”）aims to develop a scientific cost estimation method for PBC road maintenance using cost
breakdown sheets and standardized estimation procedures.
The Manual includes not only how to estimate costs but also provide information on survey methods required for
revisions and updates of various parameters such as the Standard Resource Usage per (Unit) Quantity (SRUQ)
and important cost items such as unit rates.
The Manual is in line with COST Estimation System for PBC 2015 (hereinafter referred to as “COSTES for PBC
2015”), the computer tool used for actual cost estimation exercises.
The Manual and COSTES for PBC 2015 are intended for use by engineers and managers who are responsible for
road maintenance in each road authority in Kenya and who requires scientifically based judgment when planning
and implementing PBC road maintenance projects.
1.2. Structure of Cost Estimation Manual

Three (3) Cost Estimation Manuals are prepared according to the purpose and user shown in Table 1-1.
Table 1-1 Structure of Cost Estimation Manuals
Vol Name of Manual User Objectives

Manual for Cost Estimation KRB Cost Survey
Administrators Provision of Standard Indices
1
Update and Maintenance of database and manual
How to Revise Vol.2 and 3
Manual for Government Cost Road Authorities Estimation of Project Cost for Budget Allocation
2
Estimators and KWS Estimation of Project Cost for Tender
Manual for Contractors’ Contractors Estimation of Project Cost
3
Reference & Use
1.3. PBC Works and Instructed Works

All current PBC projects in Kenya are composed of works and services related to Maintenance Services (hereafter
referred to as the PBC Works) and Instructed Works. Contractors have full responsibilities for works and services
required to bring up the road condition to the specified service levels. Contractors need to assess the existing
road condition and quantify the volume of the works and services required to achieve specified service levels.
Volume 2: Manual for Government Cost Estimators 1

Introduction
The PBC Works mainly consists of:

1) Labour-based works and services such as repair and maintenance of drainage, vegetation, road
cleanliness, and provision of a Self Control Unit for self-management of road maintenance; and,
2) Other works and services such as repair and maintenance of the carriageway and shoulders, repair of
structures, repair on road furniture, profile, width and embankment and slopes
Table 1-2 PBC Works and Instructed Works
Work Type PBC Works Instructed Works
Payment Method Based on Km-Monthly Lump Sum Based on Bill of Quantities
Initiator Contractor Client
Based on the nature of various requirements, Instructed Works are a combination of the following works and
services as indicated in Table 1-3.
Table 1-3 Details of Instructed Works
Instructed Works Bill of Quantities Payment
Rehabilitation Works
• To bring the road up to the pre-defined standards at the start
of the PBC project. E.g. filling potholes, laying gravel wearing Unit rate payment
Prepared by the client
course, repairing carriageway edges, reinstating road camber, determined by the contractor
road furniture maintenance and repair, and repairing culverts as
may be required.
Improvement Works
Unit rate payment
• To add new characteristics to the road in response to new Prepared by the client
determined by the contractor
traffic, safety or other conditions
Emergency Works
• To reinstate the road after damage has occurred as a result of Unit rate payment
Prepared by the client
natural occurrences with unexpected consequences under the determined by the contractor
condition defined in the contract
This Manual has been prepared principally to estimate the cost of PBC Works for which no standard procedure
for cost estimation was addressed in the previously issued “Cost Estimation Manual for Road Maintenance Works
2011”, popularly referred to as the COSTES Manual 2011.
This Manual is a new edition and focuses exclusively on the PBC Works. It tries to correctly estimate labour-
based works and services based on surveys conducted on on-going PBC projects. The Manual therefore reflects
the result of the surveys and recommends methods of standard estimation procedures using the results obtained
from PBC projects undertaken in 2014 and 2015.
It is important to appreciate that some future projects may be different from those projects surveyed for the
purpose of determining various values incorporated into this Manual. For example, in projects surveyed, there
were no physical repairs of scour checks and headwalls, and no physical maintenance and repair of structures
and road furniture.
In such cases, the COSTES Manual 2011 should be used to correctly modify the cost estimation by incorporating
the additional costs for such physical repairs.. Similarly, if a road authority is required to estimate the cost of
Instructed Works in addition to the PBC Works, the COSTES Manual 2011 should be used after correctly
assessing quantities of the Instructed Works required. In order that the Manual is useful for such cases, an attempt
has been made to allow adding such costs as deemed necessary from past experience/data, and collection of
estimates for such works, based on prudent judgment of the cost estimator. Default values set out in COSTES for
2 Cost Estimation Manual for Performance Based Road Maintenance Contract

Introduction
PBC 2015 may also be used.
1.4. Cost Structure for Estimation

The cost structure for estimation is shown in Figure 1-1 and the contents of each cost estimation element are
shown in Table 1-4. The project cost consists of four (4) cost components namely; a) Direct Cost, b) Indirect
Cost, c) Overhead & Profit and d) VAT. The total estimated cost is computed as the summation of all four cost
components. The project cost is the summation of three cost components excluding VAT.
Note) Using the Framework of the COSTES Manual 2011
Total Project Cost = a+b+c+d

c) Overhead & Profit
b) Indirect Cost
a) Direct Cost
16%
d) VAT
Note: Using the Framework of the COSTES Manual 2011
Figure 1-1 Principal Structure of PBC Cost Estimation
Table 1-4 Contents of Cost Estimation Components
Components Cost Estimation Elements

Off Carriageway Maintenance costs which are required for the PBC Works such as repair and
Maintenance Costs maintenance of drainage, vegetation, road cleanliness and provision of Self
(6 Major Labour Based Control Unit for self-management of road maintenance.
Works and Self Control Unit)
Direct Cost
Other PBC Works Maintenance costs for the PBC Works such as repair of carriageway and
shoulders, repair of structures, repair of road furniture, repair of road profile and
width, and repair of embankment and slopes.
Miscellaneous Costs and Miscellaneous expenses and other costs which are required for proper on-site
Others control and provision of safety gears and devices for workers and necessary
haulage cost for transporting labour, materials and equipment from/to the site.
• Site Management Cost
Indirect Cost
• Site Staff Allowances

• Site Staff Social Charges Cost computation for these items is
• General Safety Measures taken as a percentage of the Direct Cost
• Human Resource Management Cost
• Head Office Management Cost
Overhead & Profit
• Head Office Staff Salaries and Allowances

• Cooperate Social Charges Cost computation for these items is taken
• Research and Development as a percentage of the sum of Direct Cost
• Advertisement and Publicity and Indirect Cost
• Depreciation Costs for Fixed Asset
• Profit Margin

Introduction
The structure of a typical project is shown in Figure 1-2 for cost estimation purpose under COSTES for PBC
2015. The Direct Cost in this case consists of PBC Works, Instructed Works and Haulage Cost.
Item Cost
Total Project Cost (VAT(16%) Inclusive) 12=10+11
Project Cost 10=7+8+9
Direct Cost 7=4+5+6
PBC Works 4=1+2+3
Patrol and Self Inspection under Road Safety 1
6 Major Labor Based Works under Road User Comfort and Road Durability 2
4 3 2 1 Other PBC Works under Road User Comfort and Road Durability 3
Instructed Works 5
Haulage Cost 6
Indirect Cost 8
Overhead & Profit 9
VAT(16%) 11
Figure 1-2 Cost Estimation Structure under COSTES for PBC 2015
1.5. Definition of SRUQ and P/R

Standard Resource Usage per (Unit) Quantity (SRUQ) is the ratio of the number of person-days divided by the
volume of work completed. On the other hand, Productivity Rate (P/R) is an inverse of SRUQ.
An example of SRUQ and Productivity Rate is illustrated in Figure 1-3.
Example:
Grass cutting of 10,000m2 is completed in 5 man-days. That is 5 persons each completing 2,000m2 on a given day.
SRUQ = 5 man-days/ 10,000 m2 = 0.0005 man-day/m2
Productivity Rate (P/R) = 2,000m2 / man-day
Figure 1-3 SRUQ and P/R

Importance of Cost Estimation
2. Importance of Cost Estimation

The importance of cost estimation for PBC projects cannot be over-emphasized as the government is stepping
forward in increasing PBC as the key contract method for road maintenance. In addition, each road authority
must be accountable to the government as well as the public and road users for effective utilization of the
available road maintenance fund.
It is therefore necessary for each road authority to justify the anticipated project cost by performing cost
estimation and that the estimated costs are adequate to meet the specified service levels and can be met using
conventional PBC techniques available in Kenya.
Each road authority must acknowledge that in meeting some of the service levels required under the PBC
project, especially the “Other PBC Works”, quantification of maintenance and repair during the project requires
professional and engineering judgment. In addition to the development of cost estimator’s competence in
operation of COSTES for PBC 2015, a group of engineering professionals must be designated to support the
cost estimator in quantification of work outputs.
3. Role of Government Cost Estimators

The roles of a government cost estimator are as follows:
1. Performing cost estimation based on adequate work/service items and adequate costs.
2. Performing cost estimation based on standardized methodologies.
3. Performing cost estimation based on understanding individual features of the project involved.
4. Cost Estimation Methods of PBC Works

Cost estimation is performed in two stages.
The first stage involves cost estimation of the PBC Works. The contents of the PBC Works maybe split into three
(3) categories as indicated in Table 4-1 based on cost elements involved. The details of 6 Major Labour Based
Works are indicated in Table 4-2.
Compatibility of such three categories in respect to the specific service scope are indicated in Table 4-3.
Table 4-1 PBC Works
No Categories Description Cost Element
1 Patrol and Self-Inspection (Self For patrolling under Road Usability Labour, vehicles and fuel costs.
Control Unit) and for self-inspection
2 6 Major Labor Based Works Essentially the work is labor based Labour cost only. Vehicle and fuel costs are
(Table 4-2) and off-carriageway activity. included in Haulage Cost.
3 Other PBC Works Works involving the carriageway Labour, materials, machineries and
and others. equipment. Vehicle and fuel costs are
included in Haulage Cost.

Cost Estimation Procedure
Table 4-2 6 Major Labour Based Works
No Item
1 Grass Cutting
2 Cross Culvert De-silting
3 Catch Basin De-silting
4 Lined Side Ditch De-silting
5 Unlined Side Ditch De-silting
6 Carriage Way Cleaning
Table 4-3 Compatibility of the PBC Works and Service Scope
Patrol and Self 6 Major Labour Other PBC Works

Category Service Scope
Inspection Based Works
Road Usability A) Road Usability O
B) Pavement, Shoulders and ROW for ∆ O O
Road User (Cleanliness) (repairing items)
Paved Roads (P-B-1) & Unpaved
Comfort
Roads (UP-B-2)
C) Drainage ∆ O
D) Vegetation ∆ O
E) Structures ∆ O
Road Durability
F) Road Furniture ∆ O
G) Profile and Road width ∆ O
H) Embankment and slopes ∆ O
The second stage requires estimating the cost of the Indirect Cost and the Overhead & Profit.
5. Cost Estimation Procedure

This section covers the cost estimation procedure.
5.1 Cost Estimation Flow

Cost estimation required for a PBC project is to estimate the cost by adopting suitable productivity rates and
quantities of the required work inputs (resources) for work outputs. Since there are numerous work/services to
fully complete the PBC project, the government cost estimator should be aware of the contents of such works
and services as well as the standardized cost estimation flow.
COSTES for PBC 2015 has been developed as a part of the Manual to perform actual cost estimation exercises.
The government cost estimators are required to be briefed on use of COSTES for PBC 2015. The Manual
contains the instruction manual for COSTES for PBC 2015 for government cost estimators in Appendix 1.
The cost estimation flow is illustrated in Figure 5-1.

1. Cost Estimation Parameters

(Chap 5.3.1, 5.3.2, 5.3.3)
Project Condition (Vol. 1: Cost Estimation Manual for
IMP, wet and dry periods in months Cost Estimation Administrator)
Types of Cost Estimation Unit Rates
KM Standardized Quantity
Unit Rate of foreman, supervisor,
Simple Quantity
labourers, fuel, etc.,
Actual Quantity
Road Facilities Quantity Labour Productivity
First Stage
Length of drainage, culverts, SRUQs

area of grass cutting, etc.
Unit Rates
2. Cost Estimation of Direct Cost (Chap 5.3.4 to 5.3.8)

2.1 PBC Works – 6 Major Labor Based Works (Chap. 5.3.4)
2.2 PBC Works – Patrol and Self Inspection (Chap. 5.3.5)
2.3 PBC Works – Other PBC Works (Chap. 5.3.6)
2.4 Instructed Works (Chap. 5.3.7)
2.5 Haulage Cost (Chap. 5.3.8)
3. Cost Estimation of Indirect Cost/Overhead & Profit (Chap 5.4)

3.1 Indirect Cost (Chap. 5.4.1)
Second Stage
3.2 Overhead & Profit (Chap. 5.4.2)
4. Cost Estimation of VAT (Chap 5.5)
Figure 5-1 Flow of Cost Estimation Method
5.2. Cost Estimation Structure

This section covers the cost estimation structure.
5.2.1. Unit Rates and SRUQs
— Unit rates and SRUQs are obtained from the result of surveys undertaken by the cost estimation
administrator. The results are attached in Appendix 2 - Cost Estimation Parameters.
— COSTES for PBC 2015 is pre equipped with the above data for 2015.
5.2.2. Layered Structure for Cost Estimation Exercise
— The cost structure for estimation is indicated in Figure 1-1 in Chapter 1.4. In order to standardize the
actual structure for cost estimation exercise, the Manual adopts the layered structure as indicated in
Figure 5-2. COSTES for PBC 2015 has also been developed using the same layered structure.

— Direct Cost: This is the summation of PBC Works, Instructed Works (if required) and Haulage Cost
for the 6 Major Labor based Works. PBC Works are the summation of 6 Major Labor Based Works
under Road Durability, Patrol and Self Inspection under Road Usability and “Other PBC Works”.
Project Cost: This is the summation of Direct Cost, Indirect Cost and Overhead & Profit.
Total Project Cost: This is the summation of Project Cost and VAT.
Item Cost
Direct Cost 7=4+5+6
PBC Works 4=1+2+3
Major 6 Labor Based Work under Road Durability 2
4 3 2 1 Other PBC Works 3
Instructed Works 5
Haulage Cost of Major 6 Labor Based Work 6
Indirect Cost 8
Overhead & Profit 9
VAT(16%) 11
Figure 5-2 Layered Structure for Cost Estimation Exercise
5.3. Estimation Procedure on Direct Cost

This section covers the estimation procedure on computation of the direct cost.
5.3.1. Understanding Project Conditions
5.3.1.1 Project Schedule (Dry/Wet Periods)

Government cost estimators are required to split the contract duration into three periods as indicated in Table
5-1. These are: (1) the initial mobilization period as specified in the contract document or otherwise fixed by
each road authority; (2) the dry period; and, (3) the wet period under the routine maintenance period. It is
necessary for government cost estimators to determine the dry and wet periods.
Table 5-1 Information on Project Schedule
No Periods What to be Considered COSTES for PBC 2015
1 This is the transition period specified in the contract document The default value is set as
to allow the contractor to bring up the existing road condition 3 months.
Initial Mobilization Period to the required service level in order to prepare the road
(IMP) for PBC Works. It is understood that the volume of work
required during IMP is not important whether the period is
dry or wet. IMP is normally 3 months.
2 The volume of work is larger during the wet period compared No default value is set.
Routine Dry Period to the dry period. It is the duty of the
Maintenance cost estimator to input
3 Period Wet appropriate values.
Period

Dry and wet periods may be determined from historical precipitation data. The sample for Nairobi region is
indicated in Figure 5-3. Regional differences arise and should be taken into account.
Wet Wet
Figure 5-3 Nairobi Region Precipitation Data and Dry/Wet Periods
5.3.1.2. Regional differences

Government cost estimators must be aware of the fact that some estimation parameters may differ from one
region to another. COSTES for PBC 2015 has default values for unit rates which may be overwritten in case the
impact is deemed drastic.
• Unit Rates (Labour costs, material costs and hire of machineries and equipment)
• Work Frequency (Generally speaking, high precipitation calls for higher volume of work)
5.3.2 Understanding Types of Cost Estimation

Accuracy of cost estimation reflects the magnitude of survey inputs to ascertain what road facilities are required
to be maintained and how such road facilities should be maintained. However, cost estimation is used for various
purposes and sometimes accuracy can be of lower priority compared to the delivery time of cost estimation
information. COSTES for PBC 2015 is equipped with three types of cost estimation which can be chosen based
on the purpose of the cost estimation (Table 5-2). The magnitude of survey input decreases from 1 to 2 and 3.
However, the accuracy of cost estimation is higher from 3 to 2 and 1.
Table 5-2 3 Types of Cost Estimation
Type Applicable For Contents of Cost Estimation

1. Km Standardized Obtaining cost estimation prioritiz- Using survey result for each road authority on standard works
Quantity ing on faster output. and quantities required for 6 Major Labour Based Works. Since
No on-site (field) survey is required. simple and actual quantities are not required, faster output is
possible. The drawback is that works and quantities may not
reflect the actual site situation.
Under COSTES for PBC 2015, default values in Table 5-5 can
be used.
2. Simple Quantity Obtaining standard cost estimation. On-site surveys used to determine works and simple quantities
On-site survey to determine simple for the 6 Major Labour Based Works.
quantities is required.
3. Actual Quantity Obtaining detailed cost estimation. On-site survey used to determine works and actual quantities
On-site survey to determine actual for the 6 Major Labour Based Works. Actual quantities refer to
quantities is required. quantities based on the result of the survey reflecting deduction
of the area for vegetation such as car park areas. Please refer to
Table 4-4.

If Types 2 and 3 are chosen, government cost estimators must dispatch a team to undertake on-site survey to
collect information on what works are required under the 6 Major Labour Based Works.
It is necessary that government cost estimators must sufficiently be aware of various service levels and tolerances
required in PBC Works in relation to work outputs. The result of cost estimation should be double checked to
confirm all service levels are covered.
The relationship among each type of cost estimation, cost estimation parameters are already in-built in COSTES
for PBC 2015 and are to be used as fixed parameters. Data/information required to be obtained from on-
site surveys are indicated in Table 5-3. Further information is available in Figure 5-4 for understanding the
differences on KM Standardized Quantity, Simple Quantity and Actual Quantity. Further information is available
in Figure 5-4.
Table 5-3 Relationship of 3 Types of Cost Estimation, Fixed Parameters and On Site Survey
SRUQ of
cost quantity of unit rates
Cost Estimation Method ＝ｘ labor ｘ
estimation work output of labor
input
SRUQ
work
Cost estimation parameters pre equipped in COSTES for PBC 2015
frequency
km work
Periodical surveys are required by standardized difficulty
the cost estimation administrator quantity level
so that cost estimation parameters
are maintained. (simple/actual) miscellane
labor cost
% ous cost
SRUQ of
cost unit rates
1 Use of 'actual quantity' as the quantity of the work output ＝ actual quantity ｘ labor ｘ
estimation of labor
input
actual 6 SRUQs labor cost

On‐ site survey is required before cost etimation to obtain quantity for with 3
actual quantities on all work outputs each 6 work work
outputs difficulty
levels
simple quantity SRUQ of

cost unit rates
2 Use of 'simple quantity' as the quantity of the work output ＝ x ｘ labor ｘ
estimation of labor
(simple/actual) input
simple 6 SRUQs labor cost

On‐ site survey is required before cost etimation to obtain quantity for with 3
simple quantities on all work outputs each 6 work work
outputs difficulty
levels
(simple/actual)
%
km
SRUQ of
cost standardized unit rates
3 Use of 'km standardized quantity' as the quantity of the work output ＝ｘ labor ｘ
estimation quantity x of labor
input
project length
project length 6 SRUQs labor cost

No on‐ site survey is required before cost etimation with 3
Only the project length required km standardized work
quantity for difficulty
each 6 work levels
outputs
Pre determined cost estimation parameters
Cost estimation parameters to be checked on site by cost estimator

What are KM Standardized Quantity, Simple Quantity and Actual Quantity?

(1) KM Standardized Quantity
The quantity obtained from the past survey conducted by the cost estimation administrator on the Standardized Road.
Standardized quantities are obtained for all the 6 Major Labour Based Works unless such road facilities are not included in
the Standardized Road.
(2) Simple Quantity
The quantity of road facilities obtained purely from mathematical calculation based on the lengths, widths and numbers
obtained from on-site survey to be included in the Contract.
(3) Actual Quantity
The quantity of road facilities obtained from the on-site survey and determined by the survey team as the quantity
required to be maintained under the contract.
Example: Grass Cutting
Simple quantity and actual quantity for Grass Cutting are defined as shown in the figure below.
Maintained Length: L
Figure 5-4 Three Types of Quantities
In Table 5-4, KM Standardized Quantity for each road authority is indicated in the form of Simple Quantity per
KM. In addition, a fixed percentage of Actual Quantity/Simple Quantity (which is labelled “Actual/Simple”)’ in
Table 5-4, is termed as ‘Quantity Ratio’ in COSTES for PBC 2015. It is used to obtain equivalent Actual Quantity
per KM for each road authority.

Table 5-4 KM Standardized Quantities and (Simple/Actual) % for each Road Authority
KeNHA
Item Unit Simple Quantity/1km Actual/Simple Actual Quantity/1km

Grass Cutting m 2
6055 33% 2,018.3
Cross Culvert m 100 64% 64.4
Catch Basin Pcs 10 33% 3.3
Lined Dich m 200 50% 99.3
Unlined Ditch m 1400 35% 496.2
Carriageway m 2
2000 32% 638.7
KeNHA (2×2 Lanes)

Grass Cutting m 2
12110 33% 4,036.7
Lined Dich m 400 50% 199.0
Carriageway m 2
4000 32% 1,278.0
KURA
Grass Cutting m2 6819 33% 2,273.0
Lined Dich m 1400 50% 696.5
Carriageway m2 2000 32% 639.0
KeRRA
Grass Cutting m 2
2310 33% 777.0
Lined Dich m 0 -
Carriageway m2 0 -
KWS
Grass Cutting m 2
2310 33% 770.0
Catch Basin pcs 10 33% 3.3
Lined Dich m 0 -
Carriageway m 2
0 -
Remarks: COSTES for PBC 2015 uses data above based on surveys conducted from May to June 2014 and February to April 2015.

5.3.3. Adopting Unit Rates
The list of unit rates to be used for cost estimation is shown in Table 5-5.
The list of unit rates should be updated by the cost estimation administrator annually so that correct unit rates
can be used by government cost estimators and consistency is maintained among road authorities.
The 2015 list of unit rates is attached in Appendix 3. This list is in-built in COSTES for PBC 2015. In case different
rates must be applied due to regional differences and special features of the project, default values in COSTES for
PBC 2015 can be replaced as required. For updating unit rates, please refer to Vol.1 Cost Estimation Manual for
Administrator.
Table 5-5 Unit Rates List
Category Item Unit Rate Remarks

Mombasa, Other Areaii
Nairobi,
Kisumui
Labor Labor KSH/day
Foreman KSH/month
Supervisor KSH/month
SCU Leader KSH/month
SCU Inspector KSH/month
Driver (Pick up) KSH/month
Driver (Truck) KSH/month
Vehicle Cost iv
Truck (2 ton) KSH/month
(Dry rate) Pick up (Double Cabin) KSH/month
Fuel Costv
Diesel KSH/litre
Gasoline KSH/litre
Fuel Consumption Truck (2 ton) km/litre
Pick up km/litre
5.3.4. Estimating Cost for the 6 Major Labor Based Works
Majority of the PBC Works currently underway is comprised of the 6 major labor based works indicated in Table
5-6.
Table 5-6 Major Labour Based Work for the 6 items
No Item
1 Grass Cutting
2 Cross Culvert De-silting
3 Catch Basin De-silting
4 Lined Side Ditch De-silting
5 Unlined Side Ditch De-silting
6 Carriage Way Cleaning
This section covers how estimation procedure is followed on estimating the cost of the 6 Major Labour Based
Works.

5.3.4.1 Standard Resource Usage per (Unit) Quantity (SRUQ) and Productivity Rate (P/R)
Both SRUQs and P/Rs are labour productivity factors for the 6 Major Labour Based Works explained in Chapter
1.5. They are obtained from the productivity survey and computed into 3 different levels (Heavy, Normal, and
Light) in relation to Work Difficulty Level. The details of the survey are explained in Vol. 1: Cost Estimation
Manual for Administrator. P/R is the inverse of SRUQs, and both can be computed once one of them is known.
Government cost estimators are simply required to select the periods of the Initial Mobilization Period, the
dry period and the wet period. Then either the SRUQs or the P/R for the respective level will be used in cost
estimation in accordance with Table 5-8.
Table 5-7 Work Difficulty Level and Applications to Cost Estimation
Work Difficulty Level Site Work Condition Remarks
Heavy Very heavy work normally observed in the Used for the initial mobilization period
(productivity is low) initial mobilization period.
Normal Moderate work volume mainly observed in Used for the wet period
(productivity is normal) the wet period
Light Light work volume mainly observed in the dry Used for the dry period
(productivity is high) period
Table 5-8 List of Productivity Rates for the 6 Major Labour Based Works
(based on simple quantities md: man x days)
P/R (Simple) SRUQ (Simple)

Work item Level
Unit Unit
Heavy 300.0 0.003333333
Normal 1,383.7 0.000722722
Grass Cutting (m2) m2/md md/m2
Light 3,304.0 0.00030266
Total(Ave.) 1,900.3 0.000526242
Heavy 11.5 0.08688808
Normal 86.1 0.011610866
Cross Culvert (m) m/md md/m
Light 155.3 0.006440129
Total(Ave.) 17.5 0.057004161
Heavy 2.6 0.380952381
Normal 15.0 0.066666667
Catch Basin (pcs) pcs/md md/pcs
Light 69.5 0.014398268
Total(Ave.) 22.2 0.044944444
Heavy 31.9 0.031306995
Normal 90.6 0.011034638
Lined Side Ditch (m) m/md md/m
Light 1,217.5 0.000821347
Total(Ave.) 203.8 0.004907385
Heavy 114.7 0.008718194
Normal 117.1 0.00854163
Unlined Side Ditch(m) m/md md/m
Light 1,693.0 0.000590668
Total(Ave.) 115.2 0.008677437
Heavy 156.6 0.006386678
Normal 365.5 0.002736169
Carrageway De-silting(m2) m2/md md/m2
Light 904.8 0.001105161
Total(Ave.) 573.0 0.001745151
5.3.4.2 Manpower - Number of Labors (MD3)
The number of labourers required for labour based works can be computed as shown in Table 5-10.
MD3 =  x Q is the basic formula.

Table 5-9 Table for Computation of MD3 (dry season)
Item SRUQ * Quantity Labourers (MD3)

(a) (b) (a)x(b)
1. Grass Cutting -1gc md /m2 Qgc MDgc (md)
2. Cross Culvert De-silting -2cc md /m Qcc MDcc (md)
3. Catch Basin De-silting -3cb md /pcs Qcb MDcb (md)
4. Lined Side Ditch De-silting -4ld md /m Qld MDud (md)
5. Unlined Side Ditch De-silting -5ud md /m Qud MDud (md)
6. Carriageway Cleaning -6cw md /m2 Qcw MDcw (md)
Total MD3 (md)
Note) md : man day

* SRUQ is selected from Table 5-8 according to IMP, dry period and wet period.
5.3.4.3 Manpower - Number of Foreman and Supervisor (MD1 and MD2)

The number of foremen and supervisors required for labour based works can be computed as shown in Table
5-11.
Foreman: MD1 = MD3/90
Supervisors: MD2 = MD3/30 are the basic formula.
The above formula is based on organizing the labour team in accordance with Figure 5-5.
Table 5-10 Calculation of required number of foreman and supervisor
Productivity Rate : P/R(Labors）(per 10,000m2)
Item Unit Quantity Remark
Foreman man day MD1 MD1 = MD3∕90
Supervisor man day MD2 MD2 = MD3∕30
Labors man day MD3 From Table 5-10
The numbers of Foreman (MD1) and Supervisor (MD2) are computed based on understanding the typical
organization format indicated in the following Figure 5-5.
Track (2ton) Foreman

Site Agent Pickup
Supervisor- 1 Supervisor- 2 Supervisor- 3
30 Labors 30 Labors 30 Labors
Figure 5-5 Typical Organization for PBC works

5.3.4.4 Cycle Number (Work Frequency)

In some locations, it is required to perform works frequently to meet the specified service levels. An example is a
location that rubbish and debris are likely to be deposited compared to other locations because of the topography.
Another example, is the case where trees and grass have grown excessively due to ambient environment so that
the work must be done frequently. For such cases, an adjustment function called Cycle Number is included in
COSTES for PBC 2015
The default values of Cycle Number are set as indicated in Table 5-11. COSTES for PBC 2015 allows the values
to be replaced when the need arises.
Table 5-11 Default Cycle Number under COSTES for PBC 2015
Period Default Frequency under COSTES Remarks

for PBC 2015
Initial Mobilization Period Once during the Initial Mobilization If IMP is 3 months, the frequency is 1.
Period
Dry Period Once a month The default value may be replaced as the case may be.
Wet Period Once a month The default value may be replaced as the case may be.
The concept of Cycle Number is explained as follows:

The frequency of the work required to maintain the entire section in a single month is defined as “Cycle Number
(CN)”. The quantity of the total monthly work input can therefore be computed by multiplying the quantity of
each work input as required with the frequency of the work required to maintain the entire section in a single
month. Therefore, the quantity for a specific work during a month can be calculated by using the following
formula.
Monthly Quantity = Quantity of work for an entire section × CN

The relationship between CN and the monthly quantity is shown in Figure 5-5. The frequency of the work will
vary depending upon the period (dry or wet).
Nnmber of Labors
25 days
P/R×A N/25
N (No of Labors) =
10,000m2 persons
In case CN(Cycle Number) = 1

12.5 days 12.5 days
Nnmber of Labors
P/R×A P/R×A N/12.5

N= N=
10,000m2 10,000m2 persons
In case CN(Cycle Number) =2

Figure 4-5 Relation between CN and Monthly Quantity of PBC Works
Figure 5-6 Relation between CN and Monthly Quantity of PBC Works
4.3.4.5. Miscellaneous Costs
Cost estimators are required to apply the percentage over the cost of workers as indicated in Table
4-13. The percentage is required to cover the cost of miscellaneous costs such as tools, equipment
16 and safety gearsCost
required forManual
Estimation completing the 6 Major
for Performance Labour
Based Road Based Works.
Maintenance The reference list is
Contract
indicated in Table 4-14.

The cost estimators are also required to perform the same for COSTES for PBC 2015 for
Contractors. Based on the trials conducted, the value of 5% appears to be sufficient for such costs.
5.3.4.5 Miscellaneous Costs

The list indicated in Table 5-12 covers miscellaneous costs such as tools, equipment and safety gears required for
completing the 6 major labour based works. In order to estimate miscellaneous costs, a trial cost computation
was carried out as shown in Table 5-13. The result suggests that it is necessary to allow 5.0% of the cost of total
workers consisting of foreman, supervisors, and labourers as miscellaneous costs
Hence, COSTES for PBC 2015 adopts 5% as the default value for the percentage add-on to the total cost for
workers, in lieu of quantifying and calculating the cost one by one.
Table 5-12 Miscellaneous Costs
Item Unit Rate Q’ty Remark

Miscellaneous Expenses % 5 Cost of Foremen, Supervisors, The default value of COSTES for PBC 2015
and Labourers
Table 5-13 Trial Cost Computation for Miscellaneous Costs
(Per 100 person year)
Item Unit Q’ty Rate Amount Remarks
Safety Jacket Pcs 100 300 30,000 100 pcs/year
Helmet Pcs 100 1,000 100,000 100 pcs/year
Safety Boots Pcs 100 2,500 250,000 100 pcs/year
Safety Cones Pcs 20 250 5,000 60 pcs/3years
Grass Slasher Pcs 200 700 140,000 200 pcs/year
Wheel barrow Pcs 40 3,000 120,000 40 pcs/year
Shovel Pcs 20 500 10,000 20 pcs/year
Hoe Pcs 20 800 16,000 20 pcs/year
Fork foe Pcs 10 1,000 10,000 20 pcs/2years
Pick-axe Pcs 2 800 1,600 6 pcs/3yeas
Rake Pcs 20 300 6,000 20 pcs/year
Broom Pcs 600 150 90,000 50 pcs/month
Machete Pcs 5 600 3,000 5 pcs/year
Tape Measure Pcs 2 200 400 2 pcs/year
Total 782,000 (a)
% 5.0% (a)/(b)%
Labour Man days 30,000 450 13,500,000 100*25days*12 mths
Supervisor Man months 40 40,000 1,600,000 3.33*12 mths
Foreman Man months 13.3 50,000 665,000 1.11*12 mths
Workers Total 15,765,000 (b)

5.3.5. Estimating Cost of Patrol and Self Inspection (Self Control Unit)
Patrol and self-inspection are basic activities of Self Control Unit that is to be established by the contractor for
proper management of the PBC project.
Cost estimation is based on the formation as indicated in Table 5-14 below. Unit rates in Appendix 3 will be
used for cost computation. Cycle Number is as indicated in Table 5-15. All default values may be replaced as
may be required.
Table 5-14 Staffing Structure of Self Control Unit
Number of staffs(Depends on the road

type and complexity)
Position Task Requirements
Up to 10km*1 Up to 50km*2 Over
50km*3
1 SCU leader Coordination of data Trained in PBC,

collection Experience more than 5 1 1 1
Report, communication years
2 SCU Inspector Data collection Experience more than 3

Patrol years in construction and 0 1 2
maintenance
*1 Up to 10km: SCU leader conducts both patrol and self inspection (1 vehicle required)
*2 Up to 50km (standard) : SCU leader conducts patrol and self inspection with one assistant (1 vehicle required)
*3 Over 50km : SCU leader and an assistant conduct patrol and self inspection. An assistant conducts patrol in other roads under con-
tract at same time (2 vehicle required).
Source: PBC Guideline
This table is used as the default setting in COSTES for PBC 2015
Table 5-15 Cycle Number for Self Control Unit
Description Cycle Number Remarks
Road Patrol 4 trips/day (default value) for Paved 1 trip is defined as patrolling the project length once one way
Road, High only. Hence, patrolling the project length two round trips a day.
2 trips/ day for Paved Road, Standard Patrolling the project length one round trip per day.
2 trips/week for Unpaved Road Patrolling the project length one round trip per week.
5.3.6. Estimating Cost of Other PBC Works
All service criteria applicable for PBC Works are listed in Table 5-17. PBC Works are categorized into: (1) Patrol
and Self Inspection, (2) 6 Major Labor Based Works and (3) Other PBC Works.
This section covers how to derive the cost of “Other PBC Works”.
As “Other PBC Works” are non-labour based works but are a combination of supply of materials; effective use
of machineries; and labour service being a supplemental portion, a completely different style of cost estimation
must be introduced. At the same time, it must be understood that occurrence of “Other PBC Works” is difficult
to predict, therefore accuracy in quantification of work outputs remains low.
In the Manual, three ways of deriving the cost are presented.
1. Bottom-up Method: Identify work outputs, quantify work outputs, compute the volume of resources
required, obtain unit rates for each resource and derive the cost for the work;
2. Quotations based Method: Identify work outputs, quantify work outputs, obtain quotations for the
work outputs and derive the cost for the work; and,

3. Percentages based Method: Based on the past performance, quantify work outputs based on the
percentage over the Direct Cost excluding the cost of Instructed Works and derive the cost for the
work.
From the point of cost estimation accuracy, the Bottom-up Method is the most effective and preferred method.
However, since there is no sufficient database to back up the frequency of occurrence of Other PBC Works and
on site survey to supplement information is time consuming, the Manual recommends introduction of Percentages
based Method at the initial stage, then gradually transferring to either Bottom-up Method and Quotations based
Method upon building a sufficient database.
COSTES for PBC 2015 is compatible with all the three methods presented above.
Table 5-16 Estimating Cost of Other PBC Works
Method Key Elements Remarks
1 Bottom-up 1. The cost estimation administrator provides database on identification For future application. How-
Method of work outputs, conversion of productivity to work inputs and unit ever COSTES for PBC 2015
rates. is compatible
2. The cost estimator is required to estimate the probable quantity of
work outputs
2. Quotations 1. The cost estimation administrator provides database on identification For future application. How-
based Method of work outputs. ever COSTES for PBC 2015
2. The cost estimator is required to estimate the probable quantity of is compatible
work outputs
3. The cost estimator is required to obtain quotations
3. Percentages 1. The percentage of the cost of work over the cost of the Direct The preferred method by the
based Method Cost excluding the Instructed Works is established from past Manual. COSTES for PBC
performance. 2015 is compatible
The probable quantity for Other PBC Works can be computed using the following formula;
Probable Quantity = Simple Quantity x Damage Probability x Contract Duration
This is based on understanding that various work outputs under Other PBC Works are of random occurrence
and the impact of damage is also inconsistent.
By understanding the past maintenance record of damages and compiling them into the damage inventory, the
probability of each repair such as pothole repair, rutting repair, shoulder repair and road furniture repair can
be placed in a database to be provided by the cost estimation administrator. The Probable Quantity may be
computed by multiplying the simple quantity with the damage probability of repairs necessary under Other PBC
Works from the database maintained by the cost estimator.
In case, the damage probability is set higher than the reality, the cost estimate will be higher and in case, the
damage probability is set lower than the reality, cost estimate will fall short of what is actually required. In order
to minimize occurrence of such, it is a high priority to collect vital costs information as quick as possible.
The Manual recommends that works utilizing such probable quantities should be treated not as “Other PBC
Works”, but as a part of Instructed Works so that the risk is borne by the road authority. This measure should
be taken until such a time that a stable database of “Other PBC Works” is available. The other option will be to
adopt the Percentage based Method using the previous record under PBC projects.
Example:
Pothole repair: Simple Quantity (Paved Area) 1,000m2×Damage Probability 0. 5%
= Probable Quantity 5m2/Year
Km Post repair: Simple Quantity (Km Posts) 100nos. x Damage Probability 0.3%
＝Probable Quantity 0.3 nos/Year

Table 5-17 List of Service Criteria and Cost Estimation
Category Service Scope Service Criteria (Paved Road) Service Criteria (UnPaved Road) Cost Estimation
1 Passability 1 Passability Patrol and Self Inspection
20
2 Road Works Advance Warning Signs 2 Traffic Regulatory Control Signs
Road Usability A) Road Usability 3 Roughness 3 Roughness Equipment for measurement IRI needs to
add as required.
4 Average Traffic Speed or Roughness
5 Minimum Traffic Speed
1 Road Cleanliness 1 Road Cleanliness 6 Major Labour Based Works
2 Potholes 2 Corrugation Amplitude Other PBC Works
3 Cracking in flexible Pavement 3 Rut Depth Other PBC Works
4 Multiple cracks in the pavement 4 Potholes Other PBC Works

B) Pavement, 5 Rutting Other PBC Works
Shoulders and ROW Ravelling
Road User 6 Other PBC Works
for Paved Roads (P-B- Loose pavement edges
Comfort 7 Other PBC Works
1) & Unpaved Roads
8 Height of shoulders vs. height of pavement Other PBC Works
(UP-B-2)
9 Paved shoulders Other PBC Works
10 Cracks in Concrete Pavement Other PBC Works
11 Interlocking Block Pavement Other PBC Works
12 Medians Other PBC Works
1 Side Drains, Mitre Drains and cut off drains (lined) 1 Side Drains, Mitre Drains and cut off drains (lined) 6 Major Labour Based Works
2 Side Drains, Mitre Drains and cut off drains (unlined) 2 Culverts and Access Drifts 6 Major Labour Based Works
C) Drainage 3 Culverts and Access Drifts 3 Scour Checks, gabions and other erosion protection structures 6 Major Labour Based Works
4 Scour Checks, gabions and other erosion protection structures Other PBC Works
5 Manholes and Gulleys 6 Major Labour Based Works
1 Vegetation free zone 1 Vegetation free zone 6 Major Labour Based Works
2 Outer/inner vegetation 2 Outer/inner vegetation 6 Major Labour Based Works
D) Vegetation
3 Growth encroaching into vegetation free zone from the side or top 3 Growth encroaching into vegetation free zone from the side or top 6 Major Labour Based Works
4 Trees within ROW 4 Trees within ROW 6 Major Labour Based Works
1 Concrete structures 1 Concrete structures Other PBC Works
2 Steel structures 2 Steel structures Other PBC Works
E) Structures Expansion joints
3 3 Riverbeds Other PBC Works
Road Durability Riverbeds
4 Other PBC Works
1 Warning signs/Mandatory signs 1 Warning signs/Mandatory signs Other PBC Works
Cost Estimation Manual for Performance Based Road Maintenance Contract

2 Information signs, Edge marker posts, Guide posts, Kilometre post 2 Information signs, Edge marker posts, Guide posts, Kilometre post Other PBC Works
3 Traffic signals 3 Guardrails and Pedestrian rails Other PBC Works
F) Road Furniture Street Lighting
4 Other PBC Works
5 Road Markings/Road studs Other PBC Works
6 Guardrails and Pedestrian rails Other PBC Works
G) Profile and Road 1 Gravel Thickness Other PBC Works
width 2 Camber Other PBC Works
3 Usable Road Surface Width Other PBC Works
H) Embankment and 1 Embankment slopes 1 Embankment slopes Other PBC Works
slopes 2 Slopes in Cuts 2 Slopes in Cuts Other PBC Works
5.3.7. Estimating Cost of Instructed Works
Since the Instructed Works are measured on site after completion, and the responsibility for setting quantities for
each work item is by the road authority, the scope of the Instructed Works should be determined carefully by a
group of engineering professionals to assist the cost estimator in charge.
Similarly, for the Other PBC Works, this Manual presents three ways of deriving the cost as presented below:
1. Bottom-up Method using COSTES 2011 as the Base for Unit Rates: Most of the scope of the Instructed
Works is covered by COSTES 2011. This method is to utilize work rates generated by COSTES 2011
to COSTES for PBC 2015. One must be aware that the base cost of COSTES 2011 is FY 2011.
2. Quotations based Method: Quotations can be obtained for the whole scope of the Instructed Works
but can be time consuming. Using such rates and using quantities set by the group of engineering
professionals, the amount of Instructed Works can be computed.
3. Percentages based Method: Using past performance, the percentage of the cost of Instructed Works
can be used to compute the amount of the Instructed Works.
COSTES for PBC 2015 is compatible with all the three methods presented above.
5.3.8. Haulage Cost
The haulage cost is the cost required for transporting materials, labour and equipment to and from the site.
For cost estimation purpose, two options of using either a 2 ton truck or a single pick-up truck are provided as
indicated in Table 5-18.
Cost estimation is based on the formation as indicated in Table 5-19. Unit rates in Appendix 3 will be used for
cost computation.
Table 5-18 SRUQ for Vehicles (Per Month)
Vehicles Quantity Applicable for Remarks
Truck (2 ton, flat bed) For general roads  This is the default Including transport of removed earth, weeds
1 setting for COSTES for PBC 2015. and other materials generated from the site.
(25 working days/month on hire based)
Pick up For minor or local roads where trucks

1 are not widely used. (25 working days/
month or hire based)
Table 5-20 Cost for Vehicles for General Maintenance Works
Description Truck (Flat bed, 2 ton)

Unit Month
Quantity 1
Item Specs Unit Unit Rate Quantity Amount Remarks

Vehicle Truck (2.5-5ton) Unit Appendix 2 1
Fuel Litre 4km/litre
Driver Persons 1

Description Pick up
Unit Month
Quantity 1
Item Specs Unit Unit Rate Quantity Amount Remarks

Vehicle Pick up (Double Cab) Unit Appendix 2 1
Fuel Litre 10km/litre
Driver Persons 1
5.4. Estimating Procedure on Indirect Cost/Overhead & Profit

5.4.1 Indirect Cost
The Manual recommends a percentage of Indirect Cost as 30% over the Direct Cost.
(This is the default value used in COSTES for PBC 2015)
The percentage is based on other classical road contracts in Kenya.
Table 5-20 Construction Project Content Table in Japan
Indirect Cost Site Establishment Labour Camp

Water for Camp
Electricity for Camp
Access Road
Site Management Site Staff Salary/Allowances/Social Charges

Office Expenses including Water & Electricity
General Safety Measures
Human Resource Management Cost
Overhead and Profit Overhead Head Office Management Cost

HO Staff Salary/Allowances/Social Charges
Director’s Remuneration
Corporate Social Charges
Advertisement and Publicity
Profit Profit
5.4.2. Overhead & Profit

Similarly as in 5.4.1, the Manual recommends a percentage of the Overhead/Profit as 10% over the
summation of the Direct Cost and the Indirect Cost .
(This is the default value used in COSTES for PBC 2015)
This percentage is also based on other classical road contracts in Kenya.
It is to be noted that the profit margins and overheads include only those incurred by the Contractor but not the
Client.
The default values of percentage for Indirect Cost and Overhead/Profit should be modified once
comprehensive survey has been conducted.
5.5. Estimating Procedure on VAT

All of the costs are summed up to derive the Project Cost, which is the sum of the Direct Cost, the Indirect
Cost and Overhead & Profit. The applicable VAT rate is used to compute the cost of VAT as a percentage of the
project cost.
16% VAT is set as the default value in COSTES for PBC 2015. In case, VAT percentage is changed by the
government, VAT percentage can be modified accordingly.

Appendix
Appendix 1 COSTES Manual for Government Cost Estimators

Appendix 2 Cost Estimation Parameters 2015
Appendix 3 Example of Cost Estimation by COSTES for PBC 2015
Appendix 4 Information on Volume 3 for Contractors’ Reference Use
Appendix 5: Recommendations by KRB on Indirect Cost, Overhead/Profit and build- up of Unit Rates

COST Estimation System for PBC 2015 For Government Cost Estimators Appendix 1
Appendix 1
COST Estimation System for PBC 2015
For Government Cost Estimators
1. Introduction.......................................................................................................................................... 27
1.1. What is COST Estimation System for PBC 2015?........................................................................ 27
1.2. Concept of the calculation inside COSTES2015.......................................................................... 27
2. COSTES Program Outline.................................................................................................................... 28

2.1. System Requirements................................................................................................................... 28
2.2. Program Files............................................................................................................................... 28
2.3. Program Structure and Work Flow.............................................................................................. 28
3. Program Step and User Input............................................................................................................... 29

3.1. Menu and Login – “Welcome to COSTES 2015”........................................................................ 29
3.2. Contract Data Input – “COSTES for PBC Contract Condition Editor”...................................... 30
3.3. Unit Price/Ratio Confirmation – “Unit Price/Ratio Confirmation”............................................... 32
3.4. Other PBC Works (Optional) – “COSTES PBC Works Editor”.................................................. 34
3.5. Instructed Works (Optional) – “COSTES Instructed Works Editor”........................................... 36
3.6. From Start to the Goal................................................................................................................. 37
4. COSTES for PBC 2015 OUTPUT........................................................................................................ 38

4.1. Cover Page................................................................................................................................... 38
4.2. Summary Contents...................................................................................................................... 38
4.3. Detail Contents (A):..................................................................................................................... 40
4.4. Detail Contents (B):..................................................................................................................... 41
4.5. Other PBC Works Summary and Instructed Works Summary.................................................... 44
5. Conclusion............................................................................................................................................ 44

1. Introduction
1.1. What is COST Estimation System for PBC 2015?

COST Estimation System for PBC 2015 or “COSTESforPBC2015” is a program to create cost estimation sheets
by minimum input of contract condition. Current version can easily calculate the following items:
1. 6 Major Labour Based Works
a. Self-Inspection (Road Patrol)
b. Works to Sustain Road Durability;
i. Grass Cutting, Cross Culvert Desilting, and Catch Basin Desilting; and,
ii. Lined Side Ditch Desilting, Unlined Side Ditch Desilting, and Carriageway Cleaning
2. Haulage cost
3. Indirect Cost
4. Overhead and Profit
5. VAT
In addition, the current version can get the cost of the following items:.
1. Cost of other PBC Works except for Works to Sustain Road Durability;
2. Cost of Instructed works
However, unit cost survey and setup of unit cost table are required.
1.2. Concept of the calculation inside COSTES2015

COSTES 2015 calculates cost estimation of the project considering the cost structure are shown in Figure 1.1
below. Details of the cost structure are presented in clause 1.4 of the manual.
Direct Cost
6 Major Labour Based Works Instructed
Other PBC Works
(Major works) Works
Indirect Cost
Overhead and Profit
VAT
Figure 1.1 – Cost Structure from COSTES 2015
1: Direct work Cost (Clause 1.4 & 5.3 of Cost Estimation Manual for Road Maintenance under Performance
Based Contracts Vol.2)
Based on the contract conditions, works quantity and unit price, COSTES calculates “Direct Cost” first.
Cost of Other PBC Works, Instructed Works and haulage costs are registered as direct costs.
2: Indirect Cost (Clause 1.4 & 5.4.1 of Cost Estimation Manual for Road Maintenance under Performance
Indirect Cost is calculated as a percentage of direct cost.
3: Overhead and Profit (Clause 1.4 & 5.4.2 of Cost Estimation Manual for Road Maintenance under
Performance Based Contracts Vol.2)
Overhead and Profit are calculated as percentages of the sum of direct cost and indirect cost.

Appendix 1 COST Estimation System for PBC 2015 For Government Cost Estimators
4: Calculate VAT (Clause 1.4 & 5.5 of Cost Estimation Manual for Road Maintenance under Performance
VAT is calculated as a percentage (currently 16%) of the sum of direct cost, indirect cost, and overhead
and profit.
2. COSTES Program Outline

2.1. System Requirements
1: COSTES2015 is a compact program and works in most computers used in the office.
COSTES2015 development team has tested it with Windows7, Windows8, Windows8.1 (English and
Japanese version). Testing COSTES 2015 in Windows 10 is on-going, but not in Windows XP and Vista.
2: Microsoft Excel version 2007 or later

Output is in pdf format but data can be processed in Excel.
ATTENTION If Excel 2013 or later is used, COSTES 2015 might not work properly. In this case, by downloading
and installing “AccessDatabaseEngine2010 32bit” from Microsoft Website, COSTES2015 will
work.
2.2. Program Files

COSTES2015 consists of three files as shown in Figure 2.1, which should be copied to any folder of the user’s
computer.
ATTENTION Three files should be included in the same folder.
Figure 2.1 – Program File List
1: Costes.exe …. Main Cost Estimation Program

2: COSTESini.csts…system file (do not modify)
3: Jicadata.accdb…database file (PIN Protected, do not modify)
2.3. Program Structure and Work Flow

Input data and output of the COSTES 2015 is shown in Figure 2.2. Users have to input very basic contract
conditions only. After input, COSTES 2015 automatically seeks proper productivity rates (SRUQs), unit prices,
and unit quantities per km, if necessary. Then, COSTES2015 automatically generates a cost estimation sheet/s
in PDF format. By administrator’s configuration, Excel output can be generated. Users are therefore saved from
precise cost searches and making complicated excel worksheets.

Menu and Login
Welcome to COSTES 2015 User Type and Passwod
Contract Condition/Quantity Data Input

 Basic Contract Information
Work Frequency
Unit Price/Ratio Confirmation Check/Modify Unit Price/Ratio

Other PBC Works (Optional)
COSTES PBC Works Editor Select Required Work Item and input/modify price & quantity

Instructed Works (Optional)
COSTES Instructed Works Editor Select Instructed Work Item and input/modify price & quantity

Output
PDF Format / Excel Format(Optional)
(Legend)
Procedure
Program Window Name User Input
Figure 2.2 – Basic Data input and Program flow inside the COSTES2015
3. Program Step and User Input

3.1. Menu and Login – “Welcome to COSTES 2015”
Double click “Costes.exe” and below window will appear
Figure 3.1 – Welcome Window

Figure 3.1 - Welcome Window
Table
Table 3.1
3.1 –- PIN
PINfor
for Login
Login
USERNAME
USERNAME PIN
PIN
Road Authority
Contractor COSTESRA2015
COSTES
ATTENTION: PIN code is subject to change. Users should ask the administrator for the latest PIN.
ATTENTION PIN code is subject to change. Users should ask the administrator for the latest PIN.
3.2. Contract Data Input – “COSTES for PBC Contract Condition Editor”
3.2 Contract Data Input – “COSTES for PBC Contract Condition Editor”
All editable fields should be filled out otherwise COSTES will not proceed to the next step/form.
All editable fields should be filled out otherwise COSTES will not proceed to the next step/form.
Figure
Figure 3.2
3.2 -– COSTES
COSTESContract
ContractCondition
ConditionEditor
EditorWindow
Window
A1-5

Input fields and their explanation are listed in Table 3.2.
Table 3.2 – Contract Condition Input
Input Filed Input Data Type Description
Road Authority One Possible Choice Select user’s road authority
Road Name, Project Name, Place, Type Text Type information based on the condition
Editor’s Name
Total Project Length Numeric Type Project Length by kilometers
Age, Off-Carriageway, Number of Numeric/One Not available (Future Option)

lanes, Road type Possible Choice
Contract Periods: Dry Period and Numeric Type Project Length by month Decimal input is possible.
Wet Period Default value for Initial Mobilization Period (IMP) is 3 months.
(Clause 5.3.1.1& 5.3.4.4 of Cost Respective work frequency setting is available.
Estimation Manual for Road
Maintenance under Performance
Work Frequency by Period Numeric Number of frequency per month for the 6 Major Labour Based
(Clause 5.3.4.4 of Cost Estimation Works. Decimal input is possible (e.g. 0.5 means once per two
Manual for Road Maintenance under months). Users can define frequency by each period.
Frequency of Self Control Unit (Road Numeric Number of frequency per day. Decimal input is possible (ex.
Patrol) 0.5 means once every two days)
(Clause 5.3.5 of Cost Estimation
Manual for Road Maintenance under
Haulage Frequency Numeric Number of frequency per day. Decimal input is possible (e.g. 1
means one-way haulage / 2 means one round trip)
Users should prepare the size of the maintained area and the work frequency for each of the six major labor-
based work items to obtain the quantity input i.e., Based on the kind of data, users can choose input method from
one of the following methods. The detail of the quantity input is described in Clause 5.3.5 of Cost Estimation
Manual for Road Maintenance under Performance Based Contracts Vol.2.
Table 3.3 – Quantity Input Method
Input Method Description Site Survey
Use km Standardized By using project length, COSTES automatically calculates quantity using
Not required
standardized quantity register in COSTES program. No specific quantity is
QUANTITIES (Refer Project length)
needed but estimation accuracy is relatively low.
Fill out the blank with total quantity including both maintained and non-
Simple Quantity maintained area. Estimation accuracy is moderate but officials have to Required
collect data by on-site survey.
Fill out the blank with actual quantity. Estimation accuracy is the best among
input methods. However, classification of facilities on whether they are
Actual Quantity Required
subject to maintenance or not is necessary during on-site survey to obtain
the size of maintained area.
Select input method independently. This option might not be selectable by Depends on each input
Independent Selection
the administrator. method
Table 3.4 contains the meanings of some commands.

Table 3.4 – Command list and their Descriptions
Command Description
“Load Input Data” Save current inputs as a “boq file.
“Save Input Data” Load saved contract condition data from file. Entire edited data are saved as a file.
Proceed to the next window (Unit Price /Ratio Confirmation). Entire filed should be filled out
“Setup Unit Price”
otherwise error message would appear.
“Quit” Terminate COSTES. Current data is not saved unless saving as a bod data.
In addition, users can modify the road patrol (Self Control Unit) and haulage inputs by editing tables shown in
Figure 3.3 and Figure 3.4 below. The details are shown in Clauses 5.3.5 and 5.3.8 of Cost Estimation Manual for
Road Maintenance under Performance Based Contracts Vol.2.
Figure 3.3 – COSTES for PBC SCU Editor Figure 3.4 – COSTES for PBC Haulage editor
Default contents can be available by clicking “Recall Default Value”. If the box is checked, this content is the
member of SCT/Haulage Unit. Default value (30days) assumes that SCU patrols the roads every day. 25days
means that the haulage works are carried out on all days of the week except on Sunday. Numbers and working
days can be changed based on the condition.
CAUTION In the initial use, users have to set up “default” value by clicking “Recall Default Value” command
button to edit the entry.
CAUTION Users have to check the member of SCU and Haulage member at least once.
3.3. Unit Price/Ratio Confirmation – “Unit Price/Ratio Confirmation”

Users can modify and check unit price and ratio by “Unit Price/Raito Confirmation” window shown in Figure
3.5. Firstly, uses have to select the area of “Unit Price Set”. Then default unit prices and ratios will be displayed.
Users can modify each value.
CAUTION If logging in as a Contractor, “Unit Price Set” selection is not shown and all fields are blank.
Contractor has to fill out all unit prices from their own experience and information from the site
visits and surveys. Contractor can choose from “percentage input” or “input by cash amount”
for Indirect Cost and Overhead Profit calculation.
Figure 3.5 – Unit Price/Ratio Confirmation Window

Table 3.5 – Fields and their Descriptions
Field Description Manual
Unit Price Set (Only Road Authorities) COSTES has a unit price database of listed area.
5.3.3
Unit Price Confirm Unit Price. Change them if necessary.
Miscellaneous (%) 5.3.4.5
Indirect Cost (%) COSTES has a default ratio for every road authority. 5.4.1
Overhead & Profit (%) Check and change if necessary. 5.4.2
VAT (%) 5.5
Table 3.6 – Command list and their Descriptions
Command Description
Recall Default value: If default value set is required, press this button to recall.
(Road Administrator only) Default value set is defined by area.
If values of all fields are filled out, it is possible to proceed to the next window.
Proceed to Other PBC Other Works Editor
(COSTES Other PBC Works Editor)
Back to Contract Condition Editor Back to the Contract Condition Editor form.

3.4. Other PBC Works (Optional) – “COSTES PBC Works Editor”

There are various kinds of maintenance work except for six major labour based works. Therefore, COSTES has
prepared other PBC work item list based on the “Other PBC Works” in Table 5-17 of Cost Estimation Manual
for Road Maintenance under Performance Based Contracts Vol.2. Users can select necessary work item(s) and
specify price. If other PBC works are not necessary, users can skip this editing process.
Detail explanation is in Table 4.1 and 5.3.6 of Cost Estimation Manual for Road Maintenance under Performance
Based Contracts Vol.2, respectively.
CAUTION Current database is a “sample”. This editor will be effective after specific item list will have been
prepared.
CAUTION If logging in as a Contractor, COSTES does not present default unit price.
Figure 3.6 – Other PBC Works Editor Confirmation Window
Table 3.7 – Fields and their Descriptions
Field Description
If checked, all item list is selectable no matter the year when the item is registered. If not checked,
Items in Year/any Years
item list of selected year only is subject to selection.
Region/Pavement/Scope/Item Select from top to bottom to filter work item
As for the Price Input, users can select one of three methods shown in Table 3.8. Other commands are listed in
Table 3.9.

As for the Price Input, users can select one of three methods shown in Table 3.8. Other commands are
listed in Table 3.9.
Table3.8
Table 3.8- –Input
Inputmethod
method options
optionsfor
forOther
OtherPBC
PBCWorks
Works
Option OPTION Description DESCRIPTION
Percentages based method Calculated

Calculated by product
by the the product of the
of the sum of sixsum
majoroflabour
six major labour
based works’ costbased
by
Percentages based method constant ratio. Default value is 5 percent.
works’ cost by constant ratio. Default value is 5 percent.
Quotations based
Quotations based method- “Use
method- IfIfusers
userswant
want to own
to use use unit
ownprice
unitand
price andusers
quantity, quantity,
should users should
select this optionselect
to
“Use own unit price and quantity” enable specific input.
own unit price and quantity” this option to enable specific input.
Quotations
Quotationsbasedbased
method-
method- IfIfusers
userswant to lump-sum
want price suchprice
to lump-sum as quotation,
such choose this option choose
as quotation, and specifythis
“Use lump-sum price” lump-sum price, quantity input is not possible.
“Use lump-sum price” option and specify lump-sum price, quantity input is not possible.
From Instructed Work List In order to achieve Service Criteria, the user should edit necessary works from the
From Instructed
(Bottom-up Method) Work List In order
work to achieve
list developed Service
in 2011 Criteria,
to create the user should edit necessary
a new package
(Bottom-up Method) works from the work list developed in 2011 to create a new package
If users choose “From Instructed Work List ” an editing window as shown in Figure 3.7 will appear. This editor
can be used to edit one PBC work item or a set of specific instructed work items.
If users choose “From Instructed Work List ” an editing window as shown in Figure 3.7 will appear. This
editor can beFigure 3.7edit
used to – Specific
one PBCPBCwork
Workitem
Itemoreditor
a set (Usage method
of specific is described
instructed workinitems.
section 3.5)
Figure 3.7Table
- Specific PBC Work and
3.9 – Commands Itemtheir
editor (Usage method
Descriptions on PBC is described
other in section 3.5)
works editor
Command Description
Table 3.9 - Commands and
Add items to the listtheir
basedDescriptions onandPBC
on the conditions other
values works
specified editor
above.
“Add/Refresh Item”
If an item is selected in the grid and quantity/price is changed, this item is refreshed.
COMMAND DESCRIPTION
“Delete Item” Remove itemsto
Add items from
thethe
listlist.
based on the conditions and values specified above.
“Add/Refresh Item”
“OK” If antoitem
Back is selected
the gateway. in the grid and quantity/price is changed, this item is
refreshed.
3.5. “Delete
Instructed Item”
Works (Optional) – “COSTES
Remove Instructed
itemsWorks
fromEditor”
the list.
In addition“OK” Backroads
to PBC Other Works, to the gateway.
require various kinds of special works. COSTES 2015 refers to them as
“Instructed works” and users can select necessary work items and input quantities and prices. Editor image is
A1-11
shown in Figure 3.8 and commands/items are listed in Table 3.10 and Table 3.11. Clause 5.3.7 of Cost Estimation
Manual for Road Maintenance under Performance Based Contracts Vol.2 describes the detail.
CAUTION Current items and price database is the Costes2011 table. Therefore a new database is required.
CAUTION If logging in as a Contractor, COSTES does not present default unit price. Therefore, users have
to input unit price and quantities, or one set of lump-sum price.
Figure 3.8 – COSTES Instructed Works Editor
Table 3.10 – Items and their Descriptions
Item Description
Items in Year/any Years If checked, all item list is selectable no matter the year when the item is registered. If not
checked, item list of selected year only is subject to selection.
Category/Work Item Name Select from top to bottom to filter and select work item.
Item Quantity Specific quantity of selected work item. Unit is specified in the window
Other commands are listed in Table 3.9.
Table 3.11 – Commands on PBC (other works editor) and their Descriptions
Command Description
“Add/Refresh Item” Add items to the list based on the conditions and valued specified above.
If an item is selected in the grid and quantity/price is changed, this item is refreshed.
“Delete Item” Remove selected items.
“OK” Back to the gateway. List is preserved until program termination.

3.6. From Start to the Goal
Relationship among Unit Price Confirmation, PBC Other works, and Instructed works editor is as follows.
OUTPUT
Estimation
Contract Condition Unit Price / Ratio Other PBC Works Gateway

COST Estimation System for PBC 2015 For Government Cost Estimators
Volume 2: Manual for Government Cost Estimators

37
PBC Work Item Package Other PBC Works Instructed Works
Appendix 1
4. COSTES for PBC 2015 OUTPUT
4.1. Cover Page

Fisical year 2015-2016 Summary of works
Project Name KURA Trial Project1
Road Name KURA Sample Road
Place of Works KURA Trial Road1
Total Length 41.3km
Contents of Works PBC Works
Self Inspection 41.3km
Grass Cutting 41.3km
Cross Culvert Cleaning 41.3km
Catch Basin Cleaning
Lined Side Ditch Cleaning 41.3km
Unlined Side Ditch Cleaning
Carrigeway Cleaning 41.3km
Other PBC Works
Haulage Cost 41.3km
Work Period 12months (Initial Mobilization Period:3months, Rainy Season:5months, Dry Season:4months)
(Contractor Estimation) Kenya Urban Roads Authority
Figure 4.1 – Cover page
The Cover Page contains basic conditions of the Contract such as Names, project length, contents of item, work
period, etc…
4.2. Summary Contents

Summary Contents is a table of main estimation items. Basic structure image is shown in Figure 4.2. Each detail
explanation is in Clause 1.4 and 5.2. of Cost Estimation Manual for Road Maintenance under Performance Based
Contracts Vol.2. Figure 4.2 summarizes the methodology used for cost estimation.
Summary Contents
Page 1
Category Type of Works Unit Quantity Unit Price Price Remarks
Total Project Cost(VAT 16% Inclusive) Unit 1 11,052,149 22,301/km/month
Project Cost(VAT 16%Exclusive) Unit 1 9,527,715 Direct Cost+Indirect Cost+
Overhead & Profit
Project Cost w/o Overhead & Profit Unit 1 8,284,970 Direct Cost + Indirect Cost
Direct Cost Unit 1 6,627,976 PBC Works + Instructed Works +
Haulage Cost
PBC Works Unit 1 4,497,204
Patrol and Self Inspection under Road Safety Month 12 2,019,720 A-1
Grass Cutting Month 12 162,030 A-2
Cross Culvert Cleaning Month 12 365,936 A-3
Catch Basin Cleaning Month 12 - A-4
Lined Side Ditch Cleaning Month 12 1,603,846 A-5
Unlined Side Ditch Cleaning Month 12 - A-6
Carrigeway Cleaning Month 12 345,672 A-7
Other PBC Works LS 1 - - Other PBC Works Summary

Summary Contents
Page 2
Category Type of Works Unit Quantity Unit Price Price Comments
Instructed works LS 1 1,000,000 1,000,000 Instructed Works Summary
Haulage Cost of Major 6 Labor
Based Work Month 12 1,130,772 A-8
Indirect Cost % 25 1,656,994 Direct Cost *25 %
Overhead & Proj. Cost w/o Overhead&Profit
Profit % 15 1,242,745 *15 %
Vat16% % 16.0 1,524,434 Project Cost * 16%
Figure 4.2 – Summary Contents
Item Cost
Direct Cost 7=4+5+6
PBC Works 4=1+2+3
Major 6 Labor Based Work under Road Durability 2
4 3 2 1 Other PBC Works 3
Instructed Works 5
Haulage Cost of Major 6 Labor Based Work 6
Indirect Cost 8
Overhead & Profit 9
VAT(16%) 11
Figure 4.3 – Calculation Image of Summary Contents

4.3. Detail Contents (A):

“Detailed Contents (A)” is a summary calculation table to showing quantities by months that are classified into
IMP, Wet Period and Dry Period. The unit for IMP is indicated as “1” regardless of the duration; and the units for
Dry and Wet periods are given as “times” (Table 4.1 and Figure 4.3 below). This is because working frequency
varies by site situation and contract conditions. Another reason is because “Detail contents (B)” summarizes
work price per TIME and not month. If work frequency is one time every two month and duration is six months,
maintenance times is 6/2 = 3 times.
Table 4.1 – Sample output of a Detail Content (A)
Grass Cutting Detail Contents (A)
Ksh 162,030 (Unit; /12months) A-2

Item Specs Unit Quantity Unit Price Price Remarks
Initial Mobilization Period Times 1 66,177 66,177 B-2
(Unit; 1time/3months)
Wet Season Times 5. 14,341 71,705 B-3
Dry Season Times 4. 6,037 24,148 B-4
Total 162,030
COSTES Output
Detail Contents (A)
Description Unit Unit Rate Quantity Amount Remarks
IMP Month a I A = a*1
Wet Period Month b II B = b*II
Dry Period Month c III C = c*III
Total Amount A +B+C+D
6 Major Labour Based Works = 6 Sheets
Figure 4.4 - Output structure of Detail Contents (A)

4.4. Detail Contents (B):

“Detail Contents (B)” summarizes how much and how many resources are expended for a time (cycle) of each
maintenance work.
Items of Self Control Unit Inspection (SCU) are; machinery cost (pick up vehicle), material cost (petro fuel) and
necessary labor cost (SCU Leader, Inspector and driver). Miscellaneous cost will be calculated as a product of
percentages (Manual page 18) and labour costs. Table 4.2 and Figure 4.5 represent images of SCU. Detailed
information is in clause 5.3.5 of Cost Estimation Manual for Road Maintenance under Performance Based
Contracts Vol.2.
Table 4.2 – Sample output of a Detail Contents (B) (SCU)
Self Inspection Detail Contents (B)
Ksh 168,310 (Unit; /month {Conditions;41.3km, 4times/day}) B-1
SCU Leader month 1 30,000 30,000 1Persons/month, Workingdays: 30days
SCU Inspector month 1 25,000 25,000 1Persons/month, Workingdays: 30days
Driver month 1 20,000 20,000 1Persons/month, Workingdays: 30days
Vehicle(Pick up) month 1 40,000 40,000 1Persons/month, Workingdays: 30days
Fuel Lit 495.6 100 49,560 41.3km * 1.00vehicles * 4times / 10km/lit. *30 days
Micellenious Cost % 5 75,000 3,750 5%
Total 168,310
COSTES Output:
Self Inspection (SCU)
SCU Leader month a I A = a*1
SCU Inspector month b II B = b*II
Driver (Pick Up) month c III C = c*III
Vehicle (Pick Up) Car d IV D = d*IV
Fuel Lit e V E = e*V
Miscellaneous Expenses % f 1 F = d*(A+B+C) Manual 5.3.4.5
Total Sum of (A to F)
Figure 4.5 - Image of SCU calculation.

COSTES calculates costs as the list of labour costs for six major labour-based work items. Sample output and its
image are shown in Table 4.3 and Figure 4.6, respectively.
Table 4.3 – A sample Detail Contents (B) output for six major labour based works.
Lined Side Ditch Desilting (W.P.) Detail Contents (B)
Ksh 197,139 (Unit; /1 time {Conditions; KM Standardized Quantity}{200m/km * 16km = 3200m}) B-12
Foreman month 0.182 40,000 7,280 Labors/ 90 /25 days
Supervisors month 0.547 30,000 16,410 Labors/ 30 /25 days
Labors day 410.156 400 164,062 11.0346persons/1,000m2*900m/km (Simple

Q’ty)*1time/3months*41.3km (Normal), Unit Price:2016
data
Miscellaneous Cost % 5 187,752 9,387 5%
Total 197,139
COSTES Output:
Detail Contents (B)
Foreman Persons a I A = a*1 I=III/90
Supervisor Persons b II B = b*II II+III/30
Labour Persons c III C = c*III
Miscellaneous Expenses % d 1 D = d*(A+B+C)
Total Amount A+B+C+D Per month
Miscellaneous Expenses:
In order to avoid too much precise cost estimation, cost fo samll tools or materials is calculated as a ratio of Labour, Supervisor
and Foreman costs, e.g., paper, measurement devices, pylons (cones), flags etc.
6 Major Labour Based Works * 3 types of periods (IMP, Dry, Wet) = 18 Sheets
Figure 4.6 – Image of Detail calculation of 6 Major Labour Based Works.
Basic quantity calculation formula by input method is shown in Table 4.4. 25 days is the number of working days
per a month.

Table 4.4 – Input method and labour quantity calculation formula
Input Method Labor quantity (per month) calculation FORMULA
Use km Standardized QUANTITIES Project length * Standardized quantity per km * Simple SRUQ (P/R) * 25 days
Simple QuanTIties Simple quantity * Simple SRUQ (P/R) * 25 days
Actual QuantitIes Actual quantity * Actual SRUQ (P/R) * 25 days
For Haulage cost, the structure of the table is similar to that of SCU. However, necessary contents vary by
situation. Table 4.5 shows a sample and Figure 4.7 illustrates its calculation image, which contains miscellaneous
cost, vehicle cost, fuel cost and labour cost for driver. Clause 5.3.8 of Cost Estimation Manual for Road Maintenance
under Performance Based Contracts Vol.2 has more detail of the estimation structure.
Table 4.5 – Sample output of Haulage cost detail
Haulage Cost Detail Contents(B)
Ksh 94,231 (Unit; /month {Conditions;41.3 km, 1 time/day, 25days} B-20
Vehicle (2ton Truck) number 1 50,000 50,000 1Persons/month, Workingdays: 25days
Fuel Lit 258.125 90 23,231 41.3km1.00vehicle(s) / 4km/lit. *1.0times * 25 days
Total 94,231
COSTES Output Haulage Cost

Vehicle (2 ton Truck) Car a I A = a*1
Fuel Lit b II B = b*II
Driver (Truck) month c III C = c*III length * frequency: fuel efficiency*

truck working days
Miscellaneous Expenses % d IV D = d*IV Manual 5.3.4.5
Total Amount e 1 E = e*(A+B+C+D)
Figure 4.7 – Calculation Procedure of Haulage cost.

4.5. Other PBC Works Summary and Instructed Works Summary

Other than the 6 major labour based works, Cost estimation for Other PBC Works and Instructed Works are
necessary if they are part of the contract. The information required is already set up in COSTES window and
their outputs are shown in Table 4.6 and Table 4.7 below. The total price is sent to the “Table of Summary
contents” directly.
Table 4.6 – Other PBC Works Summary; sample output (Clause 5.3.6 of the manual)
Other PBC Works Summary Direct Cost of Six Major Works: 2122516
ID Work Category Work Item Unit Quanitity Unit Price Price Remarks
10.1 F) Road Furniture Warning signs/Mandatory signs Percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labor Based
Works, Category Road Durability
10.1 F) Road Furniture Information signs, Edge marker Percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labor Based
posts, Guide posts, Kilometre Post Works, Category Road Durability
10.1 F) Road Furniture Traffic Signals Percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labor Based
10.1 F) Road Furniture Street Lighting Percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labor Based
10.1 F) Road Furniture Road Markings/Road studs Percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labor Based
10.1 F) Road Furniture Guardrails and Pedestrian rails Percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labor Based
Sub total 637,750
Table 4.7 – Instructed works Summary; sample output (Clause 5.3.7 of the manual)
Instructed Works Summary Direct Cost of Six Major Works: 2122516
07.05.001 07. Excavation and Excavate for structure in soft m 3

10.00 251 2,510 Use Registered Unit Price, Description: Excavate
Filling for Structure material (manual) manually soft material for structures.
08.70.0041 07. Excavation and Gabion installation m2 10.00 628 6,280 Use Registered Unit Price, Description: Provide and
Filling for Structure place Macaferri or equivalent gabion boxes (2m*1m* 1m
08.70.005. 07. Excavation and Rock fill to Gabions m3 10.00 2,190 21,900 Use Registered Unit Price, Description: Provide and
Filling for Structure place rock fill to gabions.
08.70.001 07. Excavation and Stone pitching m2 10.00 3,278 32,780 Use Registered Unit Price, Description: Provide stone
Filling for Structure pitching including grouting of ratio 1:4 cement to mortar
Sub total 63,470
5. Conclusion
COSTES for PBC 2015 has been developed for road maintenance engineers and officials of Kenyan road
authorities to enable them easily get a standard cost for road maintenance. For contractors, COSTES will help in
making their estimation faster and easier for bidding purposes.

Cost Estimation Parameters 2015 Appendix 2
Appendix 2
Cost Estimation Parameters 2015
1. SRUQs and P/Rs for the 6 Major Labor Based Work
P/R (Simple) SRUQ (Simple)

Work item Level
Unit Unit
Heavy 300.0 0.0033
Normal 1,383.7 0.0007
Grass Cutting (m2) m2/md md/m2
Light 3,304.0 0.0003
Total (Ave.) 1,900.3 0.0005
Heavy 11.5 0.0869
Normal 86.1 0.0116
Cross Culvert (m) m/md md/m
Light 155.3 0.0064
Total (Ave.) 17.5 0.0570
Heavy 2.6 0.3810
Normal 15.0 0.0667
Catch Basin (pcs) pcs/md md/pcs
Light 69.5 0.0144
Total (Ave.) 22.2 0.0449
Heavy 31.9 0.0313
Normal 90.6 0.0110
Lined Side Ditch (m) m/md md/m
Light 1,217.5 0.0008
Total (Ave.) 203.8 0.0049
Heavy 114.7 0.0087
Normal 117.1 0.0085
Unlined Side Ditch (m) m/md md/m
Light 1,693.0 0.0006
Total (Ave.) 115.2 0.0087
Heavy 156.6 0.0064
Normal 365.5 0.0027
Carrageway De-silting (m2) m2/md md/m2
Light 904.8 0.0011
Total (Ave.) 573.0 0.0017
*Used for COSTES

Appendix 2 Cost Estimation Parameters 2015
2. KM Standardized Quantities for Each Road Authority
Table 5-10 KM Standardized Quantities in a Simple Quantity for Each Road Authority (2015)
KeNHA
Grass Cutting m2 6055 33% 2,018.3
Lined Dich m 200 50% 99.3
Carriageway m2 2000 32% 638.7
KeNHA (2×2Lanes)
Grass Cutting m2 12110 33% 4,036.7
Lined Dich m 400 50% 199.0
Carriageway m2 4000 32% 1,278.0
KURA
Grass Cutting m 2
6819 33% 2,273.0
Lined Dich m 1400 50% 696.5
Carriageway m 2
2000 32% 639.0
KeRRA
Grass Cutting m 2
2310 33% 777.0
Lined Dich m 0 -
Carriageway m 2
0 -
KWS
Grass Cutting m 2
2310 33% 770.0
Catch Basin pcs 10 33% 3.3
Lined Dich m 0 -
Carriageway m 2
0 -

Cost Estimation Parameters 2015 Appendix 2
3. Unit Rates
Category Item Unit Rate Remarks

Mombasa, Other Areaii
Nairobi,
Kisumui
Labor Labor KSH/day 527.10 484.30 General Labourer
Foreman KSH/month 37,079.25 32,716.65 Artisan G I×1.5iii
Supervisor KSH/month 30,126.00 25,930.35 Artisan G II×1.5
SCU Leader KSH/month 37,079.25 32,716.65 Artisan G I×1.5
SCU Inspector KSH/month 30,126.00 25,930.35 Artisan G II×1.5
Driver(Pick up) KSH/month 18,595.20 15,239.10 Driver
Driver(Truck) KSH/month 24,719.50 21,811.10 Driver
Vehicle Costiv Truck(2 ton) KSH/month 191,800.00 Truck flat-bed (2.5-5 ton)
(Dry rate)
Pick up (Double KSH/month 88,200.00 Pick Up (4x4)
Cabin)
Fuel Costv Diesel KSH/litre 79.99 Price listed is for Nairobi region. Price for other
regions vary from region to region
Gasoline KSH/litre 102.65
Fuel Consumption Truck(2 ton) km/litre 4.00
Pick up km/litre 10.00
Note
i COLUMN 2 in the Labour Institution Act dated the 20th May, 2015
ii COLUMN 4 in the Labour Institution Act dated the 20th May, 2015. Column 3 has been used to estimate General labour
rate in the case of Other Areas after considering the market rates.
iii Factor for market price
iv Fees of Mechanical and Technical Services of MOTI Mechanical and Transport Division
Truck flat-bed (2.5-5 ton); (1,480×7hrs×25days+3000×5days×0.7iii) = 191,800
Pick Up (4x4); 1,050×4hrs×30days×0.7iii = 88,200
v Pump Price for Sep-Oct 2015 from Energy Regulatory Commission
4. Percentage Add-ons(%)
Item Miscellaneous Costs Indirect Cost Overhead and Profit VAT
% 5.0 30 10 16.0

Appendix 3
Example of Cost Estimation by COSTES for PBC 2015
Project Name KeNHASampleProject-1
Road Name KeNHATestRoad
Place of Works KeNHASampleRoad
Total Length 16 km
Self Inspection 16 km
Grass Cutting 16 km
Cross Culvert Desilting 16 km
Catch Basin Desilting
Lined Side Ditch Desilting 16 km
Unlined Side Ditch Desilting
Carrigeway Cleaning 16 km
Other PBC Works
Instructed Works 16 km
Work Period 12 months (Initial Mobilization Period: 3 months, Wet Period: 5 months, Dry Period: 4 months)
Kenya National Highway Authority
Summary Contents
Page 1
Project Cost(VAT 16%Exclusive) Unit 1 11,588,624 Direct Cost+Indirect Cost+Overhead & Profit
Project Cost w/o Overhead & Profits Unit 1 10,178,853 Direct Cost + Indirect Cost
Direct Cost Unit 1 7,907,748 PBC Works + Instructed Works + Haulage Cost
Patrol and Self Inspection Month 12 2,375,976 A-1

under Road Safety
Cross Culvert Desilting Month 12 167,467 A-3
Catch Basin Desilting Month 12 75,673 A-4
Lined Side Ditch Desilting Month 12 176,165 A-5
Unlined Side Ditch Desilting Month 12 738,528 A-6
Other PBC Works LS 1 636,750 636,750 Other PBC Works Summary

Example of Cost Estimation by COSTES for PBC 2015 Appendix 2
Summary Contents
Page 2
Instructed works LS 1 63,470 63,470 Instructed Works Summary
Haulage Cost of 6 Major Labor Based Month 12 2,709,036 A-8

Work
Indirect Cost % 28.72 2,271,105 Direct Cost *28.72 %
Overhead & Profit % 13.85 1,409,771 Proj. Cost w/o Overhead&Profit *13.85 %
Vat 16% % 16.0 1,854,179 Project Cost * 16%
Patrol and Self Inspection under Road Safety Detail Contents(A)

Ksh 2,375,976 (Unit; /12months) A-1
Self Inspection Months 12 197,998 2,375,976 B-1

(Self Control Unit)
Total 2,375,976

Grass Cutting Detail Contents(A)


Wet Period Times 5. 42,896 214,480 B-3
Dry Period Times 4. 17,968 71,872 B-4
Total 484,317
Cross Culvert Desilting Detail Contents(A)

Total 167,467

Catch Basin Desilting Detail Contents(A)


Total 75,673
Lined Side Ditch Desilting Detail Contents(A)


Total 176,165

Unlined Side Ditch Desilting Detail Contents(A)

Total 738,528
Carriageway Cleaning Detail Contents(A)


Total 480,366

Haulage Cost Detail Contents(A)

Haulage Cost Months 12 225,753 2,709,036 B-20
Total 2,709,036
Self Inspection Detail Contents(B)
Ksh 197,998 (Unit; /month {Conditions;16km, 4times/day}) B-1
Driver(Pick up) month 1 18,595 18,595 1Persons/month, Workingdays: 30days
Fuel Lit 192 103 19,708 16km * 1.00vehicles * 4times / 10km/lit. *30
days
Total 197,998

Grass Cutting (IMP) Detail Contents(B)

Ksh 197,965 (Unit; /1 time {Conditions;KM Standardized Quantity}{6055m2/km * 16km =96880m2}) B-2
Foreman month 0.144 37,079 5,339 Labour/ 90 /25 days
Supervisor month 0.431 30,126 12,984 Labour/ 30 /25 days
Labour day 322.93 527 170,216 3.3333persons/1,000m2*6055m2/km

(Standardized Q’ty)*1time/3months*16km
(Heavy), Unit Price:2015 data
Total 197,965
Grass Cutting (W.P.) Detail Contents(B)

Labour day 70.015 527 36,904 0.7227persons/1,000m2*6055m2/

km(Standardized Q’ty)*1time/3months*16km(
Normal), UnitPrice:2015 data
Total 42,896

Grass Cutting (D.P.) Detail Contents(B)

Foreman month 0.013 37,079 482 Labour/ 90 /25 days
Labour day 29.326 527 15,457 0.3027persons/1,000m2*6055m2/km

(Standardized Q’ty)*1time/3months*16km
(Light), UnitPrice:2015 data
Miscellaneous Cost % 5 17,113 855 5%
Total 17,968
Cross Culvert Desilting (IMP) Detail Contents(B)

Ksh 85,205 (Unit; /1 time {Conditions;KM Standardized Quantity}{100m/km * 16km =1600m}) B-5
Labour day 139.021 527 73,277 86.8881persons/1,000m2*100m/

Heavy), UnitPrice:2015 data
Total 85,205

Cross Culvert Desilting (W.P.) Detail Contents(B)

Ksh 11,382 (Unit; /1 time {Conditions; KM Standardized Quantity}{100m/km * 16km =1600m}) B-6
Supervisor month 0.025 30,126 753 Labour/ 30 /25 days

Total 11,382
Cross Culvert Desilting (D.P.) Detail Contents(B)

Labour day 10.304 527 5,431 6.4401persons/1,000m2*100m/km(Standardized

Q’ty)*1time/3months*16km(Light),
UnitPrice:2015 data
Total 6,338

Catch Basin Desilting (IMP) Detail Contents(B)

Ksh 37,346 (Unit; /1 time {Conditions;KM Standardized Quantity}{10pcs./km * 16km =160pcs.}) B-8
Labour day 60.952 527 32,127 380.9524persons/1,000m2*10pcs./

Total 37,346
Catch Basin Desilting (W.P.) Detail Contents(B)

Ksh 6,539 Unit; /1 time {Conditions;KM Standardized Quantity}{10pcs./km * 16km =160pcs.}) B-9

Total 6,539

Catch Basin Desilting (D.P.) Detail Contents(B)

Ksh 1,408 (Unit; /1 time {Conditions;KM Standardized Quantity}{10pcs./km * 16km =160pcs.}) B-10

km(Standardized Q’ty)*1time/3months*16km(L
ight), UnitPrice:2015 data
Total 1,408
Lined Side Ditch Desilting (IMP) Detail Contents(B)


Total 61,434

Lined Side Ditch Desilting (W.P.) Detail Contents(B)


Total 21,651
Lined Side Ditch Desilting (D.P.) Detail Contents(B)


Total 1,619

Unlined Side Ditch Desilting (IMP) Detail Contents(B)


Total 119,692
Unlined Side Ditch Desilting (W.P.) Detail Contents(B)


Total 117,268

Unlined Side Ditch Desilting (D.P.) Detail Contents(B)

Total 8,124
Carriage Way Cleaning (I.M.P) Detail Contents(B)


Total 125,257

Carriage Way Cleaning (W.P.) Detail Contents(B)


Total 53,677
Carriage Way Cleaning (D.P.) Detail Contents(B)

Total 21,681

Ksh 225,753 (Unit; /month {Conditions;16 km, 1 time/day, 25days}) B-20
Vehicle(2ton Truck) number 1 191,800 191,800 1Persons/month, Workingdays: 25days
Fuel Lit 100 80 7,999 16km1.00vehicle(s) / 4km/lit. *1times * 25 days
Driver(Truck) month 1 24,720 24,719 1Persons/month, Workingdays: 25days
Total 225,753
ID Work Category Work Item Unit Quantity Unit Price Price Remarks
10.1 F) Road Furniture Warning signs/Mandatory signs percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labour Based Works,
Category:Road Durability
10.1 F) Road Furniture Information signs, Edge marker percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labour Based Works,
posts, Guide posts, Kilometre Post Category:Road Durability
10.1 F) Road Furniture Traffic Signals percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labour Based Works,
10.1 F) Road Furniture Street Lighting percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labour Based Works,
10.1 F) Road Furniture Road Markings/Road studs percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labour Based Works,
10.1 F) Road Furniture Guardrails and Pedestrian rails percent 5.00 2,122,516 106,125 Estimate as the ratio of 6 major Labour Based Works,
Sub Total 636,750

Instructed Works Summary

ID Work Category Work Item Unit Quantity Unit Price Price Remarks
07.50.001 07. Excavation and Excavate for structure in soft material m3 10.00 251 2,510 Use Registered Unit Price, Description:Excavate
Filling for Structure (manual) manually soft material for structures.
08.70.004 07. Excavation and Gabion Installation m2 10.00 628 6,280 Use Registered Unit Price, Description:Provide
Filling for Structure and place Macaferri or equivalent gabion boxes
(2m * 1m * 1m).
08.70.005 07. Excavation and Rock fill to Gabions m3 10.00 2,190 21,900 Use Registered Unit Price, Description:Provide
Filling for Structure and place rock fill to gabions.
08.70.001 07. Excavation and Stone pitching m2 10.00 3,278 32,780 Use Registered Unit Price, Description:Provide
Filling for Structure stone pitching including grouting of ratio 1:4
cement to mortar.
Sub Total 63,470

Project Name KURA Trial Project 1
Road Name KURA Sample Road
Place of Works KURA Trial Road1
Total Length 41.3 km

Self Inspection 41.3 km
Grass Cutting 41.3 km
Cross Culvert Cleaning 41.3 km
Catch Basin Cleaning
Lined Side Ditch Cleaning 41.3 km
Unlined Side Ditch Cleaning
Carrigeway Cleaning 41.3 km
Other PBC Works
Haulage Cost 41.3 km
Work Period 12 months (Initial Mobilization Period: 3 months, Wet Period: 5 months, Dry Period: 4 months)
(Contractor Estimation) Kenya Urban Roads Authority
Summary Contents
Page 1

Project Cost(VAT 16%Exclusive) Unit 1 9,527,715 Direct Cost+Indirect
Cost+Overhead & Profit
Project Cost w/o Overhead & Profit Unit 1 8,284,970 Direct Cost + Indirect Cost
Direct Cost Unit 1 6,627,976 PBC Works + Instructed
Works + Haulage Cost
Patrol and Self Inspection under Road Month 12 2,019,720 A-1
Safety
Cross Culvert Cleaning Month 12 365,936 A-3
Catch Basin Cleaning Month 12 - A-4
Lined Side Ditch Cleaning Month 12 1,603,846 A-5
Unlined Side Ditch Cleaning Month 12 - A-6
Other PBC Works LS 1 371,622 371,622 Other PBC Works Summary

Summary Contents
Page 2
Instructed works LS 1 1,000,000 1,000,000 Instructed Works Summary
Haulage Cost of Major 6 Labor Based Work Month 12 1,130,772 A-8
Indirect Cost % 25 1,656,994 Direct Cost *25 %
Proj. Cost w/o Overhead&Profit

Overhead & Profit % 15 1,242,745
*15 %
Vat16% % 16.0 1,524,434 Project Cost * 16%
Patrol and Self Inspection under Road Safety Detail Contents(A)

Self Inspection Months 12 168,310 2,019,720 B-1

(Self Control Unit)
Total 2,019,720

Grass Cutting Detail Contents(A)


Total 162,030
Cross Culvert Desilting Detail Contents(A)



Total 365,936

Catch Basin Desilting Detail Contents(A)
Ksh - (Unit; /12months) A-4

Initial Mobilization Period Times 1 - - B-8

Wet Season Times 5. - - B-9
Dry Season Times 4. - - B-10
Total -
Lined Side Ditch Desilting Detail Contents(A)

Initial Mobilization Times 1 559,347 559,347 B-11

Period (Unit; 1time/3months)
Total 1,603,846

Unlined Side Ditch Desilting Detail Contents(A)
Ksh - (Unit; /12months) A-6
Initial Mobilization Period Times 1 - - B-14

Wet Season Times 5. - - B-15
Dry Season Times 4. - - B-16
Total -
Carriageway Cleaning Detail Contents(A)


Total 345,672

Haulage Cost Detail Contents(A)
Haulage Cost Months 12 94,231 1,130,772 B-20
Total 1,130,772
Self Inspection Detail Contents(B)

Ksh 168,310 (Unit; /month {Conditions;41.3km, 4times/day}) B-1
41.3km * 1.00vehicles * 4times / 10km/lit.

Fuel Lit 495.6 100 49,560
*30 days
Total 168,310

Grass Cutting (IMP) Detail Contents(B)

Ksh 66,177 (Unit; /1 time {Conditions;SIMPLE Quantity}{41300m2}) B-2
Labors day 137.665 400 55,066 3.3333persons/1,000m2*1000m2/

km*1time/3months*41.3km(Heavy),
UnitPrice:2015 data
Total 66,177
Grass Cutting (R.S.) Detail Contents(B)

Foreman month 0.013 40,000 520 Labors/ 90 /25 days
Labors day 29.848 400 11,939 0.7227persons/1,000m2*1000m2/km(Simple

Q’ty)*1time/3months*41.3km(Normal),
UnitPrice:2015 data
Total 14,341

Grass Cutting (D.P.) Detail Contents(B)

Supervisors month 0.017 30,000 510 Labors/ 30 /25 days
Labors day 12.502 400 5,000 0.3027persons/1,000m2*1000m2/km(Simple

Q’ty)*1time/3months*41.3km(Light),
UnitPrice:2015 data
Total 6,037
Cross Culvert Desilting (IMP) Detail Contents(B)

Ksh 186,267 (Unit; /1 time {Conditions;SIMPLE Quantity}{4460m}) B-5
Labors day 387.521 400 155,008 86.8881persons/1,000m2*107.9903m/

km*1time/3months*41.3km(Heavy), UnitPrice:2015
data
Total 186,267

Cross Culvert Cleaning (W.P.) Detail Contents(B)


km(Simple Q’ty)*1time/3months*41.3km(Nor
mal), UnitPrice:2015 data
Total 24,889
Cross Culvert Cleaning (D.P.) Detail Contents(B)

km(Simple Q’ty)*1time/3months*41.3km(Ligh
t), UnitPrice:2015 data
Total 13,806

Catch Basin Desilting (IMP) Detail Contents(B)

Ksh - (Unit; /1 time {Conditions;SIMPLE Quantity}{0pcs.}) B-8
Foreman month 0 40,000 - Labors/ 90 /25 days
Supervisors month 0 30,000 - Labors/ 30 /25 days
Labors day 0 400 - 380.9524persons/1,000m2*0pcs./

km*1time/3months*41.3km(Heavy), UnitPrice:2015 data
Miscellaneous Cost % 5 - - 5%
Total -
Catch Basin Desilting (W.P.) Detail Contents(B)

Labors day 0 400 - 66.6667persons/1,000m2*0pcs./km(Simple

UnitPrice:2015 data
Total -

Catch Basin Cleaning (D.P.) Detail Contents(B)

Labors day 0 400 - 14.3983persons/1,000m2*0pcs./km(Simple

UnitPrice:2015 data
Total -
Lined Side Ditch Desilting (IMP) Detail Contents(B)
Labors day 1163.681 400 465,472 31.307persons/1,000m2*900m/

UnitPrice:2016 data
Total 559,347

Lined Side Ditch Desilting (W.P.) Detail Contents(B)
Labors day 410.156 400 164,062 11.0346persons/1,000m2*900m/km(Simple

UnitPrice:2016 data
Total 197,139
Lined Side Ditch Desilting (D.P.) Detail Contents(B)

Labors day 30.528 400 12,211 0.8213persons/1,000m2*900m/km(Simple

UnitPrice:2015 data
Total 14,701

Unlined Side Ditch Desilting (IMP) Detail Contents(B)

Ksh - (Unit; /1 time {Conditions;SIMPLE Quantity}{0m}) B-14
Labors day 0 400 - 8.7182persons/1,000m2*0m/

UnitPrice:2015 data
Total -
Unlined Side Ditch Desilting (W.P.) Detail Contents(B)
Labors day 0 400 - 8.5416persons/1,000m2*0m/km(Simple

UnitPrice:2015 data
Total -

Unlined Side Ditch Desilting (D.P.) Detail Contents(B)

Labors day 0 400 - 0.5907persons/1,000m2*0m/km(Simple Q’ty)*

1time/3months*41.3km(Light), UnitPrice:2015
data
Total -
Carriage Way Cleaning (I.M.P) Detail Contents(B)

Labors day 187.616 400 75,046 6.3867persons/1,000m2*711.2833m2/

UnitPrice:2015 data
Total 90,159

Carriage Way Cleaning (W.P.) Detail Contents(B)

km(Simple Q’ty)*1time/3months*41.3km(Nor
mal), UnitPrice:2015 data
Total 38,641
Carriage Way Cleaning (D.P.) Detail Contents(B)

km(Simple Q’ty)*1time/3months*41.3km(Ligh
t), UnitPrice:2015 data
Total 15,577


Ksh 94,231 (Unit; /month {Conditions;41.3 km, 1 time/day, 25days}） B-20
Vehicle(2ton Truck) number 1 50,000 50,000 1Persons/month, Workingdays: 25days
Fuel Lit 258.125 90 23,231 41.3km1.00vehicle(s) / 4km/lit. *1.0times * 25 days
Total 94,231
10.1 E) Structures Concrete Items Percent 5.00 3,782,547 189,127 Estimate as the ratio of 6 major Labour Based
10.1 E) Structures Expansion joints Percent 5.00 3,782,547 189,127 Estimate as the ratio of 6 major Labour Based
10.1 E) Structures Riverbeds Percent 5.00 3,782,547 189,127 Estimate as the ratio of 6 major Labour Based
Sub total 637,750

Instructed Works Summary
05.50.014 05. Earth Works Grassing m2 1.00 1,000,000 1,000,000 Quotation (Lump-sum Input), Description: Plant grass on th slope and inverts of ditches
to reduce scour effects, or on slopes to reduce soil erosion and to improve stability.
Sub total 1,000,000

Appendix 4 Information on Volume 3 for Contractors’ Reference Use
Appendix 4
Information on Volume 3 for Contractors’ Reference Use
Cost Estimation Manual for Road Maintenance under Performance Based Contracts has 3 separate volumes.
Volume 1 for Cost Estimation Administrator
Volume 2 for Government Cost Estimators
Volume.3 for Contractors’ Reference Use
The computer system COSTES for PBC 2015 is to be used in conjunction with Volumes 1 and 2, whereas
COSTES for PBC 2015 for Contractors is to be used especially for cost estimators from private contractors
using Volume 3.
Since the Cost Estimation Manual for Road Maintenance under Performance Based Contracts has been developed
essentially for use by government officials and Volume 3 has been prepared for reference use by contractors, the
following restrictions have been placed on Volume 3 to safeguard information which should only be confidential
to government officials.
Restrictions placed on Volume 3 in comparison to Volumes 1 and 2

(This applies same as for COSTES for PBC 2015 for Contractors.)
1. Cost Estimation Parameters 2015 used in Volume 3 has no information on unit rates and percentage
add-ons. However, Volume 3 has information on productivity rates such as SRUQs and P/Rs only.
Volumes 1 and 2 have all information.
In COSTES for PBC 2015, cost estimators for contractors are required to use their own unit rates and
percentage add-ons to obtain the Project Cost.
2. For cost estimation for the 6 Major Labor Based Works, Volumes 1 and 2 includes three types of cost
estimation including the type using KM Standardized Quantity.
3. Volume 3 does not include the type using KM Standardized Quantity.

Appendix 5: Recommendations by KRB on Indirect Cost,
Overhead/Profit and Build-up of Unit Rates
13th October, 2015
KRB/PP /38.00/ A/Vol. IV (32)
JICA Experts (KeNHA)

P.O Box 49712 - 00100
NAIROBI.
Attn. Mr Hiroshi Tsujino
Dear Sir,
RE: FINAL DRAFT ON COST ESTIMATION MANUAL FOR ROAD

MAINTENANCE UNDER PERFORMANCE BASED CONTRACTS
KRB has reviewed the CEM submitted vide email on 17th September, 2015. KRB would like
to commend JICA for the well prepared guidelines which will contribute to improvement
in planning and implementation of procurement of road maintenance works in the
country.
KRB recommends for a further review of the following unit rates in the cost estimation
manual:
1. Indirect Cost – The example given in Table 6.4 is for projects in Japan and may not be
applicable in Kenyan context. It is recommended that a review of road infrastructure
projects is carried out to determine the % of indirect costs. In the interim, it is
proposed that the percentage of indirect cost is set to a maximum 30% of direct cost,
just like other classical road contracts.
2. Overhead & Profit – The example given in Table 6.4 is for projects in Japan and
may not be , applicable, in Kenyan context. It is recommended that a review of
road, infrastructure projects is, carried out to determine the % of indirect costs In
the interim, it is proposed that the maximum percentage for profit and overheads
margin is set at 10% of direct and indirect cost. The manual should also clearly state
that the profit margin and other overheads include those directly incurred by the
contractor but not the client. .

3. Labour Cost – These costs should be based on gazetted Government wage rates by
Region and occupation as issued by the Ministry of Labour.
4. Vehicle Costs – These rates should be based on rates from Government Mechanical
and Transport Services of Ministry of Transport and Infrastructure, Mechanical and
Transport Division as reviewed from time to time.
5. Fuel Cost – The fuel rates used should be those provided by the Energy Regulatory
Commission of Kenya.
This is submitted for your information and further action.
Yours faithfully,
CP A Rashid Mohamed,
General Manager, Finance
FOR: EXECUTIVE DIRECTOR

Cost Estimation Sub-Working Group Members
Name Organization
Eng. Francis Gitau Ministry of Transport and Infrastructure
Eng. Wilson Kosgey Kenya Roads Board
Eng. Margaret Ogai Kenya Roads Board
Eng. Tom Omai Kenya Roads Board
Maureen Wangui Kenya National Highways Authority
Winnie Owiti Kenya National Highways Authority
Opuge Ephraim Kenya National Highways Authority
Eunice Wanjiru Kenya National Highways Authority
Julius Kaliti Kenya Institute of Highways and Building Technology
Walter Ochieng Kenya Wildlife Services
Eng. Maurice Akech National Construction Authority
Chris Gachanja Public Procurement Oversight Authority
Advisors
Hiroshi Tsujino JICA Chief Advisor P.E Jp.
Hidetsugu Ikeda JICA Expert
Takashi Nakajima JICA Short Term Expert, P.E Jp.
Hiroshi Mita JICA Short Term Expert, P.E Jp.
Yoshihisa Noda JICA Short Term Expert, P.E Jp.
Yoriko Kawakami JICA Short Term Expert
Takumi Uno JICA Short Term Expert
Robert Mutai JICA/Consultant, Kenya Staff
Jared N. Onyoni JICA/Consultant, Kenya Staff

National Working Group Members
Name Organization
Eng. P. M. Mwinzi Ministry of Transport and Infrastructure
Eng. Francis Gitau Ministry of Transport and Infrastructure
Kenji Yokota JICA – Kenya Office
Dr. Steve Mogere JICA – Kenya Office
Eng. Margaret Ogai Kenya Roads Board
Eng. George M. Kiiru Kenya National Highways Authority
Opuge Ephraim Kenya National Highways Authority
Winnie Owiti Kenya National Highways Authority
Eng. Amos Ombok Kenya Urban Roads Authority
Eng. N. N. Nganga Kenya Rural Roads Authority
Julius Kaliti Kenya Institute of Highways and Building Technology
Eng. Maurice Akech National Construction Authority
Walter Ochieng Kenya Wildlife Services
Chris Gachanja Public Procurement Oversight Authority
Hiroshi Tsujino JICA Chief Advisor P.E Jp.
Hidetsugu Ikeda JICA Expert

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COST ESTIMATION MANUAL

for PERFORMANCE BASED

Artwork by John Agutu

Volume 2: Manual for Government Cost Estimators iii

Eng. Patrick Mwinzi

Volume 2: Manual for Government Cost Estimators v

Abbreviations and Acronyms

IMP — Initial Mobilization Period

vi Cost Estimation Manual for Performance Based Road Maintenance Contract

1.1 Background and Objectives

1.2. Structure of Cost Estimation Manual

Vol Name of Manual User Objectives

1.3. PBC Works and Instructed Works

Volume 2: Manual for Government Cost Estimators 1

The PBC Works mainly consists of:

Table 1-2 PBC Works and Instructed Works

Work Type PBC Works Instructed Works

Payment Method Based on Km-Monthly Lump Sum Based on Bill of Quantities

Initiator Contractor Client

Table 1-3 Details of Instructed Works

Instructed Works Bill of Quantities Payment

2 Cost Estimation Manual for Performance Based Road Maintenance Contract

PBC 2015 may also be used.

1.4. Cost Structure for Estimation

Total Project Cost = a+b+c+d

Note: Using the Framework of the COSTES Manual 2011

Figure 1-1 Principal Structure of PBC Cost Estimation

Table 1-4 Contents of Cost Estimation Components

Components Cost Estimation Elements

• Site Staff Allowances

• Head Office Staff Salaries and Allowances

Volume 2: Manual for Government Cost Estimators 3

1.5. Definition of SRUQ and P/R

Figure 1-3 SRUQ and P/R

4 Cost Estimation Manual for Performance Based Road Maintenance Contract

2. Importance of Cost Estimation

3. Role of Government Cost Estimators

4. Cost Estimation Methods of PBC Works

Table 4-1 PBC Works

No Categories Description Cost Element

Volume 2: Manual for Government Cost Estimators 5

Table 4-2 6 Major Labour Based Works

Table 4-3 Compatibility of the PBC Works and Service Scope

Patrol and Self 6 Major Labour Other PBC Works

5. Cost Estimation Procedure

5.1 Cost Estimation Flow

6 Cost Estimation Manual for Performance Based Road Maintenance Contract

1. Cost Estimation Parameters

Length of drainage, culverts, SRUQs

2. Cost Estimation of Direct Cost (Chap 5.3.4 to 5.3.8)

3. Cost Estimation of Indirect Cost/Overhead & Profit (Chap 5.4)

3.2 Overhead & Profit (Chap. 5.4.2)

4. Cost Estimation of VAT (Chap 5.5)

Figure 5-1 Flow of Cost Estimation Method

5.2. Cost Estimation Structure

5.2.1. Unit Rates and SRUQs

5.2.2. Layered Structure for Cost Estimation Exercise

Volume 2: Manual for Government Cost Estimators 7

Figure 5-2 Layered Structure for Cost Estimation Exercise

5.3. Estimation Procedure on Direct Cost

5.3.1. Understanding Project Conditions

5.3.1.1 Project Schedule (Dry/Wet Periods)