CONSTRUCTION COST DATA OF PAKISTAN INSTITUTE OF COST AND CONTRACTS (PICC) (www.picc.org.pk) By: Engr.M.Mazhar-Ul-Islam (CEO PICC)

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CONSTRUCTION COST DATAOFPAKISTAN INSTITUTE OF
COST AND CONTRACTS (PICC) (www.picc.org.pk)By
Engr.M.Mazhar-Ul-Islam(CEO PICC)
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BACKGROUND

• A contract is a set of conditions at a price
• Unreasonable construction cost and inadequate
  cash flows results poor quality delayed
  construction
• Right cost of contract for sustainable
  construction
• Departmental FBS data found inadequate
• Need exists for single source authentic data for
  all construction inputs

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BACKGROUND

• Needed organization having capacity to prepare
  such data
• Since year 2007 MoH W initiated such efforts
• PPRA formally requested to PEC to be resource
  organization for such data
• Working papers finalized after two years
  deliberations by 12 organizations
• PEC amendment Bill 2011 envisages creation of
  subsidiary and preparation of construction cost
  data as PEC function

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ESTABLISHMENT OF PICC

• Approved by Governing Body on April 30th 2009 Rs.
  50 million seed money for PICC as subsidiary
• Commenced Operation from May 01, 2009
• Cost data was hosted on website on Sep 2009
• PC-1 for three years with an amount of Rs. 118
  million approved by MoST and sent on 13.07.11 to
  PC for CDWP approval

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ORGANIZATION AND MANAGMENT

• Incorporated in Lahore with SECP U/s-42 of
  Company Ordinance as non- profit research
  organization
• PICC members are member organizations-represented
  by their Natural persons
• Majority members and Chairman in the PICC BoD
  are from PEC and other from NESPAK and APCA
• Independent Board of Directors comprises of PEC
  and other Stakeholders.
• CEO PICC to work under the PICC BoD
• Recruited 35 staff including 8 Market Surveyors
  in major cities

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ORGANIZATION AND MANAGMENT

• National Steering Committee for controlling
  authenticity of cost data
• Prepared and got approved comprehensive Service
  Manual from BoD.
• PICC management committee holds meeting every
  week for decision making in managing the PICC
  affairs.
• Recruitment is conducted in accordance with
  predetermined job description and criteria on
  merit.
• State of the art online office environment.

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PICC ORGANIZATION CHART
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FUNCTIONS

• Prepare, update and maintain on PICC website the
  cost data base for all construction inputs
• Country specific schedule of rates
• Country specific procurement documents
• Guidelines for construction cost estimate
• Standard method of measurement
• Uniform classification system for specs BOQs
• Training and research on cost and contracts

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 PROGRESS

• Maintaining, monthly updating and progressively
  uploading on the website the cost data, as per
  detail given below, for all the districts of
  Pakistan including AJK and Gilgit-Baltistan.
• About 3134 basic input rates
• About 1986 composite item rates for concrete,
  brick masonry, Stone masonry, Block masonry,
  steel bars, formwork, plastering, pile works,
  Earthwork and road works etc
• Presently about 644,493 data items are being
  monthly updated which are to be increased
  progressively
• Per unit rates and rates for quality control tests

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 PROGRESS

• Standard methods of measurements and Model BOQ
  guidelines have been developed in line with the
  international standards.
• Comprehensive mechanism established for
  determining the Transportation Charges for
  various types of terrain.
• Technical Specifications for concrete, masonry
  works, piles and water supply sanitation are
  developed and uploaded on website whereas for
  various other sections are under development.

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AUTHENTICITY OF PICC COST DATA

• PICC Steering Committee of Experts approved the
  PICC rates in six meetings before hosting to web
• National Conference on Construction Cost on
  10.08.10 validate PICC Cost Data by 19
  stakeholders
• Compared Oct-Dec, 2010 Govt of Punjab data with
  PICC
• Bid price of 5 different projects was compared
  with PICC Cost data and found within 10
• PICC rates for sand, aggregate etc is almost
  double in City than in quarry
• PICC submitted itself for constant public review
  by displaying providers/ sources detail
  addresses

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VIEW OF BASIC INPUT RATES
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VIEW OF BASIC INPUT RATES
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VIEW OF BASIC INPUT RATES
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VIEW OF COMPOSITE ITEM RATES
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VIEW OF COMPOSITE ITEM RATES
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VIEW OF COMPOSITE ITEM RATES
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BASIS FOR DETERMINATION OF TRANSPORTATION CHARGES

• Truck Capacity Monthly Hired Truck of 10 Ton
  Capacity
• Speed For a distance of 1 Km the Average Speed
  is taken 10 Km/hr. An increment of 0.5 Km/hr is
  considered for each Km upto a maximum average
  speed of 30 Km/hr
• Diesel Oil Consumption Diesel_at_3Km/ Liter
  Engine oil_at_100Km/ Liter
• Labor 06 No. Laborers are considered for
  Loading, Unloading Stacking within 3/ 4 Hours
  for each Trip
• Allowances For Katcha, Hilly Hard Hilly Areas
  An allowance for Katcha Hilly Areas is
  considered as 25 where as For hard Hilly area as
  40
• Toll Taxes Toll Taxes are also included

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TRANSPORTATION CHARGES

• A comprehensive mechanism is developed for
  determining transportation charges in various
  types of terrain

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PRICE FLUCTUATION TRENDS OF MAJOR MATERIALS
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PRICE FLUCTUATION TRENDS OF MAJOR MATERIALS
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PRICE FLUCTUATION TRENDS OF MAJOR MATERIALS
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VIEW OF TECHNICAL SPECIFICATIONS
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UTILITY OF PICC COST DATA

• Preparation of budget cost estimates
• Preparation of Engineers Estimates
• Cost validation of PC-1 and third party cost
  validation
• Reference data for resolution of contractual
  disputes
• Reference data for price adjustment
• Reference data for Bidders to prepare the bids

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BENEFITS OF PICC COST DATA

• Verification for accuracy of project cost
• Transparency in the estimates
• Minimize malpractices and corruption
• Quality construction
• Timely completion
• Effective contract administration
• Minimizing cost overrun and financial loss to
  the National exchequer during the currency of
  contracts
• Facilitate Cost Plus project execution

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RECOGNITION OF PICC DATA

• PICC cost data is appreciated in Seminars/
  Workshops-so far by UET and NUST.
• ADB from Pakistan mission and Manila made 6
  visits and has approved the reward of Technical
  Assistance of 149,500 U.S Dollar.
• Upon invitation CEO PICC presented PICC cost data
  in Feb, 2011 in Donors club (WB, USAID, EU,
  DFID, ADB) in Islamabad
• PICC Cost data was presented in TCDPAP/FIDIC
  conference in Malaysia on 25 April 2011.
• WB ADB arranged tour for presentation of PICC
  cost data in Kathmandu on 27 April, 2011 as
  model for South East Asia

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SELF-SUSTAINABILITY PLAN

• PICC yearly average budget is Rs. 25-30 M
• PICC is established with Rs. 50 M seed money
  from PEC
• Sustainability plan envisaged in PEC PC-1
• 10 of constructors license fees (5th 8th GB
  Minutes)
• 0.01 from ECNEC approved projects
• Donations from stakeholders Donor agencies
• Profit from training programs and Arbitration etc
• Fees from users of PICC data
• Advertisements

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SELF-SUSTAINABILITY PLAN

• PICC designed Self-sustainability plan in 3-5
  years
• Issuance of Notification is key to success
• ADB approved 149,500 grant for non-salary
  component
• Year 2011-2013 from PC-1 amount Rs. 118 M

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SELF-SUSTAINABILITY PLAN

• Year 2013-2015 from 3 years earning and earning
  up to 2015
• Self-sustainability beyond 2016 through
• Professional services on cost contracts
• Fees from users of PICC data
• Advertisements on PICC website
• Savings from training programs and Arbitration
• Donations from stakeholders and Donor agencies
• Year 2011-13 stop gap funding arrangement by PEC
  due to current financial crunch of GoP

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Thank you