Master Copy for IRTMTCALD by IRICEN ESTIMATES Estimates

Master Copy for IRTMTC/ALD by IRICEN

ESTIMATES

Estimates • Indian Railways prepare estimates in respect of works and stores for processing the proposals for requisite approvals/sanctions of Competent Authority as per rules and procedures envisaged in the Departmental Codes. • Estimate can be defined as a compilation of cost data in the form of labor and materials to indicate fairly the cost of undertaking a work or effecting supply of specified material for Railways. • Indian Railways prepare seven kinds of estimates to serve different objectives which are outlined below:

Estimates • Indian Railways prepare seven kinds of estimates to serve different objectives which are outlined below: • 1. Abstract Estimate • Detailed Estimate • Supplementary Estimate • Revised Estimate • Project Abstract Estimate • Construction Estimate • Completion Estimate

Abstract Estimate An abstract estimate is prepared • To enable the competent authority to gauge the necessity, utility and financial prospectus of a financial proposal. • It contains a brief justification, report, allocation of the proposed work. • It furnished the approximate cost of carrying out a work or effecting supply of material split into stores and cash. • It specifies the likely completion time of the work. • Funds required in the current year to commence the work. • Finally, it is prepared to obtain administrative approval of competent authority. • Inclusion of work in Pink Book normally carries administrative approval.

Detailed Estimate A Detailed Estimate is prepared • To obtain the technical sanction of competent authority. • It contains a great degree of details of items of work, cost, quantities, and rates of the proposed work. • It is prepared based on sanctioned plans/designs and after deciding the method and scoped of execution of the work. • It is prepared in such a detail so that preparation of any other kind of estimate at a later stage is avoided.

Supplementary Estimate A Supplementary Estimate is prepared • To include such of those items of work which should have been included in the original estimate but omitted. • To take into consideration for inclusion of such items of work whose necessity is felt during the execution of work. • It is prepared in same degree, detail and magnitude as that of the detailed estimate and once sanctioned forms part of the main estimate. • It should not be utilized for inclusion of material modifications to the work which should be processed separately. • Competency of sanction should be determined based on the overall cost.

Revised Estimate is prepared • It is prepared to take care of the likely excess over sanctioned estimate cost when it is certain that the work cannot be completed within the sanctioned cost. • Excess over the estimate may be due to escalation in prices and introduction of additional items of the work and does not include material modifications which should be dealt separately. • Percentage of excess under above two categories over the abstract cost would determine the competency of sanction. • Revised Estimates are prepared both in Construction and in open line. • Reasons for excess/savings under each sub- work should be explained.

Project Abstract Estimate A project Abstract Estimate is prepared • In respect of construction projects for inclusion of work in the works program. • This is similar to an abstract estimate prepared for open line works. • It carries detailed justification, cost, allocation and brief report about the work. • It is prepared to obtain administrative approval of competent authority.

Construction Estimate A construction Estimate is prepared • To obtain technical sanction for the estimate. • Construction estimate is prepared for each sub work based on the final location survey. • Quantities and items are to be firm and accurate. • Rates should be based on current market rates and realistic. • Methods of executing work are to be decided technically.

Completion Estimate A completion Estimate is prepared • To serve as a stock taking estimate after completion of a work. • It is prepared within 18 months from the end of financial half year in which the work is completed. • It compared latest sanctioned cost with actual expenditure. • It contains further commitments, outstanding bills and cost of balance works to be undertaken. . • It takes into account the total cost and depicts excess/savings under each sub-work duly explaining the reasons. • Competent Authority’s sanction is obtained for the completion estimate.

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