Estimates
Most important question
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7th Chapter of Engineering Code - 7 Kinds of Estimates
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Estimate meaning:
To form an approximate judgment regarding cost of the work or Calculate the
approximate cost of the work.
·
Estimates
required for :
v
Construction or Purchase of new works or Assets
v
Renewals & replacements of existing works or
assets
v
Scrapping or dismantling or abandonment of
existing works or assets
v
Reconditioning of existing works or assets
v
Repair works
v
Temporary & experimental works
v
Renewals & replacement of worked lines
v
Renewals of Ballast
·
Estimates not
required for
Recondition works
|
Renewal works (Revenue)
|
Repair works (Revenue)
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Up to Rs. 1 Lakh
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Up to Rs. 2 Lakhs
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Up to Rs. 5 Lakhs
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·
Currency of the
Sanction: 5 years ( 2 years, if work is not commenced)
·
Names of
Estimates - easy to remember - A D S R P C C
SN
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Estimate
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1
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Abstract Estimate
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2
|
Detailed Estimate
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3
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Supplementary Estimate
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4
|
Revised Estimate
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5
|
Project Abstract Estimate
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6
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Construction Estimate
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7
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Completion Estimate
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Open Line Works
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Construction Projects
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Remarks
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1. Abstract Estimate
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5. Project Abstract Estimate
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For obtaining Administrative approval
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2. Detailed Estimate
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6. Construction Estimate
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For obtaining Technical Sanction
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3. Supplementary Estimate
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Prepared both for Open Line Works & Construction Projects
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4. Revised Estimate
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Prepared both for Open Line Works & Construction Projects
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Nil
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7. Completion Estimate
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Stock taking Estimate for Construction
Projects
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1.
Abstract Estimate: (for Open
Line Works)
·
Prepared to
obtain Administrative approval of the Competent Authority.
·
To form a reasonable accurate idea of the
probable expenditure and such other data
·
Consists of A. Brief Report, B. Justification, C. Specifications & D. Funds required in Current year or
not.
·
Source of Finance is to be identified i.e.,
Capital, DRF, DF etc for different items.
·
Inclusion of item
in Works Programme/M&P Programme/RSP with Budget provision - Deemed to be
the administrative approval of the Abstract Estimate.
2.
Detailed Estimate: (for Open Line Works)
·
Prepared to
obtain Technical Sanction of the Competent Authority
·
Prepared in sufficient detail
·
Ensure that the cost should not exceed the
Abstract Estimate.
·
Work should commenced after the technical
sanction of the Detailed Estimate and provision in the Budget
The sanction of the Competent Authority to the Detailed
Estimate of a work is called the
" Technical
Sanction"
|
Detailed
Estimate of Open Line Works consists of
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Statement of
Details of Estimated cost
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Outer sheet consists of Abstract cost
of work, Report, financial Justification & Allocation
|
·
If Administrative
approval and Technical sanction - both within powers of GM - Sanction for the both
can be accorded at the stage of Detailed Estimate, skipping the Abstract
Estimate.
3.
Supplementary Estimates: (for both Open Line works and Construction Project)
·
Two occasions:
A. An item of work which ought to have been
included in the estimate already sanctioned, but has not been included.
B. An item of work, which it is found
later, should be considered as being a part of an estimate already prepared and
sanctioned.
·
Prepared in the same form and same degree as the
Main estimate
·
All purposes, supplementary estimate be treated
as a part of Main Estimate.
4.
Revised Estimate: (for both Open Line works and Construction Project)
·
If the expenditure on a work likely to exceed
the sanctioned one.
·
Prepared and submitted for sanction of the
Competent Authority
·
Prepared in the same degree, same form like
Original Estimate.
·
Comparative statement showing excesses/savings
under each sub head.
5.
Project Abstract Estimate (for
Construction works)
·
Prepared to
obtain the approval of Railway Board.
·
Prepared from an
Engineering Survey Report
·
Accompanied by A. Narrative report explaining
the salient features and major items of expenditure B. Detailed estimates
prescribed under various heads.
6.
Construction Estimate: (for Construction works)
Detailed estimates of all works in the
Project are collectively known as " Construction Estimate"
|
·
Prepared from the
Final Location survey report.
·
Divided into convenient sections like engine
runs, branch lines, junction arrangements, sections based on topography,
divisions etc.
·
In special cases work may commence by preparing
the Part estimates for sub - works, before preparation of Construction estimate
for whole Project . But the same (sub works) should not be redundant at the
time of Project Construction estimate is prepared. Examples are A. Preliminary works B. Final
Location survey C. Project office D. Land acquisition etc
7. Completion
Estimate: (for Construction works)
·
Prepared in
supersession of a Construction Estimate
Also
called as Stock taking estimate
|
·
Shows in tabular form as shown below.
Amt of Sanctioned estimate
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Actual expenditure as on date
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Commitments as on that date
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Anticipated further outlay
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Total estimated cost
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Differences between sanctioned cost and the estimated cost
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1
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2
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3
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4
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5
(2+3+4)
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6
(6-1)
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·
Prepared with brief
explanations - Excesses - Rs. 10,000 or
10% which ever is less and Savings - Rs. 1 Lakh or 20% which ever is less
·
Prepared
- At the end of one of the first three financial half years after the
date of "opening"
Verification of Estimates
·
Important phase of the Control of Expenditure
·
Regular check by the Accounts Officer on all
estimate before they are sanctioned by the Competent Authority.
·
Object: To avoid irregular expenditure
Main Points - Easy to remember - P I B E C
Propriety
of Expenditure
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Ensure expenditure charged to Railways is legitimate & proper.
Ensured canons of financial propriety as enunciated in Para 116F. Proper
financial justification.
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Incidence
& classification of charges
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Incidence = Source of
Funds, Classification = Allocation as
per Finance Code volume II. Ensure both as per rules in force. while certifying the Estimate, Accounts
officer should clearly state that both have been verified.
However, the estimate should
not be delayed if any doubt in allocation. In such cases estimate should
certify provisionally.
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Budget
provision in current year
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Verified from the sanctioned
budget allotment for the year
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Errors
& omissions - Freedom from
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Executive is responsible for
correctness of errors and omissions noted in the course of accounts
verification. If not done, a check note appended to the verification
certificate duly pointing out the
errors and omissions.
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Competency
of Sanction
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As per MSOP - checked and
certified about the Competent authority empowered to sanction the estimate.
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Subsidiary points -
Easy to remember - P I C A D O R (means
Bullfighter)
Proper
distribution between Cash & Stores
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Proper distribution is made of the estimated outlay between Cash
& Stores
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Incidental
expenditure
|
Incidental expenditure that can be foreseen has been provided in the
estimate
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CRRM
- Credit for Railway Released Material
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Provided CRRM in case of renewal, replacement or dismantlement of
works
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Abstract
Allocation of all items
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Abstract allocation for all items
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Departmental
Charges for Deposit works
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Work done for other govt. depts or private parties, ensure provision
of Departmental charges
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Outlay
& Outturn - manufacturing operations
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Outlay & Outturn should be shown distinctly
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Rent
Statements in case of Railway Quarters.
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Ensure 6 % return in case of each class of staff quarters & other
rent returning buildings
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