CHAPTER VII
ESTIMATES

701

Kinds of Estimates

702

The Abstract Estimate

703

Detailed Estimates

704

The Statement showing Details of Estimated Cost of Works

705

Details of Cost of Permanent Way Material

706

The outer sheet of Open Line Estimates

708

Revised Estimate

709

The Project Abstract Estimate

710

The Construction Estimate

712

Estimate of Junction Arrangements

713

Completion Estimate

714

Estimate for Railway Project Scope

716

Rolling Stock Estimate

717

Indirect charges

718

Commencement of Construction

720

Estimates of Open Line Works Detailed Estimates in support of Abstract Estimate

722

Report and Justification

724

Specification

726

Rates

727

Provision for contingencies

729

Schedule of Rates

730

Standard Specification

731

Covering Letter for Estimates

732

Estimates for Deposit Works

736

General Rules Applicable to AII Estimates Design and Execution

738

Works executed on Contract

739

Units of Measurements

740

Units of Rate

741

Drawing

742

Verification of Estimate

743

Propriety of Expenditure

744

Incidence and Classification of Charges

748

Competency of Sanction

750

Grouping of Works

751

Subsidiary points to be checked

752

Certificate of Accounts Verification

755

Sanction to Estimate

756

Currency of Sanction

758

Scope of the sanction to an Estimate

759.

Register of Estimates

70I: Kinds of Estimates-- All proposals for:

a. the construction or purchase of new works or assets;

b. the renewals and replacements of existing works or assets chargeable to Depreciation Fund/ Development Fund or Open Line Works Revenue when estimated to cost more than Rs 50,000/- or if chargeable to Revenue when estimated to cost more than Rs 2 lakh.

c. the scrapping, dismantlement, abandonment of existing works or assets;

d. the reconditioning of the existing works or assets, if estimated to cost more than Rs 1 lakh, any repair work chargeable to revenue costing more than Rs 5 lakh and that of a single housing unit, if estimated to cost more than Rs 20,000/-

e. temporary and experimental works;

f. renewal sand replacement son worked lines; and

g. renewals of ballast.

should, subject to the provisions of paragraph 1103 regarding urgent works, be scrutinized by the authority competent to sanction them before any expenditure or liability is incurred thereon. For the purpose of this scrutiny, all such proposals should be presented in the form of one or other of the following estimates, according to the circumstances mentioned in paragraphs 702 to 713.

a. Abstract Estimates

b. Detailed Estimates

c. Supplementary Estimates

d, Revised Estimates

e. Project Abstract Estimates

f. Construction Estimates

g. Completion Estimates

Note-.

1. For "New Minor Works" costing Rs 50,000/- and/less, for renewals and replacement works chargeable to Revenue costing Rs 2 Iakh and less and for "Reconditioning Works" costing Rs 1 lakh and less detailed estimates need not be prepared for formal sanction. Rough estimates should, nevertheless, be prepared and kept on record by the Executive Engineer. (Authority: Railway Board letter No.2001/CE-1/CT/17(Part) dt 24.03.2003)

2. In those cases of renewals of permanent way, which are essentially of the nature of repairs find maintenance and in respect of which there is no question of an improvement or a change in the type of materials, and it is impracticable to prepare estimates in advance, separate estimates need not be prepared, but the total cost of the renewals, which must be comparatively small (less the cost of released materials), may be charged to Depreciation Fund through the permanent-way returns, the estimate for track renewals for the division or system being operated upon for this purpose, and the possible credits to Capital on account of the difference between the original cost and the actual cost being neglected in such cases.

702. The Abstract Estimate.An abstract estimate is prepared in order to enable the authority competent to give administrative approval to the expenditure of the nature and the magnitude contemplated, to form a reasonably accurate idea of the probable expenditure and such other data sufficient to enable that authority to gauge adequately the financial prospects of the proposal. Abstract estimates avoid the expense and delay of preparing estimates for works in detail at a stage when the necessity or the general desirability of the works proposed has not been decided upon by competent authority. An abstract estimate should contain a brief report and justification for the work, specifications, and should mention whether funds are required in the current year and to what extent. It should also show the cost subdivided under main heads and sub-heads or specific items, the purpose being to present a correct idea of the work and to indicate the nature of the expenditure involved. The allocation of each item as between Capital Development Fund, Open Line Works-Revenue, Depreciation Reserve Fund and Revenue should be indicated.

Note.-(1) Administrative approval to a work or scheme should be accorded by the authority competent to do so ( vide paragraph 748 ), after a thorough examination as to its necessity, utility and financial prospects. See also rules in Chapter II of Indian Railway Financial Code.

(2) In regard to works which are specified in the sanctioned budget of a year (i.e. in the "Works Machinery and Rolling-stock Programmes" accompanying the Budget Orders paragraph 629), the total estimated cost shown against each work should be regarded as the Abstract Estimate. The inclusion of a work in the sanctioned budget should be deemed to carry with it the administrative approval of the Railway Board except that in the case of structural works, other than track renewal works, costing more than Rupees one crore each, the administrative approval of the Railway Board should be obtained by the submission of separate Abstract Estimates not withstanding their specific inclusion in the sanctioned budget; however, estimates costing over Rs. 50 lakhs and upto Rs. 1 crore will be certified and sanctioned personally by the FA & CAO and GM respectively.

Form E-702

............... RAILWAY

ABSTRACT    ESTIMATE

 

Department ……………… Division    ………………Station………………

Estimate No. ………………

Framed by ……………… Division……………………………………….

Description of work ………………

Plan No. …………………………..

Reference…………………………. 

Cost

Capital

D.F.

D.R.F.

OLWR

Ordy. Rev.

Deposit

Misc. advance

Total

1

2

3

4

5

6

7

8

Existing sanctioned estimate (if any) Present estimate

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                              To be purchased                       Rs………………

Cost of stores………………

                                                              To stock                                   Rs………………

Funds

Report and Justification-

Specification-

Enclosed -*Details of cost with allocation (form E-704). Sub-Estimates.

Has Accounts Officer agreed to the proposed allocation?

Station ………………                                                             Signature………………

Date …………………                                                            Designation………………

 

         *Required in case of any existing sanctioned estimate.

 

703.     Detailed Estimates- On receipt of administrative approval to a project or scheme other than for which construction estimate in Form E 553 is prepared conveyed through the sanction to the abstract estimate relating thereto detailed estimates for various works should be prepared and submitted for technical sanction of the competent authority. It should be prepared in sufficient detail to enable the competent authority to mike sure that the abstract estimate sanctioned by a higher authority is not likely to be exceeded. No work included in an abstract estimate should be commenced till a detailed estimate for the same is prepared and sanctioned and adequate funds are allotted by the competent authority. The detailed estimate of an open line work will comprise (i) statement is showing details of estimated cost and (ii) an outer sheet giving the abstract of cost of work, the report, the financial 'justification and the allocation.

 

Note—(1) Technical Sanction -- The sanction of the competent authority to the detailed estimate of a work is called the "technical sanction". The authority according technical sanction should satisfied itself that (i) that the details of the scheme as worked out are satisfactory, (ii) the method proposed for the execution off the work are adequate; and (iii) the cost has been estimated from reliable data and likely to be reasonably accurate.

 

            (2)        In the case of works within his power of sanction, the General Manager may, in lieu of the procedure of preparing Abstract Estimates for administrative approval, prescribe that both the administrative approval and the technical sanction should be accorded on the detailed estimates.

 

704.     The statement showing details of Estimated Cost of Works may be in the following form:-

Form No. E-704

....................... RAILWAY

ENGINEERING DEPARTMENT

STATEMENT SHOWING DETAILS OF ESTIMATED COST

Name of work ………………

Department ……………… Division ……………… Station ………………

S. No.

Description

Quantity

Rate

Unit

Cost

Total

Cash Rs.

Stores

Purchase

Stock

1

2

3

4

5

6

7

8

9

 

 

 

 

 

 

 

 

 

 Allocation

 

Capital

DF

D.R.F.

OLWR

Ordinary Revenue

Deposit

Misc. Advance

Total

Remarks

10

11

12

12

14

15

16

17

18

 

Office/Station ………………                                                                                                                         Signature………………

 Date ……………… ………                                                                                                                        Designation.....................

 

705.     Details of Cost of Permanent-Way Material-In the case of estimates for permanent-way renewal, on open lines, the details of estimated cost (Form E. 704) may with advantage be supported by statement showing details and cost of material required for one kilometre of permanent-way. These statements may be in the following form:- 

                                                                                                                      Form No. E-705 

Detail and Cost of One Kilometre of Permanent-way Material required for Renewal from km ……………… to km……………… 

Item No.

Description

Quantity

Rate

No.

Weight

At

Per

1.

 

2.

 

3.

 

4.

 

5.

    6.

Rails …… Kg./m ……metres in length

 

Fish plates………………………

 

Fish-bolts and nuts ……………..Kg.

 

Bearing-plates………at …… per rail

 

Spikes ……. at ………per inter sleeper and ………………… per joint sleeper.

  Sleepers …….. at ………. per rail length ……. and so on ……………….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 706.     The Outer Sheet of open line estimates giving the abstract of cost of work. report justification and the allocation may be in the following form:-- 

Form E. 706

…............ RAILWAY

ABSTRACT OF COST OF WORK

(Outer Sheet)

Department …………………………………………                                                               Office ………………

Estimate No. ………………   of                                                                                               20…………………….

Framed by…………………    Designation…………………………………………...................................................

Region....................................  Division…………….....................    Station or Kilometrage……...................………………………….

Name of work ……………………………………………………………………….

Plan No……………….............................................                          Reference……………

 

Estimated Cost

Sub-heads of work

Work Material

Stores in stock

Stores to be purchased.

Total

Original total in case of revised estimate

Allocation

Capital

DF

DRF

OLWR

Ordinary Revenue

Deposit

Misc. advance

Total

 

 

 

 

 

 

 

 

 

 

 

          Funds ………… to be provided from budget for …………… item No. …………......................

direct or by reappropriation.

         Report and Justification.

         Specification ………………

                                                                                                                          Signature………………                                 

Drawings and  Annexures.                                                                                  Designation……………            ________________________________________________________________________________________________                        

 

No. ………………. Dated …………………..

Incident and allocation verified (subject to the check note attached). This requires the sanction of the …………………….

            Sanction registered as                                                                                          No………. dated …………….

            F.A.&C.A.O.                                                                                                                 G.M/C.E./D.S.

Allocation Statement

 Main and sub-heads

Cash

Rs.

Stores

Rs.

Total

Rs.

Capital

Depreciation reserve fund

OLWR

DF

Ordinary Revenue

Deposit

 

 

 

 

 

 

 

 

 

 

707. A supplementary estimate should be prepared for any item of work, which ought to have been included in the first instance in an estimate already sanctioned but has not been so included, or which it is found later, should be considered as being a part or a phase of an estimate already prepared and sanctioned, if it cannot be met out of contingencies (see paragraph 727). Such a supplementary estimate should be prepared in the same form and the same degree of detail as the main estimate and for all purposes be treated as a part of the main estimate.

708. Revised Estimate.  -As soon as it becomes apparent that the expenditure on a work or Project is likely to exceed the amount provided therefor in the detailed estimate or construction estimate a revised estimate should (subject to provision of paragraph 1136) be prepared and submitted for the sanction of the competent authority. It should, unless otherwise ordered by the sanctioning authority, be prepared in the same form and the same degree of detail as the original estimate, and should be accompanied by a comparative statement showing the excess or saving under each sub-head of account against the latest sanction. In cases where a supplementary estimate or a previous revised estimate has been sanctioned by the Railway Board, it should be made clear how the original sanction has been modified by such further sanctions.

709. The Project Abstract Estimate. The abstract estimate of a Construction project should be submitted for the approval of the Railway Board on Form E. 554 "Abstract cost of Railway" accompanied by (i) an abstract estimate of junction arrangements, (ii) a narrative report explaining the salient features and major items of expenditure (iii) detailed estimates on Form E. 553 prescribed for a construction estimate under the following heads :

Capital1120-Land

Structural Engineering Works

1132--Tunnels, 1151 & 1152-Major Bridges, 1153 & 1154Minor Bridges, 1140 Ballast and Permanent-Way (Detailed estimate for one Kilometre).

1180 & 1190-General Charges - Establishment and General charges - Other than Establishment.

2000 --- Rolling Stock

Note.:- Head shown above are for plan Head `New Lines' as an example.

These detailed estimates should be prepared from an engineering survey report.

Note. The abstract estimate of an unremunerative project chargeable to Development fund will be prepared in the same detail as the abstract estimate for a construction project chargeable to Capital.

710. The Construction Estimate. When it is decided to undertake the execution of a new line gauge conversion or doubling of lines, a final location survey should be made; and based on the information collected in that survey detailed estimates of all the works included in the project as a whole should be prepared (cf. Paragraph 540). These detailed estimates are collectively called the "Construction Estimate" of the project. It should be prepared after a careful examination of the various details of construction involved in the project. It should be in such detail as to render it possible to dispense with working estimates or any other further estimating after the construction estimate has been sanctioned (except when supplementary or revised estimates are necessary). It should provide for the buildings and equipment of the railway up to a standard that will be sufficient for working such traffic as may be expected during the first year or two after opening of the line. It is the basis on which technical sanction to the various works included in the construction of a project is accorded.

In special cases where works are required to be commenced before the earliest date by which detailed estimates for the project as a whole could be prepared and sanctioned, part estimates for sub- works may be prepared. To enable the commencement of work on such works forming a part of the project, part estimates for the following sub-works may be sanctioned progressively by the authority competent to sanction the detailed estimate for the whole project :

  • (i) Preliminary works including final location survey etc.

  • (ii) Setting up of project offices and organisation including office accommodation, construction equipment minimum vehicles and provision for gazetted and non-gazetted staff etc.

  • (iii) Land acquisition.

  • (iv) Formation and bridge works for whole or part of the project where survey has been done and alignment determined.

  • (v) Minimum service buildings in case of new line works required to meet immediate needs of construction organisation and subsequently required for operation of the project.

  • (vi) Minimum residential quarters required to meet immediate needs of construction staff. The number and location of quarters should be within the overall requirement of Open Line for operation of the project.

Before forwarding part estimates duly concurred by FA & CAO and approved by General Manager for sanction to the Rly. Board, it should be certified that no works included in the part estimates are likely to become redundant when estimate for the whole project is prepared.

711. The Construction Estimate of project should be prepared in Form E. 553 prescribed for the purpose. It should be divided into convenient sections in accordance with the following principles.

  • (a) When, as is usually the case, certain works within the limits of a junction station are incidental to the project, these works should form a distinct section;

  • (b) When a project comprises a "main line" and a "branch", the "branch" should form at least one distinct section;

  • (c) Where the country traversed by a line is such that it may readily be divided into tracts of distinctive topographical character, the length through each class of country may comprise a section or a project may be divided into "engine runs" or into lengths suitable for "construction divisions".

  • (d) Where there is likelihood of different sections of a project being opened to traffic at different intervals, the estimate for each such section should be kept distinct;

  • (e) When an estimate for any alternative alignment of importance is included, the estimate for the alternative alignment and for the length which it would supersede, if adopted, should each be comprised in a distinct section.

712. Estimate of Junction Arrangements. Except where the new line is of a different gauge and has entirely its own arrangements, the estimate for the junction arrangements should be prepared in consultation with the open line administration of the connecting system, and a separate abstract estimate of the cost of the additions and alterations necessary for effecting the junction should be appended to the construction estimate.

713. Completion Estimate. A completion Estimate is prepared in supersession of a construction estimate as provided in paragraph 1701. It should show in a tabular form (E. 713) the following particulars in respect of all the works included in the construction estimate :

  • (i) amount of sanctioned estimate;

  • (ii) actual expenditure on all works up to the date of the construction estimate;

  • (iii) commitments on that date;

  • (iv) anticipated further outlay;

  • (v) total estimated cost; and

  • (vi) difference between the sanctioned estimate and the estimated cost.

An abstract of the completion estimate showing the above particulars against the various heads of capital classification should be submitted for information or sanction, vide paragraph 1703 to the Railway Board together with brief explanations for excesses of not less than Rs. 10,000 or 10 per cent over the provision under sub-heads of account and for savings of 20 per cent or one lakh, whichever is less, occurring under any main head of account. Provision for further outlay should be made in completion estimate only for those works which are in progress or completed on the date of closing of the construction estimate. All works not started on that date should be dealt with separately as open line works both as regards estimate and expenditure. In forwarding, therefore, estimates for sanction for works in connection with new lines opened, it should be clearly indicated whether the cost of the work is chargeable to Capital Construction or Open Line Capital.

Note. The completion estimate of an unremunerative construction project chargeable to Development fund will be prepared in the same detail as the original construction estimate using the various heads of capital classification for the purpose.

Estimates for Railway Project

714. Scope. - A Construction Estimate (Form E. 553) should be prepared in such detail as to reduce to a minimum the probability of omission of any item of expense which is capable of being foreseen. It should be remembered particularly that the provision for contingencies allowed in the estimate is not intended to meet items of expense which can before seen and which are reasonably likely to occur. With good estimating it should seldom be necessary to encroach, to any appreciable extent, on the provision for contingencies.

715. Detailed Estimates for works included in a project need not be submitted to the Railway Board but they must nevertheless be prepared carefully and be readily available when required, so that further estimating when construction is sanctioned will be unnecessary. In the detailed estimates, the estimated cost of a work should be shown by items, when such cost is over Rs.1 lakh and when, for no other work of the same type, details of the cost have been shown; further, when there are a number of works of the same type of the aggregate cost of which exceeds Rs.1 lakh the details of cost of one such work should be shown. Individual works included in an Abstract estimate should not be commenced (even though the commencement of the construction might have been authorised, vide paragraph 718) until detailed or working estimates therefor have been sanctioned, by the competent authority. The progressive totals of the detailed or working estimates thus sanctioned should be controlled against the provision in the Abstract estimate by means of a register kept in the form given below :

(Authority: Railway Board letter No.2001/CE-I/CT/37  dated 30-01-2001)

  Top

Form No. E-715

Register of Detailed or Working Estimates sanctioned against the Abstract Estimate of the

....................................Project sanctioned vide.........................

Serial No.of detailed estimate Particulars of work and of sanction Heads of Account as per Capital classification
1.  Provision of Abstract        
2. Estimate
3. and so on  

  Note.—Projects for which detailed project estimate (based on the Final Location Survey) i.e., Construction estimate prescribed in Form E. 553 has been sanctioned by the Railway Board, no detailed or working estimates need be prepared and sanctioned by the competent authority in the Railway Administration before commencement of construction.

716. Rolling-Stock Estimate.--When it is necessary in connection with a new project to provide rolling-stock, the estimate for such rolling-stock should be kept entirely distinct from the estimate for the remainder of the project except in the case of lines of independent gauge where the estimates for, rolling-stock should be included in the Construction estimate, Estimates for rolling-stock should be prepared in adequate detail by the open line officer ordinarily responsible for the preparation of such estimate where the projected line is to form part of an existing system.

717. Indirect Charges.—The practice of adjustment of Foreign Service Contribution between Open Line and Construction Organisation of Indian Railways shall stand discontinued with effect from 1-4-92. Accordingly, accounts of all construction works should make a specific mention by way of a suitable note that the cost of Leave Salary & Pension contribution etc. is not included in the construction Cost.

718. Commencement of Construction.--The Construction of a new railway or extension of branch of a railway should not be commenced without the specific sanction of the Railway Board. As a rule, the Railway Board approve of the project for the construction of a Railway on consideration of a Traffic Survey Report and the Abstract Estimate of the cost of the proposed line. Such approval is not, however, a permission to commence construction. After approval to Abstract, Estimate Form E. 554 has been given, the Railway Administration should undertake the Final Location Survey, proceed with such preliminary arrangements as the land acquisition and the ordering of stores and plant, to the extent of funds allotted, and at the same time undertake the preparation of a detailed project estimate i.e. a construction estimate.

Normally, sanction to the construction of a railway will not be accorded until a further abstract of the detailed project estimate based on the final location survey has been approved of by the Railway Board, In special cases, however, where construction appears to be easy and present no engineering problems of great difficulty, the Railway Board may sanction the commencement of construction on the first abstract estimate, but under no circumstances whatsoever may construction be commenced without the specific sanction of the Railway Board.

719. When application is made for sanction to the commencement of Construction a certificate should invariably be given that the Construction Estimate has been scrutinized by an engineer of experience within three years of the date of application and any change in the amount of the estimate, which may have been found necessary owing to change of rates or other conditions since the estimate was originally prepared, should be reported to the Railway Board with an explanation of the causes necessitating the change.

Estimate of Open Line Works

720. Detailed Estimates in support of Abstract Estimates.--On open lines of railways, no works pertaining to any of the categories mentioned in paragraph, 701 should, as a rule, be started before the sanction of detailed estimates by competent authorities. In the case of open line projects, the abstract estimates (Form E. 702) of which have been sanctioned by the Railway Board or a higher authority, works should not be started until :-

(i)   an estimate for the whole work has been prepared in sufficient detail to enable the competent authority to make sure that the total of the sanctioned abstract estimate is not likely to be appreciably exceeded, and  

(ii)  a detailed estimate has been prepared for each sub-work ( i.e., distinct unit of work which is   sufficiently large or important to be kept separate for purpose of accounts ) which it is proposed to commence.

So long as these two conditions are satisfied, it is not necessary that detailed estimates for all sub-works that go to comprise any one item of the sanctioned abstract estimate should be ready before any particular sub-work is started. It is left to the discretion of General Managers to progressively prepare and sanction detailed estimates for such sub-works as are to be carried out against the sanctioned abstract estimate provided they are satisfied that the sum of such detailed estimates as are sanctioned by them will not cause an excess over the total amount of the sanctioned abstract estimate beyond the limits laid down in paragraph 748

Note.-The detailed estimates for the annual programme of permanent way renewals should, as far as practicable, (i ) be prepared for convenient lengths of permanent-way such as Permanent-Way Inspectors sections or Kilometrages of track and (ii) include such works only as can be completed within the financial year in which they are sanctioned so that the accounts of the works are not kept open long after the close of the financial year.

721. The papers to be submitted with the project for a work will consist of a list of references, a report, plans, a specification, and a detailed statement of quantities and rates with an abstract showing the total estimated cost of each item. The list of references, report and specification will be given on Form E. 706. The detailed statement of quantities and the abstract will be prepared in Form E. 704. These documents together form what is called, "the estimate" (Forms E. 704 to 706) in the sense of this Code. Sufficiently detailed plans to illustrate the work covered by an estimate should be submitted with it and a reference should be made on the front page of the estimate to the numbers and titles of the accompanying plans. The allocation of the estimated expenditure should be shown in the detailed statement and in the abstract. In the case of a project consisting of several works, the report may be a single document for all the works, and likewise the specification; but details of quantities and rates should be prepared for each work, the total cost of each work being brought out in a general abstract.

722. Report and Justification-The report on the estimate (Form E. 706) should give a brief abstract of the correspondence that has passed with reference to the project, and a brief but clear description of the work to be carried out. It should state in clear terms the object to be gained by the execution of the work estimated for, the financial justification of the proposed expenditure in accordance with the rule (see the Indian Railway Financial Code), the reasons for the adoption of the estimated project or design in preference to others, and any peculiarities which require elucidation. It should indicate the nature and extent of recurring expenditure, if any, consequent on the execution of the work. The time within which the work may be expected to be completed should also be mentioned. When the project is of an important nature, involving scientific points or other considerations of special character, the report should contain a complete account of the basis on which every part of it has been framed, the various considerations that have guided the designer on question of engineering details, economy of construction, utility or the practical working of the project when carried out, and the Method in which it is proposed to execute any portion of the work involving unusual difficulties of construction. Any local considerations which may affect the project and particularly any circumstances affecting the rates, should also be fully entered into.

723. In the reports of estimates for replacement and renewal works, it should be clearly stated whether any improvement is invloved in the proposed works and if so, the extent of such improvement should be briefly indicated so as to enable the preparation of the Block Account (c. f. to Chapter IV of Indian Railway Financial Code).

724. Specification-The report will be followed by a specification, showing fully and clearly, but as briefly as possible the details of the work, how each portion will be done, and what materials will be used. In the case of items of works proposed to be executed in accordance with the standard specification (see paragraph 730) of the railway, it is enough if reference is made to such specifications. In all other cases detailed specifications should be furnished. A general specification describing clearly the nature of construction of the various parts of the work, and of the work as a whole, will usually be necessary in addition to the detailed specifications, for each portion of the work. Such full details as are obtainable regarding land required for the project, for which compensation has to be paid, should be given.

725. The Statement of Detailed Quantities following the specification should include the measurements of land approximate or detailed, as the case may be, for which compensation will have to be paid, the area of each description of land, being separately shown.

726. Rates-The rates of the various descriptions of work are intended to cover all charges usual to, or necessary for, the execution of the work, and should generally agree with the schedule of rates (paragraph 729) but where from any cause these are not considered sufficient, or are in excess a detailed statement should be given in the report showing the manner in which the rates provided in the estimate are arrived at. The same rule will hold good with regard to any rate differing from those formerly in force in the division, when no standard schedule exists, or when any work or a description not previously executed in the division is estimated for.

727. Provision for Contingencies-Provision for unforeseen contingencies should be made in all estimates at 3 per cent of the total estimated cost. All incidental expenditure which can be foreseen such as works establishment, sheds for workmen and stores should be separately estimated and provided for in the estimates. The provision for contingencies should not be diverted to any new work or repair which is not provided for in the estimate, and of which the cost exceeds Rs. 1000/- without the sanction of the authority who sanctioned the estimate.

728. The abstract of estimate should show the quantity and the cost in rupees of each kind of work, the only exception to this rule being the case of miscellaneous petty works which may be entered in the abstract without quantities, the estimated cost alone being given.

729. Schedule of Rates-To facilitate the preparation of estimates, a schedule of rates of each kind of work commonly executed should be maintained in each open line division, and it will be the duty of the Chief Engineer when inspecting divisional offices, to see that correct schedules of the rates at which work is actually being carried out, are invariable recorded in a complete and satisfactory manner. The regulations for the due record of rates in a clear and systematic manner and for their periodical revision to bring them on line with the rates prevailing in the market and those paid by other government departments will be laid down by the General Manager.

730. Standard Specifications-Standard specification of each kind of artificer's work, commonly executed, should be kept up for each railway under the orders of the General Manager, and should be referred to by number under the several items in the schedule of rates.

731. Covering Letter for Estimates-All classes of estimates (and completion reports) beyond the powers of sanction of General Manager (paragraph 748) should be submitted to the railway Board with an explanatory covering letter containing information on the amount of existing sanctioned estimates (if any) with allocation, outlay incurred to end of previous financial year, funds provided in the current years's budget and all other relevant points.

Estimates of Deposit Works

732. A railway Administration is occasionally required to execute works for and at the cost of other Government departments, local bodies, private persons & c. Such works are referred to in this Code as" Deposit Works" (see also paragraph 1843 for a definition of this term). To meet the cost of plans and estimates of such works as also those to be carried out for other Departments out of railway funds, which are subsequently not carried out, charges at the following sliding scale shall be levied on the total of the estimate inclusive of departmental charges :-

 

For works costing over Rs. 1,00,000.

2%

For works costing over Rs. 60,000 but not more than 1,00,000

21/2%

For works costing over Rs. 30,000 but not more than 60,000

3%

For works costing over Rs. 20,000 but not more than 30,000

31/2%

For works costing over Rs. 10,000 but not more than 20,000

4%

For works costing over Rs. 1,000 but not more than 10,000

41/2%

For works costing over Rs. 1,000 and below 5% subject to a minimum of Rs. 25

 

The acceptance of the government departments or the payment in cash by the local bodies or private individuals concerned should be obtained to the above percentage charges before the work of preparation of plans and estimates is taken in hand. In cases where the proposed works are subsequently carried out, these percentage charges should be adjusted against departmental charges.

The levy of the above percentage charges may, at the discretion of the General Manager, be waived in particular cases subject to the conditions laid down in paragraph 1138.

Note.-The scale of charges prescribed in this rule does not apply to assisted sidings, recovery of preliminary expenses in respect of which has been separately provided for under paragraph 1825.

732- A:.- Notwithstanding the stipulations for advance payment of charges at sliding scale mentioned above, the parties shall be asked to deposit an amount of Rs.2000/- only, for deposit works of value not exceeding Rs.5 lakhs, while making a request.  Subsequently, this amount shall be adjusted against the total cost of the deposit work, as per approved plans and estimates, before physical execution of the work at site.

(Authority: Railway Board's letter No. 2000/CE.I/PL/14  dated 21.11.2000)

733. In preparing estimates of works for other departments, local bodies, private individuals, & c., particular care should be taken to see that.

·         (i)   railway freight and carriage charges of materials proposed to be used in the works are provided for at rates applicable to the public and not at the confessional rates applicable to railway material; (Works of Branch Line Companies are not governed by this rule, but by the relevant contracts).

·         (ii)  departmental charges at the prescribed rates (paragraph 1137) are provided for.

734. All estimates of deposit works should be got accepted by the parties ordering the works before submission to the competent railway authority for sanction. In the case of works, which under the rules (see paragraph 1851) are required to be maintained after completion by the Railway department at the cost of the department, local body, private firms or individuals ordering the works, the acceptance of the party concerned should also be obtained for the recurring expenditure that is likely to be incurred on repairs, maintenance, etc.

735. No work asked for by another government department should be commenced till a detailed estimate for the same has been accepted by the department concerned and sanctioned by the competent railway authority. No work asked for by local bodies, private individuals, & c., should be commenced till a detailed estimate for the same has been sanctioned by the competent railway authority and the estimated cost thereof deposited with the railway. The amounts so deposited should be credited to the head "Deposits-Miscellaneous."

General Rules Applicable to all Estimates

736. Design and Execution-The designs of all new works and alterations to existing works should, as a rule, conform to the "Schedules of Dimensions" prescribed by the Railway Board for the various gauges of railways, and unless prior sanction has been obtained from the Railway Board through the Additional Commissioner of Railway Safety, no work which will infringe the "Schedules" should be executed. 

As far as practicable, Indian Railway Standard (I. R. S.) drawing should be followed in designing and I.R.S. Codes of Practice in carrying out works.

737. All estimates for the construction of or addition or alterations to staff quarters of other rent-returning buildings should be accompanied by the following information which should be given in a separate paragraph in the report to the estimate.

These quarters are intended for staff drawing pay between Rs. .....................and Rs........................The minimum and maximum rent leviable from the staff on the basis of assessed rent at 6% of the total cost subject to 71/2% / 10% of their emoluments will be between Rs. ......................and Rs...........................The anticipated return on the total cost of the proposed quarters is, therefore, expected to be between.....................per cent and......................per cent.

738. Works Executed on Contract-Estimates for works which are intended to be executed not departmentally but by contractors should be prepared at the minimum rates shown in the Schedule of Rates (cf. paragraph 729) and any reduction (or addition) to be made on account of the tender rate of contractors should be made at the foot of the abstract estimate.

739. Units of Measurements-The following measures are prescribed for general use :-

Length-The Standard Metre. As a general rule, the metre will be divided decimally. For long distances the Standard Kilometre (1 Km-1000 mts.)

Area-The `square metre' divided as a general rule decimally, 100 square metres being termed one `Acre'. For land, the standard Hectares (1 hectare=100 acres) and decimals; or for small areas, square metres.

Capacity or solidity-The `cubic metre' and `litre' divided as a general rule, decimaly.

  • Value.-All rates in estimates, tender documents, schedules of rates, bills, should be quoted in rupees and paise.

  • Velocity.-Metres per second.

  • Angular Velocity.-Revolution per second.

  • Work.-Kilogram force metre.

  • Heaviness or weight.—Kilogram, divided as a general rule decimally; 100 kilograms being termed as 1 quintal and 1000 kilograms as one tonne.

  • Power.—Kilogram-metres per second or one ‘Metric Horse Power’ of 75 kilogram-metres per second.

  • Heat.—Joules (calorie-4.1868 Joules) Water discharge-Cubic metres per second.

  • Water duty.—Irrigation, canal-Rectares per cubic metre per second, Irrigation, tank-Rectare per million cubic metres.

740. Units of Rate.—The following units of rate are prescribed :—

Particulars of work

Unit of rate

Particulars of work

Unit of rate

Earth work

Brick work

Concrete

Pise work

Rubble masonry

Ashlar masonry

Pitching

 

Per 100 cubic metre

 

 

Per cubic metre

 

 

 

 

Wood work

Painting

Plastering

Flooring

Roofing

Turfing

 

Per cubic metre

 

 

Per sq. metres

 

 

 

 

 

 

 

 

 

 

Doors and

Windows

Land

 

Per Sq. metre

 

Per hectare

 

Note.— In the case of road metalling where the depth upto which the old road is to be broken up and new stone metalling and rolling is to be completed is specified 100 sq. m. may be adopted as the unit of rate

741. Drawings.—Every drawing submitted with an estimate should have a clear title, which should be shown on the back on two opposite corners, so as to shown outside whichever way the paper be rolled up. The signature of every officer, through whose hands the design passes, should be affixed. All drawings and plans should be registered in the offices of origin and should be referred to not only by their titles but also by their registration numbers. For the purpose of registering drawings and plans a manuscript register (form E. 741) should be kept in each drawing office, Indian Railway Standard (I. R. S.) drawing should be referred to by their standard numbers.

Verification of Estimate

742. One phase of the control of expenditure on railway is a regular check by the Accounts Officer of all estimates before they are sanctioned by the competent authority. The object of this preliminary check of estimates is to avoid irregular sanction to expenditure and the main points which require consideration are :

  • (i) the propriety of the expenditure;

  • (ii) the incidence and classification of charges;

  • (iii) the existence of budget provision to meet the proposed expenditure during the financial year;

  • (iv) freedom from errors and omissions; and

  • (v) competency of sanction.

The checks relating to these points should be exercised with reference to the rules in this Code and in other Indian Railway Codes bearing on this matter.

743. Propriety of Expenditure. It is the duty of the Accounts Officer, in his capacity as Financial Adviser, to examine zealously all proposals for expenditure with a view to see

  • (i) that the expenditure proposed to be charged to railway funds in the estimate, is properly and legitimately so chargeable;

  • (ii) that proper financial justification is forthcoming in the case of all works requiring such financial justification; and

  • (iii) that in the case of estimates for staff quarters and other rent returning building, the anticipated yield of rent as shown in the `Rent Statement' (Form E. 737) will not have the effect of reducing the return on the cost (excluding cost of land) of each class of Quarters to less than 6 per cent per annum (vide paragraph 1908).

744. Incidence and Classification of Charges. These should be verified in an estimate in accordance with the rules of incidence and the classification of expenditure prescribed in the Indian Railway Financial Code. In his verification certificate, the Accounts Officer should clearly state that incidence and allocation have been so verified.

745. The submission of an estimate to the sanctioning authority should not be delayed when there arises any doubt as to the correct allocation of estimated cost and the question at issue will take time to settle. In such cases, the approximate allocation between Capital or Development Fund, Open Line Works-Revenue, Depreciation Reserve Fund and Revenue may be certified by the Accounts Officer, as far as it is possible for him to do so, and the sanctioning authority may sanction the estimate, if otherwise in order, leaving over the question of allocation for subsequent consideration.

If the estimate of the work is altered as a result of verification of the estimate by the Accounts officer, the previous sanction should be revised.

746. The existence of budget provision for a proposed work should be verified from the sanctioned budget allotments for the year.

747. Errors and ommissions noted in the course of the accounts Verification of estimates should be got corrected by the executive authority responsible for the preparation of (or sanction to) the estimate. The Accounts Officer may, in case where this becomes necessary, append to his verification certificate, a check note specifying such items of errors or omissions as have been pointed out by him, but have not been accepted by the executive authority and any other matter of importance.

Competency of Sanction

748. The previous sanction of an authority higher than the General Managers of Indian Railways is necessary :

·         (i)   To expenditure on new lines or rolling stock or surveys not provided in the sanctioned budget for the year or carried forward from the sanctioned budget of the previous year;

·         (ii)   To expenditure on other works not provided in the sanctioned budget or carried forward from the sanctioned budget of any previous year except :

  • (a) (i) Track renewal works costing not more than Rupees two lakhs;

  • (ii) Other workscosting not more than Rupees one lakh;

  • (iii) Machinery & Plant-costing not more than Rupees fifty thousands.

Provided that the total lump-sum provision made in the budget for such works is not exceeded;

·         (b) (i)     On line capacity works costing above Rupees one lakh but not more than Rupees ten lakhs each;

·              (ii)    On track renewal works costing above Rupees two lakhs but not more than Rupees five lakhs each;

·              (iii)   On other than line capacity and track renewal- works costing above Rupees one lakh but not more than Rupees five lakhs each;

Subject to ceiling of Rupees one crore in all in a financial year provided that the sanctioned budget (other than lumpsum) for works in these categories is not exceeded.

Note.-(1) The works thrown forward from previous years may be taken up only if the funds required for them can be found by reappropriation within the sanctioned allotment.

        (2) The savings in the lumpsum provision made in the sanctioned budget shall not be utilized for the category of works in (b) above without the prior approval of the Railway Board.

        (3) The General Manager may sanction expenditure on new works out of turn in respect of users' amenities including goods shed and booking offices not exceeding Rupees one lakh in each case provided the funds required for such works as provided in the sanctioned budget for works in these categories is not exceeded; and expenditure upto Rupees fifty thousand in each case, in respect of existing railway schools, institutes, hospitals and dispensaries provided the lumpsum provision in the sanctioned budget is not exceeded.

(iii) To expenditure on works provided in the sanctioned budget for the year or carried forward from the sanctioned budget of any previous year as follows :

(a) Works sanctioned under the lumpsum provision. To an excess over the total lumpsum provision in the sanctioned budget for such works;

(b) Works outside the lumpsum provision. - Rolling Stock, Track renewals and other works-----

 to an excess over the estimated cost as entered in the sanctioned budget or sanctioned separately, as follows :----       

·   (i) of more than 25% over the original estimated cost;

·   (ii) of more than 15% over the first revised cost;

·   (iii) of more than 10% over the second and further revised estimated co

Provided further that all codal provisions regarding sanctions for material modification are strictly followed .

(c) Surveys. - To an excess over 10% on original estimate sanctioned by higher authority (General Manager can sanction survey estimates costing up to Rupees one lakh each provided the surveys are included in the sanctioned budget).

Note.-(1) The works thrown forward from previous years may be taken up only if the funds required for them can be found by reappropriation within the sanctioned allotment.

(2) The amount first given in the Budget or sanctioned separately by higher authority shall be the original estimated cost and the revised amount given in subsequent Budgets or sanctioned separately by higher authority, the second, third etc., revised estimated cost.

(3) The powers of sanction to excess over estimated costs allowed in item (b) above shall not make the cost of such works exceed Rupees one crore in any case.

(4) The powers for sanctioning the excess over the estimated costs of works outside the lumpsum provision as in item (b) above shall not be re-delegated to lower authorities in respect of works, the original estimated cost of which is over Rupees fifty lakhs.

(iv) To the sale of----

       (a) a portion of a Railway line;

       (b) in item of the authorised Rolling Stock; or

       (c) any other Railway asset costing over Rupees three lakhs.

749. Subject to the provisions of the rules in paragraph 748 above, the General Managers of Indian Railways have full powers to delegate their powers or any portion of them, to authorities subordinate to them, with power to redelegate to lower authorities. A schedule of the powers delegated from time to time, to the various departmental officers on each railway should be maintained by each Railway administration and copies thereof should be furnished to the Accounts Officer, to enable him to determine in each case the authority competent to sanction expenditure.

750. Grouping of Works.- When two or more works are so connected, either by their situation or by the purpose or purposes which they are designed to serve, that construction of one necessarily involve that of the other or others, the works should be considered as one scheme and the aggregate estimated cost of the work so connected determine the authority competent to sanction expenditure on the scheme.When the works constituting a connected scheme are situated in more than one executive division separate detailed estimates should be prepared of the cost of the work in each division in order that the Executive Engineer entrusted with the actual construction may be in a position to watch expenditure against a sanctioned estimate of the cost of the work in his charge.

751. Subsidiary Points to be checked. -In the check of estimates the following subsidiary points also require attention. It should be seen--

(i)         That the particulars of work to be done are furnished in sufficient detail and that a proper distribution is made of the estimated outlay between cash and stores;

(ii)        that the allocation of each item is given and that an abstract allocation is made;

(iii)        that all incidental expenditure that can be foreseen has been provided for in the estimates;

(iv)        that in case of renewal, replacement or dismantlement, credit for released material has been provided for;

(v)         that in the case of work to be done for other government departments, other railways and private bodies, provision has been made for the necessary departmental charges;

(vi)        that in the case of estimates for manufacturing operations the outlay and outturn are distinctly shown; and

(vii)       that in case of estimates for staff-quarters and other rent-returning buildings a rent statement accompanies the estimate.

752. Certificate of Accounts Verification. All estimates verified by the Accounts Officers should bear a certificate of such verification. The form of the certificate may be as under:

"Incidence and allocation verified (subject to the check note attached).

       This requires the sanction of (.......................................................................").

753. A copy of the estimate as verified by the Accounts Officer, together with a verbatim copy of his check note, if any, should be submitted to the authority competent to sanction the estimate.

754. In forwarding an estimate for sanction it should be clearly mentioned whether it has been accepted by the Accounts Officers as unobjectionable. In case where the Accounts Officer has recorded any objection the attention of the sanctioning authority should be drawn to the Accounts Officer's check note stating the objection.

755. Sanction to Estimates. -Advice of all sanctions to estimates by the competent authority should be communicated to the Accounts Officers and to the Chief Auditor of the railways in such form as may be prescribed by such authorities. A copy of the sanctioned estimate should also be furnished to the Accounts Officer.

756. Currency of Sanction.- The sanction to an estimate will ordinarily remain current for five years from the date on which it has been accorded, unless it has been renewed for a further term by the acceptance of a revised estimate. Acceptance by competent authority, however, of a budget estimate which includes specific provision for expenditure on a work which is in progress, may be regarded as reviving for the year in which provision is made, the sanction to the estimate-regardless of the five years' limit. But if no work has been commenced on a sanctioned scheme within two years of the date on which the sanction was accorded to the estimate, such sanction to be held to have lapsed and fresh sanction should be obtained from the competent authority by the submission of an up-to-date estimate if necessary.

757. The currency of sanction begins from the date of sanction to estimate itself and not from the date on which the allocation of the estimate is finally accepted.

758. Scope of the sanction to an Estimate.- The authority granted by a sanction to an estimate should,on all occasions, be looked upon as strictly limited to the precise objects for which the estimate was intended to provide. Accordingly, any anticipated or actual saving on a sanctioned estimate for definite project should not, without special authority, be applied to carry out additional work not contemplated in the original project or fairly contingent on its actual execution. Saving due to the abandonment of a substantial sanction of any project should not be considered as available for work on other sections.

759. Register of Estimates.- All estimates should, before they are submitted for accounts verification or for the sanction of the competent authorities, be registered in the office of origin. For this purpose a register in the following from should be kept.--

Form No. E. 759

.........................................RAILWAY

REGISTER OF ESTIMATES

Department............................................Office................................................Station...............................

S. No.

Estimate No.

Name of work

Plan No.

File No.

Estimated cost

Chargeable to

 

 

 

 

 

 

Capital

D.F.

DRF

OLWR

Ordy. revenue

Deposit

1

2

3

4

5

6

7

8

9

10

11

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts verification

Ref. to sanction

Misc. fund

Date of submission to accounts

Date of return after verification

Date of ssubmission to sanctioning to superior authority

Authority sanctioning the estimate

No. & date

Reference to folio in the Register of Work

Remarks as to completion of work

 

 

13

14

15

16

17

18

19

20

 

 

 

 

 

 

 

 

 

 

 

 

 

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