Estimates in Railways- The proposals for acquisition of assets, purchase of assets, renewal and replacement of assets are to be presented to the competent authority in the form of estimates to enable the competent authority to accord his sanction after scrutiny.
Estimate can be termed as a tool to assess the cost likely to be incurred on labour, material etc.
Due care is taken to assess the estimated cost as accurately as possible as the provision of funds will be based on the estimated cost. Estimate is also an important tool for expenditure control as the physical as well as financial progress of the works watched with reference to the estimated cost of the individual work.
The estimates may be bifurcated in two groups i.e. estimates prepared in open line organization and estimates prepared in construction organization. The same can be further bifurcated as under: –
- Estimates prepared prior to commencement of work.
- Estimates prepared during the execution of the work.
- Estimates prepared after completion of the work
Following are different types of estimates prepared for open line and construction organization.
- ABSTRACT ESTIMATE. (Para 702-E) This is prepared to enable the competent authority to give administrative approval to the nature and magnitude of expenditure contemplated and details to form a
reasonable and accurate idea of the probable expenditure and to gauge adequately the financial prospects of the proposal. A brief report regarding the justification of the work, specifications, availability of funds in current year and allocation of expenditure are also indicated in this estimate.
- PROJECT ABSRTACT ESTIMATE. (PARA NO. 709 E) This estimate is prepared in respect of a construction project and submitted for the approval of Railway Board. This estimate is accompanied by: –
- An abstract estimate of junction arrangement.
- A narrative report bringing out the salient features and major items of expenditure and
- Detailed estimates prescribed for a construction estimate.
- DETAILED ESTIMATE. (Para 703-E) On receipt of administrative approval detailed estimates for various works are prepared and submitted for technical sanction of the competent authority. No work, which is included in the abstract estimate, should be commenced till the detailed estimate for the same is sanctioned and adequate funds are allotted by the competent authority. The detailed estimate of an open line work will comprise-
- A statement showing details of estimated cost.
- An outer sheet showing abstract cost of work, financial justification and allocation.
- CONSTRUCTION ESTIMATE (PARA 710 E) – 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. Based on the details collected in that survey, detailed estimates for all the works included in the project should be prepared. These detailed estimates are collectively known as “CONSTRUCTION ESTIMATE” of the project. Based on this estimate, technical sanctions for various works included in the project is accorded.
- REVISED ESTIMATE. (Para 708-E) When it is known that the expenditure on a project or a work is likely to exceed the amount provided in the detailed estimate, a revised estimate should be prepared for the sanction of the competent authority. This is prepared in the same form and the same degree of details as the original estimate was prepared and will
be accompanied by a comparative statement showing the excess or saving under each sub-head of account.
- SUPPLEMENTARY ESTIMATE. (Para 707-E) This is prepared for any item of work which ought to have been included in the estimate already sanctioned but has not been so included or for such work considered latter as a part or phase of an estimate already sanctioned and cannot be met out of contingencies. This estimate is prepared in the same form and in the same degree and manner of details as the main estimate was prepared and will be treated as a part of the main estimate.
- COMPLETION ESTIMATE (PARA 713-E) – A completion estimate is prepared in suppression of a construction estimate. It is prepared in one of the first three financial half years after the opening of a new line for traffic. It gives the following estimates: –
- Amount of sanctioned estimate
- Actual expenditure on all works up to the date of completion estimate.
- Commitments on that date
- Anticipated further outlay
- Total estimated cost.
- Difference between the sanctioned estimate and total estimated cost.
The completion estimate is prepared in case of projects costing above RS 1 crore.