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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.

714. Estimates for Railway Project: 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 be foreseen 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.

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 the estimate, and
of which the cost exceeds Rs. 1,000 without the sanction of the authority who sanctioned
the estimate.

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 the divisional offices, to see that
correct schedules of the rates at which work is actually being carried out, are invariably
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.

Chapter 5: Planning, Estimating & Survey Page 99 of 535