DEVIATION TO THE ESTIMATE

DEVIATIONS TO THE

ESTIMATES


PREPARATION OF ESTIMATES

Estimate is the key document for any project.

Consists of:

Detailed Report on the project

Lead Statement

Rates for the items

Detailed Specifications

Detailed Measurements and Quantities

Abstract Estimate showing the total estimate cost

Drawings


PREPARATION OF ESTIMATES

While preparing estimate a detailed report to be made on

purpose of the project,

• necessity of the project,

benefits that will be achieved,

key parameters considered in most economical design,

detailed specifications,

method of financing, etc.

In case of a project consisting of several works, the detailed measurements and abstract estimates may conveniently be prepared for each work, supplemented by a General Abstract bringing all the estimates together


PREPARATION OF ESTIMATES

Detailed Estimates must be prepared before obtaining Administrative Sanction

Things to be considered during preparation of estimates:

Soil Characteristics for arriving at the type of foundation

Safe Bearing Capacity of Soil for structural designs

Alignment of Pipelines, Drains, Roads etc.

Considering the existing Infrastructure,

Parameters such as population, quantity of water required etc. in case of Water Supply project, Sullage/ Sewage to be discharged in case of UGD network, Storm Water to be discharged in case of Drains etc.

Plans, Drawings & Designs for arriving at possible quantities of items


PREPARATION OF ESTIMATES

Rates for items proposed in the Estimate

Lead Statement is the basic document from which the rates for individual materials i.e. Coarse Aggregates, Fine Aggregates, Bricks etc. is arrived

Lead i.e. Distance of source of material from the ULB is fixed by the R&B Department and is adopted in the estimates. The lead statement included in the estimate is to be approved by the Executive Engineer of the ULB or PH Division concerned.

Schedule of Rates is an Annual Document approved and published by the Board of Chief Engineers[BOCE] containing standard rates for all items collectively, which are to be adopted by all Engineering Departments in preparation of Estimates.

Government servants should treat the rate and cost amount arrived against each item in estimate and the abstract showing the total estimated cost of a work or part of a work as strictly confidential a a

All an


PREPARATION OF ESTIMATES

Provisions to be made in the Estimate

Statutory Taxes such as Goods & Service Tax @ 12% on Works Contracts, 18% on Supply Contracts/ Works Contracts that generates Revenue, 5% for works which contain predominantly earthwork

NAC @ 0.10%, Seigniorage Charges

Payments to be made towards inter-departmental charges i.e. NHAI, Railways, AP DISCOMS etc.

Provision towards APPMS @ 0.15%

Provision towards Price Adjustment

Provision towards unforeseen items (which are likely to be encountered during execution)


Revised Estimates - Likely Reasons

A Revised technical estimate must be submitted when the expenditure is likely to exceed the amount of sanctioned estimate.

A Workslip must be submitted as when deviations are found in the quantities of items proposed for execution or Items which are not proposed in the original estimate are to be taken up for execution.

A Workslip has to be formulated during the course of execution of work and the expenditure is well within the original administrative sanction amount

Deviation is a form of Workslip, but devloped after completion of the work (or) at the end of work and when no further variations are necessitated in the work.

Revised Estimates/ Workslip/Deviation must be accompanied by a report showing the progress made to date and explaining the cause(s) of the revision


Revised Estimates - Likely Reasons

Inadequate investigations in respect of Site conditions, alignment etc.

Changes in specifications of items

Improper estimating :

Preparation of estimates in a slipshad manner - Omission of important items of works Poor-estimation of Safe Bearing Capacity resulting in wrong choice of foundation. ► Mistakes in working out of quantities and rates of items of work Changes in Quarries and leads of materials

Change in design, alignment and scope of the Scheme

► Inclusion of new items which are not

iginally contemplated

Changes in Soil Specifications


Revised Estimates - Likely Reasons

Delay in execution of the project is one of the prime reason for Escalation in project cost due to

increase in prices

Land Acquisition costs

Due to conditions beyond the control of department for example:

Increase in cost of rising cost of works that are spread over a long period

Increase in schedule of rates on labour and materials

Increase in cost of controlled materials i.e. steel, cement, bitumen etc.

Increase due to change of foundation


Revised Estimates

- Remedial Measures

Deviations in the estimates should be kept to minimum, if not entirely eliminated

Deviations can be kept to minimum with thorough and detailed inspection of sites and should cover

The suitability of site

Suitability of foundation

Adequacy of design

Soils and materials (qualitative and quantitative) and leads

Soil classification

► Dewatering

Land acquisition etc.


Revised Estimates - Remedial Measures

The Departmental officials should inspect works before technical sanction is accorded by

competent authority as per the monetary limits indicated below:

Engineer-in-Chief/ Chief Engineer

Superintending Engineers

Executive Engineers

- Rs.2 Crs and above

- - Rs.0.40 Crs to Rs. 2 Crs.

- up to Rs. 0.40 Crs.


Revised Estimates - Approval

Without sanction from competent authority, expenditure in excess of provision or changes in scope of work should not be done.

The departmental officers have powers to accept the tenders and execute works with excess quantities only up to the limits specified.

If excesses are beyond their competency to approve, the revised estimates have to be sanctioned by Government.

Abuse of powers by departmental officers in incurring expenditure beyond the limit specified is an offense of serious nature.

Revised estimates must be submitted to competent authority for approval as soon as the excesses / deviations in the estimate are found necessary or unavoidable.

Excess expenditure should not be incurred without prior approval of competent authority.


Revised Estimates - Approval - Powers

Powers delegated to Engineers to accord excess over estimates as per G.O. 1007 T,R&B, Dt:05-11-1976

Government

Chief Engineer

Superintending Engineer

All excess of more than 15% of the amounts of original estimate sanctioned

All excess of not more than 15% of the amounts of original estimate sanctioned by him or by a higher authority i.e. E-n-C

All excess of not more than 10% of the amounts of original estimate sanctioned by him or by a higher authority.

The total amount of excess shall be within the limit of his powers to sanction estimates technically i.e. Technical Sanction

A S.E. has no power to sanction any excess over a revised estimate sanctioned by a higher authority


Revised Estimates - Approval - Powers

Powers delegated to Engineers to accord excess over estimates as per G.O. 1007 T,R&B, Dt:05-11-1976

Executive Engineer

All excess of not more than 5% of the amounts of original estimate sanctioned by him or by a higher authority.

The total amount of excess shall be within the limit of his powers to sanction estimates technically i.e. Technical Sanction

A E.E. has no power to sanction any excess over a revised estimate sanctioned by a higher authority


Revised Estimates - Approval - Powers

. The Govt. vide G.O. Ms. No. 504 M.A. & U.D. (A1) Dept., Dt:12-07-2007 issued orders approving Engineering, Procurement & Construction (EPC) system of procurement for implementation projects/works sanctioned with an estimated cost of Rs.10.00 Crores in all the ULBs costing expeditions completion of work.

the of for The Govt. constituted three (3) Committees to exercise the functions as shown below:

Committee-I

Committee-II Committee-III

Approval of Technical Parameters such as Scope, Objective & final deliverables of the Project, IBM/ deciding basic parameters/approval of live bid documents/evaluation criteria, payment schedule Approval of Technical Evaluation for opening of price bids Approval of extension of time beyond six months/ amount to be paid to the contractor for additional work / deviations for item. i) Not contingent to the main work. ii) Contingent but outside the scope of original contract


Revised Estimates - Approval - Powers

The Govt. vide G.O. Ms. No. 168 M.A. & U.D. (Budget) Dept., Dt:01-07-2016 constituted Members of Committee -III as follows:

Committee-III Approval of extension of time beyond six months/ amount to be paid to the contractor for additional work / deviations for item. i) Not contingent to the main work. ii) Contingent but outside the scope of original contract Members 1) Chief Engineer (PHMED), A.P. 2) Representative from MA&UD Department, A.P. 3) Representative from Finance Department, A.P. 4) Commissioner (ULB concerned) for ULB tenders. 5) Chief Engineer / Superintending Engineer/Executive Engineer of concerned ULB/SE(PH)

The Government vide G.O. Ms. No. 222 M.A. & U.D. (Budget) Department, Dated. 08.06.2017 have

issued orders to extent the guide lines in finalizing the tender for the Non-Engineering Procurement and Construction (Non - EPC) works also under similar analogy of the Government orders issued above for Engineering Procurement and Construction (EPC)Works.

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IMPORTANT LITERATURE

Andhra Pradesh Public Works Department Code

Para No. 84, Para No. 112, Para No. 113, Para No. 154,

Andhra Pradesh Detailed Standard Specifications

G.O. 1007 T,R&B, Dt:05-11-1976

G.O. Ms. No. 504 M.A. & U.D. (A1) Dept., Dt:12-07-2007 G.O. Ms. No. 168 M.A. & U.D. (Budget) Dept., Dt:01-07-2016 ► G.O. Rt. No.668 M.A. & U.D. (Budget) Dept., Dt:10-07-2018


Revised Estimates

A Project with no (or) minimal revisions acts as a Key Performance Indicator of capabilities of any Engineer.

Minimum (or) No variations in estimates can be achieved by performing preliminary surveys and investigations at the inception stage of the project scrupulously, duly following all the Engineering Practices.

Closing the projects within the stipulated Time and Sanctioned Amount leads to financial discipline results in savings to the Govt. ex-chequer.