Chapter 5: Planning, Estimating & Survey PDF

Chapter 5: Planning, Estimating & Survey Section 1: Planning 5.1.1 Planning General The process of programming Works, Survey as well as Rolling Stock, Machinery and Plant in advance, deciding their relative priorities, preparing necess...

Chapter 5: Planning, Estimating & Survey Section 1: Planning 5.1.1 Planning General The process of programming Works, Survey as well as Rolling Stock, Machinery and Plant in advance, deciding their relative priorities, preparing necessary justification and estimates, making available funds for their execution within the ceilings prescribed, and including them in the "Works, Machinery and Rolling Stock Programme" is termed Planning. 5.1.2 Initiation of Works Programme: Detailed instructions for preparation and submission of Works Programme are contained in Chapter VI of the Indian Railway Code for Engineering Department (relevant extracts at Annexure: 5-A1). (a) Programme of Signalling and Telecommunication Works may be initiated as a result of proposals made by the Signal, Operating or other Departments for periodic replacement of worn out assets with or without improvements or for meeting operating requirements or for improving the safety of train operation or for provision of amenities to passengers. (b) Works may be initiated either on a Division or at the Railway Headquarters or by Railway Board. Works initiated on the Division shall be first examined by the Divisional Officers. Where there is sufficient justification, the proposal after approval by the Divisional Railway Manager shall be forwarded to the Headquarters Office along with the remarks of the Accounts Branch for scrutiny and examination by the Heads of Departments concerned. If the work is approved by them and concurred in by PFA, it is noted for inclusion in the Works Programme of the ensuing year. (c) Works initiated by the Headquarters Office shall be sent to the Principal Financial Adviser for obtaining concurrence and thereafter included in the Works Programme. In case it is, however, desired to obtain the estimate from the Division, the Division may be asked to process the work in which case the procedure as in Para 5.1.2(b) shall be followed. (d) A work should be considered as remunerative only if it satisfies the test of remunerativeness as contained in Para 204 of the Indian Railway Financial Code (Annexure: 5-A2). Chapter 5: Planning, Estimating & Survey Page 85 of 530  Section 2: Estimates 5.2.1 Code Rules: Instructions regarding the different kinds of estimates and their preparation are contained in Chapter VII of the Indian Railway Code for the Engineering Department. (Relevant extracts at Annexure: 5-A3) 5.2.2 General Instructions Applicable to Estimates (a) While preparing the Abstract Estimate in accordance with the Code Rules, the expenditure for Stores may be grouped under Indoor Signallling Equipment, Point mechanism, Colour Light Signals, Cables, Train Detection, Block working, ATP, CTC, Mobile Train Radio Communication, Control Communication etc. besides Labour, Tools and Plant, Establishment Charges, Freight and Contingencies, Works to be done by other Departments, e.g. construction of S&T buildings, construction of staff quarters, provision of sleepers, power supply arrangements, etc. are to be included where necessary. (b) While preparing the detailed estimates in accordance with, the Code Rules, the following guidelines shall be observed: (i) Details of cost of S&T Building, staff quarters and other buildings and electric power connections shall be included, by obtaining them from the Departments concerned and shall be provided for under separate sub works. (ii) Establishment and Supervision charges, where necessary, shall be included. Additional weightage for works to be done under traffic conditions should be provided. (iii) Provision shall be made for additional quarters required for additional maintenance staff to be posted as a result of the scheme. Provision shall also be made for additional Stores/Office accommodation where necessary. (c) For preparing estimate for Line Capacity Work, the Traffic Department will advise the Signal and Telecommunication Department of the detailed traffic projections/requirements. Necessary feasible technical solution will be submitted by Signal & Telecommunication department including justification. If the proposed scheme is agreed to by Traffic department. The estimates shall be prepared on the basis of requirements furnished by the Traffic Department. The justification for the proposed work will be furnished by the Traffic Department together with the anticipated financial implications. A similar procedure shall be followed for works to be executed for other departments, e.g. Electrical, Civil Engineering etc. (d) In regard to grouping of Works, instructions contained in Para 750 of the Indian Railway Code for Engineering Department and instructions contained in Para 776 of the Indian Railway Code for finance Department in regard to allocation of charges, shall be observed (relevant extracts at Annexure: 5-A4). Chapter 5: Planning, Estimating & Survey Page 86 of 530  (e) Where works are customarily executed through the agency of contractors, each Divisional Office shall maintain the Schedule of Rates, issued under the authority of the Principal Chief Signal and Telecommunication Engineer/ Chief Signal and Telecommunication Engineer (Construction). The Schedule of Rates may be reviewed and revised by the Principal Chief Signal and Telecommunication Engineer/Chief Signal and Telecommunication Engineer (Construction) every five years or at shorter intervals as considered necessary. No variation in the Schedule of Rates is permissible without the specific authority of the Principal Chief Signal and Telecommunication Engineer/ Chief Signal and Telecommunication Engineer (Construction). (f) Each Divisional Office shall maintain the Price Lists of Stores as issued by the Stores Department. (g) The Sr Divisional Signal and Telecommunication Engineer/Deputy Chief Signal and Telecommunication Engineer/Divisional Signal and Telecommunication Engineer incharge shall be in possession of copies of authorized Scheduled of Rates and Price Lists of Stores and amendments advised to him from time-to-time. 5.2.3 Reports Accompanying Estimates: The reports shall generally include the following: (a) A clear description of the work to be carried out and the object to be gained by its execution together with such information as will enable the sanctioning authority to appreciate the necessity for the work. (b) Reasons for the adoption of the proposed lay out or design with special reference to any variations from usual practice and its special feature, if any. (c) When the Project is of a nature involving scientific points or other considerations of special character such as a new Signaling or Telecommunication System not tried out before, the reports shall contain a complete account of the basis on which every part of it has been framed, the various considerations in regard to Signaling and Telecommunication details, economy of construction, utility of the practical working of the Project when carried out and the method by which it is proposed to execute any portion of the work involving unusual difficulties of construction, if any. (d) In case of works of important nature like, Centralized Traffic Control, Automatic Signaling, ATP and other Modern Technology, a complete account of the various considerations in regard to engineering details, economy of construction and utility of the Project shall be given. Any local considerations which may affect the Project shall also be fully detailed. Section 3: Surveys 5.3.1 Code Rules: General instructions for conducting surveys for Railway Projects are contained in Chapter II of the Indian Railway Code for the Engineering Department. Chapter 5: Planning, Estimating & Survey Page 87 of 530 5.3.2 General Instructions Applicable to Surveys (a) The System of Signalling to be provided shall be as in Chapter 7 of SEM. (b) Surveys for new lines, line capacity works, electrification etc. - Engineering- cum-Traffic Surveys shall be carried out for New lines, Conversions, Doublings and other Line Capacity Works costing more than Rs 2.5 Crores before the inclusion of such works in the Works Programme. (c) Survey for Signalling & Telecommunication Works. Field surveys shall be carried out for the following categories of Signal and Telecommunication works costing more than rupees 2.5 crores each before inclusion in the Works Programme: (i) Electronic/Relay Interlocking of Major yards. (ii) Modern Signalling Works including CTC, ATP etc. (iii) Communication Works including LTE/MTRC/UHF/OFC/QUAD etc. (iv) IP Networks/Data Security/Web based Applications. (v) IoT and AI based systems. 5.3.3 Alternative Proposals: Where alternative proposals of importance have been examined and rejected, particulars shall be suitably indicated in the Plans or in the report and the reasons for rejecting the alternative shall be explained in the report. 5.3.4 Notes to be made in the Field: During the survey, careful notes with data shall be made at site, from personal enquiry and observation, regarding any information likely to be useful in working out the details of the Projects, and in determining the prospects of the proposals. The following points shall receive special attention: (a) Availability of Space for S&T building including Office/Depot/Residential quarter etc. as per requirement. (b) Availability of required concrete sleepers. (c) Availability of power supply at site or sites. (d) Whether climatic condition will suit the type of equipment to be installed. (e) Special problem like rocky soil, existence of wide rivers which may have to be traversed by cables or overhead lines etc. (f) Gradients on the section particularly if the Project is for provision of Automatic Signalling. (g) Detention to trains that can be saved; additional services that can be introduced. (h) Availability of road approach. (i) Any other specific requirement/consideration for the project like impact and precautions due to nearby industrial conditions, line of sight etc. Chapter 5: Planning, Estimating & Survey Page 88 of 530 5.3.5 Expenditure on Surveys (a) Railway Administrations have no powers to undertake Surveys on their own. After a survey is included in the sanctioned Budget, the General Managers can sanction Survey Estimates as per the powers delegated in SOP. (b) If it is decided to undertake a Survey in connection with any proposal/ modification in Signalling or Telecommunication System, an estimate of the cost of the proposed Survey shall be prepared, and the information collected in the course of the preliminary investigation, if any, shall be embodied in the report accompanying the Estimate of the Survey. (c) The proposal for Surveys shall be submitted to the Railway Board well in advance to enable necessary provision being made in the Budget. (d) The Budget allotment for preliminary Survey of a work shall be charged under Demand No.2 and when final estimate for that particular work is sanctioned, the amount charged under Demand No.2 shall be transferred to the sanctioned Estimate of the Project. 5.3.6 Imprest Amount: The official incharge of Survey shall be provided with an adequate Imprest. He shall be responsible for maintaining all accounts with necessary vouchers. The Imprest shall be recouped on need basis, within the validity of the period of Survey. 5.3.7 Survey Teams (a) A Signalling/Telecommunication team shall be provided in Survey Estimates for Projects like Doublings, Remodeling, Conversions, New Lines, Railway Electrification including Techno-economic Surveys, Feasibility Studies, etc. to carefully study the needs of the Traffic and to make provision for Signaling equipment accordingly duly taking into account the age and condition of existing equipment, if any. (b) The period for which the Signalling/Telecommunication team is to be catered for in the Survey Estimates shall be commensurate with the workload in each case and shall be decided by the Principal Chief Signal and Telecommunication Engineer in consultation with the Principal Financial Adviser of the Railway concerned while finalizing the Survey Estimate. (c) The requirements of the Signal & Telecommunication Department shall be obtained from the Principal Chief Signal and Telecommunication Engineer by the Principal Chief Engineer while preparing the Survey Estimates for such Projects. (d) Similarly in Survey Estimates for Signal and Telecommunication Projects, suitable provision shall be made for other Departments, viz., Traffic, Engineering, Accounts, Electrical, etc. as found necessary. Chapter 5: Planning, Estimating & Survey Page 89 of 530 5.3.8 Administrative Control on Survey Team: The Signaling/Telecommunication Survey team shall work under the Administrative and Technical Control of the Principal Chief Signal and Telecommunication Engineer or Chief Signal and Telecommunication Engineer (Construction), as the case may be, both for Surveys for Signaling & Telecommunication works and for Signaling portion of the Surveys for Projects mentioned in Para 5.3.7. 5.3.9 Progress Reports on Surveys: The Official incharge shall submit periodical reports of progress in prescribed forms as may be directed by the Principal Chief Signal and Telecommunication Engineer. 5.3.10 Report: At the conclusion of the Survey, a report should be formulated by the Officer incharge of the Survey. The details of the information collected, calculations and diagrams, shall be embodied in Tables as Annexure to the Report. Inference out of the Survey on the feasibility of the work with clear decision whether to take up the work or drop it shall be brought out at the conclusion of the survey. 5.3.11 Covering Note: The Survey Report and Annexures shall be submitted to the Railway Board under a covering note, which shall have the authority of the Railway Administration submitting the Report. It should provide a summing up and should contain clear recommendation together with the views of the Principal Financial Adviser (PFA). Note: This Chapter has under mentioned Annexures S.No. Annexure No. Description 1 5-A1 Preparation of the Preliminary Works Programme 2 5-A2 Test of Remunerativeness 3 5-A3 Code Rules for Estimates 4 5-A4 Grouping of Works Chapter 5: Planning, Estimating & Survey Page 90 of 530 Para No. 5.1.2 Annexure: 5-A1 Preparation of the Preliminary Works Programme (Extract of Chapter VI of Indian Railways Code for the Engineering Department) 609. The Chief Engineer of the Railway will be primarily responsible for ensuring that the proposals prepared by the various departments are complete in all respects and are correctly prepared. The overall priorities within the ceiling given by the Board will also be fixed by him in consultation with the General Manager and other Heads of Departments. He will be responsible for the preparation and timely submission of the Preliminary and the Final Works Programme. 610. In or about June/July each year the Railway Board should convey to each Railway, in respect of each Plan Head, the total outlay within which the Works Programme should be framed by the Railway. A list of the Plan Heads is given in Annexure I. On receipt of this financial ceiling the Railway Administrations should take stock of the schemes already formulated and those under consideration and select for inclusion in the Works Programme within the financial ceiling such works as are expected to yield the maximum benefit to the Railway, preference being given to works in progress. Further necessary changes in the investments schedule may be made in order to work within the financial ceiling for the year such modifications being taken note of in framing the Preliminary Works Programme and revising the financial implications, if necessary. 611. The Preliminary Works Programme for the following year should be submitted by the Railways to the Railway Board by 1st week of September or such earlier date as may be laid down by the Board. Proper financial appraisal of each work should be given in the Preliminary Works Programme together with the comments of the Financial Adviser and Accounts Officer. 612. The project cost should be based on firm data both as to quantity and rates at current price levels, and should any increase occur in prices during the period intervening between the initial preparation of the project estimate and its inclusion in the Works Programme, the estimate should be updated taking into account any significant changes in the wages and material prices as well as increase in freights and fares. No other increase such as on account of change in scope of the project should be allowed without prior reasons being adduced for acceptance by the Railway Board. A sketch showing the proposal should accompany each proposal. 613. Each investment proposal should be accompanied by a detailed plan showing the scheduling of the project to match the traffic requirements and the financial outlay proposed for the year should be in accordance with this project schedule to enable the Railway Board to arrange for a realistic funds allocation for implementation of the programme. 614. In deciding the outlays for the various works Railway Administrations must endeavour to progress all works in progress speedily and bring them into use at the earliest possible date. A work which has been sanctioned and for which funds have been allotted whether in the original or supplementary budget of a year should be treated as a "Work in progress" for the next year and provided for as such in the programme. Such works should be grouped as indicated in para-619. Chapter 5: Planning, Estimating & Survey Page 91 of 530 615. The Railway Administrations should make realistic assessment of the amount required for each work in progress and necessary provision should be made for it in the Works Programme. In estimating the provision for works during the budget year a generous allowance should be made for those delays in execution which though unforeseen are known from experience to be so liable to arise particularly prior to inception and during the initial stages of large projects. The provision made should take into account adjustment of charges on surveys connected with a project. 616. In exhibiting the outlay for the current year against individual works in the works programme, the outlay should be as per Pink Book, and in exceptional cases where the Railways propose any substantial increase in the outlay with corresponding reductions against other works, such revised outlay may be shown separately in brackets below the outlay as furnished in the Pink Book duly explaining the reasons for doing so in foot notes at the appropriate places. As far as possible only the last sanctioned cost should be exhibited. Wherever it is visualised that the cost would involve an excess over the last sanctioned cost, effective steps should be taken well in time to have the revised estimates prepared and sanctioned by the competent authority before the Works Programme is sent to the Board. In case where the revised estimates are sanctioned subsequent to the despatch of the final Works Programme but before the end of January of the following year, the same should be promptly advised to the Board to enable the latest sanctioned cost being exhibited in the Pink Book to be circulated along with the Budget. In all cases of revised costs sanctioned by the Board, reference to the letter of sanction should invariably be indicated. 617. Works once introduced through a Works Programme (including Track Renewal Programme) and taken up after the estimates have been sanctioned by the competent authority should continue to be included every year till they are finally completed, except in cases where the works have reached the completion stage and where funds required if meager, could be found by reappropriation. 618. The Works Programs is compiled in the following format: Work Programme Demand No. …………………………………………………. (Figures in thousand of rupees) Item Particulars Expenditure to Outlay for Balance Authority Cost No. of works end of 3/21 2021-22 2022-23 1 2 3 4 5 6 7 8 Note: Years have been shown in the form for the purpose of illustration. In respect of "Works in Progress" reference to item No. of the current year's Pink Book and also the authority under which the work was first started should be indicated. The works should be arranged as per the Plan Heads. Chapter 5: Planning, Estimating & Survey Page 92 of 530 619. The items in the Works Program should grouped under the following categories while compiling the works Programs: (i) New Works. (ii) Works in Progress. (iii) Works approved in earlier years, which have not been actually commenced and on which no expenditure has been incurred till 30th June of the year previous to the Programme year. (iv) Works approved in the earlier years but estimates for which have not been sanctioned by 30th June of the year previous to the Program year. 620. The works are further made into sub-groups of (i) Works costing more than Rupees Five Lakhs each, and (ii) works costing upto Rupees Five lakhs each. Under (iii) Works costing upto Rupees two lakhs each in the case of Track Renewal works and for works costing upto Rupees one lakh each in the case of other works, only lumpsum provision should be shown without detailing individual works. Within each sub-group, the works are presented under each Plan Head. Chapter 5: Planning, Estimating & Survey Page 93 of 530 Para No. 5.1.2(d) Annexure: 5-A2 Test of Remunerativeness (Extract of Indian Railways Financial Code, Volume I) 204. Test of Remunerativeness: The net financial gain expected to accrue from a project may be either by way of savings in expenditure or increase in the net earnings (i. e., gross earnings less working expenses), or a combination of both. Except in the case of residential buildings, assisted sidings and rolling stock to which special rules are applicable no proposal for fresh investment will be considered as financially justified unless it can be shown that the net gain expected to be realised as a result of the proposed outlay would, after meeting the working expenses (see Para 217), yield a return of not less than 10 per cent on the initial estimated cost. Note: (1) Interest during construction should be added to the cost (excluding that chargeable to Revenue) of the projects, the construction of which is likely to last for more than one year. (2) Depreciation should be calculated on the total cost of the scheme and not only on the portion chargeable to Capital, unless the contrary procedure can be justified in any particular case. However, depreciation as an element of working expense is to be ignored for assessing annual cash flows under the B. C. F. method (See Para 228). (3) In the case of construction of bridges, maintenance charges should include, besides the maintenance charges on the bridges proper, the maintenance charges of the training works also. Chapter 5: Planning, Estimating & Survey Page 94 of 530 Para No. 5.2.1 Annexure: 5-A3 Code Rules for Estimates (Extract of Chapter VII of Indian Railways Code for the Engineering Department) Ref. Advance Correction Slip (ACS)-53 701. 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 or abandonment of existing works or assests; (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 5 lakh and that of a single housing unit, if estimated to cost more than Rs. 20,000/-. (e) temporary and experimental works; (f) renewals and replacements on 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: For "New Minor Works" costing Rs. 50,000/- and/less, for renewals and replacement works chargeable to Revenue costing Rs. 2 lakh 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). Chapter 5: Planning, Estimating & Survey Page 95 of 530 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 sub-divided 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 if each item as between Capital, Development Fund, Open Line Works-Revenue, Depreciation Reserve Fund and Revenue should be indicated. Note: Administrative approval to a work or scheme should be accorded by the authority competent to do so (vide paragraph 748), after a through examination of its necessity, utility and financial propspects. See also rules in Chapter II of Indian Railway Financial Code. ………… RAILWAY Form E.702 Abstract Estimate Department ………………. Division…………………………. Station …………………………….. Estimate No. …………………………… Framed By ………………………………. Division…………………………… Description of work …………………………………………………………………………… Plan No. ……………………………………………………………………………………………... Reference ………………………………………….. Ordy. Misc. Capitals DF DRF RRSK Deposit Total Rev advances Cost (1) (2) (3) (4) (5) (6) (7) (8) Existing sanctioned estimate (if any) Present Estimate..... Total... Cost of stores………………. To be purchased..Rs……………………Rs………………….. Funds....... To stock…………….Rs………………………………………… Report and Justification--- Specification. Enclosed: * Details of cost with allocation (Form E.704). Sub estimate Has Accounts Officer agreed to the pro. allocation ? Station: ………………………. Signature: ……………………………………... Date: ……………………………………… Designation: …………………………................ *Required in case of any existing sanctioned estimate. Chapter 5: Planning, Estimating & Survey Page 96 of 530 703. Detailed Estimates: On receipt of administrative approval to a project or scheme other than that for which construction estimate in Form E. 553 is prepared and, 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 make 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) statements 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 satisfy itself that (i) the details of the scheme as worked out are satisfactory, (ii) the methods proposed for the execution of the work are adequate; and (iii) the cost has been estimated from reliable data and is 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. 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 therefore in the detailed estimate or construction estimate a revised estimate should (subject to provision of paragraph 1336) 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. Chapter 5: Planning, Estimating & Survey Page 97 of 530 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: Capital − 1120 − Land Structural Engineering Works. 1132 − Tunnels, 1151 and 1152 − Major Bridges, 1153 and 1154 Minor Bridges, 1140 − Ballast and Permanent-Way (Detailed estimate for one kilometre). 1180 and 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. Those detailed estimates should be prepared from an engineering survey report. Note: The abstract estimate for 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 (of 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 upto 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. 713. Completion Estimate: A Completion Estimate is prepared in super session 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 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. Chapter 5: Planning, Estimating & Survey Page 98 of 530 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 530  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, etc. 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: Rs. Rs. Percent For works costing over 1,00,000 2 For works costing over 60,000 but not more than 1,00,000 2½ For works costing over 30,000 but not more than 60,000 3 For works costing over 20,000 but not more than 30,000 3½ For works costing over 10,000 but not more than 20,000 4 For works costing over 1,000 but not more than 10,000 4½ For works costing over 1,000 and below 5 percent 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 charge may, at the discretion of the General Manager, be waived in particular case 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 expense in respect of which has been separately provided for under paragraph 1825. 733. In preparing estimates of works for other departments, local bodies, private individuals & etc. 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 the rates applicable to the public and not at the concessional 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 work, the acceptance of the party concerned should also be obtained for the recurring expenditure that is likely to be incurred on repairs, maintenance, etc. Chapter 5: Planning, Estimating & Survey Page 100 of 530 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, and c, should be commenced till a detailed estimate for the same has been sanctioned 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". 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 works − costing not more than Rupees one lakhs; (iii) Machinery and 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 lump-sum) 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 office 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. Chapter 5: Planning, Estimating & Survey Page 101 of 530  (iii) To expenditure on works provided in the sanctioned budget for the year or carried forward 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 per cent over the original estimated cost; (ii) of more than 15 per cent over the first revised cost; (iii) of more than 10 per cent over the second and further revised estimated cost. Provided further that all codal provisions regarding sanctions for material modification are strictly followed. (c) Surveys: To an excess over 10 per cent on original estimate sanctioned by higher authority (General Manager can sanction survey estimates costing upto 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 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 redelegated to lower authority in respect of works, the original estimated cost of which is over Rupees fifty lakhs. (iv) To the scale 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. 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 should 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. Chapter 5: Planning, Estimating & Survey Page 102 of 530 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 a definite project should not, without special authority be applied to carry out additional work not contemplated in the original projector 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. The Execution of Works 1102. The ordinary rule is that no work may be commenced and no liability or expenditure incurred on a work until a detailed estimate for it has been sanctioned and an allotment of the requisite funds made by competent authority. This rule pertaining to preparation of estimates does not apply in the following cases: (i) For the construction or purchase of new work or asset under the category of new minor works if estimated to cost upto Rs. 5000. (ii) For renewals and replacements of existing works and assets chargeable to Open Line Works Revenue as a new minor work if estimated to cost upto Rs. 10,000. (iii) For renewals and replacements of assets charged to Development Fund and Depreciation Reserve Fund if estimated to cost upto Rs. 10,000. (iv) For renewals and replacements of assets charged to Revenue if estimated to cost upto Rs. 50,000; and (v) For repairs and reconditioning of existing assets if estimated to cost upto Rs. 50,000 (of para 701). 1103. Work started on Urgency Certificates: In addition to the exception mentioned in the preceding paragraph the following are the only classes of work on which expenditure or liability may be incurred prior to the receipt of sanction of the authority competent to sanction the estimates under the ordinary rules: (i) Works, which are considered to be urgently necessary to safeguard life or property or to repair damage to the line caused by flood, accident or other unforeseen contingency, so as to restore or maintain through communication. (ii) Works considered urgent but not falling within (i) above, as for instance, works required to meet the immediate needs to traffic, which are considered by the General Manager so urgent that they must be started before the earliest date by which detailed estimates could be prepared. Note: Where applicable the instructions in paragraph 1260 should be observed. 1105. In according administrative approval or sanction and in allotting funds, if required, the competent authority will give such instructions as he considers necessary regarding the execution of the work to executive officers subordinate to him and fix a date by which the detailed estimate for the work should be prepared and got sanctioned. He will at the same time furnish a copy of his sanction and instructions to the Accounts Officers. Chapter 5: Planning, Estimating & Survey Page 103 of 530 1109. Material Modifications: No material modification in a work or scheme as sanctioned, should be permitted or undertaken without the prior approval of the authority who sanctioned the estimate. In the case of estimates sanctioned by the Railway Board or higher authority, instances of what will be considered to be a material modifications of a sanctioned project or work are given in paragraph 1110 below. 1110. The following may be taken as material modifications on lines under construction and open line works estimated to cost rupees one crore and over: (a) Any change in the alignment likely to affect the facilities offered to the public in the neighbour-hood or likely to increase or decrease the length of the line by over one kilometre. (b) Introduction of any new station or omission of any station. (c) Any alteration in the type or number of engines or vehicles provided in an estimate for rolling stock. (d) A change in the layout of a yard affecting the general method of working or increasing or reducing the number of trains that can be dealt with. (e) Any departure from the standards of construction as prescribed in Chapter II or as accepted by the Railway Board in the Abstract Estimate or use of any second hand material if it affects the speed of trains or the number of trains to be dealt with than contemplated originally. (f) The introduction or omission of any work or facility involving a sum of Rs. 5 lakhs and over. (g) Any modification of a sub-work provided for in the estimate of a sanctioned work involving an additional outlay on that sub-work of more than Rs. 5 lakhs. (h) The introduction of any new sub-work not provided for in the estimate of a sanctioned work involving an outlay of more than Rs. 5 lakhs. (i) Any alteration in the standards of interlocking. 1137. Departmental Charges: When work is undertaken by the Engineering Department of a Railway for outside parties, including other Railways, Government Department, Public bodies (e. g., Municipalities, Port Trust, etc.) and employees of the Railway, Departmental charges should be levied to cover the cost of tools and plant and of establishment supervision The charges leviable will be 12-1/2 percent on the total cost of the work (wages and materials) including the cost of land, except where a rate higher than 12-1/2 percent is charged to Governmental Departments on a reciprocal basis. The charge will be levied once only on the total outlay on a work (cash and stores, and will not be addition to a first charge of 12-1/2 percent on the value of stores, vide paragraph 2329-S. Note: (1) The above rules do not apply to works undertaken by Engineering Workshops to which the rules applicable to works undertaken in workshops of the Locomotive and Carriage and Wagon Department apply. (2) Railway Units of the Territorial Army: The charges under the foregoing rules may be remitted in the case of works not exceeding Rs. 500 in cost executed by the Engineering Department of a Railway for Railway Units of the Territorial Army provided that no additional establishment is entertained for such works. Chapter 5: Planning, Estimating & Survey Page 104 of 530 1138. Remission of Departmental Charges: The General Manager may, at his discretion, waive wholly or partially the recovery of the Departmental charges leviable under Paragraph 1137 provided that (a) the Railway gains some advantage, not necessarily financial, by such remission: (b) the reasons for the remission are recorded in each case and the remission is allowed with the concurrence of the Financial Adviser and Chief Accounts Officer; and (c) the non-incurrence of extra charges on accounts of tools and plant and establishment supervision does not in itself constitute sufficient justification for the remission. Note: Always check for updates from Indian Railways code for the Engineering dept. Chapter 5: Planning, Estimating & Survey Page 105 of 530 Para No. 5.2.2(d) Annexure: 5-A4 Grouping of Works (Extract of Indian Railways Code for the Engineering Department) 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 should 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 estimate 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. Allocation of Charge (Extract from Indian Railways Financial Code, Volume I) 776. Cost of Tools and Plants and Special Posts: No portion of the pay or allowances of permanent open line staff shall be charged to Capital, Depreciation Reserve Fund, Development Fund or Accident Compensation, Safety and Passenger Amenities Fund or Open Line Works- Revenue, as the case may be, when such staff is employed on special works and the vacancies thus caused in the open line cadre remain unfilled. The cost (less return value) of tools and plant specially purchased and the cost of any posts specially created for the supervision or construction of a work chargeable purely to Capital or Depreciation Reserve Fund or Development Fund or Accident Compensation, Safety and Passenger Amenities Fund or Open Line Works- Revenue, as the case may be. When the cost of work is chargeable partly to Capital or Development Fund, Accident Compensation, Safety and Passenger Amenities Fund or Depreciation Reserve Fund or Open Line Works - Revenue, the cost of such posts and tools and plant should be allocated to Capital or Development Fund or Accident Compensation. Safety and Passenger Amenities Fund or Depreciation Reserve Fund or Open Line Works- Revenue in the same proportion in which the estimate for the work excluding the estimated cost of tools and plant and special posts, is chargeable. For working out the proportion, the gross amount of the estimate (ignoring the provision for credits on account of released materials) should be taken into account. The cost of a post, for the purpose of this rule includes the leave salary and contribution towards passages, pensions provident fund, bonus and special contribution to provident fund, which the holder of the post may be entitled to. Note: The provision for credits on accounts of released materials to be ignored in working out the proportion of cost of tools and plants and special posts, should be the net credit in terms of paragraph 710(2). Chapter 5: Planning, Estimating & Survey Page 106 of 530