CET 402 Quantity

Surveying and Valuation

Lecture 3 - Module 1 , Session 2
Topics

1. Contingencies
2. Work-charge establishment
3. Tools and Plant
4. Centage charge
5. Day work
6. Prime cost
7. Provisional sum
8. Provisional Quantity

CO1 : Define basic terms related to estimation, quantity surveying and contract
document

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These topics are explained from the perspective of CPWD / government
organsiations in the text book prescribed .. BN Dutta , 2021`

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1. Contingencies

1. Contingencies indicate incidental expenses of miscellaneous character which

cannot be classified under any distinct category or item, yet pertain to the work
as a whole.

2. Around 3% to 5% of estimated cost is provided to meet contingencies

3. If there is any saving against the amount provided under contingencies, this
amount may be utilised with the sanction of competent authority to meet the
expenses of any extra item

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2. Work-charged establishment

● Work-charged establishment means that establishment whose pay and

allowances etc. are directly chargeable to “Works”
● Work-charged Staff is employed on the actual execution of a specific work,
sub-works of a specific work, etc.
● The cost of work-charged establishment should invariably be shown as a
separate sub-head of the estimate for a work.
● 1.5% to 2% of the total establishment cost is kept aside for work-charged
establishment.
● Work charged staff are temporary staff who are recruited for a specified time
after the sanction from competent authorities

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3. Tools and Plant

● For big projects, 1% to 1.5% of the estimated cost is provided in the estimate
for the purchase of Tools and Plants which will be required for the execution
of the work.
● Tools – Measuring Tape, trowel, hammer
● Plants – Concrete Batching Plant, Machinery like backhoe loader.

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4. Centage Charge /Departmental Charges/ Supervision Charges

● When the engineering department takes up the works of other departments, a

percentage amount of 10% to 15% of the estimated cost is charged to meet
the expenses of establishment, designing, planning, supervision, etc. This
charge is called centage charge.

● Centage charges are also made on contributory and depository works of local
bodies, private persons and others.

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5. Day work
● Day work is used to denote a procedure of costing and valuing an item of work on
the basis of actual labourers and materials required.
● Certain items of work which cannot be measured (eg – a design in the plaster
work; front architectural finish of a building) are valued and paid by ‘day work’
● In such cases, the schedule of rates of materials and different classes of
labourers likely to be engaged in the work should be included in the tender and in
the contract document.
● Day work prices include material, labour, transport, contractors profit and
overhead charges.
● Day work method of payment is usually confined to small items of work and may
be on hourly basis so that the payment may be made for the actual period for
which the labourers worked

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6. Prime Cost

● Prime cost is the actual cost of articles at shop and refers to the supply of
articles only and not to the carrying out of work

● It is not always possible at the time of preparing estimate and even when
entering contract , to specify the exactly the type of articles required.

● For example, water supply fittings, door and window fittings , tiles , etc are to
be decided during the time of actual fitting according to the choice of the
owner

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7. Provisional Sum

● Provisional Sum is the amount provided in the estimate and bill of quantities
for some specialised work to be done by a specialist firm whose details are
not known at the time of preparing estimate.

● For eg:- One refrigerating machine including freight and carriage to site and
fitiing in position with all electrical connections, holes in the walls, etc
…Provisional sum Rs.20,000

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8. Provisional Quantity

● When the quantities for a particular item are not certain provisional quantities
are provided separately for such items

● For this purpose the quantities are calculated from measurements of the
drawings with certain assumption of the probable increase, and are kept
separately in the bill of quantities and marked as Provisional

● Eg- if the nature of soil is uncertain, an extra amount of soil excavation could
be kept as provisional quantity

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Review

What is :
1. Contingencies
2. Work-charge establishment
3. Tools and Plant
4. Centage charge
5. Day work
6. Prime cost
7. Provisional sum
8. Provisional Quantity

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