Railway Accounts Department Examinations

Showing posts with label Price Escalation. Show all posts
Showing posts with label Price Escalation. Show all posts

Sunday, September 17, 2023

Revised Estimates - GM Powers

 



Revised Estimates - GM Powers 



Source 1: Railway Board Letter 2023/F(X)-II/WP/2 dated 14.09.2023 - click here  


Source 2: Chapter 7 of Engineering Code 



When & How - RE - Revised Estimate is prepared - Para 708 E



  • As soon as it becomes apparent,

  • that the expenditure on a work is likely to exceed the amount (in Detailed Estimate) 

  • A RE - Revised Estimate is prepared & 

  • Submitted for sanction of the Competent Authority 

  • In the Same form & the same degree of detail (as the Original Estimate) 

  • Accompanied by a Comparative statement showing the excess or saving under each head of account.  




GM Powers - Sanction of Excess amount



Item

Price escalation

Other than 

Price escalation

Remarks

RE - Revised Estimate

Full powers 

Up to 20% of Original cost

MM - Material Modification - Up to Rs. 2.5 Crores in each case 

M&P Estimates

Up to 100% of Original Estimate or Rs.2 Crores whichever is less

Up to 20% of Original cost or Rs.50 Lakhs whichever is less

MM - Material Modification - Above Rs.10 Lakhs each - Personal approval of GM and Personal approval of PFA

Lump sum Works

Full powers 

Up to 20% of Original cost

Beyond permissible limits - Can sanction as long as the Revised cost is within the limit of powers of New Works under Lump sum category 


Throw forward works - subject to re-appropriation within the sanctioned allotment 

Survey Estimates

Up to 20% (if Original Estimate is sanctioned by Railway Board)

Subject to 


  1. Surveys are included in the Budget

  2. Followed approved yardsticks



Beyond GM Powers - Proposals sent to Railway Board - Check list as follows: 


  • Personal approval of GM 

  • Personal concurrence of PFA or PFA/C or FA&CAO/C

  • Complete details of Revision  

  • Variation Statement/MOD - Memorandum Of Differences 

  • Explanation 

  • Justification for increase/decrease in the scope of work and quantities 



Key points for MCQ : 


  1. Beyond GM powers - Required of Personal approval of GM & Personal concurrence of PFA or FA&CAO/C  

  2. MOD stands for Memorandum Of Differences 

  3. RE stands for Revised Estimate 

  4. DE stands for Detailed Estimates 

  5. MM stands for Material Modification

  6. Estimates - Chapter 7 of Engineering Code 

  7. GM Powers: 

  1. Revised Estimates - Price escalation - Full powers  

  2. Revised Estimates - Other than Price escalation - Up to 20% of Original Cost. 

  3. MM - Material Modification - Up to Rs. 2.5 Crores in each case  

  4. M&P estimates - Price escalation -  Up to 100% of Original Estimate or Rs.2 Crores whichever is less 

  5. M&P estimates - Otherthan Price escalation - Up to 20% of Original cost or Rs.50 Lakhs whichever is less 

  6. Lump sum works - Price escalation - Full powers 

  7. Lump sum works - Otherthan Price escalation - Up to 20% of Original Cost 

  8. Survey estimates - Up to 20% (if Original Estimate is sanctioned by Railway Board)