IMPORTANT TERMS USED IN ESTIMATION/TENDERING/ QUATATIONS AND

CONTRACTS

Estimate
It is prepared by computing or calculating the quantities required and then calculating the cost at
suitable rates, to get the expenditure likely to be incurred in the construction of structure.

Data for estimate:1. Drawing (plans, sections, etc.)

2. Specifications
3. Rates

Abstract for Measurement:S.no

Particulars

Nos. Length

Breath

Height

Quantity

Abstract for estimate form:S.no

Particulars

Nos. Quantity

Rate

Amount

Revised estimate
It is to be made when:

The original sanctioned estimate is exceeded by more than 5%

When the expenditure of the work likely to exceed by more than 10%
When there are material deviation from the original proposal.

Supplementary estimate
It is a detailed estimate and is prepared when additional works are required to supplement the
original work or future development is required
Plinth area estimate
It is prepared by finding the plinth area of a building and multiplying by the plinth area Rate.

Turnkey Job

Combined Engineering and Construction contract.

The owner undertaking a construction project deals with only one party for all services.

Offers are invited from specialized contractors for planning, design plans, specification,
estimates and services under one contract on competitive basis, this contract may be
drawn on firm price or cost plus basis.

Contingencies
It indicates incidental expenses of miscellaneous character which cannot be classified under any
distinct item sub-head. The amount in the form of contingencies is 3%-5% of the estimated cost.

Work-charged Establishment
It is the establishment which is charged to works directly. During the construction of a building
or a project, a certain number of work-supervisors ,chaukidars , munshies etc. are required to be
employed .For work charged establishment a percentage of 1.5%-2% of the estimated cost is
included in the estimate.

Centage Charges
When the engineering department takes up work of other department a percentage amount of
10%-15% of the estimated cost is charged to meet the expenses of establishment.
Tenders
Tender is written offer submitted by the contractors to execute certain work or supply of some
specified articles or transport of materials at certain rates with the terms and conditions laid
down in the tender documents.

It should be kept in mind that a tender document is just a proposal, it is not a legal
document like the contract document
In government work, it is generally required to select a contractor on the basis of
competitive tendering and to assure adequate competition, at least three tenders need to
be received for a project to make the selection

Lump sum contract

Contractors quote a fixed sum for execution of work complete in all respect i.e. according to
drawings, design and specifications supplied to them with tender within the specified time.
Departmental schedule of rates are also provided which regulate the payment of the contractor.
Labor rate contract
Contractor quotes rates for items work exclusive of the element of materials which are supplied
by the department free of cost.
Plinth Area Rates calculations (P.A.R)

Plinth Area Rates for ground floor:1. It is calculated at the plinth level excluding plinth offsets not more than 2.
2. For buildings with columns projecting beyond cladding, P.A.R. shall be taken up
to the external face of the cladding and shall not include the projection of the
columns.
3. In case open verandah with parapets are protected at the ground floor projecting
out of the building, the full area shall be taken up to the outer line of the external
verandah lintel and only 50% of the area shall be taken for the unprotected
verandah.
4. Open platform without parapets and terraces at ground floor and porches, shall
not be included in the plinth area but shall be allowed for separately for costing
purposes.
Plinth Area of Galleries, mezzanine floors and lofts :1. Area of galleries i.e. upper floor of seats in an assembly hall, auditorium, theatres,
etc. shall be fully included in the plinth area.
2. Area of mezzanine floor shall be included in the plinth area, if no separate
provision is made for the same.
3. Area of the loft shall not be included in the plinth area.