On the approval of the approximate estimate or after getting the administrative approval this estimate is prepared in detail.
In this estimate, the quantities of various items under each subhead of works are calculated in detail from the dimensions taken from the drawings and the cost of each item is worked out according to the prevalent market rates or sanctioned schedule of rates.
If the work proposed shall be constructed is located at a remote place, the provision for the carriage of the material shall also be added to the estimate.
A percentage of 5% to 10% of the estimated cost for unforeseen items (contingencies) such as change of design, and for the provision of petty establishment and a percentage of about 2% is provided for work charged establishment.
So as to avoid any excess over the administratively approved estimate later on. The rates include the cost of labour, materials and types of equipment water charges, overhead charges, tax, profits, etc.
