A revised estimate is prepared:
- Awhen the sanctioned estimate is likely to exceed more than 5%, without structural alterationCorrect
- Bwhen there is material deviation of structured nature
- Cwhen the expenditure of the work exceeds 20% of the administrative approval
- Dwhen the sanctioned estimate is likely to exceed more than 5%, with important structural alterations
Solution
Concept
A revised estimate is prepared when the sanctioned estimate is likely to be exceeded by more than 5% without any change in the scope or structure of the work.
Step-by-step solution
1. Recall the textbook conditions for a revised estimate: the sanctioned estimate is exceeded or likely to be exceeded by more than 5%, or expenditure exceeds the administrative approval by more than 10%. 2. Additional work or structural changes during the work are covered by a supplementary estimate, not a revised estimate. 3. Option C gives 20% of administrative approval. The textbook limit is 10%, so C is wrong. 4. Options B and D involve structural changes, which point to a supplementary estimate. 5. So the answer is A.
Explanation
A revised estimate is a fresh detailed estimate made when the cost goes more than 5% above the sanctioned estimate, while the design stays the same. If structural changes or extra work are needed, a supplementary estimate is prepared instead.
Why the other options are wrong
B: A deviation of structural nature is usually handled by a supplementary estimate. C: The limit is 10% of administrative approval, not 20%. D: Important structural alterations call for a supplementary estimate, not a revised one.
Shortcut
Cost increase only (more than 5%) means revised estimate. Extra work or structural change means supplementary estimate.
Common mistake
Students often confuse revised and supplementary estimates, or mix up the 5% (sanctioned estimate) and 10% (administrative approval) limits.
Correct answer: A) when the sanctioned estimate is likely to exceed more than 5%, without structural alteration