Revised estimate is generally prepared when the original sanctioned estimate exceeds or likely to exceed by more than _________
- A5%Correct
- B10%
- C15%
- D20%
Solution
Concept
Conditions requiring preparation of a revised estimate
Formula
Cost Overrun > 5% of Sanctioned Estimate
Step-by-step solution
1. In CPWD / PWD rules of estimating, a revised estimate is prepared under specific trigger limits: - When original sanctioned estimate is exceeded or likely to exceed by more than 5%. - When expenditure exceeds administrative approval by more than 10%. 2. The question asks for the percentage excess of the original sanctioned estimate. 3. Therefore, the threshold is 5% (option A). Answer: A
Explanation
A revised estimate is an amended detailed estimate prepared when the original sanctioned estimate is likely to be exceeded by more than 5%, or when the expenditure exceeds the administrative approval by more than 10%, or when significant deviations from the original approved project design occur.
Why the other options are wrong
B) 10% applies to expenditure exceeding administrative approval, not the technical sanctioned estimate. C) 15% is not a recognized threshold in PWD code for revised estimates. D) 20% exceeds statutory revised estimate submission limits.
Shortcut
Sanctioned Estimate exceeded > 5% -> Revised Estimate; Admin Approval exceeded > 10% -> Revised Estimate.
Common mistake
Selecting 10% by confusing the threshold for the sanctioned detailed estimate with the threshold for administrative approval.
Correct answer: A) 5%