Contingencies and work charged establishment

Contingencies

Contingency is a lump-sum allowance (usually 3 to 5% of the estimated cost) added to the estimate to cover small expenses that cannot be foreseen at the time of estimating: small changes in quantity, minor extra items, errors and omissions, and temporary rises in cost. It is spent only with the sanction of the competent authority. In some practice it also covers items such as stationery, travel and testing.

Work-charged establishment

Work-charged establishment means the temporary staff engaged for a specific work and paid from the cost of that work rather than from the regular office budget. These include supervisors, overseers, store keepers, watchmen (chowkidar), chainmen, mates and clerks employed for the project period. An allowance of about 1.5 to 2.5% of the estimated cost is added to the estimate for it. Such staff are released when the work ends.