---
title: "Contingencies and work charged establishment"
subject: "Estimating and Costing"
chapter: 3
key: "semester_7/estimating_and_costing:contingency-work-charged"
source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/contingency-work-charged
site: BCT Engineering
---

# Contingencies and work charged establishment

Estimating and Costing · Chapter 3: Types of Estimate

- Asked in: 2075 Chaitra, 2 marks; 2074 Chaitra, 5 marks; 2065 Shrawan (old course), 2 marks; 2068 Baisakh (old course) (asked 4 times)
- Video: [Estimate Engineering | Contingency Fund | Contractor's Profit | Annual Repair | Revised Estimate](https://www.youtube.com/watch?v=kDeAUorx0wI) — Kivip Tech 【 Civil Engineering 】
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/contingency-work-charged
- Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-3

## Question

What do you mean by contingencies and work charged establishment?

## Short answer

Contingency is a lump-sum allowance (3–5% of estimated cost) for unforeseen small expenses, sanctioned by competent authority. Work-charged establishment consists of temporary staff (supervisors, watchmen, clerks) paid from work cost, with an allowance of 1.5–2.5% added to the estimate.

## Answer

#### 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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is contingency in an estimate?
   A. Contractor's profit
   B. A lump-sum allowance for small unforeseen expenses
   C. Fixed salary of permanent staff
   D. Cost of land
   Answer: B. It covers small quantity changes, minor extras and errors. (Key point: Contingency)

2. What is the usual contingency allowance?
   A. 15 to 20%
   B. 0.1%
   C. 3 to 5% of the estimated cost
   D. 50%
   Answer: C. It is spent only with competent authority's sanction. (Key point: Contingency rate)

3. What is work-charged establishment?
   A. Permanent office staff paid from regular budget
   B. The contractor's labourers
   C. Consultant designers
   D. Temporary staff engaged for a specific work and paid from the cost of that work
   Answer: D. They are released when the work ends. (Key point: Work-charged staff)

4. About what percentage is added for work-charged establishment?
   A. 1.5 to 2.5% of the estimated cost
   B. 15 to 25%
   C. 5 to 10%
   D. 0.05%
   Answer: A. Examples are overseers, chainmen and watchmen. (Key point: Work-charged allowance)

## Related in Estimating and Costing

- [Work breakdown for frame structure quantities](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Awork-breakdown-quantity-frame) — Estimating and Costing, chapter 2
- [Preliminary estimate: residential, 500 m² carpet](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aprelim-est-residential-500) — Estimating and Costing, chapter 3
- [Preliminary estimate: office, 3275 m² carpet](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aprelim-est-office-3275) — Estimating and Costing, chapter 3
- [Preliminary estimate: polytechnic, 800 students](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aprelim-est-polytechnic-800) — Estimating and Costing, chapter 3

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