Charged establishment is the amount of expenditure incurred on

Explanation:

Contingencies: 

• It is an amount of money set aside to cover any unexpected costs that can arise throughout a construction project.
• This money is on reserve and is not allocated to any specific area of work.

For making any estimate workable, additional expenses are to be added.

The followings are the additional expenses that are to be considered during estimates:

1. Extra Expenses (contingencies) – 3 to 5%
2. Contract work establishments – 1.5 to 2%
3. Tools and Machinery – 1 to 1.5%
4. Contractor’s profit – 10%
5. Departmental Profit – 10 to 15%

Work charged establishment cost

• Work charged establishment charges include temporary establishments as are employed for the execution of the intermediate technical supervision or departmental stores and machinery in connection with a specific work.
• For such work-charged establishment, an amount of 2% to 2.5% is sanctioned.