In public works accounting and estimation, identify the correct definitions: work value (excluding contingencies and establishments), actual cost (including incidentals), administrative approval, and technical sanction.
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AThe estimated value of the work excluding contingencies, work-charged establishment, tools and plants is called the work value
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BThe actual expenditure to complete a work including incidental, establishment and travelling charges is called the actual cost
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CFormal acceptance by the administrative department for incurring an expenditure on the work is called administrative approval
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DThe order of a competent authority sanctioning a properly detailed estimate for construction/repair is called technical sanction
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EAll the above
Answer
Correct Answer: All the above
Explanation
Introduction / Context:Public sector projects follow codified financial procedures distinguishing planning approvals from technical vetting and tracking of costs. Clarity on these definitions prevents bottlenecks in sanction, tendering, and payment processing.
Given Data / Assumptions:
- Standard public works terminology is used.
- Separate roles: administrative departments (policy/finance) vs engineering authorities (technical vetting).
- Direct and indirect cost components are recognized.
Concept / Approach:Work value generally denotes the net cost of the physical work excluding contingencies and establishment T&P overheads. Actual cost includes all expenditures incurred to complete a work, covering incidentals and establishments. Administrative approval is the formal go-ahead to spend public money on a defined scheme. Technical sanction is the engineer’s vetted approval of a detailed estimate, drawings, and quantities.
Step-by-Step Solution:1) Map each term to its standard definition in codes/manuals.2) Confirm that administrative approval precedes technical sanction in the workflow.3) Recognize that actual cost >= work value due to added overheads and incidentals.4) Conclude that all statements A–D are correct and complementary.
Verification / Alternative check:Departmental codes and SOR prefaces list these definitions to standardize project processing from proposal to completion.
Why Other Options Are Wrong:
- Any single statement alone would be incomplete; the question is testing recognition of the complete set.
Common Pitfalls:
- Confusing administrative approval (policy) with technical sanction (engineering vetting).
- Misreporting work value by including contingency or establishment.
Final Answer:All the above.