Definitions continued
1.
Major estimate is a term applied to the estate for work when the
sanctioned amount of the expenditure exceeds Rs. 10,000. This term is also
applied, for the sake of convenience, to the work itself.
2.
Market rate. Used in respect of an article borne on the stock accounts,
this term indicates the cost per unit at which the article, or an article of similar
description can be procured, at a given time at the stores godown, from the public
markets suitable to the division for obtaining a supply thereof.
3.
Minor estimate is a term applied to the estimate for a work, when the
sanctioned amount of the works expenditure does not exceed Rs. l5000. This
term is also applied, for the sake of convenience, to the work itself.
4.
On account payment or payment on account means a payment, other
than an advance payment, made, on a running account, to a contractor in
respect of work done or supplies made by him and duly measured. Such a
payment mayor may not be for the full value of work or supplies; if it is an
intermediate payment, it is subject to the final settlement of the running account
on the completion of the contract for the work or supplies.
5.
Operation. Used in respect of manufacture and workshop transactions,
this term indicates the charges incurred on the manufacture operations
connected with specific jobs.
6.
Out-turn. Used in respect of manufacture and workshop transactions,
this term denotes the value of the finished products (or of the work done, in cases
in which the articles wrought are not supplied departmentally) of manufacture
operations connected with specific job
7.
Rate. In estimates of cost, contracts, contractor’s bills and vouchers,
generally, rate means the considerations allowed for each unit of work, supply or
other service. Except in the case of lump sum contracts, every bill or other
demand for payment should, as far as possible, set forth the unit rate at which
payment is to be made.
8.
Rate of cost and inclusive rate of cost. “Rate of cost” means generally the
total cost of work or supply divided by its quantity. It represents the recorded cost
per unit, as arrived at by dividing the up-to-date final charges on a sub-head, by
the up.-to-date progress thereof. Inclusive rate of cost means the rate of cost of the
entire work relating to a sub-head, including the cost of materials if recorded
separately in the accounts.
9.
Recoverable payment means a payment to or on behalf of a contractor
which does not represent value creditable or payable to him for which done or
supplies made by him, and has therefore to be made good to Government by an
equivalent cash recovery or short payment of dues.
10.
Running account is a term applied to the account with a character when
payment for work or supplies is made to him at convenient intervals subject to
final settlement of the account on the completion or determination of his contract.
Course Purchase Query 