133 Chapter-IV 7.0: Alternate Cash Books: 7.1; It is desirable to maintain alternate cash books, i.e., one cash book for first and third weeks and the second cash book for the second and fourth weeks to facilitate weekly compilation of accounts and easy balancing of cash book. 8.0: Cheque Despatch Register: 8.1: The PAO / APAO should verify the cheque dispatch register daily to ensure that all the cheques have been delivered to the DDOs by signing the closing abstract and insisting on a certificate by the cashier. 9.0: Closing of Cash Book: 9.1: Whenever the cash book is closed, the PAO / APAO should record the total of receipt, cash and bank / treasury columns in the cash book in words and also record certificate of closing balance both in words and figures. Agreeing the receipt side totals with the cash column totals on the payment side treating the difference as closing cash balance, thus balancing the cash book. The closing balance for the current month constitutes opening balance for the next month that should be taken on the receipt side at the beginning of the month. The closing balance constitutes permanent imprests pending with various DDOs. The page wise totals in the cash book should first be entered in pencil and inked after tallying. A principal sub-ordinate other than the cashier should also check the totals. Except for preparation and signing of the cheques, the work of cashier is subject to supervision of the Superintendent of the cash section. 10.0: Cheque Dishonoured: 10.1: In case a cheque is returned dishonored, a write back entry should be made in the cash book with minus both on payment and receipt side duly noting the original classification on both the sides.
Book – I: WORKS 1 1. Scrutiny of Estimates SCRUTINY OF DOCUMENTS & CLAIMS AND EXECUTION OF WORKS etc., 1. SCRUTINY OF ESTIMATES: [As Applicable to all Engineering Depts., viz., I&CAD, R&B, NH, PR, & PH] [NB: 1. In G.O. Ms. No. 1174 PR (Prog.IV) Dept., dt. 19-12-1976, it is ordered that the provisions of APPW ‘D’ Code should be followed in PR Engineering Dept. wherever there are no specific rules and orders of PR Dept.; 2. In G.O. Ms. No. 132 PR (Prog. IV) Dept., dt. 2-2-1978, it is ordered that such of the orders issued by the TR&B Dept. from time to time in connection with works which involve amendments to APPW ‘D’ Code should be followed by the PR Dept. wherever the specific rules and orders of PR Dept. are not available in such matters.] 1.0: ESTIMATES: 1.1.0: Receipt of Estimates: 1.1.1: On receipt of Administrative Approval for a work / works from the Administrative Department concerned, a detailed Estimate is prepared with necessary plans and designs (Para 102 / APPW ‘D’ Code) and necessary Technical Sanction is accorded by the Engineering Department (Paras 112 to 121 / APPW’D’ Code). 1.1.2: No work shall be begun unless a detailed Estimate has been sanctioned, allotment of funds made in the Budget. (Ref: Para 173 / APPW ‘D’ Code) 1.1.3: On receipt of the Copy of Estimate, entry shall be made in the ‘Register of Estimates’ duly filling the columns as per the Register under the attestation of the PAO and the Register should be put up to the PAO every month with an Abstract showing OB (No. of Unscrutinised Estimates) , Receipts, Total, Cleared (No. of Estimates scrutinized)and CB (No. of Unscrutinised Estimates), with details of CB. (Ref: Para 7-2-7 / PAO (WA) Manual) Note: Only attested (by a Gazetted Officer of that office) copy of Estimate / Administrative Approval / other document shall be received in PAO’s office and this should be insisted. 1.1.4: After scrutiny of the Estimate, the scrutiny slip intended for use in PAO’s office (Form PAO.12) should be filled in properly under the attestation of the PAO and
Book – I: WORKS 2 1. Scrutiny of Estimates remarks on the Estimate, if any, shall be communicated to the Division / Departmental Officer concerned. Note: In the case of Estimates sanctioned by the CE, after scrutiny in PAO’s office, they shall be sent to ITC / JDWA (with Form PAO – 61) for internal test check. (Ref: Para 13-3-1 / PAO (WA) Manual) The above from 1.1.1 to 1.1.4 should be followed. 1.2.0: Preliminary Aspects: 1.2.1: A work is Technically sanctioned only after receipt of Administrative Approval (with certain exceptions) and an attested copy of Administrative Approval, where required should be sent to PAO’s office. (Ref: 1.Para 99 /APPW ’D’ Code; 2.Article 185 (a) / APFC –Vol. I) 1.2.2: The Administrative Approval should cover the work concerned and the Estimated cost accorded in Technical Sanction is within the cost covered in the Administrative Approval; in the case of Projects where cost of each component work is also given, the Estimated Cost of Technical Sanction should be within the cost specified in the Administrative Approval for that work / group of works. a) Administrative Approval means the order of approval of the appropriate Administrative authority of the Department concerned to take up the work at the cost mentioned therein. b) ‘Original Works’ include all new constructions, additions and alterations, etc. All Original Works require Administrative Approval. (Ref:1. Paras 89 & 99 of APPW ‘D’ Code; 2. Article 185 (a) / APFC-Vol.I) c) ‘Repairs’ are of two kinds: (i) ‘Ordinary Repairs; and (ii) ‘Special Repairs’: (i) Periodical Repairs, like Painting or whitewashing of a building (Annual Maintenance), patch repairs to roads, occasional petty repairs, repairs to irrigation works to maintain them in proper condition / original standard condition, etc. fall under ‘Ordinary Repairs’. An Ordinary Repairs Estimate / Annual Maintenance Estimate sanctioned in a year will lapse by 31st March of the same year.
Book – I: WORKS 3 1. Scrutiny of Estimates (ii) ‘Special Repairs’ are other than ‘Ordinary Repairs’ and the currency of such Estimates does not lapse on 31st March. Examples are: Re-roofing a building, Renewal of flooring; In Irrigation works, repair works to improve the standards; In R&B, Road embankments, approaches to bridges (Ref: Paras 133 to 139 of APPW ’D’ Code) d) Administrative Approval is not required for Maintenance / Ordinary Repair Works. (Ref: Para 142 of APPW ‘D’Code) Note: However, in the case of Mixed Works, where the newly Proposed repair work is an improvement / addition / extension in the place of the existing part / structure (Examples: Tiled roof in place of thatched roof or additional room to a School building resulting in increase in the capital cost of the structure / building; Raising the bund of MI tank increases the capacity of the tank and consequently resulting in the increase in the ayacut) is treated as ‘Original’ work and hence in these cases, Administrative Approval is required. (Ref: Para 93 of APPW ‘D’ Code) e) All first and original Electrical installations of a building shall have the approval of the Electrical Engineer (General) concerned. (Ref: Art. 154 & 201 (a) / APFC-Vol. I;) 1.2.3: Attested copy of the Estimate should be received in PAO’s office soon after its sanction and from it, the following shall be seen: a) From the Monthly Return of Sanctioned Estimates being received from SE & EE contains the Estimate received and it should also be verified whether the copies of all the Estimates covered in the Monthly Return are received. b) Whether the Scrutiny Slip prescribed for the purpose is received with the signatures of the Divisional Accounts Officer (Works) and the Executive Engineer (in the case of Estimates sanctioned by EE) and of the Deputy Superintending Engineer and the Superintending
Book – I: WORKS 4 1. Scrutiny of Estimates Engineer (in the case of Estimates sanctioned by SE) is received along with the Copy of Estimate (including Revised Estimate / Workslip). (Ref: G.O. Ms. No. 446 PWD (PW) Dept., dt. 8-10-1965) 1.2.4: It should also be seen whether the Estimate is received in full shape, i.e., with (i) Report Accompanying the Estimate; (ii) Abstract Estimate; (iii) Detailed Estimate; (iv) Data Sheet; (v) Plans & Designs. (i) In the Report Accompanying the Estimate, the necessity and objective of the Estimate and origin / back history, etc. is narrated and it may be generally seen whether the intended objective is reflected in the Estimate. (ii) In the Abstract Estimate, the total quantity, Rate per Unit and amount of each item and certain L.S. Provisions are included and it should be seen whether they are properly exhibited as worked out in the Detailed Estimate and Data Sheet, etc. (iii) In the Detailed Estimate, the details of quantities are worked out and total quantity is arrived at this should be verified in general and any defects in computation shall be verified. (iv) In the Data Sheet, the rate for each item of work is worked out with reference to SSR of the year concerned. In respect of items which are not covered in SSRs, the cost arrived at based on observed data approved by the Govt. / Board of CEs / other competent authority are adopted. In the case of materials like cement / steel, etc. the approved rates ordered by the competent authority like District Administration / Industries Dept. / CE, etc. are adopted. In the case of certain materials like Pipes, Pumps, etc., the rates covered in the ‘Rate Contracts’ concluded by the authorities concerned are adopted. In the case of other materials, rates based on competitive quotations (i.e., lowest quotation obtained under Article 125 / APFC- Vol.I / other instructions issued from time to time by the Govt. / competent authority) are adopted. In the case of specified jobs (like drilling bores etc.), the rates are adopted as per the instructions / orders of the Govt. / District Administration / other appropriate authority. (v) Necessary Plans and Designs and also drawings, etc. approved by competent authority are enclosed to the Estimate.
Book – I: WORKS 5 1. Scrutiny of Estimates (vi) Only Metric System of Measurements (viz. Meters, Cum., etc.) shall be adopted. vii) Rounding off Quantities, Rates, & Amounts in Estimates: The quantities, Rates and Amounts in Estimates are to be rounded off as follows: a) Quantities: If Quantity is upto 3 digits :it should be rounded to nearest Whole Number; -do- 4 digits : -do- Ten ; -do- 5 digits : -do- Hundred ; -do- 6 digits : -do- Thousand ; b) Rates: :it should be rounded to nearest 5 paise; If Rate is < Rs. 5 If Rate is > Rs. 5, : -do- 10 paise; but < Rs. 50 If Rate is > Rs. 50, : -do- Whole but < Rs. 1,000 Rupee; If Rate is > Rs. 1,000 : -do- Ten c) Amounts: Rupees If in lakhs of Rupees :it should be rounded to nearest Thousand; If in Crores of Rupees : -do- Lakh. (Ref: G.O. Ms. No. 345 Fin. & Plg.(PW) Dept., dt. 8-9-1982) 1.2.5: a) Date of inspection should be indicated in the Estimate (in the Report Accompanying the Estimate or in other appropriate place) by the authority according Technical Sanction. (Ref: G.O. Ms. No. 402 PWD (Y) Dept., dt. 14-5-1973) b) Further as per the modified orders issued by the Govt. vide G. O. Ms.
Book – I: WORKS 6 1. Scrutiny of Estimates No. 94 I&CAD (PW: Cod) Dept., dt. 1-7-2003, the inspection of works shall be conducted before technical sanction is accorded by the competent authority concerned as below: Estimates costing upto Rs. 50 lakhs : By Executive Engineer; Estimates costing below Rs. 500 lakhs : By Superintending Estimates costing above Rs. 500 lakhs Engineer; & : By Engineer-in-Chief. c) Furthermore, as per the above G.O., dt. 1-7-2003, the Estimates shall be scrutinised at random by the authority one level higher than the authority to issue technical sanction (except in the case of Estimates sanctioned by CE/ENC) 1.2.6: The Technical Sanction Number should be assigned to the Estimate and the date of technical sanction is noted on the Estimate. 1.2.7: The Technical Sanction should be accorded duly written up the cost of Estimate in figures and words along with the Head of Account in full, viz., Major Head, Minor Head, Sub-head, Group head, Detailed head, Sub-detailed head, etc. to which the expenditure on account of the Estimate is to be charged and also indicating as “Plan” or “Non-Plan” Expenditure by the competent sanctioning authority; and the classification should be correct and available in the Budget. Note: Further, the break up values of various components of the Estimate as indicated below is desirable to be furnished below the Abstract Estimate: 1. Material Component ~~ Value 2. Labour Component ~~ Value 3. Total L.S. Provisions ~~ Value 4. Land Acquisition ~~ Value 5. Any other components ~~ Value The above will facilitate working out admissibility of provision of VAT, LI & LA, etc., and also to find out EMD payable / BG Value to be obtained, value of Work Component (for verifying amounts of excess / less on account of Tender excess / less Percentages and in REs). The above from 1.2.1 to 1.2.7 should be verified. 1.3.0: Provisions:
Book – I: WORKS 7 1. Scrutiny of Estimates 1.3.1: L.S. Provisions towards P.S. and Contingencies are not admissible to be provided, since the salaries of Work Charged Establishment Charges are being met separately from the head ‘270/273 Work Charged Establishment’ (or) ‘530/534 Work Charged Establishment’, as the case may be. Note: (i) The salary etc. of drivers of inspection vehicles engaged from WC Estt is not to be charged to the object head 510- Repairs & Renewals, but should be charged to WCEstt only and Repairs and Renewals charges alone are to be charged to 510- R&R. So, it should be noted that when expenditure is incurred for the vehicle, a sanctioned Estimate is always necessary. (ii) In so far as payment of Workcharged Establishment Salaries is concerned, the Estimate for Vehicles need not be insisted upon in view of the changes stated above. (Ref: Govt. Memo. No. 470/F-3(3)/2004, Finance (W&P) Dept., dt.15-3-2004) 1.3.2: L.S. Provision towards ‘unforeseen works’ shall not exceed 2 % of Estimated Cost of the Works portion only. When found necessary, this provision can be utilized for such of the works required by the administrative authority and which are essential for the fulfillment of the precise object for which the Estimate for the main work is intended. For this purpose, a working estimate shall be sanctioned by the EE upto a limit of Rs. 2,500 for each item and by the SE beyond this limit. Note: It is incorrect to make provision towards foreseen works for which detailed quantities can be assessed can be computed as a sub- estimate . (Ref: Para 117 – A of APPW’D’ Code) 1.3.3: Provision towards Value Added Tax (VAT) is to be provided as per the VAT Act (came into force from 1-4-2005) and as per the instructions / orders issued from time to time by the Govt. / other appropriate authority. As per the Act and as per the instructions of Govt., provision has to be made @ 4 % towards VAT in the data of the Estimate, where the value of material component in the work is more than 10% of the total value of work. In respect of ongoing works, the difference between VAT (4%) and ST provided earlier (say, 1.4% / 2.1% / 2.8%, as the case may be) shall be provided in the Revised Estimate / Workslip. The above 4% provision is VAT on Works Contracts only and this is in addition to the VAT, if any applicable, on cost of materials required on the works, as per VAT Act and other guidelines issued by the Commercial Taxes Department.
Book – I: WORKS 8 1. Scrutiny of Estimates (Ref: 1. Minutes of the Meeting dt. 27-4-2005 of the Principal Secretary, Finance (W&P) Dept. communicated in Govt. D.O. Lr. No. 629/F.8(1)/05-2, Finance (W&P) Dept., dt. 9-5-2005 of the DFA. 2. Govt. Memo. No. 70541/F.8(1)/2005-1, Fin.(W&P) Dept. 23-6-2005 3. G.O. Ms. No. 11 Finance (W&P):F.8) Dept., 29-7-2005) Note: In the case of NH Works executed as per MORTH guidelines / Specifications, the Standard Data Book allows the Overhead Charges @ 10% ; Since these overhead charges @ 10% are inclusive of ST, TOT, etc., specific provision shall not be made again in the data of the Estimate towards ST / TOT, etc. in NH works executed as per MORTH guidelines / specifications. (Ref: Govt. Circular Memo. No. 2032/F.8(1)/2004-1, Fin.(W&P) Dept., dt. 13-8-2004) 1.3.4: Seigniorage Charges are provided in the Estimate as per the Act and as per the orders issued from time to time by the Govt. / other appropriate authority, the latest orders of the Govt. being G.O. Ms. No. 217, Industries & Commerce (M.1) Dept., dt. 29- 9-2004. 1.3.5: Provision towards Labour Importation and Labour Amenities (LI & LA) @ 13% was being allowed earlier, provided that the value of Labour Component in the Estimate exceeded Rs. 5 lakhs with the approval of the CE concerned vide G.O. Rt. No. 868 I&CAD (PW:Reforms) Dept., 25-11-2004. Now, as per latest orders, Labour Importation @ 10% alone shall be allowed, provided that the the Labour Component on items of work excluding cost of materials worksout to more than Rs. 20 lakhs on the basis of certificate of EE that local labour available is not adequate and subject to approval of CE concerned; in regard to Labour Amenities @ 3%, the position as per G.O. dt. 25-11-2004 referred above shall continue until further orders. (Ref: G.O. Ms. No. 7, Finance (W&P:TS:F.(8) Dept., dt. 20-6-2005) 1.3.6: Loading of Provisions in the data towards Overheads and Contractor’s Profit on Labour / Machinery are applicable, as per MOST Specifications, to the works in N.H department only and they are not applicable to other works. (Ref: Minutes of the Meeting dt. 15-12-2003 of the Principal Secretary to Govt., Finance (Works & Projects) Dept. communicated in Govt. U.O. Note No. 3274/F.8(1)/03, Finance (W&P) Dept., dt. 26-12-2003 and U.O. Note n. 14/F.8(1)/2004-1, Finance (W&P) Dept., dt. 13-2-2004 of Principal Secretary + MOST Specifications). Note: However, in the case Bridge Works of R&B Dept. alone under the State Govt. funds, costing more than Rs. 50 lakhs , Overheads @ 15% is
Book – I: WORKS 9 1. Scrutiny of Estimates allowed, and in such cases VAT @ 4% shall be added on all components of the item, but excluding on the overhead charges of 10%. (Ref: Govt. Memo. No. 5126/R.I(2)/2005-5, TR&B (R.I) Dept., dt. 30- 8-2005) 1.3.7: Provision towards Stationery Charges / Xerox Charges is permissible only in the case of Estimates of R & B Dept. (excluding NH Dept.) only. (Ref: Govt. Memo. No. 7905 /F3(11)/2002-1, Fin.(W & P) Dept., dt. 20-1- 2003) 1.3.8: In regard to provision of Insurance in the Estimate, only L.S. Provision is to be made in the Abstract Estimate and not in the data of the Estimate (say, 0.5% in the data shall not be provided). This L.S. Provision shall be made considering the agreement period and the defects liability period of two years for original works and one year for maintenance works by obtaining the details of insurance from Insurance Organisations. (Ref: 1.G.O. Ms. No. 94, I&CAD (PW;Cod) Dept., dt. 1-7-2003 2.G.O. Ms. No. 8, TR&B (R.1) Dept., dt. 8-1-2003 3.G.O. Ms. No. 195 PR&RD (Prog.II) Dept., dt. 10-5-1999) Note: Insurance for maintenance works in R&B Dept., like filling pot holes, patch-plastering, white washing which are of ‘ordinary’ maintenance, is not necessary. (Ref: Govt. Memo. No. 103971/F.8(1)04-1, Fin. (W&P) Dept., dt. 10-9-2004) 1.3.9: L.S. Provision shall be made in the Abstract Estimate towards expenditure to be incurred by the Contractor on engaging Technical Personnel based on the number of persons to be indicated in Tender Schedules (as per the orders issued by the Govt. in this regard) and permissible wages as per SSRs only (Ref: 1.] As above) 2.] 3.] It should be verified whether the above from 1.3.1 to 1.3.9 have been followed wherever applicable. 1.4.0: Powers of Technical Sanction: 1.4.1: Powers of Technical Sanction are as under:
Book – I: WORKS 10 1. Scrutiny of Estimates EE ~~ Upto Rs. 10 lakhs; SE ~~ Upto Rs. 50 lakhs; CE ~~ Upto the value of Administrative Approval. (Ref: 1.] As Above) 2.] 3.] In addition, in PR Dept., the following are the powers of DyEE and AE/AEE: AE / AEE ~~ Upto Rs. 25,000; Dy.EE ~~ Upto Rs. 2,00,000. (Ref: 3. As Above) The Technical Sanctions to Estimates should be verified with reference to the above powers. 1.5.0: Earth Work Excavation: 1.5.1: a) In the case of Earth Work Excavation for quantity exceeding 1,000 cum, Machinery Rate has alone to be adopted (with 5 exceptions mentioned in the G.O.s referred below). Verify whether this is followed. (Ref: 1. G.O. Ms. No. 134 I&CAD (PW:Cod) Dept., dt. 25-11-2002 2. G.O. Ms. No. 94 I&CAD (PE:Cod) Dept., dt. 1-7-2003) b) The Machinery Rates to be adopted for different kinds of Earth Work Excavation are as follows: For Excavation upto All Soils upto SDR : Rs. 13.00 /cum.; Rs. 19.50 /cum.; For Excavation in HDR I & II : Rs. 43.50 /cum.; For Excavation in F & F Rock : For Excavation in Hard Rock and boulders of more than 3 cum in size requiring blasting by machinery : Rs. 87.00 /cum. (Ref: G.O. Ms. No. 10 Finance (W&P:F.(8) Dept., 26-7-2005) Note: Re-handling Charges 50% of Machinery Rate. (Ref: As per SSR of 2005-06)
Book – I: WORKS 11 1. Scrutiny of Estimates 1.5.2: In the case of consolidation / Conveyance of Earth Work for Embankment, etc. extra percentages in the rate towards allowances like shrinkage, compaction, swell factor, etc. as admissible at prescribed percentages and as applicable and as approved by competent authority only have to be provided and unnecessary / inadmissible allowances shall not be included. It should be verified whether only admissible allowances are included. 1.5.3: Loading, Unloading and Stacking Charges have to be deducted from the Rate for Conveyance of Earth in the data. (Ref: 1.Govt. Memo. No. 34975 /Irrgn.III/94-2 I &CAD Dept., 6-7-1994; 2.Govt. Memo. No. 34975 /Irrg,.III /99-4, dt. 27-12-1995) All the above from 1.5.1 to 1.5.3 shall be verified. 1.6.0: Other Points: 1.6.1: In the case of Estimates for works in the nature of making arrangements made for visit of VIPs, like Erection of barricades, etc., sanction of the General Administration Dept. of the Govt is required. 1.6.2: Kilo Meter-war Rates (KM-war Rates) fixed for every year by the CE / SE concerned in R & B Dept. as per para 418(a) of APPW ’D’ Code have been followed while sanctioning the Estimates of Ordinary Maintenance. But this delegation is dispensed with by the Govt. and as per the latest orders issued by the Govt., the position is as under: 1. Out of total allocation under the head 3054 – Roads and Bridges (Non-Plan), 25% is earmarked for periodical maintenance (Special Repairs Programme). Out of 25%, the break up for ordinary maintenance is 22% and the balance 3% for emergent Repair Works. 2. The Kilometerage rates for ordinary maintenance are as follows: a) For single lane carriage way BT roads ~~ Rs. 12,000/ KM; for all classification of roads b) For WBM / Gravel / earthen roads of all ~~ Rs. 6,000 / KM; classification of roads c) For double lane BT roads and other multi- lane BT roads ~~ Rs. 15,000/ KM;
Book – I: WORKS 12 1. Scrutiny of Estimates (Ref: G.O. Ms. No. 132, TR&B (Roads.1) Dept., dt. 22-6-2005) 1.6.3: The Acreage Rate prescribed by the CE concerned is adopted in the case of Maintenance Estimates of Irrigation Dept. 1.6.4: The Plinth Area Rate fixed by the Govt. is followed in the case of Maintenance Estimates of Buildings. 1.6.5: Approval of Govt. is required for construction of Compound Walls and Iron wire fencing. (Ref: Article 185 (b) of APFC – Vol. I) See if this is available. 1.6.6: Lead for cement / Steel / Bitumen, etc. shall be provided as per actuals only. Providing Departmental Stores Issue Rate for such items from supply point to Departmental Stores and again from Departmental Stores to work site shall be avoided, since the supply of these commodities by the Department to the contractors is already dispensed with and since the agency concerned has to procure the same from the local market at his own cost 1.6.7: Value of Anticipated credits, if any, e.g., dismantled materials, stone obtained (in excavation) which is of useful value of retrievable materials, shall be suitably provided. (Ref: Govt. Memo. No. 1348/Y/68-4, PW Dept., dt.24-11-1970) It should be verified whether the above from 1.6.1 to 1.6.7 are followed. 1.7.0: Revised Estimates: 1.7.1: Attested Copy of Revised Estimate / Workslip / Comparative Statement should be received and soon after its receipt, it should be entered in the ‘Register of Estimates’ appropriately under the attestation of the PAO and remarks if any, should be communicated to the Departmental officer concerned and a note to the effect of sanction of Revised Estimate / Workslip should be made against the entry of the Original Estimate suitably. 1.7.2: Revised Estimate /Workslip for a work shall be sanctioned as per the powers delegated (i.e., upto 5% excess by EE, upto 10% excess by SE and upto 15% excess by CE, after excluding Tender Excess, if any) and all variations shall be explained fully and clearly in the Revised Estimate / Workslip.
Book – I: WORKS 13 1. Scrutiny of Estimates (Ref: 1. G.O. Ms. No. 1007, TR&B (C.1) Dept., dt. 5-11-1976; 2. G.O. Ms. No. 292 TR&B (C.1) Dept., dt. 8-9-1980) 1.7.3: Where the value of Revised Estimate / Workslip is beyond the value of Administrative Approval (after deducting such excess as the authority is competent to pass (viz., 5% / 10% / 15% excess by EE / SE / CE respectively and also after excluding the Tender Excess, if any) or whenever material developments or substantial deviations necessitate, a Revised Administrative Approval is required. (Ref: Para 214 of APPW’D’ Code) 1.7.4: Only correct terms, viz., ‘Revised Estimate’ or ‘Workslip’ should be used when an Estimate is revised, since these terms only are contemplated in the Codes and terms like ‘Working Estimate’ / ‘Modified Estimate’ / ‘Comparative Statement’ shall not be used. 1.7.5: In approving / passing of excess expenditure included in the Revised Estimate / Workslip, ONLY TENDER EXCESS shall be deducted from the total value of the RE / WS, while working out the percentage of excess or less with reference to the Original Estimate Value for the purpose of verifying the powers vested in the authority competent to approve such Revised Estimate / Workslip, because only premium (denoting excess over original price and denoting the opposite meaning of ‘discount’) is to be deducted for the above purpose as per G.O. Ms. No. 292 TR&B (C.1) Dept., dt. 8- 9-1980 and it therefore follows that the discount offered in Discounted tenders (i.e., minus tenders) shall not be reckoned nor utilised for additional works. (Ref: Minutes of the Meeting dt. 15-12-2003 of the principal Secretary to Govt., Finance (Wodrks & Projects) Dept. and communicated vide Govt. U.O. Note No.3274/F.8(1)/03, Finance (W&P) Dept., 26-12- 2003 & U.O. Note No. 14/F.8(1)/2004-1, Finance (W&P) Dept., dt 13- 2-204 of Principal Secretary) 1.7.6: A Revised Estimate / Workslip is necessary where there is variation compared to the Original Estimate, even if it be by way of reduction in the quantities by way of substantial variations in quantities or in the value of the estimate, etc., because the said + / - variations have to be explained in the Revised Estimate / Workslip (or) Completion Report, as the case may be, by the competent authority as per paras 214 and 215 of APPW’D’ Code. Also, as per G.O. Ms. No. 169 TR&B (C.1) Dept. dt. 25-5- 1981, all deviations should have the approval of competent authority through necessary Revised Estimate / Workslip. Note:
Book – I: WORKS 14 1. Scrutiny of Estimates Where approval of the Revised Estimate / Workslip is likely to take some time (since all the deviations may not be covered in the midst of execution), approval for the deviations met with shall be communicated by the competent authority (provided the excess is within his powers to pass), pending sanction of Revised Estimate / Workslip for the purpose of admission of part Bills (and duly supported by PP Form for payment of the deviations, as prescribed in PAO’s Manual) . 1.7.7: Where substantial variations / alterations are contemplated (even if, such change does not result in increase in the Estimated Cost) after sanction of the Estimate, orders of the original sanctioning authority are required and a Revised Technical Sanction shall be accorded. (Ref: Para 187 / APPW ‘D’ Code) It should be verified whether the Revised Estimate / Workslip is properly sanctioned by competent authority as per 1.7.1 to 1.7.7 above. 1.8.0: Check of Estimates by the Internal Test Check (ITC) of JDWA: 1.8.1: As already stated, all Estimates sanctioned by the CE, after scrutiny by the PAO, should be sent to the ITC with remarks of the PAO. The Estimate should be scrutinized in ITC section from higher audit point of view apart from normal checks. In the ITC section the procedure regarding the procedure and the basis adopted for sanctioning the Estimate should also be seen. Further a comparative study of Estimates fro similar works should also be seen in the ITC section. Then, the Estimate is put up the JDWA for acceptance. 1.8.2: Estimates sanctioned by officers upto SE level, after scrutiny by the PAO, should also be sent to the ITC section, if they contain any peculiar or objectionable features for further scrutiny and after scrutiny they should be put up to the JDWA for orders. (Ref: Para 13-3-1 / PAO (WA) Manual) 1.8.3: Project Estimate Register: A detailed statement (Form 61) in duplicate showing the Estimates sanctioned by CE, SE and EE should be sent by the pre-check sections of PAO every month to the ITC section. From this, the Register of Project Estimates (maintained for each Project / Scheme) is posted in the ITC section suitably and submitted to the JDWA every month. Note:
Book – I: WORKS 15 1. Scrutiny of Estimates A consolidated Register of Expenditure (in Form PAO 62) should also be maintained in the ITC section, duly got the expenditure figures posted monthly by the Compilation Section of JDWA. (Ref: Paras 13-4-1 to 13-4-3 / PAO (WA) Manual) All the above from 1.8.1 to 1.8.3 shall be followed.
Book – I: WORKS 16 1. Scrutiny of Estimates
Book – I : WORKS 17 2. Scrutiny of Agreements / Purchase Orders 2. SCRUTINY OF AGREEMENTS / PURCHASE ORDERS: [As Applicable to all Engineering Depts., viz., I&CAD, R&B, NH, PR, & PH] [NB: 1. In G.O. Ms. No. 1174 PR (Prog.IV) Dept., dt. 19-12-1976, it is ordered that the provisions of APPW ‘D’ Code should be followed in PR Engineering Dept. wherever there are no specific rules and orders of PR Dept.; 2. In G.O. Ms. No. 132 PR (Prog. IV) Dept., dt. 2-2-1978, it is ordered that such of the orders issued by the TR&B Dept. from time to time in connection with works which involve amendments to APPW ‘D’ Code should be followed by the PR Dept. wherever the specific rules and orders of PR Dept. are not available in such matters.] 2.0: AGREEMENTS: 2.1.0: Receipt of Agreements: 2.1.1: Any work shall be commenced only after a written Contract Agreement is entered into by the Department with the Contractor concerned. (Ref: 1. Para 174 / APPW’D’ Code; 2. Article 166 APFC Vol.I) 2.1.2: Copy of Agreement is to be received in PAO’s office soon after its conclusion. On receipt of copy of the Agreement, entry shall be made in the ‘Register of Agreements’ duly filling the columns as per the Register under the attestation of the PAO and the Register should be put up to the PAO every month with an Abstract showing OB (No. of Unscrutinised Agreements), Receipts (Nos.), Total, Cleared (No. of Agreements scrutinized) CB (Unscrutinised Agreements) (Ref: Para 7-2-11 / PAO (WA) Manual) Note: Only attested (by a Gazetted Officer of that office) copy of the Agreement / Purchase Order shall be received in PAO’s office. This should be insisted. 2.1.3: After scrutiny in PAO’s office, scrutiny slip intended for use in PAO’s office (Form PAO. 13) should be filled in under the attestation of the PAO and remarks, if any, shall be communicated to the Division / Departmental Officer concerned. Note: Agreements above Rs. 10,00,000, in a case where the lowest tender is accepted, Agreements above Rs. 2,00,000 in all other cases, and every
Book – I : WORKS 18 2. Scrutiny of Agreements / Purchase Orders Supplemental Agreement above Rs. 1,00,000 should be sent to the Internal Test Check Section in the form of a Statement (Form PAO. 14) along with the remarks of the PAO. (Ref: Para 7-2-11 & 13-5-1 / PAO (WA) Manual) 2.1.4: Copy of the Agreement / Purchase Order is to be received in PAO’s office soon after its conclusion / soon after its issue, as the case may be. Note: 1. Copy of the Agreement (including Supplemental Agreement) / Purchase Order should be received along with the Scrutiny Slip prescribed for the purpose duly signed by the Divisional Accounts Officer (Works) and the Executive Engineer in the case of those concluded / issued at Divisional level and by the Deputy Superintending Engineer and the Superintending Engineer in the case of those concluded / issued from SE’s office. (Ref: G.O. Ms. No. 446 PWD (PW) Dept., dt. 8-10-1965) 2. Copy of the Agreement should be received in full shape, viz., full text of the Agreement with all the terms and conditions, Plans, etc. All the above from 2.1.1 to 2.1.4 shall be followed. 2.2: Methods of Execution: After sanction of an Estimate and after ascertaining the availability of budget provision, etc., the works are entrusted to be carried out by one of the methods mentioned below: (i) Departmentally, by the employment of daily labour; (ii) By Piece-Work agreement (Form V.51); & (iii) By an agreement in L.S. (Lump-sum) Contract Form (Form V.53) (iv) By Engineering, Procurement and Construction method. (Ref: Para 150 / APPW ‘D’ Code) (i) In the Departmental Method, works are carried out by the Department utilising daily labour and this is now dispensed with, as employment of labour is banned by Act 2 of 1994 and as such action is punishable with imprisonment as per the Act. (ii) The Contractor under the Piece-Work Agreement (familiarly known as K-2 Contract by virtue of the kind of Form used for this contract) agrees to
Book – I : WORKS 19 2. Scrutiny of Agreements / Purchase Orders execute a specified work at specified rates without reference to time and this Agreement is concluded for works costing upto Rs. 1,00,000. (iii) In the L.S. Contract System, time within which the work should be completed is specified, since time is the essence of this contract and the value of work at accepted rates is also specified and this Agreement is concluded for works costing more than Rs. 1,00,000 (LS Contracts can be concluded even for works costing upto Rs. 1,00,000 if found essential). The Preliminary Specifications of the A.P. Standard Specifications / Other Special Specifications, articles of agreement, other terms and conditions, including penalties / liquidated damages, etc. are clearly stated in this Agreement. Note: 1. However, the approximate quantities as included in the Sanctioned Estimate are also given in both K-2 and L.S. Agreements and in the Supplemental Agreements as well. 2. For works costing upto Rs. 1,000, only a Written Understanding will suffice. (Ref: 1. Para 175 / APPW ‘D’ Code; 2. Article 167 APFC Vol.I) 3. Agreements for works funded by World Bank Aid / other Bank Aid, etc., comprise special terms and conditions in accordance with the terms of the Aid (‘Aid Memoirs’) and they have to be read with relevant Codal Rules/ instructions/ guidelines issued by the Govt. / other appropriate authority from time to time. 4. In the case of EPC Contracts introduced recently by the Govt. for certain works of certain Irrigation Projects, the Contractor agrees to complete the entire job for a lump-sum price and the job includes undertaking himself detailed investigation and estimation, execution, testing, commissioning, trial, etc. of that work and also its maintenance at his cost for a period of two years. In such Contracts, the terms and conditions of bid, the General Conditions, Special Conditions, Technical Specifications, etc. as set out in the Agreement have to be followed read with relevant Codal Rules / instructions / guidelines issued by the Govt. / other appropriate authority issued from time to time. It should be ensured that the above in 2.2 are observed. 2.3.0: Tenders:
Book – I : WORKS 20 2. Scrutiny of Agreements / Purchase Orders 2.3.1: After sanction of the Estimate for a work, tenders (from appropriate class of contractors, depending on the value of work involved) are called for, where necessary, by issue of Tender Notice and the lowest tender by (i.e., the tender with the lowest rates) is accepted, subject to the delegation of powers of the Officer concerned. The Tender-accepting authority will record on the comparative statement the acceptance in figures and words and percentage excess / less under his signature. In respect of Tenders accepted by the authority above SE (i.e., by CE / ENC or by Tender Committee / Commissioner of Tenders), the Agreement is concluded by the SE and in such cases the value of the accepted tender and percentage of excess / less, etc. are indicated along with reference in the Check-slip of the Agreement. Note: Where a tender, other than the lowest is accepted, the officer concerned should record the reasons for doing so and also send up a report to the next higher authority substantiating his action and all the connected records in support of his action shall be made available to the Inspecting Officer of the Department and the Inspecting Officer of Audit. (Ref: Article 193 / APFC Vol.I) 2.3.2: Tenders should invariably be called for when the amount involved in a particular contract is Rs. 5,000 or more. (Ref: Note-1 below Para 154 / APPW ‘D’ Code read with G.O. No. 361 TR&B Dept., dt. 2-9-1985) 2.3.3: Notices calling for tenders should invariably be published in prominent local Newspapers in respect of all works costing over Rs. 5,00,000 (Ref: G.O. Ms. No. 1007 TR&B (C.1) Dept., dt. 5-11-1976) 2.3.4: a) For works costing upto Rs. 50,00,000, Tender Notice is to be published in District Editions of two Telugu Dailies with largest circulation. b) For works costing more than Rs. 50,00,000, Tender Notice is to be published in one Telugu Daily and one English Daily having largest circulation at the State level. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2.3.5: Minimum time limit for receipt of tenders is 14 days from the date of publication of Tender Notice. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003)
Book – I : WORKS 21 2. Scrutiny of Agreements / Purchase Orders 2.3.6: While calling for tenders / while awarding work to a contractor, proof of registration under VAT should be insisted in respect of all works costing more than Rs. 5,00,000 and a copy of such Registration Certificate of VAT shall be annexed to the Agreement. (Ref: 1. Minutes of the meeting held on 27-4-2005 by the Principal Secretary, Fin.(W&P) Dept. and communicated by the DFA vide DO lr. No. 629/F.8(1)/05-2, dt. 9-5- 2005 2. G.O. Ms. No. 11 Fin. (W&P:F.8) Dept., dt. 29-7-2005) 2.3.7: The powers of calling for tenders and acceptance of tenders are the same as powers of technical sanction vested with Departmental Officers (see: 1.4.0: Powers of Technical Sanction under 1. Estimates), but in the case of acceptance of tenders for work costing above Rs.200 lakhs the tenders are decided by the Commissioner of Tenders. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) Note: However, all Agreements above Rs. 10,00,000 (including for the tenders decided by the CE / ENC or the Commissioner of Tenders) are concluded by SE only for any value. 2.3.8: Chief Engineer shall finalise Tenders upto works costing Rs. 200 lakhs and tenders works costing above Rs. 200 lakhs tenders are decided by the Commissioner of Tenders. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2.3.9: ‘e’ procurement shall be adopted for all works costing Rs. 100 lakhs and above in Irrigation and R&B Departments taken up with State Govt. Funds (including NABARD and AIBP) and NH works. (G.O. Ms. No. 36 I&CAD (PE:Cod) Dept., dt. 7-3-2003) Note: This position is changed (through further orders issued by the Govt.) and ‘e’-procurement is extended to works with estimated cost of Rs. 50 lakhs and above. 2.3.10: Negotiations with the Contractor for prompting him to reduce his quoted rates is dispensed with. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2.3.11: Maximum Tender Premium / excess to be allowed is 5% and for discounted tenders (i.e., less tenders), difference between quoted value and 75% of
Book – I : WORKS 22 2. Scrutiny of Agreements / Purchase Orders Estimated value put to tender shall be collected as ASD. (Ref: 1. G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003; 2. G.O. Ms. No. 133 I&CAD (PW: Reforms) Dept., dt. 28-11-2004; (Tender Premium reduced from 10% to 5%) 3. G.O. Ms. No. 17 Fin. Dt.6-2-2004; (ASD Collection changed to 75% less than Estimate) 2.3.12: The percentage excess vested with the authorities for acceptance of Tenders is as under: By DyEE ~~ At Estimate Rates / Below Estimate Rates (applicable to PR Dept. only); By EE ~~ Upto 5% Excess over Est. Rates; By SE ~~ -do- By CE ~~ -do- By Tender Committee / -do- Commissioner of Tenders~ (Ref: G.O. Ms. No. 1007 TR&B (C.I) Dept., dt. 5-11-1976, read with latest G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003 read with G.O. Ms. No. 133 I&CAD (PW: Reforms) Dept., dt. 28-11-2004; (Tender Premium reduced from 10% to 5%) 2.3.13: ‘Single Tenders’ shall not be normally accepted. If ‘Single Tender’ is received for a work, action has to be taken to recall the tenders giving wide publicity by sending copies to all Divisions / Circles, publishing in Newspapers, etc. as prescribed by the Govt. Even after such recall, if only single tender is received, the single tender can be accepted, provided (i) the work is of emergent in nature, (ii) the further tender calls are likely to be fruitless (subject to the limit of delegation of powers to accept the tender at the quoted excess / less). While accepting so, copies of tender notices and paper cuttings etc. should be recorded with the tender documents. (Ref: 1. Govt, Memo. No. 1763-D/70-3,PWD (PW), dt. 30-9-1970; 2. Govt. Memo. No. 1720-D/72-6,PWD (PW), dt. 27-10-1972) 2.3.14: The authority competent to accord technical sanction upto a certain value is competent to conclude the Agreement upto that value; however, in the case of tenders accepted by the authority above SE, i.e., CE / ENC, etc., Agreement is concluded by the SE for any value.
Book – I : WORKS 23 2. Scrutiny of Agreements / Purchase Orders Note: Above rule applies even to Supplemental Agreements. 2.3.15: Schedule-A (i.e., Description of every item, Specification No., Quantity, Rate, Unit, and Amount of each item are included in Schedule-A of the Agreement) comprises the total value of all the working items and this is categorised as Part –I. L.S. Provisions, towards Insurance Premia and engagement of Technical Agents, etc., are categorized as Part–II. The tenderers shall quote the tender excess or less on the total value of work to be done and shown in Part-I only and no percentage excess / less is allowed on items in Part – II. In the Agreement concluded also, the two parts should be exhibited distinctly and separately and both the values puttogether (Part-I with tender percentage excess / less and Part-II without tender percentage excess / less) coprise the total value of the Agreement. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2.3.16: a) In some Agreements, the rate for an item involved in two or more sub-works under the main work are clubbed together and a single weighted average rate is arrived at and in such cases, the data in support of derivation of such single weighted average rate shall be furnished (appended to the Estimate / the Agreement); It should be seen that this is furnished and that the quantity contemplated in the original estimate for that item in each of the sub-work is not exceeded while releasing payment. b) In the alternative, it is more desirable to indicate the break-up of quantity and rate for each sub-work under every item of work in schedule-A , so that the rates are quoted for each sub-work of an item and rates in the Agreement also can similarly be furnished and the procedure of arriving at weighted average rate for every item can be avoided. 2.3.17: In the case of emergent works, like breach-closing work of a tank in Irrigation Dept. / flood relief work, the officer concerned should report the facts at once to his immediate superior and the AG and where the work is entrusted to a Contractor, atleast a ‘Written Order’ in appropriate form signed by both the officer concerned (under the orders of the competent authority) and the contractor for execution of the work at estimated cost (to be worked out later) and a formal Agreement (K-2 / L.S.) shall be concluded later by the competent authority with the Contractor, but at the earliest opportunity and soon after a detailed Estimate has been sanctioned by the competent authority, etc. and the said ‘Written Order’ forms part of the formal Agreement so concluded. (Ref:1. Para 177 / APPW ‘D’ Code; 2. Article 170 / APFC Vol.I)
Book – I : WORKS 24 2. Scrutiny of Agreements / Purchase Orders 2.3.18: If any work is proposed to be entrusted on Nomination (by dispensing with tenders) it is to be entrusted at Estimate Rates only, it can be done so only in the case of emergency or other reasons to be recorded as per the delegation of powers given below: EE ~~ Rs. 20,000; SE ~~ Rs. 50,000; CE ~~ Rs. 1,00,000. (Ref: Note-1 below Para 154 / APPW ‘D’ Code, read with G.O. Ms. No. 1007 TR&B (C.1) Dept., 5-11-1976) Note: Works in the nature of annual maintenance works like white washing / painting to buildings, etc. / similar works shall not be entrusted on nomination, since tenders could be called for in advance for obtaining competitive rates. 2.3.19: When tenders are dispensed with in the case of contracts exceeding Rs.20,000, a report should be made by the Officer entrusting the work on nomination to the next higher authority indicating the reasons for dispensing with the tenders. (Ref: Note-1 below Para 154 / APPW ‘D’ Code) Note: a) In Circular Memo. No. w3/DEE-1/DE/2003, dt.13-8-2003, the Chief Engineer, Panchayat Raj, Hyderabad has issued instructions to the Departmental Officers not to execute the works under State Plan and Non-Plan grants viz., MNP, MPO Buildings, RRM and School Buildings and also MPLADs grant works on nomination basis or departmentally. b) Similarly, instructions are issued not to entrust the works on nomination in R&B Department. 2.3.20: Date of commencement / Start date of work is the date of signing the Agreement. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) The above from 2.3.1 to 2.3.20 shall be observed wherever applicable.
Book – I : WORKS 25 2. Scrutiny of Agreements / Purchase Orders 2.4.0: Conditions of Contract: 2.4.1: The terms of a Contract must be precise and definite and there must be no room for ambiguity or misconstruction therein. No condition involving an uncertain or indefinite liability or any condition of an unusual character should be entered into without the previous consent of the competent financial authority. (Ref: Para 152 / APPW ‘D’ Code) Note: There shall be no change in the terms and conditions included in the Tender Schedules / addendum to the Tender Schedules and those incorporated in the Agreement. 2.4.2: In the case of Placing Purchase Orders for supply of materials, the terms and conditions should be specific with time limit, etc. (Details in this regard may be traced into G.O. Ms. No. 603 TR&B Dept., dt. 1-7-1976) It should be verified whether there is any ambiguity in any condition or any variance / contradiction between one condition and another in the Agreement. 2.5.0: Securities: By collecting Security from the Contractor, the Govt. will have the right to confiscate the same in case of breach of contract, etc. 2.5.1: In order to ensure that the Contractor performs the contract as per the terms and conditions of the Agreement and that he does not default in executing the work, Deposit is obtained from him along with the tender (at a specified percentage worked out on the value of work put to tender) and retained with the Govt. as Security and this Deposit is known as ‘Earnest Money Deposit’ (EMD) / Performance Security. Note: Collection of EMD applies even to quotations / tenders called for for purchase of materials 2.5.2: In addition to this EMD, Further Security is also ‘withheld’ (recovered and kept under work without taking it to ‘Deposits’ of the Govt.) from each intermediate bill of the Contractor (at a specified percentage, @ 7.5% of work done value). . 2.5.3: In the Final Bill of the Contractor, 2.5% of the Security is recovered and kept under ‘Deposits’ of the Govt. (thus, releasing 5% out of 7.5% withheld upto pre- final bill) and this Deposit is released only after the ‘Defects Liability Period’ (also known as ‘Observation Period’) is over and this Deposit is called ‘Further Security Deposit’.
Book – I : WORKS 26 2. Scrutiny of Agreements / Purchase Orders 2.5.4: Where the Contractor quotes abnormally less rates (normally beyond 15% less than the Estimated Cost), the Dept. obtains additional Deposit (normally equal to the difference between the quoted value of the tender and the value of work at 25% less) in order that the Contractor does not go away after executing beneficial items or other reasons and this Deposit is known as ‘Additional Security Deposit’ (ASD) and this is normally released after completion of the work or as specified in the conditions of the Agreement (Ref: 1. G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003; 2. G.O. Ms. No. 133 I&CAD (PW: Reforms) Dept., dt. 28-11-2004; (Tender Premium reduced from 10% to 5%) 3. G.O. Ms. No. 17 Fin. Dt.6-2-2004; (ASD Collection changed to 75% less than Estimate) 2.5.5: The rates of EMD and FSD to be collected from a Contractor are as under: EMD is to be collected @2.5% for L.S. Contracts and @ 1.5% for K-2 Contracts (on the value of work put to tender in both the cases) and in the manner as prescribed in the Tender Schedules. EMD / ASD shall be in the form of valid DD obtained (preferably from nationalized / scheduled Bank) in the name of the PAO only. Bank Guarantees are also accepted towards EMD / ASD and they should be obtained in the name of the Agreement – concluding authority only. But, for works costing upto Rs. 50 lakhs, EMD shall be in the form of DD only and BG is not acceptable and the DD has to be submitted along with the tender schedules. For K-2 Contracts ~~ FSD is @ 3.5% till the value of work done is 66-2/3 times the value of EMD and @ 5% thereafter; For L.S. Contracts ~~ Withheld and kept under work @ 7.5% in the Intermediate bills and in the Final Bill, FSD @ 2.5% (on the value of work done as per the Final Bill, i.e., duly releasing 5% withheld amount) is recovered and kept under ‘P.W. Deposits’. [Ref: Para 157 / APPW ‘D’ Code, read with G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003 & G.O. Ms. No.142 I&CAD (PW:Reforms) Dept., dt 20-12-2004 (BG facility enhanced from Rs. 10 lakhs to Rs. 50 lakhs)] Note: In the case of Externally Aided Works, the FSD is withheld @ 6% on the value of work done (instead of @7.5%), subject to a maximum of 5% of Agreement value from each intermediate bill.
Book – I : WORKS 27 2. Scrutiny of Agreements / Purchase Orders 2.5.6: DDs / BGs towards EMD / ASD should be received in PAO’s office along with the copy of the Agreement. It should be seen whether the DDs are adjusted to Govt. account and whether the BGs are in order and in currency and necessary care is taken by the Dept. The following need special mention on DDs & BGs: DDs: 1. DDs shall be in the name of the PAO concerned (since they are to be adjusted in the Cash Book and Account books of PAO); 2. DDs are obtained preferably on Scheduled Banks; 3. DDs shall be in currency; 4. The amount of DDs agrees towards 1% EMD / 1.5% EMD (or) FSD (or) ASD, as the case may be; Note: N.S.Cs shall not be accepted (as per latest G.O.s on Tendering Procedures and also since they can not be encashed before maturity / before 3 years) BGs: 1. BGs shall be in the name of the Agreement-concluding authority, viz., Executive Engineer / Superintending Engineer and not in the name of the PAO, because of the following reasons: a) The PAO does not possess the authority to discharge the liability and it is vested with the Executive only and only upon certification of completion of work by the Executive the BG is normally released by the Bank; b) The PAO is only custodian of the BG; c) No adjusting element is required to be done in the Cash Book or Accounts of PAO on receipt of the BG. 2. BGs s are desirable to be obtained from Nationalised Banks / approved list of the Govt. (i.e., other than banned Banks.; and BGs from Co-operative Banks / Grameena Banks shall not be entertained; 3. BGs towards EMDs for works costing upto Rs. 10 lakhs are not acceptable;
Book – I : WORKS 28 2. Scrutiny of Agreements / Purchase Orders 4. The genuineness of the BG shall be verified by the Agreement- concluding authority (EE / SE) / other appropriate authority who received the BG at the time of receipt of tenders / conclusion of Agreement and a certificate to the following effect shall be affixed on the reverse of the BG: “Certified that the genuineness of the BG bearing No………., dt…………….. for Rs. ……………………………….. issued by ……………………….. (Full Name of Bank Branch and Address) obtained by Sri ………………………….(Contractor) for the work ……………………………………………………(Name of work), under Agreement No…………………., dt……………………. has been verified with the Bank concerned vide Bank reference No.………………………………, dt………………………… and found to be correct and genuine and hence accepted.” (Ref: Govt. Memo. No. 4.932-A/185/A-2/WA-I/98, Fin. & Plg. (FW-WA.I) Dept., dt. 17-9-1998) 5. The BG should be obtained on Non-judicial Stamp Paper of appropriate value; 6. The BG should indicate the Full Name of Work, Agreement No. and date and Contractor’s Name, etc. 7. The purpose for which the BG is issued, viz., towards / Performance Security / Earnest Money Deposit / Further Security Deposit etc. shall be indicated in the BG both in figures and words; 8. The BG should be received in PAO’s office along with copy of Agreement with a separate covering letter; after scrutiny of the BG by the Auditor of the works section in PAO’s office, the original BG should be sent to the Cash section for safe custody duly retaining a copy of the BG in the work file concerned of the works section and duly entered in a suitable Register. It should be seen that the above from 2.5.1 to 2.5.6 are followed. 2.6.0: Supplemental Agreement: 2.6.1: All copies (attested) of Supplemental Agreements should be entered in the ‘Register of Agreements’ like Main Agreements under the attestation of the PAO and remarks, if any, should be communicated to the Departmental Officers and a note of the Supplemental Agreement should be made against the entry of Main Agreement.
Book – I : WORKS 29 2. Scrutiny of Agreements / Purchase Orders 2.6.2: In cases where the overall tender premium / discount is added / deducted at the end of the total value of all the items in schedule-A of the Agreement, there shall be no difficulty in verifying the rate in Supplemental item for excess quantity over original Estimate /Agreement Quantity for any existing item, since the rate to be adopted is original Estimate rate only and the tender premium / discount is added to/ subtracted from the end total of all items. 2.6.3: Whenever excess quantities are executed over and above that provided in the original Estimate and the Agreement as authorised extras and also whenever new items are executed duly authorised, necessary Supplemental Agreement shall be entered into and necessary data showing the method in which the rates in the Supplemental Agreement have been derived shall also be sent to the PAO’s office, along with Revised Estimate / Workslip, wherever necessary, sanctioned by competent authority. 2.6.4: All Main (Original), Supplemental Agreements and Written Understandings shall be concluded on Non-judicial stamp paper of appropriate value. 2.6.5: In the case of Supplemental Agreements, the following shall be followed: a) If the Supplemental items viz., new (‘similar / purely new’ items) of a work are found to be ‘contingent’ on the Original Main Contract, then only they are to be treated as ‘authorised extras’ and they can be got executed by the same agency at and paid at the rates derived in accordance with the terms and conditions of the Original / Main Agreement for payment of such items; b) If the Supplemental items (‘similar purely new’ items) of a work are found to be ‘not contingent’ on the Main Contract (i.e., if they can be got executed independently through another agency), such items shall be treated as ‘additional items’; (i) such ‘additional items’ shall be let out only on call of tenders; (ii) and however, such ‘additional items’ are proposed to be got carried out by the same agency, they can be so entrusted, but at Estimate Rates only ____ , 1. provided that the value of such additional items is within the competency of the authority concerned to normally entrust on nomination basis under G.O. Ms. No. 1007 TR&B Dept., dt. 5-11-1976; 2. and provided further that the necessary Supplemental Agreement is concluded, only after the Revised Estimate /
Book – I : WORKS 30 2. Scrutiny of Agreements / Purchase Orders Workslip is approved by the competent authority. (Ref: G.O. Ms. No. 169 TR&B (C.1) Dept., dt. 25-5-1981) 2.6.6: Supplemental Agreements should invariably be entered into by the competent authority for all the new items and for authorized extras and the supplemental Agreements should be with reference to the provisions in the Revised Estimate / Workslip / Deviation Statement approved by the competent authority. (Ref: Minutes of the meeting held on 15-12-2003 by the Principal Secretary to Govt., Fin (W&P) Dept., communicated by the DFA, Fin. (W&A) Dept. vide U.O. Note No. 3274/F.8(1)03, dt. 26-12-2003) 2.6.7: Additional works which are ‘not contingent’ to the main work and also works which are sanctioned under separate administrative approval should not be entrusted to the contractors of the existing contracts and separate tenders should be called for in all such cases (PR). (Ref: Minutes of the meeting held by the Secretary, PR&RD Dept. on 9-2-2004 and communicated by the DFA, F (W&P) Dept. U.O. Note No. 345/F.8(1).2004-3, dt.20-2-2004) 2.6.8: In cases where the tender premium / discount is allowed for each individual item in schedule-A, the rates for excess quantity of the same item or similar item shall be derived carefully as briefly indicated below: (a) Where quantity is excessively executed in respect of an individual item, the Supplemental rate shall be Estimate Rate (+ / -) overall tender percentage (or) Agreement rate (Main Agt.) whichever is less; (b) Where an item is new, but ‘similar’ to the item existing in the Main Agreement, the rate payable for such item is derived under ‘deducible’ method as under: Estimate rate adopted for the old item (as adopted : X at the time of calling for tenders) : Y (Deduct / Add): Difference in cost of materials and ______ labour charges due to change in specification between the old item and new item Z (+ / -) overall tender percentage on that ______ difference Total (X+Y), i.e., Rate payable for the new ‘similar item’ :
Book – I : WORKS 31 2. Scrutiny of Agreements / Purchase Orders (c) Where the new item is purely new item (i.e., not found in the original estimate), the rate payable shall be SSR Rate (i.e., SSR of the same year with which the original estimate was prepared and tenders were compared) for that item (+/-) overall tender percentage. 2.6.9: In World Bank Aided works / Package Works, a special condition is included in regard to payment of excess quantities of existing items / new items as briefly given below: a) The rate payable for excess quantities shall be at Agreement Rates upto 25% excess over the original Agreement quantity for that item, provided that the excess amount involved for that item does not exceed 1% contract value; and if it exceeds 1% contract value, then the rate payable shall be Estimate Rate (+ / -) tender percentage (or) Agreement Rate (or) the rate quoted in the quotation by the contractor for such excess quantity, whichever is the least. Note: Here, it should be understood that the ‘quoted rate’ does not mean that the same shall be accepted by the authority (original tender accepting authority) unilaterally; and the final acceptable rate shall the Estimate Rate for that item (+ / -) tender percentage / original main Agreement Rate / quoted rate of the contractor for the excess quantity whichever is the least; b) In the case of rate payable for ‘similar item’, the same as stated under ‘Deducible method’ under 2.6.8:(b) shall be followed and if the Contractor gives his quotation for such ‘similar item’, the quoted rate shall be compared with that derived under ‘deducible method’ and the least rate of the two shall be allowed. c) In the case of rate payable for purely new item, the same as stated under 2.6.8: (c) shall be followed and if the Contractor gives the quotation, the quoted rate shall be compared with that so arrived at and the least of the two shall be allowed. It should be verified whether the above from 2.6.1 to 2.6.9 are followed. 2.7.0: Other Important Clauses: 2.7.1: Clause on recovery of Interest on ‘Mobilisation Advance’ shall be included wherever authorized in respect of all works where the condition of these advances is included (for work costing more than Rs. 100 lakhs Mobilisation Advance condition is incorporated and Mobilisation Advance is payable @ 10% i.e., 5% for
Book – I : WORKS 32 2. Scrutiny of Agreements / Purchase Orders Mobilisation and 5% for procurement of Machinery / Equipment against unconditional and irrevocable Bank Guarantee and against an undertaking to be given by the Contractor to the effect that he has not obtained similar Mobilisation Advance for the same Machinery / Equipment from the Govt. and the Advance attracts rate of interest at Govt. borrowing rate) (Ref: 1. G.O. Ms. No. 23 I&CAD (PW:Cod) Dept., dt. 5-3-1999; 2. G.O. Ms. No. 195 PR&RD (Prog.II) Dept., dt. 10-5-1999; 3. G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003; 4. Govt. Memo. No. 103276 /F-3(2)/05-3, Fin. (W&P) Dept., 8-12-2005) Note: When Mobilisation Advance is paid and wherever the condition of recovery of interest exists, interest thereon shall be collected at the borrowing rate fixed by the Govt. and the same rate shall be valid for the entire period of the contract. The entire amount of advance shall be recovered by the time 75%-80% work is completed and paid for. (Ref: Minutes of the meeting held on 15-12-2003 by the Principal Secretary to Govt., Fin (W&P) Dept., communicated by the DFA, Fin. (W&A) Dept. vide U.O. Note No. 3274/F.8(1)03, dt. 26-12-2003) 2.7.2: For works costing more than Rs. 50,00,000, condition of Milestones and Liquidated Damages has to be incorporated in the Agreement. (Ref: 1. G.O. Ms. No. 182 I&CAD Dept., dt. 27-9-1997, read with 2. G.O. Ms. No. 23 I&CAD (PW:Cod) Dept., dt. 5-3-1999, 3. G.O. Ms. No. 195 PR&RD (Prog.II) Dept., dt. 10-5-1999 & 4. G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) Note: The liquidated damages clause is applicable to all L.S. Contracts, irrespective of monetary value. (Ref: Minutes of the meeting held on 15-12-2003 by the Principal Secretary to Govt., Fin. (W&P) Dept., communicated by the DFA, Fin. (W&A) Dept. vide U.O. Note No. 3274/F.8(1)03, dt. 26-12-2003 2.7.3: ‘Arbitration’ clause is dispensed with for disputed value above Rs. 50,000 and they are to be settled in a court of law as a civil suit. 2.7.4: ‘Price Adjustment’ clause has to be incorporated for works costing more than Rs. 200 lakhs with completion period of more than 18 months and ‘Price Adjustment’ is not payable if the delay in completion of work is attributable to the Contractor. (Ref: G.O. Ms. No. 94 I&CAD (PW: Cod) Dept., dt. 1-7-2003)
Book – I : WORKS 33 2. Scrutiny of Agreements / Purchase Orders 2.7.5: ‘Defects Liability Period’ is two years for all original works; For works of ‘Special Repairs’ in nature falling under ‘maintenance’, the Defects Liability Period shall be one year; For annual maintenance works, no Defects Liability Period may be necessary, for which the Dept. should come with suitable proposal; For Water Reservoirs and Canals, the Defects Liability Period shall be for the period of water storage / supply atleast for one season. (Ref: 1. G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2. Minutes of the meeting held on 15-12-2003 by the Principal Secretary to Govt., Fin. (W&P) Dept., communicated by the DFA, Fin. (W&A) Dept. vide U.O. Note No. 3274/F.8(1)03, dt. 26-12-2003) 2.7.6: As against the L.S. Provision made in the Estimate towards Insurance, the reimbursement is to be allowed only on production of proof and is to be limited to the extent of actual premia paid and a condition to this effect is to be incorporated in the Agreement. Insurance should cover not only the period of time for completion of the work, but also upto the end of ‘Defects Liability Period’. (Ref: 1. G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003 2. Govt. Memo. No. 103971/F-8(1)/04-1, Fin. (W&P) Dept., 10-9-2004) Note: a) Insurance Policy has to be taken by the Agency at the time of concluding the Agreement and it should form part of the Agreement. No Agreement should be concluded without the Insurance Policy. (Ref: Minutes of the meeting held on 15-12-2003 by the Principal Secretary to Govt., Fin. (W&P) Dept., communicated by the DFA, Fin. (W&A) Dept. vide U.O. Note No. 3274/F.8(1)03, dt. 26-12-2003) b) The Insurance Policy should be obtained in the joint names of the Contractor and the Agreement-concluding authority and the original policy should be in the safe custody of the Division, so as to claim damages from the Insurance Company in the event of occurrence of damages to the work; c) The original policy need not be sent to PAO’s office for payment of reimbursement of premia, but only attested copy of the policy should be sent with the bill; however, original receipt issued for the premia paid shall be attached to the reimbursement bill (this prevents second claim on the same receipt). d) Where Extension of Time is granted for a work, the Insurance shall be got covered for such extended period plus the ‘Defects Liability Period’ thereafter and such further policy shall similarly (like the original
Book – I : WORKS 34 2. Scrutiny of Agreements / Purchase Orders one) be kept with the Department and attested copy of the same shall be sent to PAO’s office. 2.7.7: As against the L.S. Provision made in the Estimate towards Technical Agents, the reimbursement is to be allowed only on production of proof and is to be limited to the extent of provision made in the Estimate only and a clause to this effect is to be incorporated in the Agreement. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) Note: a) The yardsticks prescribed for employment of Technical Personnel are as follows: Cost of Work (put to tender) Scale of Technical Staff: From Rs. 50,000 to Rs. 1,00,000 1 – ITI Candidate; Between Rs. 1,00,000 & 1 – Diploma Holder; Rs. 5,00,000 Between Rs. 5,00,000 & 1 – Graduate Engineer (or) Rs. 15,00,000 2 – Diploma Holders; Above Rs. 15,00,000 1 – Graduate Engineer + 1 – Diploma Holder In case the Contractor himself is Diploma Holder / Graduate Engineer, no Technical Agent need be appointed for works costing upto Rs. 5,00,000 / above Rs. 5,00,000 respectively. (Ref: Govt. Memo. No. 1434/C-1/78-18, TR&B (C.1) Dept., 30-12-1980) a) Full Name, address, and Qualification of the Technical Agents employed by the Contractor shall be furnished (to ensure that the same personnel are not employed on some other work during the same period and also to regulate the reimbursement as per the yardsticks). b) If Technical Agents as prescribed are not employed, the recovery towards non-employment of Technical Agents shall be recovered from the Contractor’s bills at the rates prescribed / as given in the Agreement.
Book – I : WORKS 35 2. Scrutiny of Agreements / Purchase Orders 2.7.8: Clause towards recovery of VAT is to be included in the Agreement suitably duly indicating the rates, etc. as per the Act and as per the instructions issued in this regard. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003 read with VAT Act, 2005 and other instructions) 2.7.9: Clause towards recovery of Seigniorage charges is to be included in the Agreement suitably duly indicating the rates, etc. as per the orders issued by the Govt. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2.7.10: Clause towards recovery of contribution (entirely 0.25% to National Academy of Constructions) shall be included in the Agreement. (Ref: 1. G.O. Ms. No. 92 TR&B (B.I) Dept., dt. 19-5-1998; 2. G.O. Ms. No. 61 TR&B (R.III) Dept., dt. 11-4-2000; 3. G.O. Ms. No. 159 TR&B (R.III) Dept., dt. 30-10-2004) 2.7.11: Clause towards recovery of Income Tax plus surcharge / other charges at applicable rates (at the time of payment of bill) on the value of work done shall be included in the Agreement. 2.7.12: Quality Control Certificates shall be enclosed to bills and these certificates shall not be delayed and the Executive Engineers act as Quality Assurance Engineers and the Quality Control Engineers act as Quality Audit Engineers. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003) 2.7.13: No extra payment shall be made for bailing out of water, since the quoted rates of the contractor are inclusive of this item. 2.7.14: No re-handling charges shall be paid towards excavated materials due to injudicious selection of the place for dumping. 2.7.15: Over-lappings and chairs in Steel frame work shall not be allowed for payment. 2.7.16: All materials, like cement, steel, bitumen, pipes, etc. required in connection with the execution of a work shall be procured by the Contractor concerned only at his own cost and the rates in the Agreement shall be inclusive of the cost and conveyance of all materials and the procedure of procuring the materials by the Dept. is dispensed with. (Ref: G.O. Ms. No. 94 I&CAD (PW:Cod) Dept., dt. 1-7-2003)
Book – I : WORKS 36 2. Scrutiny of Agreements / Purchase Orders 2.7.17: For all works (excepting K-2 Contracts), the time within which the work should be completed shall be completed should be specified, along with penalties / liquidated damages to be imposed, requirement of Extension of Time, Revision of Milestones, etc., shall be stated clearly as per the orders of Govt. / appropriate authority issued from time to time. 2.7.18: In the case of Agreements, where the individual rates include tender premium, for such of the accepted rates which are abnormally high, i.e., more than 15% above the Estimate Rates, the full rates shall not be paid in intermediate bills since the Contractor is likely to leave and abandon the work after executing such beneficial items. So, in respect of such abnormally high rates, the part rates payable in intermediate bills shall be specified in the Agreement and the full rates shall be released only after completion of the whole work. 2.7.19: All Technical Specifications, Special Specifications, Preliminary Specifications of APSS, Methods of Execution, Labour Act provisions etc. are also included in the Agreement Conditions and necessary plans, designs, etc. are also appended to the Agreement. Note: Where LA @3% are provided in the Estimate, the labour amenities to be provided shall be included in the Tender schedules and Agreement. (Ref: G.O. Ms. No.125 I&CAD (PW: Cod) Dept., dt.5-8-2003) It should be verified whether the above from 2.7.1 to 2.7.19 are followed. 2.8.0: Purchase of Materials: In the case of purchase of materials for works or for stock, etc., the Rules made in Article 125 of APFC Vol. I shall be followed as briefly given below: 2.8.1: For purchase of materials costing upto Rs. 1,000, no tenders need be called for. 2.8.2: For purchase of materials costing upto Rs. 10,000 (and beyond Rs. 1,000), tenders / quotations shall be called for under ‘Limited Tender System’ (i.e., by calling for quotations from the approved list of firms) 2.8.3: For purchase of materials costing above Rs. 10,000, competitive tenders / quotations shall be called for by giving wide publicity by issue of Tender Notice and by publishing in two Newspapers if the cost involved is above Rs. 5,00,000.
Book – I : WORKS 37 2. Scrutiny of Agreements / Purchase Orders 2.8.4: In the case of purchase of items which are ‘proprietary’ in nature (i.e., the item concerned is solely manufactured / sold by only one firm in the country), no quotations / tenders need be called for. (Ref. for 3.3.1 to 3.3.4: Article 125 / APFC Vol.I and Rules and Instructions thereunder) 2.8.5: In the case of materials covered by ‘Rate Contracts’ approved by competent authority and in currency, no tenders / quotations need be called for and the Purchase Order can be placed on the firm concerned as per the terms and conditions of the Rate Contract. 2.8.6: When quotations / tenders are called for, the approximate quantity required to be supplied shall always be indicated for each item, so that the tendering / quoting firm considers the quantity to be supplied while quoting its rates. 2.8.7: Registration of VAT and furnishing of VAT Regn. No. is compulsory, wherever applicable. All the above from 2.8.1 to 2.8.7 shall be verified. 2.9.0: Scrutiny of Agreements by Internal Test Check Section (ITC) of JDWA: 2.9.1: The Agreements mentioned below, after scrutiny by the PAO along with his remarks, should be sent to the ITC section of the JDWA for scrutiny: i) All Agreements above Rs. 10 lakhs, where lowest tender is accepted; ii) All other Agreements of Rs. 2 lakhs i.e., other than those referred above; iii) All Supplemental Agreements in excess of Rs. 5 lakhs. 2.9.2: The scrutiny in the ITC section should be on the following lines: i) Whether the Agreement is in standard form; ii) Whether any of the Special conditions in the Agreement is of an extraordinary or unusual nature requiring the sanction of a higher authority or Govt.; iii) General scrutiny of rates; iv) comparative study with reference to other Agreements for similar works in other units, Divisions, etc.
Book – I : WORKS 38 2. Scrutiny of Agreements / Purchase Orders 2.9.3: Supplemental Agreements should be scrutinised very carefully, especially with regard to derivation of rates, change in specifications / classifications of soils, etc. 2.9.4: A Rates Ledger should be maintained in the ITC section for important items of work and the rates in several Agreements for items of similar nature should be compared. (Ref: Paras 13-5-1, 13-6-1 & 13-7-1 / PAO (WA) Manual) All the above from 2.9.1 to 2.9.4 shall be followed.
Book – I : WORKS 39 2. Scrutiny of Agreements / Purchase Orders
Book – I : WORKS 66 3. Execution of Public Works 3. EXECUTION OF PUBLIC WORKS: [As Applicable to all Engineering Depts., viz., I&CAD, R&B, NH, PR, & PH] [NB: 1. In G.O. Ms. No. 1174 PR (Prog.IV) Dept., dt. 19-12-1976, it is ordered that the provisions of APPW ‘D’ Code should be followed in PR Engineering Dept. wherever there are no specific rules and orders of PR Dept.; 2. In G.O. Ms. No. 132 PR (Prog. IV) Dept., dt. 2-2-1978, it is ordered that such of the orders issued by the TR&B Dept. from time to time in connection with works which involve amendments to APPW ‘D’ Code should be followed by the PR Dept. wherever the specific rules and orders of PR Dept. are not available in such matters.] 3.0: How Public Works are executed: 3.1: Date of signing the Agreement by the Contractor and the Departmental Officer concerned is reckoned as the start date of the work. 3.2: Copy of Agreement and Estimate are sent to the Section Officer concerned i.e., AE / AEE who is the initial recording Officer. Soon after receipt of the copy Agreement and Estimate, upon the orders of his higher authority and in consultation with and in the presence of the Contractor / his authorised Technical Agent, arrange for marking of the work in the site of work as per the plans and designs attached to the Agreement and he is assisted by Work Inspectors and other staff and also by the labour arranged by the Contractor for the purpose. 3.3: Soon after marking is over, the Contractor should commence the work as per the directions of the Departmental Officers. 3.4: The AE / AEE, being the initial recording Officer, shall record the work done on day to day basis in the form of measurements in the Measurement Books directly. Recording the measurements in papers / other books initially and then recording in the MBs later should not be done. For taking the measurements, he will take the assistance of his own Workcharged staff and the labour of the Contractor. He will obtain the signatures of the Contractor in the MBs at the end of each set of measurements of a day. 3.5: The instructions given in the MB shall be followed while recording the measurements. 3.6: Measurement of an item shall be recorded only for finished item of work, i.e., work done with all the operations as included in the standard data, e.g., cement plastering shall be recorded only after the requisite curing is done for the number of days specified in the special specifications, etc.
Book – I : WORKS 67 3. Execution of Public Works 3.7: Measurements should be recorded in the order of their actual execution. 3.8: Full description of every item should be recorded as found in the Agreement for every set of measurements recorded on a day. 3.9: The measurements include normally Length, Breadth and Depth and the contents constitute the multiplication of these three. 3.10: a) For several works, the work done can not be measured by using tape directly by length, breadth and depth because of undulations. For example, in the case of canal work the excavated quantities of earth, embankment, etc. can not be worked out directly in MBs. In all such cases, levels are taken by the field staff in separate books called ‘Level Field Books’ (L.F. Books). b) The levels are taken using Leveling Instrument. c) Levels taken before the start of the work constitute ‘Pre-levels’. d) After work is done (to the profile), levels are taken and these levels constitute ‘Final levels’. e) The final levels and pre-levels are plotted on ‘Section Sheets’ and quantities are calculated in ‘calculation statemens’. The LF Books, Section Sheets and Calculation Sheets are treated as ‘adjuncts’ to the Measurement Books. (Ref: Para 294 / APPW ‘A’ Code) f) The quantities so worked out in the ‘calculation sheets’ are taken to the Measurement Books and finally totals computed. g) While the levels are recorded in LF Books directly on the site, the process of computing the quantities in the calculation sheets and in the MBs finally is done later and so the actual date of recording of taking final levels shall be reckoned as the date of recording the measurements. h) Separate LF Books shall be maintained for Pre-levels and for Final levels. i) Each Officer, viz., AE/AEE / Deputy Executive Engineer / Superintending Engineer shall record in separate LF Books and the
Book – I : WORKS 68 3. Execution of Public Works DyEE / EE / SE are not expected to use the LF Books used by their Subordinates to record check levels during conducting checkmeasurement. 3.11: After the measurements are recorded, the DyEE / EE / SE shall checkmeasure the work done during their inspection of the work and record the same in the relevant pages of MB. 3.12: After reaching a stage, the AE / AEE will prepare the work bill: a) All quantities of an item are consolidated and brought to an abstact and Bill. b) The Bill is prepared by the AE / AEE as per the Agreement rates and final amount of the bill is arrived. c) Necessary certificates are recorded by the AE / AEE and the Bill is transmitted to the DyEE. d) The DyEE will check the bill through the Assistant of the Sub- divisional office, record necessary certificates (due at his level) and send to the Division. e) In the Division office, the bill is checked by the Divisional Accounts Officer (Works) through the Assistant and passed by the Executive Engineer duly affixing ‘pass order’ under his signature, recording necessary certificates (due at Divisional level) and send it to PAO’s office for payment. It should be seen that the above from 3.1 to 3.12 are followed by the Departmental Officers.
Book – I : WORKS 69 3. Execution of Public Works
Book – I : WORKS 69 4. Scrutiny of Work Bills / Other Work – related Bills 4. SCRUTINY OF WORK BILLS /OTHER WORK-RELATED BILLS: [As Applicable to all Engineering Depts., viz., I&CAD, R&B, NH, PR, & PH] [NB: 1. In G.O. Ms. No. 1174 PR (Prog.IV) Dept., dt. 19-12-1976, it is ordered that the provisions of APPW ‘D’ Code should be followed in PR Engineering Dept. wherever there are no specific rules and orders of PR Dept.; 2. In G.O. Ms. No. 132 PR (Prog. IV) Dept., dt. 2-2-1978, it is ordered that such of the orders issued by the TR&B Dept. from time to time in connection with works which involve amendments to APPW ‘D’ Code should be followed by the PR Dept. wherever the specific rules and orders of PR Dept. are not available in such matters.] 4.1.0: Recoding Measurements: 4.1.1: Date of recording of measurements shall be noted for every set of measurements recorded on a day. The full details of Name of Work, Estimate Amount, (+ Revised Estimate / Workslip Amount, if any) Technical Sanction No. (+ Approval No. of RE/ Workslip, if any, with approval date), Agreement No. (+ Supplemental Agreement Nos., if any,) Name of Contractor (with address), location of the work, etc. shall be furnished for every set of measurements recorded in a day. 4.1.2: All corrections or over-writings in the measurements shall be attested by the Checkmeasuring Officer concerned who conducts checkmeasurement of such set of measurements. Usage of erasing liquids / solutions for corrections in the measurements is barred. 4.1.3: Where measurements are cancelled, they should be attested and reasons should be recorded and orders of Divisional Officer, if any, should be noted. 4.1.4: All the lines (normally 16 / 17 lines) in a page in MB shall be used or filled in with the measurements (on the left hand side of the page only) and if any lines have to be necessarily left unfilled, then a diagonal line shall be drawn below the signature of the Recording Officer, so as to prevent insertion of any measurements later. 4.1.5: Only Metric System should be followed in recording measurements. 4.1.6: Only Section Officer is authorised to record the measurements (exceptions, if any, to be ordered by Govt., / competent authority). 4.1.7: The portion of measurements normally recorded under ‘L,B, & D’ Columns should not be meddled with / corrected by any clerk / Assistant / Officer, other than the
Book – I : WORKS 70 4. Scrutiny of Work Bills / Other Work – related Bills authorised Recording Officer, either in the sub-divisional / Divisional office or in PAO’s office. The Assistant concerned or the Draughtsman / AE / AEE in charge of the Drawing Branch in Divisional Office or the Senior Assistant / Auditor or Superintendent in PAO’s office are authorized to only correct the computation of the quantities (in ‘contents’ column or other) and totals / other calculations in the various statements. 4.1.8: Where measurements are to be recorded based on levels (e., Earthwork Excavation), the measurements in such cases shall be recorded in MBs with reference to the levels recorded in LF Books through Cross Section Sheets and after computation in the Calculation Statements. Where the measurements are based on levels, LF Books, C.S. Sheets and Calculation Statements which constitute adjuncts to MBs shall invariably be sent to PAO’s office (along with MBs and Bill) for check. (Ref for 5.1.1 to 5.1.7: Para 294 / APPW ‘A’ Code) 4.1.9: In the case of clearance of light jungle (where pre-measurements are recorded), a certificate to the effect that ‘light jungle has been cleared, removed, burnt and thrown outside the site of work’ should be recorded on the right hand side page of the MB against the pre-measurements after the light jungle is cleared and done completely and duly verified by the DyEE under his signature. 4.1.10: In the case of shrub jungle (where pre-measurements are recorded), a certificate to the effect that ‘the shrub jungle has been cleared, removed, burnt and thrown outside the site of work and it has no saleable value’ should be recorded on the right hand side page of the MB against the pre-measurements after the shrub jungle is cleared and done completely and duly verified by the DyEE under his signature. 4.1.11: In the case of heavy jungle (where pre-measurements are recorded), after carrying out its clearance, a certificate to the effect that ‘the wood / other materials have been taken to 7 F account for the month of ________ (with details of quantity so taken) should be recorded on the right hand side page of the MB against the pre- measurements and attested by the DyEE. 4.1.12: Pre-measurements for Hard Rock should be recorded and after removal, the quantities of the removed HR should be recorded by stacks duly deducting voids as prescribed / approved and the net quantity should be computed and compared on the right side of the page with the quantity as per pre-measurements. The entire quantity of HR so removed should be taken to 7F account and a certificate to the effect that ‘the quantity of HR _____ cum has been taken to 7F account for the month of ______ ‘ should be recorded on the right hand side page of the MB where measurements after removal of HR are recorded duly attested by the DyEE. 4.1.13: In the case of dismantled materials, like wood / steel obtained on dismantling of a building, HR boulders obtained during excavation of earthwork, etc.,
Book – I : WORKS 71 4. Scrutiny of Work Bills / Other Work – related Bills shall be taken to 7F account to the extent found and certified as useful and a certificate to the effect that ‘they have been taken to 7F account (duly specifying the quantity) for the month of _______’ should be recorded in MB and attested by the DyEE. 4.1.14: Allowances towards compaction, swell factor, shrinkage, wastage, etc. in respect of relevant items of earthwork shall be properly exhibited in the MB / CS Sheets / Calculations, etc. with due comparison for allowing payment for the correct (net) quantity. Similarly, in the case of road works, the collected quantities of gravel, metal, etc., shall be compared with the executed quantities after such materials are spread. 4.1.15: Where the variation in classification of soils (in canals of I&CAD) exceeds (+ / -) 10 %, the instructions issued in Govt. Memo. No. 1970-K2 / 72-11, PWD (PW) Dept., dt. 4-7-1974 should be followed and they are briefly indicated below: (i) Classification should be checkmeasured by the EE in all cases; (ii) EE can approve classification upto (+ / -) 10 % in each bay only (i.e., bay of length as defined in the said Agreement); (iii) if the variation exceeds (+ / -) 10 % in a bay, the classification should be verified by the SE. 4.1.16: As the rate in the Agreement is normally for finished item of work, care should be taken that the measurements are recorded only after that item of work is completed for the finished item of work, e.g., in the case of cement-involved item of work like concrete laying, it should be ensured that the requisite curing period (say 21 / 28 days as specified in the technical specifications / conditions, etc.) is over by the date of recording measurements for that finished item of work. 4.1.17: Quantities of trial pits are shall be deducted from Earthwork quantity, where necessary and MBs concerned should be made available for checking the same. 4.1.18: Where lump-sum provisions towards bailing out water are taken into account in the data / weighted average rates (at the time of computation of tenders), water levels from time to time should be recorded duly verified / checked by the checkmeasuring officers, viz., DyEE / EE / SE. 4.1.19: If overall measurements are recorded, deductions towards previously executed / paid quantities should be shown in detail, to ensure that there is no overlapping of the measurements that may result in excess payment. The term ‘Overall Measurements’ shall be distinctly noted on top of the measurements where they are recorded and necessary contra noting shall be made suitably against the previous measurements on the right side page of the MB.
Book – I : WORKS 72 4. Scrutiny of Work Bills / Other Work – related Bills It should be seen that the above 4.1.1 to 4.1.19 are followed and all the measurements are thoroughly checked and computed and the final quantities are correctly consolidated, after due correction (in Red Ink). 4.2.0: Billing: 4.2.1: When the work done is billed for, the total quantities of all items are brought to the ‘Abstract of Bill’ and the rates in Agreement are applied and amounts for each item and final amount of the entire work done upto the date is arrived at. While doing so, the quantities should be correctly brought forward, rates as in Agreement (Main / Supplemental) should be correctly taken and amounts / total of the bill should be correctly arrived at. 4.2.2: On top of the ‘Abstract of Bill’, the particulars given below shall be written up: i) Serial Number of Bill (say, LS II and Part Bill, etc.); ii) Name of Work (as per Technical Sanction); iii) Estimate Amount ( + Revised Estimate Amount, if ay); iv) Technical Sanction No. ( + Approval No. of Revised Estimate/ Workslip, if any ); v) Agreement No. & Date (+ Supplemental Agreement Nos. with date, if any); vi) Period of Completion as per Agreement; vii) Actual date of completion; viii) Extension of Time granted, if any, duly noting the date upto which it is granted, duly giving reference No. and date of the authority; ix) Head of Account to which charged (Also, indicate ‘Plan’ or ‘Non-Plan’); x) Details of EMD / FSD / ASD,etc, on the work. 4.2.3: While writing ‘Abstract of Bill’ in the MB, all items covered in the Agreement should be written up with full description as found in the Agreement. 4.2.4: Contra noting indicating page no. & MB No. in which all previous part bills are recorded shall be indicated in Red ink on top of ‘Abstract of Bill’ in the current Bill under process. Similarly, reference to page no. & MB No. in which the current bill is recorded should be noted in Red ink on top of all previous part bills. This procedure is intended to ensure that any previous payment of a bill is not lost sight of while preparing the current bill and to avoid overpayment. 4.2.5: The ‘Abstract of Bill’ recorded in the MB shall be signed by the DyEE and by the EE at the end. An extract of the ‘Abstract of Bill’ shall also be attached to the Bill Form (prescribed bill form) in support thereof duly signed by the DyEE and EE.
Book – I : WORKS 73 4. Scrutiny of Work Bills / Other Work – related Bills 4.2.6: Break-up of Main Estimate/Agreement quantity and excess/Supplemental quantity shall be exhibited separately in suitable manner in the ‘Abstract of Bill’, duly giving reference to serial item number of the Agreement (Main or Supplemental, as the case may be). 4.2.7: Any new / additional items covered by Supplemental Agreement and not contemplated in the original Agreement, shall be recorded in the ‘Abstract of Bill’ after recording all the items of the Main Agreement. 4.2.8: In the case of Final Bills (for L.S. Contracts and World Bank Aided / other Aided Work Contracts), after recording the ‘Bill of Abstract’, Statement showing ‘Authorised Extras and Omissions’ shall be recorded in MB and a copy of the same shall be drawn, signed by the SO, DyEE and EE and attached to the Bill form. It should be ensured that the above from 4.2.1 to 4.2.8 are observed. The quantities brought over, the rates adopted with reference to those given in the Agreements, amounts of each item and total of the bill, etc. should be checked entirely duly observing the above from 4.2.1 to 4.2.8. After such check in entirety, the Auditor concerned should affix endorsement as ‘Arithmetical Accuracy (A.A.) checked’ (in the ‘Memo of Payment’) under his dated initials. 4.3.0: Statements of Recoveries, etc.: Overall Statements showing the up-to-date position of theoretical requirement of materials, and also the overall position of recoveries towards IT, VAT / ST, Seigniorage Charges, Mobilisation Advance / Other Advance, Interest on such Advances, Liquidated Damages / Penalties / Fines, Hire Charges for machinery lent, NAC, etc. (listed below) shall be furnished in various separate statements, showing overall recovery to made under each kind of recovery, duly deducting the recovery of each kind already made upto previous bill and the balance amount to be recovered under each kind from the current bill shall be furnished for each bill and recorded in MB for effecting the recovery. Copies of these Overall Statements shall also be enclosed to every bill. The above overall position ensures regulation of any difference in recovery, if any, made in previous bills, so that ultimately correct recovery is made. Note: In addition to these statements, Schedules of Recoveries (separate chedule for each kind of recovery) showing the actual amounts recovered in the current bill, name of work, Agt. No., Name of Contractor, etc. as per the prescribed formats shall also be enclosed to every bill (these schedules are required in AG’s office for passing on the credits to the Dept. / head concerned.)
Book – I : WORKS 74 4. Scrutiny of Work Bills / Other Work – related Bills 4.3.1: Theoretical Requirement of materials: Statement of theoretical requirements of materials like cement, steel, bitumen, etc., shall be furnished for every bill in the MB & bill (though the supply of these materials by the Govt. is already dispensed with), they are to be furnished as per the instructions of the Department, in order to ensure quality and also to facilitate verification by any inspecting authority of the Department. Further, in the case of works where, ‘Price Adjustment’ clause is included, this may be necessary because the details of theoretical requirement of materials, quantities of these materials purchased from time to time with reference to the invoices produced, etc. shall have to be verified in the ‘Price Adjustment Bill’. 4.3.2: Seigniorage Charges: Statement of recovery showing details of theoretical consumption of seigniorage materials along with the seigniorage charges involved at the rates prescribed shall be furnished for effecting the recovery of the same from the bill. Note: a) For working out the quantities of seigniorage materials the data sheet shall be verified; It should be ensured that all the abstracted items are verified and covered. b) Where the seigniorage charges are already paid to the Mines and Geology Department at the time of obtaining the same if recovery is made again the bill it would amount to double recovery and in such cases, if the recovery is not proposed to be made from the bill the procedure outlined in the minutes of the meeting dt. 17-12-2003 by the Principal Secretary to Govt., Finance (W&P) Dept., communicated in Govt. Memo. No. 3961/F.8(1)/2003-1, Fin. (W&P) Dept., dt. 27-12-2003 read with the Minutes of the Meeting held on 15-3-2004 by the Principal Secretary, Finance (W&P) Dept., communicated in Govt. Memo. No. 3961/ F.8(1)/2003-8, Fin. (W&P) Dept., dt. 7-4- 2004 shall have to be followed. c) When borrowed earth / carted earth used as a filling material, e.g., used for banking, for filling berms / spoil banks / inspection paths, etc., the seigniorage charges shall continue to be recovered as per the Act and no exemption is to be allowed as per the Minutes of the meeting dt. 15-3-2004 communicated in Govt. Memo. dt. 7-4-2004 referred in (b) above; further, eventhough where such provision was not provided in the original Estimate, the recovery is compulsory and in such cases, necessary provision can be made in the Revised Estimate / Workslip as per the Minutes of the meeting dt. 17-12-2003 communicated in Govt. memo. dt. 27-12-2003 read with the Minutes of the meeting dt. 15-3-2004 communicated in the Memo. dt. 7-4-2004 referred in (b) above.
Search
Read the Text Version
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
- 41
- 42
- 43
- 44
- 45
- 46
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- 54
- 55
- 56
- 57
- 58
- 59
- 60
- 61
- 62
- 63
- 64
- 65
- 66
- 67
- 68
- 69
- 70
- 71
- 72
- 73
- 74
- 75
- 76
- 77
- 78
- 79
- 80
- 81
- 82
- 83
- 84
- 85
- 86
- 87
- 88
- 89
- 90
- 91
- 92
- 93
- 94
- 95
- 96
- 97
- 98
- 99
- 100
- 101
- 102
- 103
- 104
- 105
- 106
- 107
- 108
- 109
- 110
- 111
- 112
- 113
- 114
- 115
- 116
- 117
- 118
- 119
- 120
- 121
- 122
- 123
- 124
- 125
- 126
- 127
- 128
- 129
- 130
- 131
- 132
- 133
- 134
- 135
- 136
- 137
- 138
- 139
- 140
- 141
- 142
- 143
- 144
- 145
- 146
- 147
- 148
- 149
- 150
- 151
- 152
- 153
- 154
- 155
- 156
- 157
- 158
- 159
- 160
- 161
- 162
- 163
- 164
- 165
- 166
- 167
- 168
- 169
- 170
- 171
- 172
- 173
- 174
- 175
- 176
- 177
- 178
- 179
- 180
- 181
- 182
- 183
