Budget rule

1. Budgetary works - assigned works -
Deposit works, Budget - Rule 2 (XXIII)
& (XXVI) Chapter 3 of GFR 2017 , SOP
2/1 to 2/5 of CPWD works manual
2019, CGA – Heads of Accounts
By: Indrajeet Singh, EE(C), RTI, CPWD,
New Delhi

2. Rule 2 (definitions)
(xxiii) Primary unit of appropriation
• lowest accounting unit for appropriation
under major head, referred to in Rule 8 of the
Delegation of Financial Power Rules.
(xxvi) Re-appropriation
• Means the transfer of funds from one primary
unit of appropriation to another such unit esp.
at end of FY, based of Delegation of Fin
Power.

3. Rule 42 Financial Year
• Financial year of the Government shall
commence on Ist day of April of each year and
end on 31 st day of March of the following
year.

4. Rule 43 (1) Presentation of Budget to
Parliament
• In accordance with the provisions of Article
112 (1) of the Constitution, the Finance
Minister shall arrange to lay before both the
House of Parliament, an Annual Financial
Statement also known as the ‘Budget’
showing the estimated receipt and
expenditure of the Central Government in
respect of a financial year, before the
commencement of that year.

5. Rule 43 (2)
• The receipts and expenditure of the Railways
being a departmental commercial
organization form part of the Government’s
receipts and expenditure and are included in
the Annual Financial Statement. With the
merger of Railway Budget with the General
Budget, the Demands for Grants and the
Statement of Budget Estimates of Railway
shall also be part of the General Budget with
effect from 2017-18.

6. Rule 43 (3)
• The provisions for preparation, formulation and
submission of budget to the Parliament are
contained in Articles 112 to 116 of the
Constitution of India.
Rule 43(4)
• The Ministry of Finance, Budget Division, shall issue
guidelines for preparation of budget estimates from
time to time. All the Ministries/ Departments shall
comply in full with these guidelines.

7. Rule 44 The Budget shall contain the
following :
1.Estimates of all revenues expected to be raised
during the financial year to which the budget
relates.
2.Estimates of all expenditure for each
programme, scheme and project in the financial
year.
3.Estimates of all interest and debt servicing
charges and any repayments on loans in that
financial year.
4.Any other information as may be prescribed.

8. Rule 45 Receipt Estimates :
separately for each Major Head, with breakup, detailed
each Minor/subhead with past three year actual, item
wise breakup of all tax non tax revenue, major variation
should be supported by cogent(solid) reason, accounting
heads prescribed by dept with consultation with FM
Rule 46 = Non Tax revenue
Rule 47 = user charge (part of Non-Tax revenue), while
fixing user charges ensure return on capital investment
Rule 48 = dividend and profit (from RBI surplus)
Rule 49 = e portal for all Non Tax revenue, as BK

9. Rule 50 Expenditure
1. charged in nature, Article 112(3) of
Constitution
2. separates revenue vs capital
Rule 51: Demand for Grants (voted)
1. which require vote of LS
Rule 55: vote on Accounts, Article 116 of CoI

10. Rule 57 (1) Responsibility for control of
Expenditure
• The Departments of the Central Government
shall be responsible for control of
expenditure against sanctioned grants and
appropriation placed at their disposal.
• The control shall be exercised through the
Heads of Departments and other Controlling
Officers, if any, and Disbursing Officers
subordinate to them.
Rule 57 (2): No charged after expiry of Fin. Year

11. Rule 57 (3)
• No expenditure shall be incurred which may have the
effect of exceeding the total grant or appropriation
authorized by Parliament by law for a financial year,
except after obtaining a supplementary grant or
appropriation or an advance from the Contingency
Fund.

12. Rule 57 (4)
To have effective control over expenditure by the
Departments, Controlling and Disbursing Officers
subordinate to them shall follow the procedure as given
below:
For drawl money Drawing and Disbursing Officer shall
• Prepare and present bills for “charged” and “voted”
expenditure separately.
• Enter on each bill complete accounts classification
from major head down to the object head of account.
When a single bill includes charges falling under two
or more object heads, the charges shall be
distributed accurately over the respective heads.

13. • (c) Enter on each bill the progressive total of
expenditure up-to-date under the primary unit
of appropriation to which the bill relates,
including the amount of bill on which the entry is
made.
• (ii) All drawing and disbursing officers shall
maintain separate registers in Form GFR 5,
physically or electronically for allocation under
each minor or sub-head of account with which
they are concerned.

14. • (iii) On third day of each month, a copy of the
entries made in this register during the preceding
month shall be sent by the officer maintaining it,
to the Head of the Department or other
designated Controlling Officer. This statement
shall also include adjustment of an inward claim,
etc., communicated by Pay and Accounts
Officer directly to the DDO. If there are no
entries in the register in any month, a nil
statement shall be sent.

15. • (iv) The Controlling Officer will maintain a broadsheet in
Form GFR 6 to monitor the receipt of return prescribed in
foregoing sub clause.
• (v) On receipt of the returns from Disbursing Officer, the
Controlling Officer shall examine them and satisfy himself:
• (a) that the accounts classification has been properly given.
• (b) that progressive expenditure has been properly noted
and the available balances worked out correctly.
• (c) that expenditure up-to-date is within the grant or
appropriation, and
• (d) that the returns have been signed by Disbursing
Officers. Where the Controlling Officer finds defects in
any of these respects, he shall take steps to rectify the
defects.

16. • (vi) When all returns from Disbursing Officer for a particular
month have been received and found to be in order, the
Controlling Officer compile statement in Form GFR 7, in
which he shall incorporate-
• (a) total of figures supplied by Disbursing Officers.
• (b) totals taken from his own register in Form GFR 5.
• (c) totals of such adjustments under the various
detailed heads as communicated to him by Accounts
Officer(FO) on account of transfer entries and
expenditure debited to grant as a result of settlement
of inward account claims and not reckoned by his
DDOs.

17. • (vii) If any adjustment communicated by the
Accounts Officer affects the appropriation at the
disposal of a subordinate Disbursing Officer, the fact
that the adjustment has been made shall be
communicated by the Controlling Officer to the
Disbursing Officer concerned.
• (viii) On receipt of all necessary returns, the Head of
the Department shall prepare a consolidated
account in Form GFR 8, showing complete
expenditure from the grant or appropriation at his
disposal upto the end of the preceding month.

18. Rule 57(5)
• The Head of the Department and the
Accounts Officer shall be jointly responsible
for the monthly reconciliation of the figures
given in the accounts maintained by the Head
of the Department with those appearing in
the Accounts Officer’s books.

19. Rule 58
• maintain liabilities register to effectively
control expenditure
Rule 59
personal responsibility of HoD/controlling
savings/excess

20. Rule 61 Excess Expenditure
• The Accounts Officer shall not allow any
payment against sanctions in excess of the
Budget provision unless there is specific
approval of the Chief Accounting Authority.
• The Financial Advisers and Chief Accounting
Authority, before according concurrence for
excess under any Head, shall ensure
availability of funds through Re-
appropriation/ Supplementary Demands for
Grants.

21. Rule 62 (1)
• surrender of Savings : by dates prescribed by
FM, FM communicates surrender acceptance

22. Rule 62(3)
• Rush of expenditure, particularly in closing months of the
Financial year, shall be regarded as a breach of financial
propriety and shall be avoided. The Financial Adviser of
the Ministries/Departments shall ensure adherence to the
stipulated Monthly Expenditure Plan and the guidelines
issued in this regard by the Budget Division, Department of
Economic Affairs, from time to time.
Rule 62(4)
• adherence to Quarterly Expenditure Plan

23. Rule 63 Expenditure on New Service
• No expenditure shall be incurred during a
financial year on “New Service” not
contemplated in Annual Budget for the year
except after obtaining a supplementary
grant or appropriation or an advance from
the Contingency Fund during that year. The
guidelines to determine cases of “New
Service”/ “New Instrument of Service” are
contained in Annexure-1 to Appendix-3.

24. Rule 64 (2)
• A Disbursing Officer may not, on his own authority,
authorize any payment in excess of the funds placed
at his disposal. If the Disbursing Officer is called upon
to honour a claim, which produce excess over
allotment or appropriation at his disposal, he shall
take orders of administrative authority to which
he is subordinate before authorizing payment of
the claim in question. The administrative authority
shall then arrange to provide funds either by re-
appropriation or by obtaining a Supplementary
Grant or Appropriation or an advance from the
Contingency Fund. Instructions contained in Note
below Appendix 10 may also be kept in view.

25. Rule 65(1) Re-appropriation of Funds
• Subject to the provisions of Rule 10 of
Delegation of Financial Powers Rules, and also
subject to such other general or specific
restriction as may be imposed by the Finance
Ministry in this behalf, re-appropriation of funds
from one primary unit of appropriation to
another such unit within a grant or
appropriation, may be sanctioned by a
competent authority at any time before close
of FY to which such grant or appropriation
relates. The Primary unit in this regard shall be
the final unit of appropriation i.e.the Object head
of account.

26. Rule 66 Supplementary Grants
• If savings are not available within the Grant
to which the payment is required to be
debited, or if the expenditure is on New
Service or New Instrument of Service not
provided in the budget, necessary
Supplementary Grant or Appropriation in
accordance with Article 115(1) of CoI shall be
obtained before payment is authorized.

27. Rule 67 (1) Advance from Contingency
Fund
• When a need arises to incur unforeseen
expenditure in excess of the sanctioned grant or
appropriation or on a new service not provided
in Budget and there is not sufficient time for
voting of Supplementary Demand and the
passing of the connected appropriation bill before
close of the financial year, an advance from the
Contingency Fund set up under Article 267(1) of
the Constitution shall be obtained before
incurring the expenditure.

28. Rule 67 (4)
• The procedure for obtaining an advance from
the Contingency Fund and recoupment of the
Fund shall be as laid down in the
Contingency Fund of India Rules, 1952, as
amended from time to time. For ready
reference, rules have been placed at
Appendix-6 to this volume.

29. Rule 68 Inevitable Payments
• Subject to the provisions of Article 114 (3) of
the Constitution, money indisputably
payable by Government shall not ordinarily
be left unpaid.
• Suitable provision for anticipated liabilities
shall invariably be made in Demands for
Grants to be placed before Parliament.

30. Rule 70 Duties and Responsibilities of
the Chief Accounting Authority.
• (i) be responsible and accountable for financial
management of his Ministry or Department.
• (ii) ensure that the public funds appropriated to the
Ministry or Department are used for the purpose for
which they were meant.
• (iii) be responsible for the effective, efficient, economical
and transparent use of the resources of the Ministry or
Department in achieving the stated project objectives of
that Ministry or Department, whilst complying with
performance standards.
• (iv) appear before the Committee on Public Accounts
and any other Parliamentary Committee for
examination.

31. • (v) review and monitor performance regularly of
the programmes and projects assigned to his
Ministry to determine whether stated objectives are
achieved.
• (vi) be responsible for preparation of expenditure
and other statements relating to his Ministry or
Department as required by regulations, guidelines or
directives issued by Ministry of Finance.
• (vii) shall ensure that his Ministry or Department
maintain full and proper records of financial
transactions and adopts systems and procedures
that shall at all times afford internal controls.

32. • (viii) shall ensure that his Ministry or Department
follows the Government procurement procedure
for execution of works, as well as for procurement of
services and supplies, and implements it in a fair,
equitable, transparent, competitive and cost
effective manner.
• (ix) shall take effective and appropriate steps to
ensure his Ministry or Department:-
• (a) collects all moneys due to the Government and
• (b) avoids unauthorized, irregular and wasteful
expenditure.

33. CPWD Work Manual-2019
SOP No 2/1: Preparation of Budget
1. Circulation of format and orders by Director
(Finance), CPWD to field formations.
2. Divisional heads fill the format online and submit to
circle office.
3. Circle office scrutinize and takes approval of Chief
Engineer and forwards the same to Director
(Finance).
4. Director (Finance) finalize Budget in consultation
with Financial Advisor, MoHUA and submits to
MoHUA for inclusion in the total demands of
MoHUA.

34. SOP No 2/2: Addition of New Instruments of Services/
Works in the mid of Financial Year.
1. Circulation of format and orders by Director (Finance),
CPWD to field formations for demand of NS/NIS/New
Works for inclusion in the Detailed Demand of Grants
(PINK BOOK).
2. Concern Chief Engineer prepares the item and
forwards the same to Director (Finance) with fund
requirement plan.
3. Director (Finance) finalize item in consultation with
Financial Advisor, MoHUA and submits to MoHUA for
inclusion of item in work annexure and fund
demands of MoHUA. This may require to get
supplementary demands approved by Parliament.
New Services = which are not informed to parliament earlier
Relatively large NS = NIS

35. SOP No 2/3: Submission of PE/RE for grant of A/A and E/S for
Capital Works of GPRA/GPOA Scheme funded through MoHUA
Grant
1. PE is prepared by Division/Zone and submitted to DDG (Works)
/ADG(TD), CPWD in prescribed format.
2. After technical scrutiny, it is forwarded to Director (Finance),
CPWD for Financial Scrutiny and observations on all technical
matters which have financial implications or as per guidelines of the
Ministry.
3. If estimate is <Rs. 5.0 Cr or as notified from time to time by CPWD
Directorate, concurrence of Director (Fin), CPWD and approval of
DG, CPWD is sufficient.
4. If estimate is Rs.5.0 - 20.0 Cr or as notified from time to time by
CPWD Directorate, concurrence of IFD, MoHUA through Director
(Fin) would be obtained approval of DG, CPWD is sufficient.
IFD = Integrated Finance Division
1. If estimate is >Rs. 20.0 Cr or as notified from time to time by CPWD
Directorate, concurrence of IFD, MoHUA through Director (Fin)
would be necessary and approval of competent authority i.e.
Secretary (HUA) /Hon’ble Minister, HUA/SFC would be
required.

36. SOP No 2/4 :Re-appropriation proposal in CPWD under Rules prescribed in DFPR
(Refer Para 2.22 )
1. Demands of additional budget or NIS/ NS is submitted by Chief Engineer
to Director (Finance),CPWD.
2. Director Finance examines demands, if it can be funded directly or needs
Re-appropriation.
3. Director Finance examines the demand if it can be funded by re-
appropriation within Ministry or it needs MoF approval or it needs to be
converted into Supplementary Demands.
4. As per requirement, Re-appropriation/ Supplementary demands are
prepared by Director(Finance) and submitted to DG, CPWD for approval and
onward submission to MoHUA.
5. Financial Advisor, MoHUA finalizes demands with approval of Secretary
HUA and the same is submitted to MoF for inclusion in total demands of
MoHUA.
6. After approval of Re-appropriation or supplementary funds will be
provided to the field formation by Director (Finance).

37. SOP No 2/5 :Submission of Audit paras relating to Internal Audit/
CAG Audit/ PAC, etc. (Refer Para 2.27.1)
1. Circulation of format and orders by CAC/ Director (Finance)
to RAC, SRAC & ZAC in the field formations.
2. RAC, SRAC and ZAC holds meeting at a frequency pre
decided and gets these formats for Audit para monitoring filled
properly.
3. Divisional heads fill format online & submit to Circle office.
4. Circle office scrutinizes and takes the approval of Chief
Engineer & forwards same to SRAC.
5. SRAC after vetting submit the same online to RAC and RAC
in-turn submits it to CAC.
6. Director (Finance) in consultation & approval of DG, CPWD,
forwards the CAG/ PAC parareply, to CAG/PAC Secretariat.
sub regional , CM CAC = DG, S=ADG, RAC = SDG, ZAC = CE

38. Timely Disposal of receipt and
monitoring of Parliamentary Questions
• Time limits will be fixed for disposal of as many
types of cases as possible handled in the
Department through departmental instructions.
As a general rule, no official shall keep a case
pending for more than 7 working days unless
higher limits have been prescribed for specific
types of cases through departmental instructions.
• In case of a case remaining with an official for
more than the stipulated time limit, an
explanation for keeping it pending shall be
recorded on the note portion by him.

39. • For timely disposal and monitoring of
Parliament Assurances, Parliament Questions
etc. department shall maintain separate
records of such cases.
• E-Governance methods, suiting to the
requirements, should also be adopted for
monitoring and tracking of government work.

40. CGA - Heads of Accounts
Under Article 150 CoI, president on advice of CAG, make rules.
Part I - Consolidated Fund Major Head
Code Nos.
Section I Receipt Heads (Revenue Account) 0020-1999
Expenditure Heads (Revenue Account) 2011-3999
Section II - Receipt Head (Capital Account) 4000
Expenditure Heads (Capital Account) 4046-5999
Section III Public Debt, Loans & Advances 6001-7999
Part II - Contingency Fund
8000
Part III - Public Account
8001-8995

41. Funding of Projects/Works
The various modes for funding of Project/ works are as under:
(1) By Letter of Authorization: The budget is received through the Pay
and Accounts Officer of client department. The PAO of
CPWD/MoHUA is authorized by the PAO of the client
Department for charging the expenditure to the Heads of Account
operated by respective Ministries. This mode is adopted for
transfer of funds from one department of government of India to
other.
(2) Budgeted works: In this mode, outlay is provided from the financial
estimates and accounts of the Union of India that are laid before
and voted by both the Houses of Parliament through Ministry of
Housing & Urban Affairs.
(3) Deposit: This mode is adopted for the works of State governments,
local bodies, PSUs, autonomous organisations etc.

42. Funding of Projects/Works
(4) CSSA-Cash Settlement Suspense Account: In this mode of
funding, the funds are made available after carrying out
the work and are now followed only for works pertaining
to the Cabinet Secretariat, and the Ministry of Defence.
The expenditure is booked by CPWD first in suspense
account and then the bill is raised on the client against
which payments are made by the client and the suspense
account is cleared. LOC for this is also given by CCA(Chief
Controller of Accounts) against assurances given by clients.
(5) Funding by foreign countries: This system is followed when a
project executed in India is completely funded by foreign
countries.

43. Deposit works.
Works of construction or repairs and maintenance, the cost
of which is met out of Government grants to autonomous
or semi-autonomous bodies or institutions through their
Administrative Ministries, or is financed from non-
Government sources wholly or partly from :
(a) Funds of public nature, but not included in the
financial estimates and accounts of the Union of India
or
(b) Contributions from the public.

44. Deposit works.
Deposit Works
The Pre-construction activities in the case of Deposit works are similar to
activities under Normal works with the following important provisions.
(1) Officers of CPWD shall have full powers to undertake deposit
works upto their delegated powers to accord T/S given in
“Compendium of Financial Powers Delegated to CPWD
Officers” for works fully funded by Central and/or State Govt.,
including for PSUs,Government funded Institutions etc.
(2) Before acceptance of any deposit, the competent officer shall
send the preliminary estimate to the client department.
(3) The norms regarding plinth areas and specifications adopted
will be as approved by the client department.
(4) The scope of work shall not be altered either during
preparation of DE or execution, without written permission
of the client.

45. Deposit works.
(5) MOU as per Annexure -4 of SOP document shall be drawn with
client before taking up work. ADG/SDG/or any other
authority designated by CPWD Directorate may approve
modifications in the MOU as per the site conditions and
project requirements by following GFR provisions and other
rules issued from time to time.
(6) For multiple small works under one client, a combined MOU can
be signed as per the requirement.
(7) Estimates of fees of Private Architect/ Consultant to be added
in estimate only if estimate for deposit works does not include DC
or not included in DC.
(8) If specific provision is not available in the sanctioned estimate, then
separate enabling estimate is to be submitted to client for fees of
Architect/Consultant.
(9) Details for Execution, realization of deposits and settlement of
accounts of Deposit works are given in SOP 3/6.

46. Deposit works.
SOP No 3/6: Deposit Works
1. Realization of Deposits
(i) Whenever a deposit work is to be undertaken, the deposit is
realized before any liability is incurred on the work.
(ii) In the case of deposit works of autonomous bodies which are
financed entirely from Government grants, and from whom
receipt of deposits is assured, 33-1/3% of estimated
cost of work or 10% of the estimated cost of the work, is got
deposited in advance at the time of issue of A/A & E/S &
balance amount i.e.23-1/3% of estimated cost of the work is
got deposited before award of work. Thereafter, the
expenditure incurred is got reimbursed through monthly
bills simultaneously with rendering of monthly accounts on
the progress of work.

47. Deposit works.
(iii) The deposit of 33-1/3% obtained as mentioned above is retained for
adjustment against last portion of the estimated expenditure.
(iv) Where delays experienced in obtaining deposits, and where
expenditure has to be incurred out of the 33-1/3% reserve to
keep works going, the matter is brought to the notice of T/ S
authority promptly for taking up the matter with the client.
(v) Whenever the expenditure is anticipated to exceed the A/A and E/S
amount, a revised preliminary estimate is submitted to the client
well in time during the execution of work.
(vi) Where a client has defaulted in making the required deposit, and
where the outstanding amount exceeds Rs.10 lakhs, or where
the works outlay is predominantly for purchase of capital
equipment and machineries, the entire deposit including
departmental charges is realized in advance.

48. Deposit works.
(vii) In no case deposits received from a client department for its work is
diverted to other works. No expenditure is incurred on deposit
works out of CPWD grants and vice-versa.
(viii) An acknowledgement that CPWD not bind itself to complete work
within the amount of the preliminary estimate, and that they
should agree to pay for excess expenditure that may occur is
obtained from client before deposit work is taken in hand.
(ix) The Engineer in Charge should ensure that at any time during progress
of work, expenditure is not more than the deposits received for the
work. Where the E-in-C is doubtful about the timely receipt of
deposits, he/she should notify the client that if further deposit is
not received, the work would be stopped, and any contractual
liability arising out of such stoppage of work is borne by client.
He/she should also bring this to the notice of his/her higher
officers for taking up the matter with the client.

49. Deposit works.
(x) While submitting preliminary estimates for deposit works for
obtaining administrative approval and expenditure sanction, a
draft MOU as per Annexure-4 is submitted along with the PE
to the Client.
2.Transfer of Deposits
(i) It is incumbent on the part of the Civil/Electrical/Horticulture
Divisions to transfer deposit to the concerned
Electrical/Civil/Horticulture Divisions a part of the same in
proportion of the sanctioned component of
E&M/Civil/Horticulture works as per the sanctioned estimate.
(ii) This transfer of deposit is made at an appropriate stage so that
at no stage the progress of work is hampered for want of
transfer of deposit .

50. Deposit works.
3.Execution of Deposit Works and Settlement of Accounts.
(i) The scope of work is not to be altered without written
permission of the client.
(ii) The Engineer in Charge sends to the T/S authority
every month the Statement of Expenditure in
Form CPWA 65 A along with the Schedule of
Deposit Works in Form CPWA 65, for onward
transmission to the concerned client after
verification.
(iii) The Engineer in Charge settles the accounts
against the deposit works expeditiously so that
the amount does not remain unsettled for long.

51. Cases & scenario

52. Works of Inescapable Nature
Various works of inescapable nature can be classified as under:
(1) Emergent works
These are emergency works which arise all of sudden & are of inescapable
nature requiring immediate action that cannot brook any delay
like :
(i) Natural calamities like Earthquakes, Blizzards(snowstorm),
Hurricanes/ Lightning, Tornados, Tsunami waves, Floods.
(ii) Other causes like Explosions/Arson(deliberate fire), Fire, War, Sudden
collapse of building/bridge, Terrorist attack, Mass strike affecting
civic services such as water, sewer & power supply, Spread of
epidemic, works required for maintaining law and order.
(iii) Restoration of essential services in case of accidents/ break down
etc.
(iv) Ceremonial functions at time of death of President/Ex President, Vice
President/Ex Vice President and Prime Minister/Ex Prime Minister.

53. Works of Inescapable Nature
(v) Restoration of services in Parliament, President/ Vice President
House/ Prime Minister House, Prime Minister’s Office, Hyderabad
House, National Security Council Secretariat and other Buildings of
National importance and prestige.
(vi) Works ordered by OSD(officer on special duty)/PS to PM, OSD to Dy PM
and Vice President Secretariat to be executed by CPWD within a
specific time frame.
(vii) Works on a specific reference from the Secretariat to President of
India.
(viii) Critical Hospital services works on requisition from Medical
Supdt. or equivalent.
(ix) Works on the specific reference from Chief of Protocol, Min of
External Affairs or on his behalf for Hyderabad House, New Delhi.
(x) Any other work, apart from the above, declared as Emergent by the
CE/ any other Authority designated by the CPWD from time to time.

54. Works of Inescapable Nature
The Engineer in Charge as per his competence shall proceed to carry out the
necessary work and shall immediately intimate PAO concerned that such
liability is being incurred with approximate amount of liability. The
competent officer should initiate action for the A/A&E/S & accord of T/S (if
applicable) to regularize the liability.
Such emergent works can be executed without call of tenders by issuing work
order or on hand receipt after collecting spot quotations as per delegation
of powers given in “Compendium of Financial Powers Delegated to CPWD Officers”.
Spot quotations shall be collected by officers not below the level of
AE/AEE.
(Normal works which require compressed schedule for completion/early start should not
be considered as Emergent works)

55. Works of Inescapable Nature
(2) Urgent Works:
The urgent works need not to be treated at par with works to be taken up under emergency
situations. These are works which requires early start/completion within compressed
schedule and are to be taken up on top most priority at the instructions of competent
authority or on specific request of the user department. Under these situations availability of
funds needs to be ensured before taking up execution of such works. Engineer in Charge
shall be responsible for assessing the urgency of the work. Normally, unless situation warrants
otherwise, work orders shall be placed after open call of quotations with publicity through
web for works upto Rs 5 lacs. Quotations for works with estimated cost more than Rs. 5 lacs shall
be invited through e- tendering platform. In case of exigencies, with recorded reasons, the
urgent work may be executed by collecting spot quotations as per delegation in “Compendium
of Financial Powers Delegated to CPWD Officers”. In case of Deposit works, urgent works
can be taken up on written request of the client.

56. Charged Expenditure
(1) All expenditure connected with the satisfaction of decrees of Courts is to be
treated as ‘Charged’ expenditure for payment of award on budgeted works.
The payments made in satisfaction of Court decrees etc., in following cases will
not, however, be treated as ‘Charged’ expenditure:
(a) (i) Payment of awards under Land Acquisition Act.
(ii) Payment of compensation under the Workmen’s Compensation Act, 1923.
(iii) Payment of awards by Arbitrators under Arbitration and Conciliation
Act, 1996.
(iv) Payment by Arbitrators under Industrial Disputes Act, 1947.
(b) Payments involving refunds of revenue and security deposits lodged by
the contractor and kept in the Public Accounts.

57. Charged Expenditure
(2) In case of (a) above, the payments should be made out of the Voted portion of
the grants. In respect of (b), payments should be treated as refunds of revenue
and adjusted as deduction from the respective heads provided the original
recoveries were treated as receipts and adjusted under the receipt heads of
accounts. Where ever recoveries were adjusted as deductions from
expenditure, the refunds of such recoveries under orders of the Court etc.
should be treated as ‘Charged expenditure’.
(3) Refunds of Security Deposits should be debited to ‘Public Accounts’ if the
same is kept in that account. On the other hand, if deposit has been forfeited,
the refund should be treated as ‘Charged Expenditure’.

58. Charged Expenditure
(4) In cases where an appeal is filed against the decree in lower Court and the decreed
amount is deposited in the Court as security for staying execution of decree, the
same should be kept initially as a ‘Deposit’ in the Public Accounts. Later on, if the
amount is refunded as a result of the Court’s order, then the expenditure will be
charged in accordance with (1) and (2) above.
(5) In case of deposit works, awards should be charged to work in all cases (whether
deposit balances are available or not) & adjustments in accounts made later on.
(6) Where decrees/awards are normal feature, Ministries/Departments may include
provisions for likely payments during a year on the basis of the past trends and other
information available with them at the time of framing estimates. If this provision
proves inadequate, it may be supplemented by a Supplementary Appropriation
or in the case of an immediate payment, by an advance from the Contingency
Fund of India.

59. Excess Over A A & E S
(1) For Deposit works and works on letter of authorization, revised estimate be
submitted for works having expenditure in excess of 10% of A/A & E/S
amount.
(2) No excess expenditure over the A/A & E/S amount is permissible without
approval of client and therefore before incurring excess expenditure the
client will be informed and approval taken for same.
(3) In case of MoHUA budgetary works, expenditure in excess up to 10% of
amount of the A/A & E/S may be authorized by officers of the CPWD, provided
that the total amount of expenditure including the excess is within
the powers of the officer to accord technical sanction.

60. Occupancy Certificate & As Built Drawings
(1) The Engineer-in-Charge shall obtain the Occupancy Certificate, wherever
required, from local bodies with the help of concerned Architect/Consultant
before handing over of buildings for the budgeted works.
(2) For all works, the Engineer in Charge shall also ensure that all the “Completion /As
Built” drawings of services i.e Water supply, Drainage, E & M services are
handed over to the Client as well as to the maintenance unit invariably. In
case consultant is engaged, the responsibility will be as per the agreement
signed between the Engineer in Charge and the Consultant but overall
responsibility will be of the Engineer in Charge.
For deposit works, responsibility will be as per the MoU.

61. Quality assurance
Introduction
(1) The Quality Assurance activity has to ensure a progressively improved and uniform
quality of the finished work. In order to achieve this, the pre-requisites cover among
other things, an inbuilt provision in the contract for a system of continuous check on
quality by the field staff and the contractor, availability of adequately manned and
equipped agency for overseeing the quality aspects, and periodical appraisal of
quality and a system of feedback for effecting possible improvements.
(2) The NIT Approving Authority has to ensure through contract conditions that the
Concept of Total Quality Management (TQM) is in-built in the work delivery system
for which everyone shares well defined responsibilities.
(3) For budgeted works, engagement of TPQA agency will be done for the works above Rs
20 crores or as per the directions issued from time to time by the CPWD Directorate.
For Deposit works, TPQA provisions will be made as per MOU. For all other contracts
where no TPQA is engaged, the existing QA units of CPWD or as notified from time to
time shall carry out the Quality Assurance checks on random basis. Details are given
in SOP 7/2 which may be referred.

62. Quality assurance
SOP No. 7/2 : Quality Assurance and Technical Audit Wing (Refer Para 7.2)
The various steps regarding quality assurance & technical audit are to be followed as
below:-
1.Minimum Quality Assurance Plan
(i) Minimum Q.A. Plan is have to be part of tendered document for all the
works costing more than Rs. 2 crore, and for works not exceeding Rs. 2
crore or as intimated from time to time by CPWD Directorate, the
Technical Sanctioning Authority may provide this clause in the NIT
considering its necessity.
(ii)Lot size, number of required tests and frequency of testing needs to be
clearly indicated inQA Plan. Volume of work, Practical Difficulties and Site
Conditions etc. may also be kept inview and lot size, number of tests and
frequencies of testing is varied suitably by NIT Approving Authority
(iii)It clearly indicates the Machinery and other Tool & Plants required to be
deployed at site by the contractor.

63. Quality assurance
(iv) Requirement to setup field laboratory is defined. All the testing
equipments to be arranged by the contractor is clearly mentioned by the
NIT Approving Authority . A list of field equipments for typical field
laboratory is given in Annexure -53 & 53A.
(v)All the relevant and applicable codes, specifications and standards, as well
as the acceptance criteria for various items of work, workmanship,
materials and process employed needs to be mentioned.
(vi) A proper shuttering schedule showing quantity of shuttering to be brought
at site either in one lot or at different stages of work forms part of QA Plan.
(vii) Maintenance of Register of Tests -
(a)All the registers of tests carried out at Construction Site or in outside
laboratories is maintained by the contractor which is issued to the
contractor by Engineer-in-charge.

64. Quality assurance
(b) All Samples of materials including Cement Concrete Cubes is taken
jointly with Contractor by JE and the field officers as per percentage
decided by the NIT approving authority and stipulated in the NIT. All
the necessary assistance is provided by the contractor. Cost of sample
materials is to be borne by the contractor and he/she is responsible
for safe custody of samples to be tested at site.
(c) All the test in field lab setup at Construction Site is carried out by the
Engineering Staff deployed by the contractor preferably.The
percentages of tests to be witnessed by the field officers are to be
decided by the NIT approving authority and stipulated in the NIT
keeping in view the nature of work and should form part of QA Plan.

65. Quality assurance
(d) All the entries in the registers are made by the designated
Engineering Staff of the contractor and same is regularly reviewed by
the field officers as well as the Engineer in Charge(e). Contractor is
responsible for safe custody of all the test registers.
(viii) Proforma for Mandatory tests as per Annexure-54 is attached with each
Running bill. Submission of copy of all test registers and material at site
register along with each alternate Running Account Bill and Final Bill is
mandatory. These registers are duly checked byAE(P) in Division Office and
receipts of registers should also be acknowledged by Accounts Officer by
signing the copies and register to confirm receipt in Division office.
If all the test registers and MAS register are not submitted along with
each alternate R/A Bill & Final Bill, it is responsibility of Engineer in charge
& concerned accounts unit to ensure that no payment is released to the
contractor.

66. Quality assurance
(ix)Maintenance of Material at Site (MAS) Register -
(a)All the MAS Registers including Cement and Steel Registers is
maintained by Contractor which is issued to the contractor by
Engineer-in-charge.
(b)Each of the entry of receipt of material at site is 100% test checked by
JE or by AEif there is no JE.
(c)Each MAS Register is checked by JE at least twice a week and at least
once a week by AE. If There is no JE then MAS registers is checked by
AE at least twice a week.
(d) Cement Register is reviewed by EE at least once in a month.
(x)The work so measured, checked and paid is of the required quality and
standard, both in respect of ingredients as well as the intended functions it
is supposed to perform. In other words, the work would not two is meet
the required specifications and also the workmanship as per sound
engineering practices.

67. Quality assurance
(xi)Minimum QA plan may vary work to work basis depending upon nature
and volume of work.
(xii)The Superintending Engineer is also have to check and sign compliance of
the quality assurance plan for the original/ major work costing above Rs. 10
crore before every alternate running account bill. The Superintending
Engineer is not be absolved of his/her responsibilities to ensure that the
quality assurance plan is complied within every work under his/her charge.
It is his/her responsibility to locate the lapses or deficiency and take
suitable action if the quality assurance plan is not implemented in spirit
and action by the field officers.

68. Disposal of Purely Temporary Structures
(1)The Engineer in charge shall have full powers for fixing the reserve
price of the purely temporary structures erected during the
construction of a work after its purpose has been served.These
temporary structures shall be sold or dismantled/auctioned by the
Engineer in Charge,taking into consideration the life and condition of
the structure and other local conditions.
(2)For such temporary structures constructed in “Deposit works” it
will be up to the client either to retain or get them disposed

69. Expenditure on Exhibitions & Inaugurations
The CPWD officers are delegated powers to sanction such
expenditure upto a limit as given in“Compendium of Financial Powers
Delegated to CPWD Officers” on each occasion. This expenditure shall
be met from the contingencies of the work concerned, as the case
may be.However, for deposit works, such expenditure shall be
incurred with the approval of the client.

70. Deviation on Tendered Amount
(1)The completion cost of any maintenance works shall not exceed 1.25
times of tendered amount and 10% of the sanctioned cost for
Budgeted works. The Engineer in charge shall record reasons for such
deviation beyond the contract amount. For any deviation beyond
1.25 times of the contract amount, approval is to be accorded by the
CE or any other authority as designated by the Directorate from time
to time . Recorded reasons shall be given while according approval.
(2)For Deposit works & works on letter of authorization, completion cost
shall not exceed theA/A & E/S amount without prior approval of the
client and availability of funds.

71. Specialized works
For pre-construction activities in case of Specialized works are similar to activities under
Normal works with the following important provisions.
(1) Tenders for all Specialized Works shall be invited in Two/Three Bid system from
specialized agencies, CPWD & Non CPWD contractors, subject to fulfilling of
eligibility criteria by them.
(2) The list of specialized Civil, E&M, Horticulture and concurrent works are given in
Annexure -6 of SOP document.
(3) ADG/SDG or any other authority designated from time to time by CPWD Directorate
shall have powers to declare any other work as specialized in respect of their
regions, after giving due consideration to the nature of work and the specialized skill
required for its execution. The declared specialized work should be uploaded on
CPWD web site.

72. Specialized works
(4) It is desirable that all the Preliminary Estimates of specialized E&M Systems including
Lifts and HVAC, DG Sets, Automatic Fire Alarm System, Sub-Station, Wet Riser &
Sprinkler System should have 5 year’s provision for maintenance/comprehensive
maintenance and Operation for budgeted works of MoHUA. For works of other
Ministries and Deposit works, the estimates shall include distinct components of
Construction and Maintenance/Operation, if desired by the client.
(5)Wherever there is a corresponding provision as above in the A/A & E/S of the
project/work,the same shall be included in the detailed estimate and NIT of the work
keeping Guarantee/Warranty period provisions in consideration.
(6)The completion of construction work shall be recorded on its completion and main
agreement closed. Supplementary agreement will be drawn for
maintenance/operation keeping necessary contract and accounting provisions.

73. Thank You