SIKKIM PUBLIC WORKS MANUAL 2009

CHAPTER 1

ORGANISATION AND FUNCTIONS

SECTION 1

ORGANISATION

1.1 The Public Works Organization consists of

(I ) Engineering Services
A. Sikkim State Engineering (Civil and Mechanical) Services.
B. Sikkim State Architect Service.
C. Junior Engineers (Civil and Mechanical)
(II) Administration
(A) State Civil Service.
(B) Sikkim Government Stenographers Services.
(C) Sikkim Subordinate (Ministerial and Executives) Service.
(III) Accounts and Finance
A. Sikkim Finance and Accounts Service.
B. Sikkim Subordinate Accounts Service.

(IV) Group ‘D’ Establishment.

(V) Work Charged Establishment.

1.2 The Sikkim State Engineering (Civil, Electrical and Mechanical) Service has been
instituted by the State Government vide Notification No. E (14)853A/Gen/Est. dated
21st December, 1989. The Service has posts from Assistant Engineers and above up
to the level of Principal Chief Engineer cum Secretary. Any officer holding the cadre
post on a regular basis is deemed to be a member of the Service since the
commencement of the Service.

1.3 The Sikkim State Architect Service has been created by the State Government vide
Notification No. 42/Gen/DOP dated 28th June 2001 and incorporates posts from
Assistant Architects and above up to the Principal Chief Architect.

1.4 Recruitment Rules for Junior Engineers (Civil and Mechanical) have been notified
vide no.64/Gen/DOP dated 8th December, 1991 and 66/G/DOP dated 8th December,
1993. The
1.5 se Rules provide for two grades namely grade II and grade I for the Junior Engineers
who are eligible for appointment to the Sikkim State Engineering (Civil and
Mechanical) Services by promotion subject to the prescribed conditions and within
the prescribed strength.

1.6 Administrative, Accounts Services, and Group ‘D’ establishment are common to all
the Departments of the State Government.

1.7 The Service and Recruitment Rules mentioned above prescribe the pay scales,
strength of the Service/Posts and lay down the modalities of recruitment to the
different grades of the relevant service/posts. A residuary provision in the
Service/Recruitment Rules stipulates that matters not specified in such rules shall be

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regulated by the general rules applicable to employees of the State Government from
time to time. Chief among the general rules referred to above are the Sikkim
Government Service Rules, 1974 and the Sikkim Services Pension Rules, 1990. While
the Sikkim Government Service Rules provide for matters like pay fixation, regulation
of increments, training, suspension and retirement etc. and the Sikkim Services
(Pension) Rules regulate claim, grant and payment of different classes of pensions and
other retirement benefits.

1.8 According to the Government of Sikkim (Allocation of Business) Rules, all service
matters of gazetted officers (Group A and Group B) are allocated to the Department of
Personnel. As the Sikkim State Engineering Services, Sikkim State Architects
Service, State Civil Service, Sikkim Finance and Accounts Service comprise of
Officers belonging to Group A and Group B. The Department of Personnel,
Administrative Reforms and Training is the controlling authority for appointment,
posting and transfer of the members. In the case of Junior Engineers, the Department
of Roads and Bridges functions as the controlling authority.

1.9 Work-charged establishment includes such establishment as is employed upon the

actual execution, as distinct from the general supervision of a specific work or upon
subordinate supervision of departmental labour, stores and machinery in connection
with such work. If the engagement of work-charged establishment is contemplated in
connection with any work, the cost should invariably be shown as a separate sub-
head in the estimate for that work.

1.10 Work-charged establishment also include employees such as clerks, draftsmen etc.
and also includes subordinates or extra establishment of any kind for the Divisional or
Sub-Divisional Offices, if not provided by the regular establishment.

1.11 Recruitment and appointment of work-charged establishment is regulated under the

Work-charged Establishment Manual notified by the Department of Personnel, vide
no. 45(GEN)/Est. dated 25th May 1981.

SECTION 2
FUNCTIONS AND DUTIES OF OFFICERS.

A. PRINCIPAL CHIEF ENGINER CUM SECRETARY

2.1 The Principal Chief Engineer cum Secretary of the Public Works Department shall be the
administrative and professional Head of the Department and is responsible to the
Government for efficient administration of the Department under his charge. He
exercises such administrative and financial powers as are delegated by the State
Government to the Head of Department from time to time for smooth functioning of the
Departments.

2.2 The Principal Chief Engineer cum Secretary is the chief professional advisor to the
Government on all the technical matters relating to their charge and has the responsibility
of general professional control on works within his jurisdiction. He exercises full
technical and supervisory control over Principal Chief Engineers, Chief Engineers and
other Officers working in the Department.

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2.3 Principal among the duties are requirement of preparation and submission of detailed
budget estimates (with such information as may be required by the Finance Department
for formulation of Demands for Grants) and the responsibility for administering the
budget grants by close watch over the expenditure.

2.4 Subject to their overall responsibilities, Principal Chief Engineer cum Secretary may
authorize the Principal Chief Engineers or the Chief Engineers under him to exercise
technical and supervisory control to such extent and on such conditions as may be
considered appropriate for convenient and efficient administration.

2.5 In carrying out personnel administration and financial management, the Departmental
Heads are supported by appropriate level of officers belonging to the State Civil and
State Finance and Accounts Services respectively. It is the responsibility of the Principal
Chief Engineer Cum Secretary to obtain the advice of these officers before any decision
is taken on Administrative and Financial matters.

2.6 The Principal Chief Engineer cum Secretary is also responsible for:-
(a) Compilation of accounts of receipts and expenditure and submission of the same to
the State Government as per the time schedule fixed by the Government from time
to time.
(b) Reconciliation of accounts with Office of the Accountant General.
(c) Relation with Audit, compliance of statutory requirement for smooth conduct of
Audit and necessary replies to Audit Inspection Reports and other objections
raised by Audit.

C. PRINCIPAL CHIEF ENGINEER/ CHIEF ENGINEER

2.7 The Principal Chief Engineers / Chief Engineers are the instruments of executive and
technical control through which the Departmental Heads discharge their functions and
responsibilities. They coordinate and monitor various activities within their jurisdiction
through periodical reports both physical as well as financial feedback provided by their
sub-ordinate authorities. The Principal Chief Engineer or the Chief Engineer is required
to review the progress of all works in the department and suggest suitable remedial
measures to the Principal Chief Engineer cum Secretary. It is also a part of their duty to
visit the works sites, verify the qualities and other technicalities and direct the field
engineers for any rectification if necessary. They shall have general responsibility for
proper execution of works as per sanction of the Government and completion as
stipulated.

D. ADDITIONAL CHIEF ENGINEER

2.8 The Additional Chief Engineer assists and provides support to the Chief Engineer in
planning of new projects, monitoring the projects, periodic review and progress
meetings, urgent maintenance and repairs, material testing and quality control matters.
They act as the Chief Engineer in absence of the Chief Engineer or when required by
them and perform any other work assigned by the Chief Engineers. They are required to
review the progress of all works in the department and suggest suitable remedial
measures to the Chef Engineer in the case of need. It is also a part of their duty to visit
the works sites, verify the qualities and other technicalities and direct the field engineers
for any rectification. They shall have general responsibility for proper execution of
works as per sanction of the Government and completion of works as stipulated.

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D. DIRECTOR/ ADDITIONAL DIRECTOR/ CHIEF ACCOUNTS OFFICER / SR.

ACCOUNTS OFFICER IN THE DEPARTMENT

2.9 Under Rule 99-A of the Sikkim Financial Rules, 1979, the Officer – in- Charge of
Accounts is responsible for strict implementation of all Financial Rules. Government
instructions on the subject and all proposals should initially be examined by the Officer-
in-Charge of Accounts posted in the respective Department before such proposals are
submitted to the Government for orders and approval.

2.10 Whenever control of payments and accounting arises within or outside the Public
Works Department, the Supervisory Officer of Finance and Accounts Service should
seek due permission to undertake periodical visit, if necessary, to the sub-offices in
order to gain firsthand knowledge on progress of work and expenditure. Correct
maintenance of account records in such cases may be imparted by such officer if
necessary.

2.11 The supervisory officer posted from Finance and Accounts Service in the Department is
required to visit all offices and inspect the various records being maintained by them
and details of sanction accorded in view of decentralization processes. He shall also
check all details to ensure that no unauthorized and infructuous payment has been
drawn from the respective offices. The report of the inspecting officer shall be
submitted to Principal Chief Engineer cum Secretary.

E. SUPERINTENDING ENGINEER

2.12 The Supervisory unit of the Department is Superintending Engineer who is responsible
for general professional control of works as known as Circle. The Circle is responsible
for all disbursement for the work executed under him.

2.13 The Superintending Engineer should satisfy himself by inspection and check of
measurements that the works are carried out according to approved specifications and
designs and no change in design during execution and deviation from technical sanction
is made without his approval.

2.14 It is the duty of the Superintending Engineer to inspect the various works in progress
within his Circle and to satisfy himself that the system of management is efficient and
economical and rules regarding works, stock and accounts are strictly observed. He
shall record the results of his inspection of works as frequently as considered necessary
and ensure that the defects pointed out on each occasion are promptly rectified. Before
release of final payment against any work, of value within the power of his technical
sanction, the Superintending Engineer is required to record the following certificate
within a period of three months from the date of completion of the work.

I have inspected the work of ………………………… contract value of which is

Rs……………………… vide agreement. No……………… today. As a result of this
inspection and my previous inspections, I find that the work has been carried out
generally to specifications and has been completed satisfactorily. There are no
noticeable defects, except for the following:
1…………………………………………..
2…………………………………………..

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2.15 These defects should be rectified by the contractor or by the department at his cost,
action for which should be taken in terms of the contract.

2.16 It is also the responsibility of the Superintending Engineer that no delay is allowed to
occur in the submission of the completion report.

2.17 The Superintending Engineer shall inspect the Divisional Offices at least four times in
a year and record and report the results of such inspection to the Chief Engineer.

2.18 The Superintending Engineer shall examine the books of Divisional Officers and their
subordinates and see that matters relating to the primary accounts are attended to
personally by the Divisional and Sub-Divisional Officers and the accounts fairly
represent the progress of each work. He is specially required to see that the
measurement books are carefully kept and measurements are properly recorded and
that they are complete records of actual requirements of each kind of work done for
which certificates have been granted.

2.19 Under the Decentralized Payment System introduced from August, 2003, primary
disbursing unit of the Department is the Circle. The Superintending Engineer is thus
responsible not only for financial propriety of transaction in the whole Circle but also
for maintenance of the accounts of transactions correctly. He is assisted by an
Accounts Officer of the Finance and Accounts Service in the responsibilities for
Payments and Accounting of the transactions.

2.20 It is the duty of the Superintending Engineer to administer the grant made for public
works in his Circle and with this object, to keep a close watch over the progress of
expenditure against it with a view to avoid excess increment. He should accordingly
keep himself informed of such circumstances as may affect the progress of
expenditure in order to take timely steps for obtaining extra funds or surrendering
probable savings, as may be necessary. The Superintending Engineer is responsible
for the detailed assessment of revenue with in his Circle and maintains such records
and accounts for the purpose as may be prescribed.

F. DIVISIONAL ENGINEER

2.21 The Divisional Engineer is in charge of the Division, who is responsible to the
Superintending Engineer for the efficient execution and management of all works
within his Division. It is therefore, his duty to organize and supervise the execution of
works and see that they are suitably and economically carried out with materials of
good quality.

2.22 The Divisional Engineer is held primarily responsible for providing information in
cases of probability of excess over estimated cost of work and shall report in writing
any such probability to the Superintending Engineer at once, describing the nature and
cause of the excess and seeking approval.

2.23 The Divisional Engineer is required to inspect at least once a month all works in his
Division. As and when necessary he should inspect Government assets within the
Division to ensure that proper measures are taken to preserve such assets and to
prevent encroachment on Government lands in his charge. He should keep accurate

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plans of all such lands and take care that his subordinates make themselves acquainted
with the boundaries and see that they are not encroached upon. The Divisional
Engineer must keep on record in his office the following plans:
(i) Complete plan, sections and elevations of every building or other works under his
charge as actually constructed and any subsequent alteration being carefully noted.
The boundaries of the ground attached to any building should be distinctly shown.
(ii) Plans of roads under his charge showing whence road metal and stone/sand are
obtained.
(iii) Register of assets within the Division.

2.24 When the work is completed, it is the duty of the Divisional Engineer to close the
accounts immediately in the prescribed manner and to prepare the completion report.
If there is unnecessarily delay in closing the accounts, it should be seen in particular
that further expenditure is not incurred without the permission of the competent
authority. When it is decided to abandon a work the accounts relating to the work
should be closed as soon as possible after such decision is reached and taken.

2.25 The Divisional Engineer is required to report immediately to the Superintending

Engineer any severe or major accident or unusual occurrence connected with his
Division and to state the measures taken by him in this regards.

2.26 The Divisional Engineer can receive orders only from his Principal Chief Engineer
cum Secretary, Chief Engineer, Additional Chief Engineer, Superintending Engineer
or other officer duly authorized in this behalf.

G. ASSISTANT ENGINEER

2.27 The Division is divided in to sub-Divisions under the charge of Assistant Engineer
who are responsible to the Divisional Engineer for the management and efficient
execution of works within their sub-Divisions.

2.28 The Assistant Engineer is required to maintain the initial account, records of cash and
stores under his charge as well as Works Register for each work in progress in the
Sub-Division under the rules for the time being in force. He should ensure that all
accounts returns and progress reports of works under his charge are submitted timely
and regularly to the Divisional Engineer and are correct in all respects.

He may be allowed imprest amounts to make petty payments for execution of

departmental works and its account should be rendered at least once a month
incorporating all payments and enclosing necessary vouchers. No second imprest
shall be released for the work by the authority without adjustment of previous one.

H. PRINCIPAL CHIEF ARCHITECT / CHIEF ARCHITECT

2.29 The Principal Chief Architect / Chief Architect is the technical head of Architectural
Cell/Wing and is responsible for architectural designing and town planning of all
Government buildings. He is also called upon to advice on architectural matters,
designs and town planning to the superior authorities. The Principal Chief Architect is
assisted by Joint Chief Architect, Senior Architect and Assistant Architects. He

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supervises and guides as well as monitors the progress of works and the performance
of these officers who are under his control.

I. JOINT CHIEF ARCHITECT

2.30 The Deputy Chief Architects assist the Chief Architect in his technical supervisory
and monitoring functions and are responsible for management and efficient
functioning of Architectural Wing.

J. SENIOR ARCHITECT

2.31 The Senior Architect, deal with all projects from the pre-planning Stage to the issue of
completion certificate. They coordinate all planning activities and work in close
liaison with other disciplines involved in project planning. They supervise and guide
the junior officers and allocate work to them.

K. ASSISTANT ARCHITECT

2.32 The Assistant Architect, deals with projects from pre-planning stage to issue of
completion certificate after obtaining approval from the controlling authority on
Architectural design concept. He shall coordinate all planning activities and work in
close liaison with other disciplines involved in project planning. He shall guide and
supervise the junior staff and check the drawings and specifications in respect of
dimensions, building bye laws, norms and ensure that the drawings are correct and
complete in all respects. The drawings are also prepared in required medium
preliminary drawings/working drawings / detailed drawings / layout plans / municipal
drawings / presentation designs / perspectives to calculate areas on drawings.

L. JUNIOR ENGINEER.

2.33 The Junior Engineers are the last unit officers in direct charge of execution of works.
They are primarily responsible for the preparation of detailed estimates and plans for
works and for speedy and quality execution of works.

2.34 The detailed measurements of work done or supplies should be recorded by them on
the spot. The attendance of muster rolls should also be checked by them personally.
They should make it a point to inspect the works in progress in their direct charge as
frequently as possible to ensure that the progress of work is as per schedule.

2.35 He is responsible for maintenance of proper Site Order Book in the worksite. All the
instructions to the Contractor relating to the work shall be recorded in the Site Order
Book and all the instructions to the field officer by the inspecting superior pertaining
to the work shall be recorded in the Site Order Book. The Site Order Book shall be
kept in safe custody of Sub- Divisional Officer along with other records of the work.

2.36 They should verify the receipt of materials received either for stock or work with
reference to the supply order and ensure that the materials are duly checked and
recorded in Measurement Books/goods received sheets giving particulars of supply
order/consignment note or delivery challan and should immediately bring to the
notice of Divisional Engineer through Assistant Engineer any deficiencies or defects

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in the materials received. They should maintain accounts of tools and plant articles,
road metals, stock materials in their direct charge and submit the same to the Assistant
Engineer through monthly return giving details of receipts, issues and balances
separately for the above categories.

2.37 Regarding rents of buildings and lands they should furnish particulars of incumbents,
period of occupation etc. every month to the Divisional Office through the Assistant
Engineer.

2.38 In the event of collecting the charges from the occupants by the watchman of
inspection bungalows, such collections are promptly remitted into the nearest branch
of the State Bank of Sikkim without any delay and forward the Bank receipts to the
Division Office for incorporation in the accounts.

2.39 Whenever any loss of property of Government, defalcation of cash or theft of store is
noticed, report should be submitted to the Assistant Engineer immediately explaining
the circumstances leading to the case and lodge FIR with the nearest Police Station
with the permission of the competent authority. The Junior Engineer is responsible for
correct recording of measurements, custody of stores, stock and other Government
material, tools and plant.

M. STORE KEEPER

2.40 Qualified store keepers belonging to the Subordinate Accounts Service are appointed
to ensure proper maintenance and custody of stores. Necessary security depending on
the value of the stores in their custody should be obtained from them as required
under rule 217 of the Sikkim Financial Rules, 1979.

2.41 They are responsible for proper accounting of receipts, issues and balances. Whenever
materials are received they should prepare the Goods Received Sheets and make
entries in the relevant Bin Cards. Issues made should be supported by proper stores
indent and gate pass and with entries in the relevant Bin Card. They are responsible
for the correctness of transactions recorded in the Bin Cards and the Assistant
Engineer shall test check the entries in the Bin Cards with reference to Goods
Received Sheets and indents to ensure correctness. They should keep the Assistant
Engineer informed of the articles of stores which are surplus or on which there are no
transactions so that the same could be declared surplus and action taken to dispose
them off according to the prescribed rules. In cases of shortages they are held
personally responsible for the shortage.

2.42 The Store Keeper should ensure that materials received are properly checked and
measurement is recorded by the Junior Engineer before the materials are taken on
stock.

2.43 When any loss, damage or theft of stores is noticed, report should be submitted
immediately to the Assistant Engineer who should report to the Divisional Engineer.
The Divisional Engineer should take immediate steps for appraisal of the authority
concerned and take further necessary action.

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N. ACCOUNTS OFFICER IN CIRCLE OFFICE

2.44 As per the decentralized payment procedure and guidelines issued there under,
responsibility for rendering of monthly works accounts relating to public works to the
Accountant General has been shifted to the respective District Pay and Accounts
Offices functioning under the State Finance Department. Nevertheless, the works
Departments remain responsible for reconciliation and rectification of their accounts
with those of the Pay and Accounts office and the Accountant General as and when
required to do so.

2.45 He is also required to submit head wise and work wise expenditure duly reconciled
and compiled with the accounts reported by respective District Pay and Accounts
Office to the Chief Accounts Officer/ Sr. Accounts Officer in the head office by 5th of
every succeeding month

2.46 The Accounts Officers in the Circle Office therefore continue with the function of
compiling the monthly accounts as before and reconcile the same with that prepared
by the respective Pay and Accounts Office. In addition, they perform other
responsibilities entrusted to them vide rule 99-A of the Sikkim Financial Rules, 1979.

2.47 In the discharge of his duties the Accounts Officer is expected to keep himself fully
conversant with all the rules and regulations, sanctions and orders passing through his
Circle. He should keep details of all sanctions and expenditure work-wise and is
required to prepare list of all ongoing schemes with details of sanction and upto date
expenditure upto 31st March of each year and is required to submit the same to Chief
Accounts Officer / Sr. Accounts Officer in the head office to enable him to work out
the overall liabilities being carried forward to the next financial year.

He is also required to ensure that a separate deposit register is maintained in his office
to record the Debits/ Credits of deposits made by Pay and Accounts Office through
Monthly Compiled Accounts. He is also required to maintain month-wise, Contractor
wise deposit details and check the refunds through the register to ensure no fraudulent
payment is made from his office.

2.48 The Accounts Officer of the Circle Office is required to submit a copy of Transfer
Entry Order received from Treasury and Pay and Accounts Office on account of
credits for recoveries of hire charges of Machineries and stock materials issued from
the Store to the Chief Accounts Officer / Sr. Accounts Officer in the head office and
concerned officer of the Mechanical and Store Division.

O. SENIOR ACCOUNTANT/ACCOUNTANT IN CIRCLE OFFICE

2.49 The Accountant of the Circle Office is responsible for exercising the following checks
and performing the duties specified below:-
1. Arithmetical accuracy of the bill.
2. Check the correctness of previous payment in the case of running account and final
bill.
3. Verifying the correctness of rates and quantities with reference to technically
sanctioned estimate and accepted agreement.

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4. Making entries and posting in the contractors’ ledger, works abstract and work
register and putting up the bill along with relevant registers to the Accounts Officer.

5. Verification of statement of theoretical requirement of materials with actual issue and

consumption of materials in case of final bills.
6. Check correctness of classification.
7. Checking correctness of rates of recovery of stock, income tax, VAT and other Taxes
and Levies of the Government as applicable from time to time.
8. Ensuring that there was no un-authorized correction either in the measurement book
or the bill.
9. Verification of fact of check measurement.
10. Completion report in the case of final bills.
11. Compliance of other conditions in the agreement regarding completion time schedule
of completion, materials issued, rates of materials etc.
12. Ensuring that parts rates allowed, supplementary or additional items or deviations
were covered by proper authority.
13. Record of measurement was done by competent authority and acknowledgement was
given for full and final settlement of claim by the contractor.
14. Verifying that the bill is prepared in prescribed form.
15. Effecting recovery of issue or hire charges as per issues and noting the same in the
contractor’s ledger.
16. To see that the bill is signed by the authorized person.
17. Maintenance of allotment register and watching expenditure against the allotment.
18. To ensure that no double payment is made against the sanction or the deposit made by
the contractors.
19. To check completion time period of each work.

P. CASHIER IN CIRCLE OFFICE

2.50 The cashier also belongs to the subordinate Accounts Service. As the designation
indicates, he deals with and handles cash which expression includes cheque. He
performs the general duties prescribed in Rule 49 of the Sikkim Financial Rules,
1979. He is responsible for posting of transaction in the Cash Book and other
connected records. He ensures that the claim has been properly acknowledged and in
cases of final bills acknowledgement is given for full and final settlement by the
contractor. He has the responsibility of closing the cash book and proper filing of
vouchers in chronological order as well as safe custody thereof. Like the storekeeper
he is required to furnish security in the prescribed form depending upon the volume of
cash transactions to be handled by him.

Q. MUNSHIS

2.51 Munshis are primarily engaged on checking and supervising the labour employed on
execution of works. Most of the time they remain at work site and their presence
ensures utilization of proper and good quality materials in the execution of works.
They report the progress of work to and bring any un-usual happening to the notice of
the Junior Engineer in charge of the work. In the course of time they are eligible to be
promoted as Junior Engineers subject to fulfilling prescribed conditions and
qualifications criteria.

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CHAPTER II
SECTION 3
WORKS

CLASSIFICATION OF THE OPERATION.

The procedure prescribed in this chapter for execution of work is supplementary to the
provisions contained in Rule 139 to 147 of Sikkim Financial Rule 1979. Public Works
operations are divided primarily into two categories, namely, ‘Original works” and ‘Repairs”.

Original Works.
3.2 Original works comprise of all new constructions whether of entirely new works or
additions and alterations to existing works except as herein after provided, also all
repair to newly purchased or previously abandoned buildings acquired for bringing
them into use.
Repairs.
3.3 Repairs include primarily operations undertaken to maintain in proper condition
buildings and works in ordinary use.

3.4 These are classified in two categories, annual repairs and special repairs. Annual
repairs consist of those works like white washing, colour washing, distemper etc
which are carried out annually. Special repair consists of works like plastering,
replacement of doors and windows, flooring, etc. which are not required annually but
are required as and when necessary as a result of inspection by the supervisory staff or
complaint from the allottee.

3.5 The general rules applicable to the execution of all works provide that no work shall
be commenced or liability incurred in connection therewith until:-
1. Administrative approval has been obtained from the appropriate authority in
each case.
2. Sanction to incur expenditure has been obtained from the competent authority.
3. A properly detailed design and estimate has been sanctioned and
4. Funds to cover the charge during the year have been provided by the competent
authority.
5. If in any case, whether on grounds of urgency or otherwise, an executive Officer
is required by superior authority to carry out a work or incurs a liability which
involves infringement of the above rules, the orders of such authority shall be
conveyed in writing. On receipt of such written order or in cases of emergency,
on his own responsibility the officer may proceed to carry out the necessary
work subject to the condition that he immediately intimates to the said superior
authority the liability he is incurring, stating approximately the amount of the
liability which he is likely to incur and requesting for formal sanction of the
competent authority.

Administrative Approval
3.6 For every work, it is necessary to obtain, in the first instance, the concurrence of the
competent authorities as prescribed by the Government from time to time. The formal
acceptance of the proposals by the Competent Authorities is termed as “Administrative
Approval” of the work. An appropriate estimate and such preliminary plans as are
necessary to elucidate the proposals is required to be prepared by the Public Works
Organization. In complying with requests from other departments for approximate

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estimate and preliminary plans for the purpose of administrative approval, only sketch
plans and abstract estimates (based in the case of buildings on cubic meter or plinth
area rates) should be furnished by the Public Works Department. The preliminary
estimate will be framed or counter signed by the authority competent to accord
technical sanction to the detailed estimate. The amount of departmental charges when
leviable on the works should be clearly indicated in the estimates as a separate item
below the total for works outlay.

3.7 The procedure prescribed in this rule will also apply to modification of the proposals
originally approved, if by any reason of such modifications, revised administrative
approval becomes necessary and for deviations from the original proposals even
though cost of the same may be covered by savings on other items.

3.8 A similar procedure should be followed in the case of works required to meet the
administrative needs of the Executing Organization.

Financial Sanction
3.9 Financial sanction means sanction of the required amount of fund indicating the
relevant head of account to be debited for the work by the competent authorities with
the concurrence of authorities as may be prescribed by the Government from time to
time.

Technical Sanction
3.10 For each individual work proposed to be carried out and for repairs for which lump
sum provision has been sanctioned, a properly detailed estimate (based on essential
drawings and preliminary structural and service designs) must be prepared for sanction
of the competent authority. This sanction is known as the technical sanction to the
estimate and except in cases of emergency, prior sanction must be obtained. As the
name indicates, it is not more than a guarantee that the proposals are structurally /
technically sound and the estimates are accurately calculated and based on adequate
data. Such sanction will be accorded by the officers of the executing department
authorized to do so.

Appropriation
3.11 Appropriation or re-appropriation represents the allotment of a particular sum of
money to meet expenditure on a specified purpose. It is operative only for the
financial year in which it is made. Any unspent balance lapses and is not available
for utilization in the following year, unless authorized by the competent authority in
writing.

SECTION 4
PREPARATION OF ESTIMATES.

4.1 Any proposal for work generally consists of a report, plans, specification and a
detailed statement of measurements, quantities and rates with an abstract showing the
total estimated cost of each item. These documents together form what is called “The
estimate.” In the case of a project consisting of several works, the report may be a
single document for all the works and likewise the specifications; but details of
measurements and abstract may conveniently be prepared for each work,
supplemented by a general abstract bringing the whole together.

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Preliminary Estimate
4.2 Preliminary estimate is required to be prepared on the basis of plinth area or length of
road, etc. worked out on the rate per unit area, length or other such method adopted
for ready and rough calculations, so as to give an approximate idea of the cost
involved in the proposal. Provision for services like sanitation, water supply,
drainage, and electric installations etc., should be made on the basis of plinth area
rates. Preparation of detailed estimate and drawings and designs should be taken up
after an assurance is received from the sponsoring Department for execution.

Detailed Estimate
4.3. Estimates for projects should be comprehensive, supported by complete details and
based on design, drawings and calculations. In order to ensure this, the estimates
should be prepared under the following heads:
1. Buildings, including internal service installations.
2. Main roads outside the boundary walls of the buildings under construction
necessary for the layout.
3. Boundary walls or fences, gateway, roads and paths, grassing and trees
connected with the garden layout.
4. Electrical power connection with mains and service connections outside the
boundary of the compound.
5. Water supply, storm water drainage and Sewerage.
6. Miscellaneous works such as leveling, dismantling of old buildings and other
items not falling under the above heads.
7. Departmental charges when necessary.
8. Land acquisition.

4.4 Where survey of site or digging of trial pits or the work of load bearing capacity
and sub-soil observations are required to be undertaken before proceeding with
the main project, the expenditure on these items should form part of the main
project.
4.5 Reports on estimates must contain the following information briefly:

History- Particulars relating to the initiation of and reasons leading up-to the proposal
and its general purpose ever including reference to previous correspondence,
documents and specifications, where necessary.

Design- A description of the original proposals and those finally adopted particularly
with regard to location, setting and design, also with reference to
specifications, calculations and drawings, wherever necessary.

Scope- An explicit statement as to what work is covered by the estimate or otherwise

with reference to what arrangements are being made for any portion not
included in the estimate. Any abnormality leading to higher estimated costs
then the norms should be reflected backed by drawings, wherever feasible.

Rates- Particulars as to how the rates have been arrived at giving reference to the
standard schedule of rates and also to the details accompanying the estimates
wherever necessary, with any special explanation connected thereto.

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Cost- Cost of the work and a comparison with the amount originally provided under
any previous administrative sanction, or detailed estimates in cases of revision.

Source of funding- Particulars of the source from which the cost of the work is to be made.

Method- The method proposed for carrying out the work whether by lump-sum
contract, item rate tender etc., or daily labour or any combination of these
should be indicated. If the work is to be carried out both by “Contractor” and
“Departmental labour”, the portions of the work to be carried out by these
agencies should be briefly indicated separately together with its estimated
cost.

Establishment- Details of any provision made in the estimate for the work-charged
establishment should be indicated, wherever necessary.

Construction plant- Any special methods of construction to be adopted with reference to

specifications, etc. and details of the arrangements that have been made for the
necessary construction plant, tools etc.

Land - Arrangements for acquisition of land and compensation thereof, whenever

necessary and prior clearance for forest land, if involved.

Time- Estimated time of completion from the date indicated in the Work Order.

Schedule of Rates
4.6 To facilitate the preparation of estimates, as also to serve as a guide in settling rates in
connection with contract agreements, an updated schedule of rates for each kind of
work commonly executed should be maintained in the Department. It should be
prepared on the basis of prevailing rates and necessary analysis of the rates for each
description of work and for the varying conditions thereof, should, as far as
practicable, be recorded.

4.7 The schedule of rates shall be issued under the authority of Roads and Bridges
Department with the concurrence of Finance Revenue and Expenditure Department
and approval of Government and be revised at least once in two years or otherwise
this shall be subject to the incidence of market price structure.

4.8 In addition to the provision for all expenditure which can be foreseen for a work, a
provision of three percent contingency should be added to the estimate. This provision
is also intended to cover the cost of work-charged establishment for which no
provision is made separately, except in the case of annual maintenance estimate,
where provision is made for such establishment under a separate sub-head of the
estimate.

Supplementary Estimate
4.9 Any development of a project thought necessary, while a work is in progress, which is
not fairly contingent on the proper execution of the work as sanctioned, must be
covered by a supplementary estimate, accompanied by a full report of the
circumstances which render it necessary. The abstract must show the amount of the

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original estimate and the total of the sanction required including the supplementary
amount.

Revised Estimate
4.10 When an excess over the sanctioned estimate is foreseen and there is likely to be
unavoidable delay in the preparation of a revised estimate an immediate report of the
circumstances should be made to the authority whose sanction will ultimately be
required. When a revised estimate is submitted it must be accompanied by a statement
comparing it with the latest existing sanction of the competent authority and by a
report showing the progress made up to date.

Additions and Alternations

4.11 No additions and alterations in building works should be carried out without the
concurrence of the Chief Architect in writing. While submitting estimates containing
proposals for additions and alterations, the fact that concurrence of the Chief
Architect has been obtained, should be stated explicitly. This will, however, not
include additions/alterations to the electrical fittings, fixtures, power points etc
executed at the request of the occupants. Additional license fee is to be charged in
case where additions/alterations involve increase in covered area only.

Estimate for Road Works

4.12 Projects for the construction of new roads must be accompanied by the following
documents:
(a) Report, including the necessity, demographic composition and the present economic
situation in the area and likely impact to be created by developing means of
communication.
(b) A brief note on the proposed gradients.
(c) Abstract estimate of cost.
(d) Index map showing the location of the road.
(e) A detailed survey including longitudinal section and cross section at suitable intervals
which should show not only the existing ground levels but also proposed formation
levels.
(f) Quarry charts showing the various quarries from where stone and sand are proposed to
be obtained.
(g) Drawings of all masonry, concrete, iron or timber works in order in which they occur
in the line of the road.
(h) Detailed estimate sheets.
(i) No objection certificate from land owners. Estimates for new lines of road should
include the cost of inspection houses intended to be built along it for accommodation
of supervisory staff and others. Necessary provision should also be made for shifting
of water pipe lines, drainage and electric poles and cables, telephone lines, if coming
in the way of the new alignment.

4.13 Documents required accompanying Irrigation schemes for construction of Irrigation

Channels are:-
(a) Report, including the necessity, demographic composition and the present
economic situation in the area, as well as likely impact to be created by
development of irrigation facilities.

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(b) A brief note on the proposed gradients; detailed survey and longitudinal
sections and cross sections at suitable intervals showing the existing ground
levels and proposed channel bed levels.
(c) Abstract estimate of cost.
(d) Index map.
(e) Size of Gross Command Area (GCA) and culturable area.
(f) Brief Cropping pattern and types of crops.
(g) Analysis of Cost Benefit Ratio.
(h) Detailed estimates sheets.
(i) No Objection Certificate from land owners.

4.14 Similarly schemes for providing Drinking Water Supply and Sewerage System must
be supported by the following documents.
i) Report, including demographic compositions and the present arrangement for water
supply in the area.
ii) A brief note on the proposed hydraulic gradients / self cleansing velocity.
iii) Abstract estimate of cost.
iv) Index map.
v) A detailed survey of the area from the source to the distribution tanks with design and
dimensions.
vi) Description of categories of consumers and population thereof.
vii) Drawings of masonry, concrete iron etc works in the lines of procurement and
distribution of drinking Water Supplies / Sewerage Lines
viii) Detailed estimate sheets.
ix) Clearance from land owners wherever necessary.

Estimate for Furniture

4.15 Estimates for interior decoration, furniture and furnishing shall be prepared based on
client requirements. In cases of purchase of built up accommodation to meet
requirements of Government Departments, separate estimates are required to be
prepared after survey and valuation report is submitted to the Department concerned
and purchase is authorized by the Government with the concurrence of Finance
Department. The Maintenance of such buildings will be carried out as in the case of
other government buildings. The Government takes on rent/lease or by requisition
some private buildings when considered necessary for residential and office
accommodation. The repair estimates for these buildings should be prepared on the
same plinth area rates/percentage basis as for other government buildings.

4.16 A consolidated record of all estimates sanctioned for a particular Circle should be
entered in the Register of Estimates in the prescribed form.

SECTION 5
EXECUTION OF WORKS.

Preliminaries
5.1 On receipt of technical sanction to the estimate, action is immediately initiated for
taking possession of land acquired by the government for the purpose and preparation
of draft Notice Inviting Tenders is floated. Where the scheme includes electrical work

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the concerned Department is immediately informed along with copies of the relative
portion of the estimate and plans furnished to initiate further action.

Inspection of Works
5.2 It is incumbent upon various officers concerned with the work to inspect the works
frequently to ensure that the works are being executed according to design, drawing
and specifications laid down in the contract. The officer who records/test checks the
measurements for an item of work will be responsible for the quality, quantity and
dimensional accuracy of the work.

5.3 The programme of inspection should ensure that the Junior Engineer visits all works
in his charge at least once a week. The Assistant Engineer should similarly visit all the
works within his Sub-Division at least once in a fortnight. Inspection by the
Divisional Engineer should be so programmed that all works within the Division
avails his attention at least once in a month. The programme may be drawn quarterly
and a copy should be sent to the Superintending Engineer.

5.4 Likewise, Superintending Engineer will draw up programme for inspection of various
works in his Circle, so that at least one bimonthly inspection is carried out during
execution of each work.

5.5 All Officers shall ensure issue of instructions after inspection. Those may be issued by
way of recording in the inspection register at site or by issue of inspection notes, a
copy of which is required to be pasted in the inspection register. The inspection notes
should be available on record before passing of RA bill covering the period
corresponding to the frequency of inspection and so on. If this is not available on
record, prior permission of Chief Engineer shall be taken before payment is released.
However, the inspections shall be carried out before the next bill.

5.6 The instructions to be complied by the contractor shall be carried on to the Site Order
Book for ensuring compliance. Action taken report on the inspection note issued by
an inspecting officer should be given by the Divisional Engineer within one month.
During next inspection, earlier inspection report should be reviewed by the Inspecting
Officers.

5.7 The Assistant Engineer and Divisional Engineer must also make adequate surprise
checks to ensure the quality of work during concreting. They should make special
efforts to be present at the site when concreting is under progress and ensure that the
desired water-cement ratio is strictly maintained along with other quality control
measures.

CHAPTER III
WORKS ACCOUNTS
SECTION 6

MEASUREMENT BOOKS
General
6.1 Expenditure on the construction of a work may be divided broadly into two classes
viz. (i) cash and (ii) stock charges. In addition to the main charges there are other
charges affecting the cost of works. For example, there may be charges incurred in

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other Divisions, Departments for materials received from them or services rendered
by them, or there may be cash receipts such as taken in reduction of expenditure. To
account for all these charges affecting cost of works, separate accounts are maintained
in the Circle for recording (i) the cost of individual works and (ii) the transactions of
individual Contactors/Suppliers. These are known as works accounts.

6.2 Cash charges of works consist of payments to (i) laborers and members of the work-
charged establishment of their wages and (ii) contractors and others for work done or
other services rendered. The cost of materials procured specially for work is charged
to the accounts of works by transfer credit to the “Material Purchase Settlement
Suspense Account”. The payments to suppliers are governed by the same rules as
payments to contractors for work done.
6.3 The payments to the work-charged staff are made monthly in the same manner as it is
made to the regular staff but on a different bill form and are charged direct to the
work on which the person is actually employed.
6.4 The payments to contractors and others for the work done or other services rendered
are made on the basis of measurements recorded in the Measurement Book.
Subsidiary instructions regarding maintenance of the measurement books and review
of measurement books are given in the subsequent paras here under.

Writing of Measurement Book

6.5 The Measurement Book is the basis of all accounts of quantities whether of works
done by contractors or by labourers employed departmentally or materials received. It
should be so written that the transactions are readily traceable.
6.6 These books should be considered as very important accounts records and maintained
very carefully and accurately as these may have to be produced as evidence in a court
of law, as and when required.
6.7 All the Measurement Books belonging to a Division should be numbered serially. A
register should be maintained in form in Annexure I showing the serial number of
each book on receipt, Sub-Division to which it is issued, the date of issue, date of its
return to the Division Office and date of its record after the required review in the
Division Office has been completed.
6.8 A similar register should be maintained in the Sub-Division Office showing the names
of persons i.e. Assistant Engineer and Junior Engineer to whom the measurement
books are issued.
6.9 The books no longer to be used in the Sub-Division or with the Junior Engineer
should be withdrawn promptly even though not completely written up and re-issued.
6.10 The Measurement Books are required to be reviewed by the Divisional Accountant as
per procedure in paragraph 6.51 under the Supervision of the Divisional Engineer
who should ensure that this annual review is conducted regularly and positively every
year.
6.11 When an Assistant Engineer or Junior Engineer in charge of the work or stores is
transferred he should hand over the Measurement Books issued to him to his
successor and these should be shown as received back from him and re-issued to the
relieving officer.

Recording of Measurement
6.12 Each set of measurement to be recorded should commence with entries stating:-
(I) In the case of bills for works done:
(a) Full name of work as given in the agreement /estimate.

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(b) Name of contractor.

(c) Number and date of agreement.
(d) Date of written order to commence work.
(e) Date of actual completion of work.
(f) Date of recording measurements.
(g) Reference to previous measurements.

(II) In the case of bills for supply of materials:

(a) Name of supplier.
(b) Number and date of supply order/agreement.
(c) Purpose of supply in one of the following forms as applicable to the case.
(i) Stock (for all supplies for stock purpose)
(ii) “Purchase” for direct issue to the work (full name of the work
as given in the estimate may be mentioned).
(iii) “Purchase” (full name of work as given in the estimate) for
issue to contractor …………….. on …………………
(d) Date of written order to commence the supply.
(e) Date of actual supply and
(f) Date of recording measurement.

6.13 A suitable abstract should then be prepared which should encompass, in the case of
measurement for works done, the total quantities of each distinct item of work relating
to each sanctioned sub-head. The measurement books meant for this purpose contain
pages in consecutive numbers. Details of quantities, rate and amount of each item for
every bill are entered in this Measurement Book in a tabular form.

6.14 For recording measurements and also for preparing abstract, the agreement item
number both in words as well as in figure should be given neatly instead of writing
the description of the item in full or in abbreviated form which would not be
necessary.

6.15 In case of extra/substituted item of work that is not covered in the agreement, the full
nomenclature shall be reproduced in the Measurement Book and also in the bill form
for final bills.

6.16 The full nomenclature of the items shall be adopted in preparing abstract of final bill
in the measurement book and also in the bill form for final bills.

6.17 If the measurements are taken in connection with a running contract, a reference to
the last set of measurements, if any, should be recorded. If the entire job or contract
has been completed, the date of completion should be duly noted in the prescribed
place. If the measurements taken are the first set of measurements on a running
account or the first and final measurements, this fact should be suitably noted against
the entries in the measurement book and in the latter case, the actual date of
completion should be noted in the prescribed place.

6.18 All measurements should be recorded neatly in the Measurement Book. The signature
of the contractor should be obtained in the measurement book for each set of
measurements.

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6.19 General conditions of contract provide that before taking any measurement of any
work, the Engineer- in- Charge or a subordinate deputed by him shall give 3(three)
days notice to the contractor. If the contractor fails to attend the measurements after
such notice or fails to countersign or to record objection within a week from the date
of measurement, then the measurement recorded in his absence by the Engineer- in-
Charge or by the subordinate deputed by him, as the case may be, shall be deemed to
have been accepted by the contractor.

6.20 When the contractor fails to attend at the time of measurements or to accept the
measurement recorded by the Junior Engineer by signing in the measurement book,
the fact needs to be brought to the notice of superior officer immediately. When any
discrepancies arise with regard to the measurements taken by the Junior Engineer the
mater should be informed to superior authority within 72 hours of such incidents to
avoid delay / dispute in completion of the process as per provisions of the contract.
The latter on receipt of such a report should take immediate action and inform the
contractor in writing that the measurements as taken by the Junior Engineer/Assistant
Engineer shall be final as per condition of contract and no claims whatsoever on this
account shall be entertained.
When contractor fails to attend during the time of measurement, the authority can
direct the field engineer to record the measurement in presence of the witness (third
party measurement) i.e. Sub-Divisional Magistrate or Block Development Officer and
submit the same to the superior authority. In such cases, the measurement taken shall
be final and binding in all respect and no claims whatsoever on this account shall be
entertained.

6.21 The measurements shall be recorded in ink. No entry shall be erased or over written.
If a mistake is made it should be corrected by crossing out the incorrect words or
figures and inserting the correction, the correction thus made shall be initialed and
dated by officer recording/checking measurements. The person recording the
measurements should record a dated certificate “Measured by me” over his full
signature in the Measurement Book.

6.22 The pages of the Measurement Books should be machine numbered. Entries should
be recorded continuously and no blank page left or torn out. Any page or space left
blank inadvertently should be cancelled by diagonal lines, the cancellation being
attested and dated by an officer not below the rank of an Assistant Engineer.

6.23 When any measurements are cancelled or are not acceptable, these must be endorsed
by the dated initials of the officer ordering the cancellation or by a reference to his
orders, initialed by the officer who made the measurements, the reasons for
cancellation should also be recorded.

6.24 On completion of the abstract, the book should be submitted to the Assistant Engineer
who after carrying out his test check should enter the word “Checked the bill” with
his dated initials. The Sub-Divisional clerk should check the bill in detail including
calculations before submission to the Assistant Engineer for his comparison and
signature at the end of the abstract and bill. From the measurement book all quantities
should be clearly traceable into the documents on which payments are made. When a
bill is prepared for a work or supplies, every page containing the detailed
measurements must be invariably scored out by a diagonal red ink line. When

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payment is made, an endorsement must be made in red ink on the abstract of

measurements, giving a reference to the number and date of voucher of payment.

6.25 Any correction to calculations or rates made in the Sub-Divisional or Divisional or

Circle office should be made in red ink and brought to the notice of the Sub-
Divisional or Divisional Office as the case may be and of the person recording the
original measurements. In the case of final bill payment should be deferred until the
corrections have been accepted by the person making the measurements. All
corrections made by the clerical staff should be in red ink, no erasers or correction
fluids are to be used while making such corrections.

6.26 When a work which is susceptible of measurement is carried out by daily labour,
similar procedures should be adopted, the quantities of work done as shown on the
Muster Roll being compared with the entries in the Measurement Book before
payment is authorized.

6.27 Measurements should be recorded only by the authorized Engineer – in – Charge or

the Assistant Engineer or as the case may be to whom the Measurement Book has
been issued for the purpose specifically.

6.28 All items of work in a project, irrespective of their cost shall be measured and
recorded by the Junior Engineer-in-charge of the work. It is, however, open to the
Assistant Engineer to record measurements for any particular item of work himself.

6.29 In case of works of repetitive type, detailed measurements of 20% of the total number
of units, subject to a minimum of 20 units, need only to be recorded.

6.30 In case of supply of steel, the measurements should be recorded:-

(i) On actual weight basis for bars upto 10mm dia and
(ii) On standard sectional weight basis for bars above 10mm dia. In the case of
the latter, the measurements should indicate the total number with length of
bars in each bundle, total number of bundles, standard weight running meter
weight of each bundle, total weight of all bundles etc. The entry should not be
a copy from the invoice issued by the firm. The issue will also be made in the
same manner in respect of above two items.

6.31 The Assistant Engineer must satisfy himself about the correctness of the bill before
submitting it to the Divisional Engineer for passing and payment and ensure that the
work or supply bill has actually been carried out/completed in accordance with the
terms and conditions of the contract. He should personally inspect all works of all
magnitude before recommending final payment in connection therewith.

6.32 In addition to the above, he is required to test check the measurements of the works in
his charge as indicated hereafter. For the purpose of test check, “measurements”
means the corresponding monetary value of measurements of work done. This,
however, does not apply to “Levels” in which case, the test check has to be based on
the number of levels recorded.

6.33 The Assistant Engineer should check measurement of at least 50% of the value of
measurements recorded by his Junior Engineer before any running/final bill is paid. A

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Register of Works should be maintained in Sub-Division before submission of the

bills to the Division.

6.34 While test checking the work, the Assistant Engineer should test check 100% of all
items of at least one unit, taken at random, besides test checking isolated and
individual items in other units to bring the total extent of check measurement to the
minimum desired limit of 50% of value of work done.

6.35 The Divisional Engineer should test check at least 10% of the measurements recorded
by his subordinates. The test check should also include at least 50% test check of
measurements for RCC items so as to ensure structural safety of the structures. It is
mandatory for Divisional Engineer/Superintending Engineer to inspect and pass
reinforcement for all Reinforced Cement Concrete Structures.

6.36 The Superintending Engineer in charge of the Circle may test check the measurement
included in a bill if he desires to do so.

6.37 In the case of receipt of steel, the Divisional Engineer shall test check at least 10% of
the total consignment received in a month. Permitted variation between the quantities
as per suppliers bills and as received and accounted for in stock account is 0.5% in the
steel bars upto and including 12mm dia and 1% in the case of steel bars of higher
diameters.

6.38 If in any consignment the variation on lower side exceeds the aforesaid limits, 100%
check at least of the measurements shall be carried out by the Divisional Engineer and
detailed investigation into the reasons for the shortage recorded.

6.39 In case of road work when consolidated tenders have been called:-
(i) The stacks shall be uniformly distributed along the road. The collection of
stone metal shall be completed for the entire work or for complete length of 1
km or as directed by the Engineer- in- Charge and measured before the work
of laying and consolidation is taken up in hand.
(ii) The Assistant Engineer must check at least 50% and the Divisional Engineer
at least 20% of the supply of materials in each length of 1km before the work
of laying is started.

6.40 The individual items checked should be clearly shown in the measurement book and
the result recorded by the Officer concerned. The items thus checked should be
attested by the dated initials of the checking Officer, with name and designation.

6.41 Collective record of all the checks carried out from time to time, will be prepared in
each measurement book in the following tabular forms:-
(a) Date of check.
(b) Page recording measurement subject to test check.
(c) Value of measurements checked.
(d) Dated initials name and designation of the checking officer.

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Recording Measurement for Earth Leveling Work

6.42 In case of leveling operations and earthwork, measurements are required to be entered
in the level book. This Level Book should be numbered, accounted for and handled
like Measurement Books over and above the Measurement Book.

6.43 Before starting the earth work, the following steps should be taken:-
(i) Original ground levels should be recorded in the level book in the presence of
the contractor.
(ii) A suitable baseline should be fixed with permanent masonry pillars @ 100
meters to provide a permanent reference line.
(iii) Circuit should be closed by taking final levels of the starting point or any other
point, the reduced level of which was previously determined.
(iv) Plans showing initial levels, location of bench marks and reduced levels
should be prepared and signed by both the parties and attached to the
agreement. Works should be done according to the specifications.

6.44 The Assistant Engineer should exercise test check of levels at least to the extent of
50% and the Divisional Engineer at least to the extent of 20%. The test check of the
levels should be carried out independently by each officer and readings should be
recorded in the prescribed level book in red ink against the old levels which should be
neatly scored out wherever necessary. If the test checking carried out reveals serious
mistakes in the original levels, these should be taken or retaken and rechecked. The
test check by an Officer should be as representative as possible for the entire work
done.

6.45 On completion of a work, the levels should again be recorded in the Level Book and
the contractor’s signatures obtained. These levels should also be test checked by the
Assistant Engineer/Divisional Engineer to the same extent as indicated above within
one month of the date of completion of the earth work and according to the procedure
as laid down in the case of initial levels as indicated above. The formation levels as
per final execution of the work should be compared with the proposed formation
levels and the work got rectified within permissible tolerance time.

6.46 In case of large scale leveling works, involving both cutting and filling, an accurate
site plan should be prepared before the work is commenced. The portions requiring
cutting and filling shall then be divided into squares and corresponding squares into
filling which are complimentary to the squares in cutting given the same number. A
table may be written upon the plan showing leads involved between the various
complementary squares. This would form a lead chart for the work to be done. Before
the work of leveling is commenced, the lead chart shall be checked by a responsible
Officer of the Department not below the rank of an Assistant Engineer in presence of
the contractor or his authorized representative and his signatures shall be obtained on
the same. This should form an integral part of the contract and should be duly signed
by both the integral parties before the commencement of the work. The quantity
payable for earthwork shall be lower of the quantity derived from cutting or filling.
The payment for lead shall be based on lead chart prepared in the aforesaid manner.

6.47 In case of earth to be imported, the area from where earth is to be imported, should be
carefully predetermined before starting the work and wherever feasible, average lead
should be worked out and stipulated in the tender. After this is determined, initial

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levels of this area should be recorded along with the initial levels of the area to be
filled. The levels should be properly checked during the progress of work and on
completion, measurements of earth work should be recorded in both places to
determine correctly the earth excavated and carted. Payment for earth work shall be
made on the basis of lesser of the quantity in filling or cutting. Distances between the
two places should be measured correctly which should also be test checked.

6.48. Similar procedure shall be followed while recording measurements of disposal of

earth.

6.49 In case of small works, borrow pit measurements and stack measurements of earth
may be recorded indicating clearly the place of borrowing or disposal, as the case may
be, so that distances can be verified.

Review of Measurement Book

6.50 All Measurement Books in use in a Division should be collected once in the month
of July each year for review regarding writing of measurement books, recording of
measurements and their test check are being followed properly.

(i) To compare the books in use with part 1 of the Register of Measurement Books and to
make necessary corrections in the register.

(ii) To see that no original sheet is torn out of a book nor any entry erased, tempered or
disfigured and that the corrections made therein are initialed.

(iii)To see that pencil entries are not inked over.

6.51 The extent of review and test check will be determined by the Divisional
Engineer/Superintending Engineer having regard to the result of the last review and
should cover complete set of measurements.

6.52 After review the measurement books should be transmitted to the Circle Office for
test checking the accuracy of calculations by the Accounts Officer. Payments based
on the entries reviewed should be traced into various accounts and verified. Similarly,
supplies or issue of materials should be traced into the various accounts and
contractor’s ledger etc and verified.

6.53 The result of review and test check of calculations should be recorded in the
measurement books and the defects, discrepancies etc noticed should be
communicated forthwith to the Assistant Engineer concerned.

6.54 The Measurement Book completed and returned for record during the year should
also be similarly examined prior to their final record by the Divisional Officer.

Loss of Measurement Books

6.55 When a measurement book is lost, an FIR should be lodged with the police. An
immediate report of the facts of the case, together with an explanation of all parties
concerned responsible for the loss, shall also be made promptly to the Head of the
Department, who is empowered to sanction the write off of the lost Measurement
Books. Such losses for write off should be reported in the proforma as prescribed in

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this manual. It is also necessary that the measurements in the lost measurement book
should be re-constructed at the earliest. The sanction for write off shall be without
prejudice, to the right to take disciplinary/legal action against those responsible for the
loss.

SECTION 7
PREPARATION, EXAMINATION, VERIFICATION AND PASSING OF BILLS FOR
PAYMENT

Preparation of Bills
7.1 The contractor may, if he so desires, prepare the bill. Alternatively, the bill may be
prepared by the Sub-Division on the basis of measurements recorded in the
Measurement Book in one of the forms prescribed, as applicable in each case.

7.2 Before the bill of a Contractor/Supplier is passed, the entries in the Measurement
Book relating to the description and quantities of work/supplies should be scrutinized
by the Assistant Engineer and calculations of “Contents or Area” should be checked
arithmetically under his supervision. The bill should then be checked and passed by
the appropriate authority.

7.3 Full rates as per agreement/supply order should be allowed only if the quality of work
done or supplies made conforms to the specifications of that standard and under the
agreement it is permissible to make the final payment. If the contract is determined,
or an “on account payment”, if the contract is to run, on a part rate as considered
reasonable, should be allowed with due regards to the work remaining to be done as
per the general terms of the agreement, after getting the part rate statement approved
from the competent authority.

7.4 In case of supplies, the payment is not permissible until the stores have been received,
examined and accepted. In case payment has been permitted on production of
dispatch documents etc. the payment should be treated as advance against the final
settlement on receipt, examination and acceptance of the stores.

7.5 If the contract is for a completed item of work and the contractor is required to obtain
materials of any description from the Government, necessary recoveries on account of
the cost of materials supplied to him from the Government stores should be affected
from each bill at the recovery of rates fixed for the purpose.

Forms of Bill for Payment

7.6 The authorized forms of bills to be used for payment to contractors, suppliers and
their utility are described below:-

(a) First and Final bill form should be used for making payments both to
contractors for work and to suppliers, when a single payment is made for a job
or contract i.e. on its completion. A single form may be used for making
payments to several payees, if they relate to the same work or to the same head
of account in the case of suppliers and re-billed for at the same time.

b) Running Account Bill, form is used for all running and final payments to
contractors and suppliers, including cases where advance payments are

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proposed to be made or are already outstanding in respect of the same work

against the contractor.

Hand receipt form: -

This is a simple form of voucher intended to be used for all miscellaneous
payments and advances for which none of the special forms mentioned above
is applicable. This form is not to be used for refund of lapsed deposits.

7.7 Different authorities empowered for Call of Tenders, Acceptance of Tenders, Power
of Technical Sanction, Conclusion of Agreement, Passing of Bills as notified by the
State Government through Finance Revenue and Expenditure Department vide
Memorandum No 07/Fin/Adm. dated18/09/2009 and as amended from time to time
shall be applicable and enforceable. The exercise of these powers is subjected to
availability of budget provision. The existing powers of different authorities are given
in Annexure of this manual.

Payment for Work Done

7.8 Payment for work done or supplies made on running account should be made
periodically on submission of the bill by the contractor/ supplier. According to the
instructions contained in Finance Department Circular No. 01/PAO dated 25th July,
2003, all bills for works executed by the Department within a district are to be sent to
the respective District Pay and Accounts Office along with necessary supporting
documents. The District Pay and Accounts Office would pre check the bills, issue
cheques and render Department wise accounts to the Accountant General, Sikkim.
The Departments shall maintain a parallel cash book and other records as required by
the Departmental codes and manuals.
7.9 The bills passed by the appropriate authority specified in paragraph 7.7 above are
presented by the Circle Office concerned to the District Pay and Accounts Office for
issue of Cheques on receipt of which disbursement is made at the Circle Office.

7.10 Account of payments made at the District Headquarters is rendered to the Accountant
General, Sikkim, by the District Pay and Accounts Officer concerned.

SECTION 8
DOCUMENTATION OF ACCOUNTS.

Bill Register
8.1 The payments made in the Circle Offices are made on receipt of bills from various
Sub-Divisions. A consolidated record of all bills received from the Sub-Divisions in
respect of works/supplies should be maintained in one register known as Bills
Register in the Circle Office in the form given at the Annexure. The Accounts Officer
should ensure that the Register is properly maintained and kept upto date in the Circle
office.

8.2 The bills of work charged establishment, muster rolls and establishment bills should
not be entered in this Register.

8.3 A similar register, as mentioned above should also be maintained in each

Division/Sub-Division in respect of payments to be made through the Assistant

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Engineer. The register should be kept by the sub-Divisional clerk / Divisional

Accountant in the same way as the register in the Circle Office and should be put up
to the Divisional Engineer / Assistant Engineer every week.

Contractors Ledger
8.4 In view of changes in the system of accounting through, Pay and Accounts and
accounting of transactions based on drawl of payment, the contractor ledger shall be
maintained in Store Division of all works department to watch the material issued and
the recoveries received through transfer entries from concerned Drawing and
Disbursing Officer. The accounts relating to issue of stock materials from the store
/supplies should be kept in a bound book known as “Contractors Ledger”. A separate
folio or set of folios should be reserved for all the transactions with each
contractor/supplier for whom a work wise account should be maintained.

8.5 The Contractors Ledger should be completed and maintained up-to- date.

8.6 The In-charge of Store Section is responsible for correctness of entries in the
contractors’ Ledger and balances at the closing of the month.

Store Clearance Certificate will be issued to the contractor by the Store Division
while drawing the Final bills by the contractor on the basis of record maintained in the
Contractor Ledger.

Register of Works
8.7 The permanent and collective record of the expenditure incurred in the Circle during a
year on each work is the “Register of Works”. This record is maintained in the Circle
Office by the Drawing and Disbursing Officers and parallel records shall be
maintained in Division and Sub- Division offices also.

8.8 The Registers of Works are posted as and when any payment is made from the Works.
Separate folio or set of folios in the Register should be assigned to each Major works.
The Drawing and Disbursing Officer is responsible for correctness of the entries and
their safe custody.

REGISTER OF WORKS
ACTION POINTS-
 This is the permanent and collective record of the expenditure incurred in the Circle
office/ paying offices during a year.
 The Register is posted as and when payments are made from the project / works account.
 The Register should be supplied with an index which should be sub-divided under the
prescribed Heads of account Classification.
 The posting of the Register of Works should be completed before submission of the
monthly accounts by the Accounts Officer and the register should be inspected by the
Superintending Engineers at least once in three months for review, who shall then initial
and put date in the relevant column. These registers are open for inspection by any officers
authorized by Principal Chief Engineer cum Secretary.
 When the work is completed and the accounts of it have been settled and written up, a
double red ink line should be drawn below the final entries and a note made in red ink
“Work completed in ………….. 20…….” and the accounts are balance indicating the total
sanction, expenditure incurred and actual saving of each component of schemes.

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Allotment Register
8.9 The Drawing and Disbursing Officer of each office is required to maintain an
Allotment Register. They are required to record the allotment in the budget head wise
and control of expenditure should be exercised through allotment register.

8.10 Transfer Entries Order.

Transfer entries are entries intended to transfer an item of receipt or expenditure from
the account of a work in progress or a regular head of account to another work or head
of account. Transfer entries are normally prepared under the following
circumstances:-
1) To correct an error of classification in the original accounts.
2) In order to adjust receipt or expenditure to the proper head of account or an item
outstanding in a suspense account or a debit head.
3) In order to bring to account certain classes of transactions which do not pass
through cash or stock accounts e.g.:-
(i) For credit to the suspense head on account of materials received for works from
stock suspense.
(ii) For credit to “Public Works Deposits” on account of balances due to contractors
on closed accounts
(iii) For credit to revenue heads on account of revenue not recovered in cash
including deposit.
(iv) For credit to same work of on account of materials purchased from the same work
head.
(v) For debit or credit to remittance heads based on transactions not appearing in
Cash or Stock account e.g transfer of Tools and Plant to another Department of
Government when the value is recoverable from them.
(vi) For credit to the revenue receipt head concerned towards percentage recoveries
i.e those on account of agency charges, establishment, tools and plant and
workshop charges.
(vii) In order to respond to a remittance transaction advised by the Accountant General
or Department, if the corresponding debit or credit is not reflected in the accounts
of the Department.
(viii) In order to transfer from the accounts of the work in progress items which are not
debitable to the work and suspense charges which can no longer be included in the
account of the work. Such entries are necessary when the accounts of any
contractor are to be closed or when any recoveries have to be effected by transfer
of stores to other works or accounts.
(ix) For every transfer entry there must be an authority in Form 53. Transfer Entry
Order or order recorded on another document (e.g. Survey report, Form 18, and
final bill of contractors’ closed account transferred to Public Works Deposit.)
which sets forth all the necessary particulars.
(x) There is no objection for preparing a transfer entry covering a number of
adjustments or corrections provided full particulars like hire charge of machineries
bill no and date, amount etc of such adjustments or corrections are given in the
transfer entry order.
(xi) Transfer entries prepared by Assistant Engineer should be submitted in triplicate
so that two copies can be retained in the Circle Office by Drawing and Disbursing
Officer and one copy can be sent to the Pay and Accounts Office for compilation
and submission to the Accountant General along with the monthly account.

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(xii) Transfer entries involving inter district transactions should be forwarded to the
Head Office to arrange for incorporation by the Accountant General through the
Pay and Accounts Officer, East District.
(xiii) The Drawing and Disbursing Divisional Officer is responsible to see that no
transfer entry is made in the account unless it is admissible under rules referred to
above.
(xiv) Transfer entries should receive special attention of the Drawing and Disbursing
Officer so that habitual errors and mis-classification may not remain unnoticed.
(xv) All transfer entry orders should contain full particulars of the transaction and the
explanation or the proposed transfer, to establish and justify the necessity for
transfer entry.
(xvi) In cases of recoveries of materials involving a reduction in the expenditure
against the estimate of a work, it is necessary to give full particulars of the
materials issued and amounts in which the expenditure was booked earlier.
(xvii) For every transfer entry there must be an authority in Form 53. Transfer Entry
Order or order recorded on another document (e.g. Survey report, Form 18, and
final bill of contractors’ closed account transferred to Public Works Deposit.)
which sets forth all the necessary particulars.
(xviii) No transfer should be made from one sub-head to another sub-head of a work
except on issue of materials purchased from one work and transferred / issued to
another work. Authority of Chief Engineer for formal transfer as prepared by the
Divisional Engineer / Assistant Engineer in-charge of Store is required for such
transfer with the concurrence of heads of Accounts section in the Department. The
order should be filed in the Works Register by Debits and Credits transfer as it
effects the head of the accounts of the work.
(xix) The Drawing and Disbursing Officer is also required to maintain the Transfer
Entry Order Register as prescribed in Form 54 of Sikkim Public Works Code
2009.
Materials Account
8.11 Materials are purchased for maintaining stocks for requirements of various works,
original and maintenance and mainly fall in two classes:-
(i) These are issued to contractors for use on the work in respect of completed items of
work for which they have quoted, for both labour and materials.
(ii) These are issued direct to works when the work is done departmentally or by
contractors whose agreements are for labour work only.

8.12 In the case of issue to contractors in respect of complete items, the materials are
issued to the work, as stipulated in the agreement, at fixed issue rates as indicated
therein. These rates should include storage and other charges, where these are issued
from stock. The materials other than those stipulated in the agreement should not be
issued in such cases without express authority which should specify in each case the
“Issue Rates” to be charged for the materials inclusive of delivery at the place where
these are stored. In all such cases, it should be strictly observed that supply of
materials to the contractors does not amount to giving them financial aid indirectly.

8.13 For materials issued to the Works whether directly or through departmental store,
detailed account should be kept in Materials at Site account. Only principal items of
materials i.e. those items the estimated cost of which exceeds Rs. 2000/- each need be
detailed in this account. Only quantities account should be shown. However, separate
material at site account be drawn incase materials are supplied by other then the

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central / departmental store indicating both quantity and value. All the minor items
may be lumped together under the heading “petty items” for which only values should
be shown.

8.14 Unused balances of materials charged direct to work should be verified at least once a
month by the Junior Engineer and a report of verification of the materials should be
sent to the Assistant Engineer.

Hire Charge of Plant and Machinery

8.18 In addition to the materials issued to the Contractors they are allowed use of plant and
Machinery of the Department at fixed hire rates and when those can be spared without
inconvenience to the department. The hire charges of such plant and machinery count
from the date these are taken out from the Departmental Workshop or a specific place
till the date of their return.

8.19 The rates of hire charges are prescribed from time to time by the Government and the
hire charges include the idle days except for a major breakdown necessitating return
to the workshops. In case of any dispute the decision of the Chief Engineer
(Mechanical) shall be final.

8.20 These hire charges will include services of operating staff and maintenance staff as
also the materials required for normal maintenance and repairs.

Dismantled Material Account

8.21 Like the materials received from other sources and departments, without value, the
materials obtained from dismantlement of a building or structure wherever not sold by
tender or auction, should be recorded in the measurement book for record purpose,
without value. On the basis of these measurements, these should be taken in the
register of dismantled materials in the Form at Appendix. After the entries are made
in the register and duly attested by the Assistant Engineer, those in the measurement
book shall be crossed by diagonal red ink line with a suitable note that these materials
have been entered in the register.

8.22 A separate folio or set of folios should be kept aside for keeping the accounts of
dismantled materials pertaining to each work.

8.23 The materials obtained from dismantlement will be used in the works as far as
possible and will be shown as issued to works accordingly in the register. The
unserviceable materials should be disposed of in the manner indicated.

8.24 The indisposed balances should be physically verified at least once a year and the
result of the verification recorded in the ‘Remarks Column’ of a Register or a
Proforma.

Losses of Government Assets

8.25 All losses of assets in cash or properties should be reported to higher authorities and
Accountant General as soon as these come to the notice of an officer and action taken
to investigate into it and apportion the responsibility for the lapse and losses. This
includes losses due to shortage and damages detected/ noticed during physical
verification of stores.

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8.26 With the exception noted below, any loss or shortage of public money, departmental
revenue or receipts, stores or other property held by or on behalf of the Government,
caused by defalcation or otherwise including losses and shortages noticed as a result
of physical verification, shall be immediately reported by the Divisional Officers
through their Superintending Engineer to the Chief Engineer. The Superintending
Engineer should simultaneously endorse a copy to the Accountant General as well as
to the Finance Revenue and Expenditure Department. The Chief Engineer will
forward the same with his recommendations to the Principal Chief Engineer-cum-
Secretary for onward transmission to the Government. Petty case that is cases
involving losses not exceeding Rs. 5,000/- each need not be reported to the
Accountant General.

8.27 If the irregularity is detected / observed by Audit, in the first instance, the Accountant
General shall forward the report immediately to the Superintending Engineer
concerned and if the Superintending Engineer considers it necessary, he may forward
to the Finance Revenue and Expenditure Department as well.

8.28 The reports must be submitted as soon as suspicion arises that there has been a loss.
There should not be any delay in conducting detailed enquiry incase of any
suspension of loss or theft. When the matter has been fully investigated a further and
complete report should be submitted of the nature and extent of the loss showing the
errors or neglect of the rules by which such loss was rendered possible, and the
prospects of affecting a recovery. This should be referred to the competent authority
immediately.

8.29 The report shall be submitted with such comments as may be necessary or expedient,
on the causes or circumstances which led to the defalcation or loss, the steps taken to
prevent its recurrence and the disciplinary or any other action proposed against the
persons responsible for such acts and omissions.

8.30 When losses of immovable property is caused by fire, flood, cyclone, landslide,
earthquake or any other natural cause in any office such cases should immediately be
reported by the Divisional Officer concerned to the Chief Engineer and by the latter to
the Government. When a full enquiry as to the cause and extent of the loss has been
made, the detailed report should be sent by the Chief Engineer to the Head of the
Department and the Accountant General. All losses exceeding Rs. 5,000 should be
regarded as “serious” for the purpose.

8.31 All cases of loss due to suspected sabotage or other criminal action endangering the
security should be reported to the Police promptly, irrespective of the value of the loss
involved.

8.32 Every Government servant should realize fully and clearly that he shall be held
personally responsible for any loss sustained by Government by his willful negligence
on his part in the discharge of his duties, direct or supervisory. Any fraudulent act or
intensions noticed and omissions and commission should be dealt as per clause 8.31
immediately for necessary action.

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CHAPTER IV
SECTION 9
CONTRACTS AND FORMS
What is Contract?
9.1 When two or more persons have common intention communicated to each other to
create some obligation between them there is said to be an agreement. An agreement
which is enforceable by law is a ‘Contract’.

9.2 According to section 10 of the Indian Contract Act, 1872, only those agreements are
enforceable in law which is made by the free consent of parties competent to contract,
for a lawful consideration and with a lawful object and which are not expressly
declared to be void. A contract should be in writing and attested by witnesses.

9.3 The following are the essential ingredients of a contract:-

a) Offer made by one person called the “Promisor”.
b) Acceptance of an offer made by the other person called the “Promisee”.
c) Doing of an act or abstinence from doing a particular act by promisor for
promisee is called a consideration.
d) The offer and acceptance should relate to something which is not prohibited by
law.
e) Offer and acceptance constitute an agreement, which when enforceable in law,
becomes a contract.
f) In order to make a valid and binding agreement, the parties entering into such
an agreement should be competent to make such an agreement.

9.4 For the purpose of an agreement, there must be a communication of intention between
the parties thereto. Hence, in the form of a contract there is:
(a) A proposal.
(b) Communication of the proposal.
(c) A communication of the acceptance of the proposal.

9.5 The communication of acceptance of the proposal completes the agreement. An offer
may lapse for want of acceptance or be revoked before acceptance. A contract starts
as soon as the offer is accepted and imposes an obligation upon the person making the
offer for its fulfillment.

General Conditions of Contract

9.6 GENERAL RULES

i) All works proposed for execution by contract will be notified in a form of invitation
to tender in official website, by publication in Sikkim Herald and other local and
National papers.
ii) This form will state the work to be carried out as well as the date for submitting and
opening tenders and the time allowed for carrying out the work, the amount of earnest
money to be deposited with the tender, and the amount of the security deposit to be
deposited by the successful tenderer and the percentage, if any, to be deducted from
bills. Copies of the specifications, designs and drawings or any other documents
required in connection with the work assigned for the purpose of identification by the
Assistant Engineer /Divisional Engineer shall also be open for inspection to the
contractor at the office of the Assistant Engineer /Divisional Engineer.

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iii) In the event of tender being submitted by a registered Firm or Co-operative Society in
the State, it must be signed separately by each Partner / Executive Body of Co-
operative Society thereof, or in event of the absence of any Partner/ Other executive
members , it must be signed on his behalf by a person holding a power of attorney
authorizing him to do so, such power of attorney to be produced with the tender, and
it must disclose that the Firm / Co- operative society is duly registered under the
provisions of Law.
iv) Receipts for the payment made on account of a work when executed by a Firm / Co-
operative Society must also be signed by all the partners, except where the contractors
are described in their tenders as Firm, in which case, the receipts must be signed in the
name of the Firm / Co- operative Society by one of the partners or by any person
authorized on their behalf.
v) Any person who submits a tender shall fill up the usual printed form, stating the rates,
he is willing to undertake for each item of the work. Tenderers who propose any
alteration in the work specified in the said form of invitation of tender or in the time
allowed for carrying out the work, or which contain any other condition of any sort,
will be liable to rejection. No single tender shall include more than one work. Tenders
shall have the name and number of the work to which they refer written outside the
envelope containing the tender papers.
vi) In order to make the tender process more competitive and to properly evaluate the
rates offered by the contractors, it is necessary that there must be at least three
participants / tenderers in each tender. Tenders received in less than three valid
tenders shall be summarily rejected and fresh tender shall be invited. However, in case
receipt of less than three tenders in the subsequent re-tender, the Principal Chief
Engineer cum Secretary/ Heads of Department has the discretion to accept or reject
the tenders.
vii) The officer inviting the tender, will open tenders in the presence of any intending
contractors who may be present at the time, and will enter the amounts of the several
tenders in a comparative statement in a suitable form. In the event of a tender being
accepted or not , a receipt for the earnest money submitted along with the tender
therewith shall be given to the contractor for the purpose of identification duly
signing the relevant register. . In the event of a tender being rejected, the earnest
money forwarded with the unaccepted tender, shall be returned to the contractor
without any interest.
viii) The accepting authority reserves the right to reject any or all the tenders without
assigning any reasons thereto.

ix) The receipt of an Accountant or clerk for any money paid by the contractor as Earnest
Money will not be accepted. The contractor is required to furnish requisite bank
receipt or challan issued by the DDO or the Tendering Authority.
x) The memorandum of work tendered for, and the schedule of materials to be supplied
by the Public Works Department and their issue rates, shall be filled in and completed
in the office of the officer inviting the tender before the tender forms are issued. If a
form is issued to an intending tender without having been so filled in and completed,
he shall request the officer to have this done before he completes and delivers his
tender. In case of dispute over issue rates, the issue rate of stock material on the date
of tender in the department shall be considered as “issue rate of stock materials”.

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xi) In addition to the Conditions of Contract enumerated in this Manual, the special
clauses incorporated in the Notice Inviting Tenders of the Work by the Tender calling
authority shall also be construed as the Conditions of Contract for the work.
xii) The standard booklet containing the General Conditions of Contract as prescribed in
the Annexure to this Manual shall be used for all contracts. Standard clauses of
various forms should not be altered / violated except with the previous approval of
that authority.
xiii) The contractor / tenderers shall forfeit the right of tender if it is established beyond
doubt that the work has been sublet to other person even by entering into a power of
attorney.

Notice Inviting Tenders.

9.7 Notice Inviting Tender Form which in brief is known as the NIT. It is required to be
invariably issued in respect of works for which tenders are to be called. The salient
feature of this NIT is that it includes the name of the work, estimated cost put to
tender, period of completion, time and date of receipt and opening of tenders and
other relevant conditions. .
The form of tender to be used along with a set of Standard Conditions of Contract has
been prescribed in this Manual at Annexure. Particular specifications and special
conditions can be added to this standard conditions as per technical requirement but it
should not be repetitive and in contradiction with other conditions. Additional
conditions are to be decided by the NIT approving authority depending upon the
circumstances of each individual case.

9.8 Percentage rate tender could be used in respect of leveling and development works,
including such works as storm water drainage, water supply and sewer line and
repetitive types of works, such as construction of residential quarters of various types
as per standard design and drawing.

9.9 In item rate tenders, the contractors are required to quote rates for individual items of
work on the basis of schedule of quantities furnished by the Department. The form
warrants more detailed analysis of cost by the contractor. The contractors have to
work out the rates against each item.

9.10 Supply of materials form should normally be used where the purchase of materials is
involved. The contractors are required to quote rates for supply of the required
quantity of materials, whether raw or finished.

WORK ORDER:

9.11. This form should be used to convey acceptance of tender to the contractor.

9.12 WORLD BANK DOCUMENTS:

The Standard Bidding Documents finalized by World Bank are used for works aided
by it. Only work specific changes, acceptable to the Bank, may be made in the
conditions of contract. Such changes may be incorporated through additional
conditions or contract-data sheets and not by introducing changes in the standard
wordings of the Standard Bidding Documents of the World Bank. The two authorities
for administering the contract for World Bank Project viz the “Employer” and the
“Engineer” should be substituted with “The Public Works Department represented by

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Chief Engineer/Superintending Engineer” and “The Divisional Engineer represented

by Assistant Engineer/Junior Engineer” respectively.

SECTION 10
PREPARATION OF TENDER DOCUMENTS

10.1 Before tenders for a work are invited, a detailed estimate showing the quantities, rates
and amounts of the various items of work and also the specifications to be adopted
should be prepared. Before sanctioning the draft of the detailed estimate, for works
having involvement of Architect, should be sent to the Principal Chief Architect to
examine it vis-à-vis the specifications of various items provided by him.

10.2 In case of works for which tenders are to be invited, tender documents comprising of
the following should be prepared and approved by an authority which is empowered
to approve the Notice Inviting Tenders before it is issued. These conditions shall also
form a part of the agreement with the Contractor.

The schedule of quantities of work.

10.2A A set of drawings referred to in the schedule of quantities of work.

Specifications of the work to be done.

10.3 The authority issuing the tender should invariably date and initial corrections,
conditions and additions in the Schedule of Quantities, Schedule of Materials to be
issued and specifications and other essential parts of contract documents and also date
and initial on pages of the tender documents irrespective of the fact whether they
contain or do not contain any corrections or over writings etc.

10.4 Before approval of NIT, the following should be ensured.

i) Availability of site, funds and approval of local bodies to plans.
ii) Confirmation that materials to be issued to the contractor would be available.
iii) Arrangement for issue of drawing above slab at level 2 well in advance of actual
requirement at site as per the programme of construction.

10.5 Unless there is any other bonafide reasons to stipulate certain materials, only those
materials should be stipulated in the tender which are either available at the time of
inviting tender or are likely to be received before commencement of the work.

10.6 Stipulated materials shall be issued for use at site on works, for all the items when
such materials are required. For factory made products like pre-cast cement tiles, pre-
cast hollow concrete blocks, pre-cast foam concrete blocks, pre-cast RCC pipes etc.,
stipulated materials shall not be issued.

10.7 It shall also be ensured that description of the materials to be issued is adequately
specified to avoid chances of any dispute. For example, if cement is specified for
issue, it should be stated whether it is grey cement or white cement and whether it will
be in bags or otherwise.

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Composite Tender
10.8 Composite tenders shall be called for works where the combined estimated cost of
different components put together exceeds Rs. 10 crores.

10.9 Composite Tenders can also be called for work where the combined estimated cost
put to tender is Rs. 10 crores or less at the discretion of the Principal Chief Engineer
cum Secretary or where it is requirement of the client or the funding agency.
i) Items of special nature like Sub Station Equipment, lifts, generating sets, centralized
air conditioning system, furniture, furnishing and decorations or any other work of
specialized nature which is to be excluded from the tender, the tendering authority
should seek approval from the competent authority in the event of such composite
works
ii) Detailed estimates for different components will be technically sanctioned by the
competent authority of the respective discipline.
iii) Draft tender documents comprising special conditions/specifications and drawings
etc. shall be prepared separately for such component and approved by competent
authority of the respective discipline.
iv) The authority competent to approve the NIT for the combined cost and belonging to
the major discipline will consolidate the NIT for calling the tenders.
v) The advertisement and the NIT for composite tender, besides indicating the combined
estimated cost put to tender, should clearly indicate the estimated cost of each
component separately. The eligibility of tender will correspond to the combined
estimated cost of different components put to tender.
vi) NIT should also clearly state that:
a. The tenderer must associate with himself agencies of the appropriate class eligible
to tender for the other components individually.
b. It will be obligatory on the part of the tenderer to sign the tender documents for all
the components, the schedule of quantities, conditions and special conditions etc.
c. After the work is awarded, the contractor will have to enter into separate
agreements for each component with the Officer concerned.
d. The engineer in charge of the major component will call tenders for the composite
work. The cost of tender document and earnest money will be fixed with respect to
the combined estimated cost put to tender for the composite tender. Security
deposit will be worked out separately for each component corresponding to the
estimated cost of the respective component of work. The earnest money will
become part of the security deposit of the major component of work.
vii) On acceptance of the composite tender by the competent authority the letter of award
will be issued by the engineer in charge of the major component on behalf of the
Governor of Sikkim, making it clear in the letter of award that the contractor will have
to execute separate agreements for different components of work with the concerned
officers of the respective discipline.

10.10 Separate contract for dismantlement and disposal of structures may be resorted to
when there is enough time available after receipt of approval to dispose of these
structures and receipt of Administrative Approval and Expenditure Sanction for the
re-construction.

Preparation of Notice Inviting Tender

10.11 All notices calling for tenders should be in the standard form as prescribed in the
Annexure of this Manual and be serially numbered, a proper register being maintained

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for the purpose. They should be issued after the authority competent to accept the
tender has approved the NIT papers. The Notice Inviting Tenders should be carefully
prepared; the use of symbols % and per thousand in the schedule of quantities
accompanying the Notice Inviting Tenders is prohibited and the words hundred and
thousand must be written e.g. “per hundred square meter” must be written and not “%
square meter”. The units should thus be more specific. The NIT papers are very
important documents on which call of tenders and subsequent agreements with the
contractors are based. It is therefore very necessary that each page and the correction
slips as also other corrections and modifications made in the NIT papers are
numbered and signed by the competent authority in token of approval so that all
chances of tampering with such documents are avoided. Mere approval on
forwarding letters would not serve the purpose. All corrections in the NITs and pages
of the NITs approved by the Superintending Engineer and Chief Engineer should be
attested by the Accounts Officer/Divisional Engineer (Planning). There after the
documents must be properly sealed to prevent any tampering.

10.12 It will be the responsibility of the Accounts Officer / Divisional Engineer (Planning)
to ensure that the tenders are issued to, only those contractors who satisfy the
eligibility criteria for issue of tenders as inserted in the Press Notice. He should
properly scrutinize the applications received for issue of tenders keeping in view the
eligibility criteria and then put up to higher authority for approval.

10.13 The NIT for all works for which tenders are invited on Percentage rate, basis shall
provide that the contractor should quote the percentage above or below up to two
places of decimal only. The NIT should stipulate reasonable time for completion of
the work corresponding to the completion time indicated in the proposal for
administrative approval.

SECTION 11
PUBILICITY OF TENDERS

11.1 Wide publicity should be given to the Notice Inviting Tenders. Tenders must be
invited in the most open and transparent manner possible by advertisement in Sikkim
Herald and other National and Local papers, and by notice pasted in public places and
duly hosting in the Departmental Websites. A copy of the notice should also be sent
to the District Collector, Sub-Divisional Magistrate, Block Development Officer and
PRIs/Municipality located at the station of the work for wide publicity. E-tendering
also be resorted to for inviting wider and transparent competitions amongst tenderers.

11.2 Advertisement for Notice Inviting Tenders should be sent to the Information and
Public Relations Department for dissemination through the press media. Request for
release of advertisement should be sent well in advance and a watch should be kept on
publication of the advertisement. Copies of publication of the advertisement should be
collected and kept on record as a proof of publicity actually. Full details of the date
on which the advertisement actually appeared in the news papers should be indicated
while sending cases to the higher officers.

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Pre bid Conference

11.3 In case of works estimated to cost Rs.10 crores and above, a pre-bid Conference shall
be held by the Engineer-in-Charge about 10 days before the last date of submission of
the tenders for clarification of any doubts of the prospective tenderers attending the
conference. In case of works costing less than Rs.10crore, where necessary, pre-bid
conference may be held in a manner described above at the discretion of the NIT
approving authority.

Restricted Tenders
11.4 Restricted tenders can be called in the following cases with the prior approval of the
Head of Department.
a) The work is required to be executed urgently which not all contractors are in
position to perform.
b) The work is of special nature requiring specialized equipments which is not
likely to be available with all the contractors.
c) Where the work is of secret nature and public announcement is not desirable.
d) The list of pre-qualified contractors is required to be shortlisted to a suitable
limited number.
e) Works benefitting the weaker section of the society and if exigencies of the
work so demands.

11.5 Restricted call of tenders is normally made after preparation and selection of
contractors on the basis of pre-qualification applications invited through press
advertisements so as to make the list of contractors of proper technical, financial
capabilities backed by sufficient experience and resourcefulness.

Prequalification of Contractors
11.6 Pre-qualification of contractors shall be resorted to in the following cases:
(a) The estimated cost of the work exceeds Rs. 10 crores.
(b) The estimated cost of the work is upto Rs. 10 crores and the Principal Chief
Engineer in his discretion and for recorded reasons decides to pre-qualify
contractors on the following grounds:
i) The work is required to be executed speedily, which not all contractors are in
position to perform.
ii) The work is of special nature requiring specialized equipments, which is not likely
to be available with all contractors.
iii) The work is to be executed in sensitive VIP areas.
iv) Client has requested to restrict the tender.
v) Any exigencies of the work to be placed on record.

11.7 The pre-qualification applications shall be invited on pre-qualification documents

(Annexure II) through press notice and website of the department. The Chief Engineer
shall draft the prequalification criteria in accordance with guidelines laid down, suggest
deviations from the guidelines where absolutely necessary, and send the same to the
Head of Department for approval. The following criteria shall be fulfilled for all pre-
qualification bids:
(a) Three similar works experience having successfully completed, costing not less than
the amount equal to 40 percent of estimated cost put to tender.
(b) Two similar works costing not less than the amount of 50% of the estimated cost put
to tender.

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(c) One similar work of aggregate cost not less than 80 % of the estimated cost.
(d) Average annual financial turnover on construction works should be at least 30 percent
of contract value, during the last three years ending 31st March of the previous
financial year.
(e) Profit/loss account papers should be as on 31st March of the previous financial year.
(f) Solvency certificate should be for an amount equal to 40% of the estimated cost of
work.

Expression of Interest
11.8 Expression of Interest for any work requiring specialized work, materials, equipments
and men power, the Principal Chief Engineer cum Secretary / Head of the Department
in his discretion and for recorded reasons, may decide to invite Expression of Interest
in two bids system i.e. Technical and Financial Bids separately or together as the case
may be. The Technically qualified contractors / parties shall have to deposit the
requisite tender form cost and the TDR of required amount as earnest money before
opening of the financial bids.

Time Limit for Publicity of Tender

11.9 The time limits between the date of NIT and the date of opening of the tenders are
laid down but the period may be extended at the discretion of the officer competent to
accept the tender in case on need as:
(a) Minimum one week in the case of works costing upto Rupees Ten Lakhs.
(b) Minimum two weeks in the case of works costing between Rupees Ten Lakhs to
Rupees One Crore.
(c) Minimum four weeks in the case of works costing over Rupees One Crore.

11.10 The following procedures shall be adopted for proper publicity of tenders:
1) All NITs, whether issued by the Sub-Division or at higher level shall be assigned a
serial number in the NIT form ‘X’ of ‘Y’ where ‘X’ is the serial number of the NIT
issued in a particular financial year and ‘Y’ represents that financial year.
Abbreviations for issuing office and the place may be added. No NIT shall be
publicized either on the Notice Board or in press without a serial number.
2) The serial number shall be assigned from a register maintained for the purpose in the
format given in the Annexure. The serial number shall be continuous.
3) The agreement with the contractor shall bear the serial number of the NIT along with
other details on the cover page.

SECTION 12
SALE OF TENDER DOCUMENTS
Preliminary
12.1 Tender documents comprising of (i) Tender form, (ii) Contract Agreement Form (iii)
General Directions and Conditions of Contract and (iv) Schedule of Rates and
Quantities should be prepared and kept ready for sale to the contractors before the
Notice is actually sent to the press or is pasted on the Notice Board and every
contractor desiring to tender shall be asked to make a written request. It is the
responsibility of the Tender Calling Authority and the Accounts Officer(s) to see that
tender documents are made available to the contractors as soon as the application is
made. The application may be made by the contractors in the prescribed form at
Annexure.

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12.2 Tender documents shall be sold to only registered and enlisted contractors who fulfill
the eligibility criteria set out in the press notice and who are not near relatives of the
Accounts Officer, Senior Accountant or Superintending Engineer or Divisional
Engineer or Assistant Engineer or Junior Engineer of the Circle in which the work is
to be executed.
Note: A near relative includes wife, husband, parents and children.

12.3 For recorded reasons the Head of the Department is competent to permit any
particular person or firm, who are not on the registered list, to tender for specialized
works.

Sale of Tender Documents

12.4 Sale of tender documents shall be allowed in two stages. In the first stage contract
agreement form, General Directions and Conditions of contract and Schedules of rates
and Quantities only shall be issued on production of Bank Receipt, from the State
Bank of Sikkim for the amount specified in the Notice Inviting Tenders. The tender
form on which the contractor is to quote the rate/offer shall be issued to the intending
tenderers at the second stage on production of Temporary Deposit Receipt(TDR),
from the State Bank of Sikkim for the amount of earnest money and within the dates
as specified in the Notice Inviting Tenders.

12.5 Tender form as per annexure shall be issued by the Accounts Officer(s) in respective
Circle Offices and Head Quarters as per para 12.4 above. In case of Sub- Division
and Divisions offices, the tender forms shall be sold by the tender inviting authorities
and no Tender Documents/Forms shall be issued in absence of such authorities.

Time Interval
12.6 In order to give contractors sufficient time to study tender documents and work out
reasonable rates, the receipt of applications for issue of tender forms will be stopped
by 1500 hours six days before the date fixed for receipts of tenders. Issue of tender
forms will be stopped three days before the date fixed for such receipt.

Charges for Tender Documents

12.7 The following are the charges for the sale of tender documents unless stipulated
otherwise by the State Government:
Value of work costing Scale charges (in rupees)
Upto Rs. 5 lakhs 250.00
Above Rs 5 lakhs and upto Rs.10 lakhs 500.00
Above Rs. 10 lakhs and upto Rs. 20lakhs 1,000.00
Above Rs. 20 lakhs and upto Rs. 50 lakhs 2500.00
Above Rs. 50 lakhs and upto Rs. 1 crore 15,000.00
Above Rs. 1 crore and upto Rs. 3 crore 30,000.00
Above 3 crore and upto Rs. 10 crore 50,000.00
Above 10 crores and upto Rs. 20 crore 1, 00,000.00
Above Rs. 20 crores 2, 00,000.00
12.8 The agreement form contains general conditions of contract for executing works and
is applicable both for item rate as well as percentage rate Tenders.

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12.9 The issue and recovery of stipulated materials to contractors for use in construction
works is governed by clause 10 and 43 of the Conditions of Contract.

12.10 A fifteen days notice should invariably be issued to the contractor to return the excess
materials got issued by him over and above the theoretical consumption and
permissible variations.

Accounting of Tender Document

12.11 The following are the procedure laid down for accounting of tender documents:
(a) All tender documents shall be kept in the office of Accounts officer(s) of Head
Quarters and Circle offices.
(b) The register should contain a chronological record of the issue of tender documents
showing the name of the person to whom issued, the number of forms issued and the
particulars of Bank Receipt on account of cost of documents.

12.12 To avoid the possibility of bogus and fake tenders being submitted, it is necessary that
tender documents are sold individually and acknowledgements taken from contractors
or their accredited representatives in the Sale Register of Tenders while handing over
tender documents to them.

SECTION 13
RECEIPT, OPENING AND ACCEPTANCE OF TENDERS

Receipt of Tenders
13.1 The tenders shall be placed in sealed covers and deposited with the prescribed
authority in accordance with the instructions contained in the Notice Inviting Tenders
(NIT).
13.2 In respect of following works, two bid system i.e. Technical bid and financial bid in
separate covers shall be adopted:
i) Works costing more than Rs. 10 crores.
ii) Special items like bridges, pile foundations, special buildings etc.
where lump sum tenders or tenders based on contractors designs are called and
iii) Supplies involving strict technical standards.

Opening of Tenders
13.3 Tenders should be opened by the prescribed committee in the presence of such
intending contactors or their representatives as may choose to attend at the time and
place indicated in the NIT. Tenders should be entered in the Register in Form as at
Annexure.

13.4 The tenders received after the due date and time of receipt are not to be considered at
all. They should neither be opened nor entered in the tender opening register.

13.5 In case of two bid system, technical bids shall be opened first and after technical
evaluation is completed, financial bids in respect of technically acceptable offers only
shall be opened.

13.6 The committee opening the tenders should mark all corrections, cutting, conditions,
additions and over-writings and number them and attest them in red ink. In case of a

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number of corrections in any rate, either in words or in figures, or in both, the number
of corrections marked should indicate the corrections serially, that is to say, in case of
say three corrections in rates of any one item, each of these corrections should be
allotted independent numbers serially and not one number to represent all the three
corrections.

13.7 The number of such corrections, cuttings, additions, conditions and over writings
must be clearly mentioned at the end of each page of schedule attached to the tender
paper and properly attested with the date. Any omission observed should also be
brought out clearly on each page of the schedule.

13.8 The corrections, cuttings, conditions, additions and over-writings etc should be
allotted separate numbers i.e. corrections should start from 1, 2, 3 etc. and over-
writings should similarly start separately from 1, 2, 3 etc.

13.9 Any ambiguities in rates quoted by tenderers, in words or figures must be clearly
indicated on each page of the schedule attached to the tender to whom it concerns.

13.10 In case where the contractor has quoted rates in rupees and no paisa is mentioned the
word “only” should invariably be added after the words “rupees” and the corrections
should be initialed and dated with suitable remarks at the end.
13.11 Where the contractors have omitted to quote the rates in figures or in words, the
committee opening the tender should record the omissions on each page of the
schedule.

13.12 The committee shall see that the contractors quote entire rates in words including
paise to avoid chances of tampering in rates and if the contractor fails to do so the
tender is liable for rejection.

13.13 The contractors shall be asked to file the tenders properly and carefully. Quoting
absurd rates and making too many corrections in the tenders should be avoided. The
amounts should also be correctly worked out. If any contractor does not follow these
instructions and desists from filling the tenders carefully, it would be open to the
Departments to take disciplinary action against the Contractor.

13.14 The Accounts Officer/Accountant should be present at the time of opening of tenders.
Tenderers should also be encouraged to be present at the time. Percentage and lump
sum tenders should be read out to the tenders as far as possible. In the case of item
rate tenders, the total amount worked out by different tenderers may be read out, if
required by the tenderers present.

13.15 After opening the tenders in the manner mentioned above and keeping a record and
after preparation of comparative statement, these should be sent to the accepting
authority concerned and detailed scrutiny will be done in the office of the accepting
authority. In case of tenders within the powers of Chief Engineer/Principal Chief
Engineer, complete scrutiny will be done in the office of the Chief Engineer.

13.16 A complete comparative statement of all tenders received in response to the notice
should be drawn up.

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13.17 Care should be taken in preparing and scrutinizing comparative statements of tenders
to guard against arithmetical and other mistakes. Failure to do this may result in work
being awarded to a contractor who is not lowest acceptable tenderer, a contingency
which must be guarded against.

13.18 The detailed arrangements for proper check of tenders and comparative statement
must provide: That the work of checking will be carried out under the control of
Financial Officer/ Superintending Engineer (Planning) in Chief Engineer’s office,
Accounts Officer in Superintending Engineer’s Office, Accountant in Divisional
Engineer’s office and by the Sub-Divisional Clerk in Sub-Division. The officials
handling the tender should work on it in the office only and tenders should not be
taken outside the office in any case. Tenders and related papers must be kept under
lock and key by the officials before leaving the office.

13.19 That the officials date and initial all papers the calculations of which they have
checked and that all working sheets are preserved.

13.20 All the officials mentioned above should make satisfactory and efficient arrangements
for checking the computed tenders. They should also conduct personally a test check
of computed and checked tenders to satisfy themselves reasonably that the checking
has been properly and sufficiently done. They should also see that comparative
statement correctly incorporates the total as checked in individual tenders.
13.21 That if on checks there are differences between the rates given by the contractor in
words and figures or in amount worked out by him, the following procedure shall be
adopted.

13.22 When there is a difference between the rates in figures and in words, the rates which
correspond to the amounts worked out by the contractor, shall be taken as correct.

13.23 When the amount of an item is not worked out by the contractor or it does not
correspond with the rates written either in figures or in words, then the rate quoted by
the contractor in words, shall be taken as correct.

13.24 When the rate quoted by the Contactor in figures and in words tallies but the amount
is not worked out correctly, the rates quoted by the contractor shall be taken as correct
and not the amount.

13.25 In the case of percentage rate tender the contractors are required to quote their rates
both in amount as well as percentage below/above the rates entered in the Schedule.
In such cases in the event of arithmetical error committed in working out the amount
by the Contractor, the tendered percentage and not the amount shall be taken into
account.

13.26 That the NIT approving authority himself makes through scrutiny of the tenders and
the statement.

13.27 That the NIT approving authority makes proper arrangements for the safe custody of
tenders and comparative statements while computations are being made in his Office.

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13.28 It is essential that there be no haste in the work of computing tenders and of checking
computations and the officers mentioned above are entitled to claim that reasonable
time should be allowed to satisfy them that the check has been properly done. The
officer concerned should record the following certificate on the comparative
statement:

“Certified that I have personally conducted a test check of the computed and
checked tenders including the three lowest tenders and have verified myself that the
checking work has been properly done. The comparative statement correctly
incorporates the total as checked on individual tenders”.

Acceptance of Tender
13.29 Top priority should be given to decide the award of work on receipt of tenders. In
order to minimize chances of delay, time table should be observed for dealing with
tenders by different authorities.

13.30 The time schedule is required to be adhered to strictly and if any officer is unable to
follow the same he should invariably give reasons while forwarding the tenders to the
authorities competent to accept it.

13.31 The following instructions should be scrupulously followed:-

(i) The tenderers are not expected to make any post tender modifications. Any
such case should be viewed seriously and action taken under the provision of
rules for enlistment of contractors and matter should be reported to the
Registration/Enlistment Authority for disciplinary action. In any case, the
contractors should not be allowed any undue advantage when the tenders are
under examination; no other authority should make queries or call for
reports/clarifications from the tenderers except with the approval of the
accepting authority.
(ii) Tenders with any condition including conditional rebates, shall be rejected.
However, tenders with unconditional rebate will be acceptable.
(iii) Incase, after receipt of tenders, it becomes necessary to forward the tenders to
the higher authority for acceptance due to the tender going beyond the power
of NIT approving authority on account of higher quoted rates , while
forwarding tenders to the higher authority , details like (a) validity period of
the tender (b) time already taken for scrutiny, (c) balance period available,
should prominently be indicated to ensure that there is no delay in processing
of tenders and decisions are taken well in time.
(iv) In case of tender where validity period has already expired, decision to accept
the same should be taken only after validity period is extended with the
consent of the tenderer.
(v) The authority of the Departmental Officers to accept tenders is restricted to
cases where the tenders are upto AT PAR involving no additional financial
implication. Higher tenders involving additional financial implication will
require approval/acceptance of the Government through proper channel.
(vi) When tender exceeds the amount technically sanctioned for the work by an
amount greater than the power of the technical sanctioning authority, revised
technical sanction is required to be issued by the next higher authority after
acceptance of tender by competent authority.

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(vii) The reasons for accepting or rejecting a tender should be recorded on a

separate sheet which should be attached to the comparative statement and
removed before the case goes back into the office.
(viii) This sheet should be kept in the custody of the accepting authority and should
not be sent into the office. It may be shown to the Gazetted Officer of the
Audit on inspection, if desired by him.
(ix) If the bid of the lowest Tenderer / Bidder is seriously unbalanced in relation to
the workability rate worked out for the work by the Department, the tender
accepting authority shall direct the lowest / Bidder Tenderer to produce
detailed price analysis for any or all items of the schedule of quantity, to
demonstrate the internal consistency of those prices with the construction
methods and schedule proposed. After evaluation of the price analysis, the
State Government may require that the amount of the Earnest Money /
Performance Security be increased at the expense of the lowest Tenderer /
Bidder to a level sufficient to protect the State Government against Financial
Losses in the event of default of the successful tenderers to complete the work.
The amount of the increased earnest money shall be decided by the Principal
Chief Engineer cum Secretary / Head of Department, which shall be final,
binding and conclusive on the Tenderer/ Bidder.
(x) The additional Earnest Money / Performance Security shall be in the form of
Temporary Deposit Receipt or Fixed Deposit Receipts from any scheduled
Bank within Sikkim and no other forms of security shall be entertained.
(xi) If the lowest Tenderer backs out after the tender, the earnest money deposited
by the lowest Tenderer who has backed out shall be forfeited to the Revenue
Receipt and the contractor shall be debarred from taking part in tenders in the
State Government for a period of at least two year. Thereafter, the work
should be re-tendered in a transparent and fair manner. In such a situation,
authority may call for limited or short notice tender, if so justified, in the
interest of work and take decision on the basis of the lowest tender.
(xii) It is not enough to accept the lowest tender with the stipulation of additional
earnest money alone. The department shall have to verify the performance of
the lowest bidder with due consideration to the number of works completed
satisfactorily by him in last three years and his capacity to undertake the work.
The department shall also verify and examine his financial status from the
balance sheets of the bidder for the preceding three years. In such a case, if the
department is satisfied with the incompetence of the lowest bidder, then it
shall proceed with re-tender in a transparent and fair manner. In such a
situation, authority may call for limited or short notice tender, if so justified, in
the interest of the works and take decision on the basis of the lowest tender.
(xiii) Where high rated tenders are accepted, the authorities accepting such tenders
should verify themselves about their reasonableness, taking into consideration
the schedule rates plus increase in cost index plus other facts, if any, and
should be in a position to justify the rates at which the work is awarded. The
justification should be placed on record. The plea that it is very difficult to
justify the high rates or that rises are due to various factors is not tenable. If
the Executive Officers keep themselves abreast of the changing circumstances,
a rough approximation can certainly be made although not with so much
exactitude.
(xiv) In the preparation of justification statement for considering reasonableness of
tenders, mainly two methods are followed. The first method consists of

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preparing detailed analysis of rates by taking market rates of labour, materials

and cartage etc for major items (on the whole costing about 90% of the
estimated cost put to tender) and working out the justified percentage on this
basis. The second method consists of calculating the increase in cost due to (i)
increase in rates of stipulated materials over those adopted in Schedule of
Rates used for the estimate, (ii) increase in rates of non stipulated materials
and (iii) increase in cost of labour, if any.
(xv) For the justification of tenders the issue rate and not the market rate of
stipulated materials shall be considered for items where issue of materials is to
be done, irrespective of the quantity of stipulated materials stated in the draft
NIT/tender documents.
(xvi) Items constituting about 90% of the estimated cost of work should be
considered for preparation of justification statement. Items to be considered
should be so selected which have higher estimated cost and amount. One
should start with items having the highest estimated amount and then next
lower in the descending order till the fixed percentage of estimated amount i.e.
about 90% is reached.
(xvii) The element of increase in cost due to materials stipulated for issue in tender
documents such as cement, steel, etc. should be worked out by calculating the
different in cost of these materials at issue rates plus handling charges and
estimated cost of these materials at schedule rates plus 10% contractors profit
and over heads.
(xviii) Increases in cost due to non-stipulated materials should be worked out by
calculating the difference in cost of these materials of market rates plus 10%
and the corresponding cost of these materials at rates indicated in the Schedule
of Rates applicable plus 10%.
(xix) The element of carriage should be calculated separately for major materials
because the leads of various materials would not be the same in different
works. The increase in cost of carriage element for materials like steel, bricks
aggregates, sand, timber, etc. may be considered.
(xx) The adoption of a particular method should be decided judiciously by the
authority competent to accept tenders.
(xxi) Negotiations should not be conducted with the tenderer but in cases where it
becomes necessary to do so, negotiations should be restricted to the lowest
tenderer only, if the rate quoted is above the schedule. In no case negotiations
of rate in post tender situation shall be made with the tenderer, who has quoted
the rate below the schedule.
(xxii) While no post tender rebate/reduction in any manner will be accepted, this
does not restrict the officers to negotiate with the lowest contractor/tenderer, if
the rates so negotiated will be financially advantageous to the State
Government.
(xxiii) The tender for works shall remain open for acceptance for a period of ninety
days from the date of opening of tenders.
(xxiv) After the tender for the work has been accepted the same will be
communicated to the contractor in the form at Annexure.

13.32 Preferential Treatment to Registered Co-Operative Societies:-

Notwithstanding anything contained in this Manual, the State Government has
announced preferential treatment upto (Fifteen) 15% of the lowest tender to Co-
Operatives Societies registered in the State and enlisted in the Sikkim Public Works

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Department as contractor in the appropriate grade / class while accepting the tender
vide Notification No 4/Coop Dated 25/8/2000.

13.33 Preference to District Based Entrepreneurs and Professional:-

As per the provisions in the Sikkim District Based Entrepreneurs and Professionals
Incentive, Development and promotional Act and Rules 2008, the State Government
has given preference to the District Based Entrepreneurs and Professionals upto 15%
price preference to the Lowest Tender vide Notification No 10/LD/P/2008 Dated
10/07/2008.

SECTION 14
EARNEST MONEY

Necessity for Earnest Money

14.1 According to practice, earnest money is paid by each tenderer to enable the
Government to ensure that a tenderer may not refuse to execute the work after it has
been awarded to him. In case where a tenderer fails to commence the work awarded to
him, the earnest money is absolutely forfeited to the Government.

14.2 If only a part of the work as shown in the tender is awarded and the contractor does
not commence the work, the amount of the earnest money to be forfeited to the
Government should be worked out with reference to the estimated cost of the work so
awarded.

Rate of Earnest Money

14.3 The rate of earnest money which a contractor should deposit before issue of tender
form is 2.5% of the estimated cost put to tender.

Mode of Deposit
14.4 The earnest money is accepted only in the form of temporary deposit receipt (TDR)
from the State Bank of Sikkim or Fixed Deposits Receipts from any scheduled bank
in Sikkim. The deposit is to be made within the time allowed and specified in the
Notice Inviting Tender and should be pledged in favour of the tender inviting
authority. No other form of deposit shall be accepted.

Refund of Earnest Money

14.5 Earnest money received in the form of Temporary Deposit Receipt or Fixed Deposit
Receipt along with the tender, except the lowest tenderer all the TDR / Fixed Deposit
Receipt should be refunded within a week time from the date of receipt of Tenders.

14.6 The amount will be refunded in the case of unsuccessful Contractors by making
requisite endorsement on the original TDR or FDR.

Forfeiture of Earnest Money

14.7 Earnest money deposit may be refunded under the authority of an order endorsed by
the Departmental Officer (in whose favour the deposit was made) upon the original
deposit receipt. Under no circumstances can part payment be made.

14.8 If any Tenderer withdraws his tender within the validity period or makes
modifications in the terms and conditions of the tender which are not acceptable to the

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Department, then the Government shall without prejudice to any other right or
remedy, be at liberty to forfeit 100% of the earnest money absolutely.

14.9 In case the contractor fails to commence the work specified in the tender documents
on 15th day or such time period as mentioned in letter of award after the date on
which the Engineer-in-Charge issues written orders to commence the work or from
the date of handing over of the site, whichever is later, the Government shall, without
prejudice to any other right or remedy, be at liberty to forfeit whole of the earnest
money absolutely.

14.10 In cases where work/supply is awarded on the basis of quotations and a condition for
depositing earnest money is laid down in the notice inviting quotation, the conditions
laid down in para 14.11 shall be stipulated in the NIQ.

14.11 The quotation for the work/supply shall remain open for a period of ……………..
days from the date of opening of quotations. The Government shall, without
prejudice to any other right or remedy, be at liberty to forfeit 50% of the earnest
money if any quotationer withdraws his quotation before that date or make any
modification in the terms and conditions of the quotation which are not acceptable to
the Department, and to forfeit whole of the earnest money if the quotationer, whose
quotation is accepted, fails to commence the work/supply specified in the NIQ ( along
with changes in scope, if any ) in prescribed time or abandons the work/supply before
its completion.

14.12 In composite contract for dismantling of existing structure and construction of new
structures the contractor shall be required to deposit caution money equivalent to 50%
of the credit likely to be obtained from dismantled materials before the site is handed
over to the contractor. This cautions money shall be refunded after the cost of
dismantled materials is finally recovered and the site is cleared by the contractor.

SECTION 15
SECURITY DEPOSIT

Rate of Security Deposit

15.1 The security deposit shall be collected by deductions from the running bills of the
contractors at the rate of 5% of the gross amount of the bill.

15.2 The security deposit shall not be refunded to a contractor except in accordance with
the terms of his agreement.

15.3 Refund of security deposit to a contractor on the completion of work is regulated by

General Conditions of Contract. The clause in the General Conditions of Contract
envisages the issue of a completion certificate of the contract. Such completion
certificate shall be issued by the authority in a manner detailed in this Manual.

15.4 The period of maintenance as prescribed under General Conditions of Contract will be
counted from the date of completion as recorded in the certificate mentioned above.
The Security Deposit of the Contractor should be refunded after the prescribed
maintenance period as stipulated in the agreement or after the final bill has been
prepared and passed for payment, whichever is later. However, in case of Carpeting

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works, the Security Deposit shall not be refunded for a period of Five Years from the
date of completion. The Principal Chief Engineer cum Secretary may however order
release of security deposit pending payment of final bill keeping such amount as
security as he deems to be sufficient.

15.5 The Circle Office should keep a close watch over the delay in the refund of security
deposit to contractors and for this purpose they should periodically review the
Register of Security Deposits maintained in the Circle.

15.6 Once the recoveries become due from the contractor, the same should be affected
from the money due to the contractor either from the same work or from any other
work or from the security deposit. Action to recover the overpaid amount should not
be delayed or be in abeyance on account of the case being before the arbitrator.
Action in terms of the award can be taken after the award is received and accepted by
the competent authority. The recovery of overpaid amounts should be effected as
early as possible and the recovery should not be held in abeyance during the pendency
of arbitration proceeding.

15.7 The claim for refund of security deposit is governed by the Limitations Act. The
period of limitation is 3 years commencing from the date the right to due accrues. In
the case of security deposit paid along with the individual contract, the right to due
would accrue under clause 17 after the maintenance period or payment of final bill
whichever is later.

15.8 In order to avoid delay in the refund of security deposit to the contractors, the
Accounts Officer of the Circle should put up to the Superintending Engineer every
month a list of all the cases where the security deposit becomes due for refund.

SECTION 16
AGREEMENTS/CONTRACTS ESSENTIAL FEATURES

16.1 The Government shall have full powers to accept tenders and the authority to frame
subsidiary rules relating to the calling for or acceptance of the Tenders and the general
procedures connected with the Contracts. There are, however, certain general
principles and guide lines laid down for acceptance of tenders which are required to
be observed by subordinate authorities empowered to enter into contract or agreement
involving expenditure from Public Funds.

16.2 No contract shall be made by a subordinate authority which has not been directed or
authorized to do so by or under the orders of the Governor of Sikkim in terms of
Article 299(2) of the Constitution.

16.3 The Governor should be made a party to every Contract of the Government and the
words “for and on behalf of the Governor of Sikkim” should follow the designation
appended below the signature of the officer authorized in this behalf under Article
299 of the Constitution and executing the contract.

16.4 Terms of contract must be precise and definite and there must be no room for
ambiguity or misconstruction therein. In the Public Works Department standard
contract forms have been prescribed to avoid this contingency. The alternative

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conditions given in the standard forms which are not applicable to a particular
contract should be invariably scored out. In case where standard forms of contract are
not convenient to be used, legal and financial advice should be taken in drafting the
contracts before they are finally entered into.

16.5 No relaxation of specification in a contract or relaxation of the terms of an agreement

entered into by the Government should be made without proper examination of the
financial effect involved in consequence of such relaxation. The interest of the public
exchequer should be taken care of before agreeing to any relaxation of agreement or
contract. Save in exceptional circumstances, no work of any kind should be
commenced without prior execution of contract documents. Even in cases where a
formal written agreement is not made, no order for supplies etc should be placed
without at least a written agreement as to the price and other terms of agreement.

16.6 The terms of the contract once entered into should not be materially varied without
the previous consent of the authority competent to accept tender/offer for the contract
as so varied. No such variation involving payment to contractors by way of
compensation or otherwise outside the strict terms, of the contract or in excess of the
contract rates, shall be authorized without the prior approval of the Finance
Department. A variation of the terms of contract which has been approved by that
Department, shall be made by writing executed “ for and on behalf of the Governor of
Sikkim” by an Officer who is authorized by the order under Article 299 of the
constitution to execute the original contract.

16.7 No contract involving an uncertain or indefinite liability or any condition of an unusual

character should be entered into without the previous consent of the Finance
Department.

16.8 The agreements for execution of works shall be signed by the authorized authority
after the acceptance of tenders by the competent authority for each and on behalf of
the Governor of Sikkim.

16.9 There should be no delay in executing the agreement as soon as tenders have been
accepted. It should be seen that conditions not existing in the approved tenders are
not, in any case, allowed to be embodied in the agreements. A record of the
agreements drawn up should be kept in the prescribed form.

16.10 The date of acceptance of tender as shown in the letter of acceptance of tender and
award of work issued to the contractor which forms part of agreement, should be
indicated in the space at the bottom portion of agreement form case may be.

16.11 Before signing an agreement it must be ensured that all the conditions incorporated in
the tender documents and in the NIT are a part of the conditions of the contract, which
should not be altered / omitted without mutual consent within the parties.

16.12 Two sets of contract documents should be prepared and signed by both the parties on
each page. One of the sets should be stamped “Original” and the other “Duplicate”.
The duplicate copy should be supplied to the contractor.

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16.13 The agreements should be properly checked and compared with the Notice Inviting
Tenders as approved by the competent authority.

16.14 The original contract documents should be kept in the personal custody of the
authority which entered into the agreement.
Certified copies of the agreements should be sent to the following:
a) Tender accepting authority where it is different from the authority. entering into
the agreement
b) The Engineer-in-Charge.
c) The Pay and Accounts Officer concerned.
d) Chief Accounts Officer / Accounts Officers in HQ
e) Accountant General of Sikkim.
f) Director, Vigilance Department.
g) Secretary, Finance Revenue and Expenditure Department.

16.15 Supply of copies to the Accountant General/ Chief Accounts Officers in HQ and the
Pay and Accounts Office should be made within four weeks of the acceptance of
tender.

16.16 Each copy of the agreement should be certified as “True Copy”. The original,
duplicate and all copies of an agreement should be properly sealed.

16.17 For weeding out old agreements, a Committee consisting of the following shall be
constituted by the Chief Engineer.
(1) Superintending Engineer.
(2) Pay and Accounts Officer.
(3) Divisional Engineer of the concerned Division.
(4) Accounts Officer of the Circle.

16.18 The committee will review all agreements for which final bill has been paid at least 10
years earlier and will decide which of those are to be weeded out considering the
points given in (a),(b) and (c) below. The committee will record the following
certificate before weeding out/destruction of such records:
(a) The agreements are not required to be preserved for legal references, such as
arbitration/court cases or any other claims of Contractor/Department.
(b) The agreements are not required to be preserved for any pending Statutory Audit /
Internal Audit paras or Settlement of any accounts affecting the exchequer
(c) The Committee is satisfied that these records are no more required for any other
referred cases etc., and no claims in respect of such records are likely to arise in
future.
16.19 The committee will also prepare a list of such records as per proforma at annexure for
all agreements weeded out.
16.20 In the absence of copies of agreement the first payment shall not be made to the
contractor without specific sanction from the Superintending Engineer. No subsequent
payments shall be made unless the agreement has been signed.

Supplementary Agreement
16.21 In cases where it is not desirable to keep the complete contract open for
minor items, execution of which is not immediately possible on account of certain
prerequisites which is not the responsibility of the Contractor, the main contract may

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be finalized and the residual work may be got done through the same contractor by
execution of Supplementary agreement on the form prescribed. The authority
competent to accept the Tender will be the authority to order provisional closure of
the original contract and drawing up the Supplementary agreement.

16.22 The bill in relation to the work already done by the contractor against the first or
original agreement should be provisionally finalized on the Final Bill form by adding
the works “Provisional Final” on the top as well as against the entry” serial number of
this Bill” of the said bill form. As per condition of the Supplementary Agreement, the
Final Bill relating to the entire work under the two agreements i.e. original and
supplementary agreements shall be prepared after completion of the entire work on
the Final Bill Form.

16.23 The percentage which the tendered amount bears to the estimated cost of the work put
to tender should be on the basis of the gross estimated cost and not on the net amount
and it should be worked out up to 3 decimal places and then rounded off to two places
of decimal.

Completion of Agreement
16.24 Adequate care should be taken to complete the agreement to be entered into between
the contractor and the authorized authority for and on behalf of the Governor of
Sikkim. A complete agreement would consist of Notice Inviting Tenders, tender form
used for the contract, Schedule of quantities which indicates items of work, quantity,
rates, unit, letter of the contractor submitting the tender, other letters of the contractor
and departmental officers before the tender is accepted, letter of departmental officer
communicating acceptance of the tender.

16.25 Special care is required to be taken to see that all corrections, additions, alternation
are duly signed by the contractor and the authorized authority.

SECTION 17
EXTRA, SUBSTITUED AND DEVIATED ITEMS OF WORK

Deviation
17 1 Deviation means deviation in quantities of items, i.e. where there is increase or
decrease in the quantities of items of work in the agreement. In other words, the
nomenclature of work remains the same but the quantities vary with those provided in
the agreement.

Prior Sanction of Competent Authority Necessary

17.2 No deviation in the quantity of any item should be made at site without the prior
approval of the competent authority. The Junior Engineer/Assistant Engineer–in-
Charge of the work shall be responsible to assess the anticipated deviation and to
initiate deviation item statement for the work to be done in excess of the agreement
quantity of any item well in advance. They shall allow the execution of work in excess
of the agreement quantity only after the excess over the agreement quantity has been
approved by the competent authority.

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Extra/Substituted Items
17.3 In case payment for the work done in excess of the agreement quantity of any item has
been included in any running account bill or final bill without the approval of such
excess by the competent authority, it shall be the responsibility of the Head of the
Accounts branch to bring it to the notice of the passing authority who shall allow
payment for the quantity up to which excess has been approved by the competent
authority and pass the running account/final bill accordingly.

17.4 Extra items of work are items, which are completely new and in addition to the items
in contract.

17.5 Substituted items are items, which are taken up in lieu of those already provided in the
contract. These are with partial modification in items of work in the contract. If an
agreement item is completely changed, the new item taken up in lieu of it is an extra
item.

17.6 Wordings of extra/substituted items sanctioned by competent authorities should be

properly formulated so as to reflect the exact mode of execution in the field.

17.7 No extra/substituted item shall be executed without the prior approval of the authority,
which accorded the technical sanction.

17.8 The Technical Sanctioning Authority shall have full powers to approve rates for
Extra/Substituted items. However, in case of works technically sanctioned by
Divisional Engineer if the amount of Extra/substituted items exceeds 30% of the
agreement amount, the excess over 30% shall be approved by the next higher
authority.

17.9 The contractor will be asked not to include the Extra/Substituted items in the bill till
the sanction of the rates by the competent authority. Even if he does, it will be the duty
of Accounts Officer/Accountant to bring this fact to the notice of the passing authority,
which will not release the payment against such items.

17.10 The payment of extra and deviation items beyond the permissible limit as given in the
agreement will be worked out at market rates prevailing at the time of commencement
of execution of these items. For substituted items, the agreement rate of the original
item will be adjusted for the difference in market rates of original and substituted
items.

Fixation of Rates for Deviated/Extra

17.11 For working out of rates under clause 12 the contractor is not required to submit his
rates and these have to be worked out in accordance with the provisions made there in.

Substituted Items
17.12 The same can be and should be done by the Engineer-in-Charge well in advance of
taking up of the work connected with extra/substituted items in question and without
waiting for any reference from the contractor.
Measurement for Inadmissible Items
17.13 In case of items, which are claimed by the contractor but are not admissible according
to the Department, measurement should be taken for record purpose only and without

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prejudice so that in case it is subsequently decided to admit the contractor’s claims,

there should be no difficulty in determining the quantities of such work done. A
suitable remark should, however, be made in red ink against such measurements to
guard against payment in the ordinary course. If work is to be re-measured, no
payment will be made on the basis of earlier measurement.

Rates for Extra Items Allowing Profit and Over-Heads on Heads Supplies to
Contractors
17.14 2.5% may be added as profit and over heads over the issue rates of materials
stipulated in the contract while analyzing rates for extra items. The Profits percentage
represents the following charges:
(a ) Office expenditure of the contractor.
(b) Storage of materials.
(c) Handling expenses and other incidental charges.
(d) The percentage does not include the transport charges.

17.15 The rate of extra/substituted items pertaining to percentage rate/item rate contract may
be worked out net including contractors enhancement/ and fact should be prominently
mentioned on the statement at the end that the rates include contractor’s enhancement/
abatement in extra/substituted items

SECTION 18
SITE ORDER BOOKS AND INSPECTION REGISTERS

Maintenance of Site Order Books

18.1 Site Orders Books shall be maintained in the form prescribed in Annexure I. The site
order book shall be printed and its pages, machine numbered and issued by the
Divisional Engineer in different sizes containing varying number of pages depending
upon the work. A fly-leaf should be attached with each site order book containing
instruction regarding maintenance of site order books. These will be maintained
properly and finally settled after completion of work in the same manner as
Measurement Book.

18.2 The following procedure shall be followed regarding the maintenance of site order
books:
a) Senior Officers of the rank of Superintending Engineer and above shall communicate
their observations by way of inspection notes.
b) Whenever any senior officer gives verbal instructions to his Junior Officer at the site
of work, it is necessary that he should confirm such orders in writing. In any case, it
should be the responsibility of the Junior Officer to get these confirmed in writing.
Though verbal orders have to be got confirmed in all cases implementation of these
verbal orders should not be delayed for want of confirmation.
c) While carrying out field inspections, the architects may point out architectural defects,
through separate inspection notes and their observation shall be acted upon by field
staff after proper examination from technical, contractual and financial angle.
d) So far as Divisional Engineers and Assistant Engineers are concerned they should
invariably sign the Site Order Books in token of their having read all the instruction
issued by various officers and replies made thereto. In case Divisional Engineers or
Assistant Engineers themselves want to give any instructions, they should record them

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in the site order books. In regard to important matters they may find it necessary to
communicate such orders even in writing in the form of inspection notes.
e) Junior Engineer should also record their observation in the site order books if they
find any defective work going on or contractors not complying with the terms of
contract.
f) Site order books should be maintained on the site of works and should never be
removed there from under any circumstances.
g) The contractors or their authorized agents will also be at liberty to note their
difficulties etc. in these books.
h) The compliance of orders/instruction given by the supervisory staff should be
recorded side by side in the Site Order Book by the Junior Engineer/Assistant
Engineer with dated initials and the date of compliance.
i) The Site Order Book should be consulted at the time of making payments to the
contractors. The Assistant Engineers should record a certificate on the bills, submitted
by contractors, to the effect that the site order books have been consulted before
signing such bills. This would enable them to ensure whether the defects pointed out
during construction have been rectified or not and also to propose part rates, if
necessary, before payments are made for the items of defects pointed out which have
not been rectified.

Maintenance of Inspection Register

18.3 An Inspection Register is required to be maintained at every site of work, duly issued
by Superintending Engineer from the Circle office. The profoma for inspection
register shall be as per Annexure.

18.4 Whenever he visits the site, Superintending Engineer shall record the date and time of
visit, items inspected and his observations. Entry of visit should be made even if no
defects were observed. Similarly, Chief Engineer shall record his observations in
inspection register, at least in 50% visits and in other visits he shall at least sign the
inspection register in token of his visit to the work.

18.5 If for some reason, the Chief Engineer is not in a position to do so, he may direct the
Superintending/Divisional Engineer to record his (Chief Engineer’s) observations in
the inspection register and send a copy of those observations to the Chief Engineer by
way of confirmation.

18.6 Alternatively, Chief Engineer/Superintending Engineer may issue inspection notes,

copies of which shall be pasted in the inspection register.

18.7 It will be the responsibility of the Divisional Engineer to ensure that the observations
of the Inspecting Officers for each and every visit are available in the Inspection
Register either through recorded notes or through pasting the Inspection notes.

18.8 Divisional Engineer/Assistant Engineer shall carry over such observation and defects,
on which action is to be taken by contractor, to the site order book with cross
reference in the inspection register.
18.9 It is also necessary that the observations recorded in the inspection register by
Superintending Engineer/Chief Engineer are reviewed during subsequent inspections
to ensure their compliance

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SECTION 19
ISSUE OF MATERIALS TO CONTRACTORS

Issue of Materials
19.1 Issue of materials to works, whether from stock or by purchase, or transfer is divided
into two classes:
(a) Issue to Contractors: Issue of materials to contractors with whom agreements
in respect of completed items of works i.e. both labour and materials, have
been entered into.
(b) Issue Direct to works: Issue of materials when work is done departmentally or
by contractors, whose agreements are for labour only.

19.2 The Issue of materials to Contractors is to be stipulated in contracts, which are for
completed items of work, only in the following circumstances:
(a) When it is necessary to retain in the hands of Government the supply of
imported materials
(b) when in the interest of work, or with the object of utilizing existing stocks or
materials, it is desirable to retain in the hands of Government the supply of
certain other materials as well and a condition to this effect has been inserted
in the contract.

19.3 Stipulated stock materials shall be issued for use at site on works, for all the items
where such materials are required. For factory made products like pre-cast cement
tiles, pre cast hollow concrete blocks, pre cast foam concrete blocks, pre cast RCC
pipes etc. stipulated materials shall be issue only on availability in the store, otherwise
the contractor shall have to make arrangement for procurement from the authorized
dealer / agencies with the approval of the competent authorities which should confirm
to ISI standard.

19.4 It should also be ensured that description of the materials to be issued should be
adequately specified in order to avoid chances of any dispute. For example, if cement
is specified for issue, its grade and colour i.e. whether it is grey cement or white
cement should be stated and also whether it will be in bags or otherwise.

19.5 The contract should specify (1) the materials to be supplied by Government for use on
the work (2) the place or places of delivery, and (3) the rates to be charged to the
contractor for each description of materials and the contractor should be held
responsible for obtaining from Government all such materials required for the work
and for making payment thereof, by deduction from his bills, at the rates specified,
regardless of fluctuation in the market rates or in the stock rates of the Division.
Conditions for supply of departmental materials should be so explicit that no doubt or
ambiguity is left which may encourage the contractor to derive undue financial benefit
subsequently. The tender documents should include the specific items of work for
which materials are intended to be issued by the department with detailed description
of materials.
19.6 In contracts entered into by the department for works, stipulation to issue
departmental materials such as steel, cement etc. free of cost, should be avoided.
However, in some exceptional cases, if such free issue of the departmental materials
is stipulated, it should be ensured that suitable provisions are made in the contract
with regard to return of surplus materials and/or materials used in excess of

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theoretical requirement. The provision for wastage/variation, if any, that will be

permitted should be clearly indicated. The rate for effecting recovery from the
contractor, in case the excess materials are not returned or if the wastage/variation is
more than the permissible limit, should also be clearly stipulated.

19.7 In the materials at site (MAS) account and in the unstamped receipts obtained from
the Contractors for the materials issued to them (and even when these are issued free
of cost, as stipulated in the agreement), make of materials/fittings and full technical
details of the accessories shall be clearly indicated to ensure that the same
materials/fittings as issued by the Department are kept in safe custody by the
contractor at all times and used on works for which these are issued.

It is not permissible for the contractor to obtain the materials otherwise where the
contract stipulates the issue of materials by the Department unless in a case of
emergency the supply has been entrusted by the Engineer-in-Charge for recorded
reason, to the contractor himself at suitable rates.

The rates to be charged to the contractors for materials to be supplied should be

definitely specified (vague provisions e.g. at stock rates, being avoided) and if
intending contractors are conveyed that the materials would be supplied at certain
rates and asked to tender on that assumption, then that rate should be adhered to in the
contract.

No carriage or incidental charges are borne by Government for moving the materials
beyond the place where the contractor has agreed to take delivery thereof.

Issue of Materials when not Stipulated

19.8 As a general rule, no other material should be supplied to contractors, for use on
works but this restriction may be waived by the Sub-Divisional Officer in respect of
petty issues (at full issue rates) of materials from existing stocks not exceeding Rs.
1000/-in any month for any one contract.

19.9 If at any time subsequent to the execution of contract for finished items, the contractor
desires the issue to him, for use on a work, of materials which exist in Government
stores, but the supply thereof by the Government was not provided for in contract, the
materials should not be issued except with the express authority of the Superintending
Engineer who should specify in each case the rate to be charged for the materials
inclusive of delivery at the place where they are stored. When submitting such a case
to the Superintending Engineer, the Divisional Officer should elucidate the
circumstances which gave rise to this contingency and should also add his
recommendations in respect of the recovery rates for such materials. The rate charged
for the materials should be that provided in the analysis of rate for item of work on
which it would be used plus or minus the percentage above/below the schedule rate
allowed to the contractor or market rate or stock issue rate plus storage charges
whichever is higher. No carriage or incidental charges should be borne by
Government in connection with the supply.

19.10 Where the finished items in which the materials to be used is available in the
agreement, while adopting the three rate formula, the rate as per analysis should be
taken as basic rate adopted in the analysis of rate plus 7½ % contractor’s profit

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multiplied by the percentage the rate quoted for that particular item bears to the
estimated rate of the item. In case the same material is to be used in more than one
finished items the percentage shall be worked out on an average basis taking into
account the tender rates and estimated rates for these items (weighted average).

19.11 Where the finished item in which the material is to be used is not available in the
agreement or where its rate is derived according to the clauses of the agreement, the
element of rate for the materials taken in the analysis of rate of the items should be
considered while applying the three rate formula.

19.12 Issue of stock materials to contractors for bonafide use on works are exempted from
the usual charge of 10% on account of supervision and contingencies which is made
when stock materials are sold to the public.

Issue, Supply and Recovery of Cost Materials

19.13 An unstamped but dated acknowledgement detailing full particulars of the materials
including rates and value chargeable to him should immediately be taken from the
contractor as soon as any materials required for issue to the contractor is made over to
him.

19.14 It should be ensured that the materials are not issued to contractors arbitrarily and
without keeping an eye on the actual requirement at site. It is essential that issues to
contractors should be regulated and restricted to actual requirements depending on the
progress of the work.

19.15 The theoretical consumption statement for consumption of cement, on the work
executed from the start of the work up to and including the work included in the bill
should be invariably prepared along with every running bill. This should be got signed
from the contractor at the time of obtaining his signature on the running account bill
so that he is aware of the basis on which the theoretical quantity of cement is worked
out and it may be possible for the contractor as well as the Department to exercise a
check over the consumption of cement during the execution of the work. The
theoretical quantity so worked out should be compared with the actual issue of cement
as per cement register as on the last date of the measurement of the work. Should
there be any difference beyond the normal limits of variation between these two
quantities, such difference should be properly explained (both for less or excess
consumption) by the Assistant Engineer and the Divisional Engineer should go into
such explanations and take remedial measures.

19.16 In order to have an effective control, the following drill should be observed:
(1) The cement godown should be properly and effectively double locked, keys of one
of the locks remaining with the Department and that of the other with the
contractors.
(2) The pages of Site Account Register should be machined numbered and each page
initialed by the Divisional Engineer. The cement godown and register should be
checked by the Assistant Engineer/Divisional Engineer on visit to work site at
prescribed frequency.
(3) In case of large concentrated projects like bridges etc., the Divisional Engineer
should check the cement register at least fortnightly.
(4) For additional safe guard the following instructions should be followed:

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(a) For all works costing more than Rs. 10(Ten) lakhs and using cement, the
contractors shall distinctly display a board at work site on the cement store
indicating the opening balance on a particular date, receipt during the day,
issue during the day and closing balance at the end of the day. The entries for
receipts and issues shall be updated immediately on physical receipt and
physical issue and also at the end of the day.
(b) While issuing an indent for fresh cement/steel, the balance material available
at the site should be checked. The Assistant Engineer must record on the body
of the indent, which should be taken into account by the Divisional Engineer
before signing the indent.
(c) At the time of receipt of the materials, not only the date but also the time of
receipt may be mentioned in the cement register as well as in the MAS
register. The entries should be made separately for each truck giving the gate
pass number. The gate pass should be countersigned by the Assistant Engineer
for all qualities of cement received against indents of 10 tones and above.
(d) The cement/steel and other materials received from Stores/Local purchase etc.
on any particular day, shall not be used in the work or transferred to any other
work for 24 hours from the time of receipt at site, for physical check and
verification by the Assistant Engineer. Cement already available in the Store
should be consumed first, before issue from the new consignment. Similarly,
new steel items should be stacked in countable shape before these are issued to
facilitate physical check. The principle of first in and first out in issuing
cement bags should be strictly followed.
(e) The recovery from the contractor shall be regulated as per clause 40 of the
agreement.

19.17 For making comparison of the actual consumption of steel with the theoretical
consumption, each diameter of steel bars should be treated as an individual item
issued departmentally and check on theoretical consumption should be applied to each
diameter.

19.18 Theoretical consumption statement for steel bars should be prepared along with every
running bill. Should there be any case of issue being less or just equal in any
particular diameter/section than the actual consumption, this should be properly
investigated. If such issue diameter wise/section wise or in total which is very much
higher than the consumption, it should be generally ensured that balance steel is
available at site in good condition and this should be certified by the Assistant
Engineer. Any serious discrepancies noticed should be reported to the Superintending
Engineer.

19.19 Similar precaution should be taken in the case of all other materials issued by the
Department.

Issue Rates and Recoveries

19.20 Issue rates of cement, steel or any other items in the contracts should not be less than
the market rates of these commodities. An issue rate is assigned to each article as it is
brought to stock. The rate is fixed on the principle, that the issue rate should cover not
only the actual cost of stores but also expenditure incurred on carriage and handling
connected with acquisition of such stores.

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19.21 Recovery from the Contractor or for Departmental works

i) The recovery from a contractor on account of the cost of materials issued to him
for use on a work should ordinarily be made by deduction from the first bill
authorizing an advance payment or an on account payment to him for the work.
However, the recovery from contractor on account of the cost of materials issued to
him for use on a work may be made gradually on the basis of the theoretical
consumption plus wastage of the material used in the work measured up-to date.
For each bill the field staff should certify that balance material is available in
Contractor’s custody. In case of shortage the same should be recovered.
ii) The issue rate should be fixed normally at the beginning of each year. However, in
cases of appreciable fluctuations of cost of materials, the issue rate may have to be
revised to bring it at par with the market rate from time to time. If the issue rate of
an article is below the market rate, the issue to contractors should be made only for
bonafide requirements of work and sale or issue to other Departments may be made
at market rate.
iii) In case of controlled articles like bitumen, steel etc. the issue rate should be revised
whenever there is a change in the controlled price.
iv) Stock materials issued from stock for works to contractor or for use on
Departmental works should be recovered from the contractor or adjusted through
transfer entry as the case may be by the Assistant Engineer in charge of the work.
10% percent supervision charge should be recovered in respect of sale to local
bodies in addition to issue rate plus storage charge.

19.22 Sub-Divisional Officer shall maintain a proper numerical account in the form annexed
for materials issued to the Contractor. Where bitumen is supplied at a fixed rate, issue
rate plus 100% recovery should be made for supply in excess of permissible variation
of 2.5% over theoretical consumption. Where less than theoretical requirement of
bitumen is used recovery of issue rate plus percentage should be made for theoretical
requirement of bitumen.

Returns of Surplus Materials

19.23 Where any materials for the execution of the contract are issued from Government
stocks, the contractor is required to hold the said materials economically solely the
purpose of the contract and not dispose of them without the written permission of the
Government and return, if required by the Engineer-in-Charge, all surplus or
unserviceable materials that may be left with him after the completion of the contract
or at its termination for any reason whatsoever on being paid or credited, such price as
the Engineer-in-Charge, shall determine having due regard to the condition of the
materials. The price allowed to the contractor however shall not exceed the amount
charged to him excluding the element of storage charges. The decision of the engineer
in charge shall be final and conclusive.

19.24 The exact proportion in which the materials are to be used by the Contractor for
which he has tendered for finished items of works is laid down in the
Specification/Schedule of Rates. Theoretical quantities of the materials which should
have been used by the contractor on execution of the work should be calculated
according to the Specification/Schedule Rates provided in the contract. Accordingly,
the difference of theoretical consumption and the total actual issues, not returned by
the contractor, is to be recovered at the prescribed rate after allowing variation

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permitted therein. Similarly, the cost of the materials less used, based on the stipulated
issue rates etc is to be regulated according to the provisions of the said clause.

19.25 The excess consumption of materials beyond permissible limit as prescribed in

Condition of Contract will be recovered at double the stipulated rate in the agreement
excluding the storage charges.

19.26 In order to discourage contractors from doing bad work, no allowance is to be given
for the materials issued for rectification of defects. The materials issued for
rectification of defective work should be recovered separately and recovered at double
the issue rate. The work re-done should be measured for record purpose, if the
dismantled work had already been measured.

19.27 If however, it becomes necessary to issue cement for rectification of defects or for
redoing works necessitated by natural calamity beyond the control of a contractor i.e.
floods, earthquakes etc., such issues should be treated as legitimate consumption on
works and should not be charged at rates higher than the issue rates. On the question
whether redoing of work of rectification of defects had, in a particular case, been
necessitated by natural calamities etc., the decision of the Chief Engineer concerned
will be final.

Instructions of Cement in Godowns Regarding Storage

19.28 In cases where consumption of cement does not exceed five tones the contractor shall
be permitted to store cement at site inside a covered shelter providing adequate
safeguard against clotting of cement due to action of water and theft. The Engineer-in-
Charge shall inspect such shelter and satisfy himself that adequate safeguards as
mentioned above, exists.

Issue of Next Half Day’s Cement Requirement

19.29 Because of the double locking system of stock materials godowns, it is necessary that
the Divisional Engineers should ensure that the Department’s representative should
reach the godowns site in time every morning to enable the cement and other stock
materials to be taken out of the go downs for starting the work. They may also if
necessary permit the issue in the evening some extra cement or materials adequate to
start the works next day to the contractors of all classes. That should ensure that the
extra stock materials/ cement issued is not more than half day’s requirement for a
particular work. Such issues should also be shown in the material at site account.

Issue of Materials against TDR

19.30 In cases of contract, where materials is to be supplied by the Department against any
bank guarantee of equal value, the amount of security deposit in the shape of TDR,
should at no time be less than the amount of the material supplied to the contractor
and such materials should be supplied only after ensuring receipt of TDR etc adequate
to cover the cost of the item supplied.

SECTION 20
MATERIALS ARRANGED BY THE CONTRACTOR

20.1 For works awarded to the Contractors essential materials like cement and steel etc are
issued from Government Stores. However, in exceptional circumstances when such

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materials are not available in these stores, self procurement may be allowed on
application from the contractor.
20.2 Procurement of materials by the contractors in such cases is subject to the following
conditions.

Conditions for Cement

20.3 The contractor shall procure 33 grade (conforming to I$ 269) or 43 grade (confirming
to I$-8112) ordinary Portland cement, as required in the work, from reputed
manufacturers of cement having a production capacity of one million tones or more
per annum, such as ACC, L&T , Birla Jute & Cement Corporation of India etc. as
approved by Ministry of Industry, Government of India, and holding license to use ISI
certification mark for their product whose name shall be got approved from Engineer-
in-Charge. Supply of cement shall be taken in 50 kg bags bearing manufacturer’s
name and ISI marking.

Condition for Steel

20.4 The Contractor shall procure steel reinforcement bars conforming to relevant BIS
codes and quantities specified by the Engineer-in-Charge.

Conditions for G.I Wire:

20.5 The contractor shall procure G.I. Wire (Gauge 08 BWG) manufactured by reputed
companies and conforming to ISI specifications.

Form of Application
20.6 The application shall be made by the contractor is the prescribed form.

Approval for Procurement

20.7 The power of various authorities to approve self procurement shall be exercised as per
appendix II of this manual.

20.8 The approving authority shall obtain non availability certificate from the stores in -
charge before allowing self procurement.

20.9 In case where works are awarded on turnkey basis departmental issue of materials like
cement and steel etc need not be stipulated and the contractors be asked to arrange for
these materials themselves on the conditions mentioned above.

20.10. The procurement should be made from authorized dealers in Sikkim and registered
with the Commercial Taxes Division of Finance Revenue and Expenditure
Department having proper TIN NO.

20.11 The contractor is required to produce the Tax Invoice with challans to the concerned
Assistant Engineer to support his claim, which shall be attached with the Contractor’s
bill. The Tax Invoice shall be duly certified by concerned Junior Engineer and
Assistant Engineer and properly accounted in the Material at Site Account.

20.12 The department shall recover 5% storage charges that have been incorporated in the
AOR over and above the market rate while finalizing the rates in Schedule of Rates
and credit to the Stock Suspense or the appropriate Revenue Receipts Head of the
Department.

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SECTION 21
ISSUE OF ROAD MACHINERY TOOLS AND PLANT

Conditions for Issue

21.1 When tools and plant like Road Rollers, Concrete mixers etc are available for issue to
the Contractors for bonafide use on works of the Department, the concerned officers
should ensure to invariably stipulate a provision for supply of such tools and plant
articles both in the Notice Inviting Tenders and in the contract documents, specifying
clearly the rates of recovery. If a project is sufficiently big, warranting the use of a
number of rollers, at the proper time, the division may consider opening a shed and a
workshop well staffed and equipped, to avoid loss of time in transit and to ensure
proper utilization of the machinery. The issue of equipment to private bodies should
be in exceptional cases with the approval of competent authority. In all cases tools
and plant are issued only on execution of agreement in the form at the Annexure.

Calculation of Hire Change

21.2 As a matter of principle, only such plant and machinery should be issued to
contractors, Government bodies, such as Municipalities or others as can be spared
without inconvenience to the Department. The hire charges are worked out to cover
the following elements.
(a) Ownership charges (depreciation)
(b) Operational charges (maintenance and repair).
(c) Overhead.
(d) Running charges. Fuel and lubricants for the operation at the user site are to be
provided by the user.

21.3 The hire charges of different type of machinery, tools and plant are fixed from time to
time on the above basis and are payable in advance in all cases except emergency
deployment of road machinery. A copy of bank challen/receipt should be obtained
before signing the agreement.

21.4 The hire charges shall be recovered at the prescribed rates from and inclusive of the
date the plant and machine is made over up to and inclusive of the date of, its return in
good order excluding the transportation period to and fro worksite and unless the
machine remains idle due to the following reasons:
(a) Defects in the machine.
(b) All gazetted holidays.
(c) Local holidays.
(d) Absence of operator.
(e) Rainy days: If the machine is engaged after the rain stops, hire charges for half
day should be recovered.

21.5 The contractor shall immediately intimate in writing to the Engineer-in-Charge when
any plant or machinery gets out of order requiring major repairs. The Engineers-in
Charge shall record the date and time of receipt of such intimation in the log sheet of
the plant or machinery.

21.6 Hire charges will include services of operational staff viz. Mechanic and cleaner as
required and also lubricating oil, stores for normal repairs and for cleaning purposes.
All the other charges such as cost of power, fuel, fire matches, diesel oil, petrol,

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kerosene oil etc. for running the machinery and pay of chowkidar for guarding the
tools and plant at night shall, however, be borne by the Contractor/Indenter.

SECTION 22
EXTENSION OF TIME AND COMPENSATION FOR DELAY

General Principles
22.1 At the time of issuing notice inviting tenders for a particular work the Engineer-in-
Charge should specify the time allowed for completion of the work consistent with
the magnitude and urgency of the work.

22.2 The time allowed for carrying out the work as entered in the contract shall be strictly
observed by the contractor and shall be reckoned from the day (as mentioned in the
NIT) after the date on which the order to commence the work is given to the
contractor.

22.3 The work shall throughout the stipulated period of the contract be proceeded with all
due diligence (time being deemed to be the essence of the contract) on the part of the
contractor.

22.4 To ensure good progress of the work during the execution, contractor shall be bound,
in all cases, in which the time allowed for any work exceeds one month (save for
special job), to complete 1/8th of the whole of the work before ¼th of the time allowed
under the contract has elapsed, 3/8th of the work before ½ of the time has elapsed and
¾th of the work before ¾th of such time has elapsed. However, for special jobs, if a
time schedule has been submitted by the contractor and the same has been accepted
by the Engineer-in-Charge the contractor shall comply with such time schedule.

22.5 The NIT approving authority can stipulate time schedule for physical milestones in
the NIT. The tender accepting authority shall, review the progress of work each
month with all the concerned disciplines including the contractor. The factors
affecting the progress shall be identified and discussed and remedial measures taken,
whenever required. Detailed minutes of these meetings shall be issued. For large
projects, in addition to the monthly review, the tender accepting authority shall in a
similar manner specifically review in detail the progress of the work just before the
stages of ¼th, ½, ¾th and also about a fortnight before completion of the stipulated
contract period. Whenever physical milestones have been specified in the NIT, the
detailed review may be carried out on the dates specified for such milestones.
22.6 Clause 5 of the Contract empowers the Engineer-in-Charge to grant extension of time
for the completion of the work on certain conditions. He can exercise such powers if
the following conditions are satisfied:
(i) The contractor must apply to the Engineer-in-Charge in writing for extension
of time. Such application must state the grounds which hindered the contractor
in the execution of the work within the stipulated time.
(ii) Such application must be made within 14 days of the date of which such
hindrance arose. The Engineer-in-Charge must be of the opinion that the
grounds shown for the extension of time are reasonable and genuine.

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Grant of Extension of Time without Application under Clause 5

22.7 Based on Hindrance Register where adequate and proper grounds exist, the Engineer-
in-Charge can grant extension of time even in the absence of application from the
Contractor,

22.8 The extension, in order to be binding, will have to be by parties ‘agreement’ express
or implied. It therefore follows that if the extension of time is granted by the
Divisional Engineer and such extension of time is accepted by the contractor, either
expressly or implied by his action before and subsequent to the date of completion,
the extension of time granted by the Divisional Engineer is valid. It is, therefore,
necessary that the Divisional Engineer grants extension of time even when the
contractor does not apply for extension of time in order to keep the contract alive. If
the contractor refuses to act upon the extension granted by the Engineer-in-Charge, it
will attract provisions of Clauses 2 and 3 of the agreement.

22.9 The recovery of liquidated damages for delayed performance, on account of which
extension of time is granted under Clause 2 is a distinct matter and would depend on:
i. Prior notice as contemplated by section 55 of the Contract Act 1872.
ii. Fault/delay/hindrance being ascribable to the contractor and
iii. Proof of the loss occasioned thereby (in case it is challenged by the contractor
before the arbitrator).

Form of Application for Extension of Time

22.10 The application for extension of time to be submitted by the contractor will be in the
format prescribed in the Annexure to this Manual. Part I of the Form is for the
contractor to apply for extension of time. Part II of the Form is to be used by the
Departmental Officers for purposes of dealing with the application for such extension.

22.11 Although the contractor is required to seek extension within 14 days from the date of
occurrence of hindrance for which the extension is sought, it does not debar the grant
of extension sought later as it is always competent to promise to waive a delay and
accept performance, after the stipulated time. However, the extraordinary concession
should be refused save in most exceptional circumstances; and for very good causes
shown for not seeking it within the period of 14 days. The contractor has no right to
have the request for extension considered where she/he has not applied for it in
accordance with clause 5 of the agreement.

22.12 Whenever any hindrance comes to the notice of the Assistant Engineer, he should at
once make note of such hindrance in the register kept at site and immediately make a
report to the Divisional Engineer within a week, who shall review the hindrance
register at least once a month.

22.13 The following points should be kept in mind while entering the hindrances in the
Hindrance Register:-
 The entry of the date of start of hindrance and date of removal of hindrance
should be made on the same day as the hindrance takes place or the cause of the
hindrance is removed respectively.
 Over lapping period, not period of hindrance and weightage of each hindrance
should be worked out by the Divisional Engineer within 15 days of removal of

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cause of hindrance. For works out side headquarters, this should be done as and
when he visits the site.
 Items of work affected due to any hindrance should be clearly mentioned in the
hindrance register by the Assistant Engineer on the basis of which weight age
should be allowed.
 Each hindrance entered in the hindrance register should be authenticated by the
Divisional Engineer.
 Hindrances which are in the control of contractor should not be entered in the
hindrance register.
 Hindrances should be recorded carefully in hindrance register considering their
effect on completion of work.
 Superintending Engineers should review the hindrance register whenever they
visit the site of work.

22.14 The Assistant Engineer shall decide the grant of extension of time within (before) 15
days of the completion time of the work, if in his competence otherwise forward the
case to the Divisional Engineer before 30 days of the completion of the work with his
recommendations. The Divisional Engineer shall take a decision within 15 days or
forward the case to Superintending Engineer, as the case may be, with his
recommendations.

22.15 The Superintending Engineer should then seek orders of the Chief Engineer within 15
days of the receipt of extension case from the Divisional Engineer.

22.16 In cases where the sanction of the higher authority to the grant of extension of time is
necessary, the Divisional Engineer should forward the same as soon as possible and if
orders of the competent authority are not received in time, he should extend the
contract before the stipulated date actually expires so that the contract might remain in
force but while communicating this extension he must inform the contractor that this
was without prejudice to the Government’s right to levy compensation under clause 2
of the agreement.

22.17 Sanction of extension of time will be issued by the Assistant Engineer under clause 5
of the Agreement in the Proforma in Annexure. The form provides that the extension
of time is granted without prejudice to right of the Government to recover liquidated
damages in terms of clause 2 of the agreement. In all cases, a copy of letter granting
extension of time will be endorsed to Audit/Account Officer. While doing so it
should be made clear in the endorsement whether the Chief Engineer has decided to
levy or not to levy compensation or liquidated damages.

22.18 The decision in regard to levy of liquidated damages for delay in the execution of
works should not be recorded in the measurement book of the work concerned.

Extension of Time without Levy of Compensation

22.19 In the case where extension is granted without levy of compensation after approval of
the competent authority provision suggested in the preceding paragraph should stand
with a view to safeguard the interest of the Government especially against unforeseen
circumstances.

22.20 The word compensation should be used instead of the word penalty.

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22.21 When a contract has been broken and if a sum is named in the contract as the amount
to be paid in case of such breach or if the contract contains any other stipulation by
way of compensation, the party complaining of the breach is entitled, whether or not
actual damage or loss is proved to have been caused thereby to receive from the party
who has broken the contract reasonable amount not exceeding the one so named or as
the case may be the compensation stipulated for.

22.22 All letters of extension of time to be issued to the contractor should be over the
signature of Engineer-in-Charge as he is the only officer so empowered contractually
to grant extension of time. Similarly all letters intending to impose compensation or
to recover liquidated damages under the agreement should be issued over the
signature of Chief Engineer as he is the only officer competent to do so under the
agreement to fulfill contractual obligations.

Proforma for Intimating Compensation

22.23 Intimation of levy of compensation under the agreement shall be sent to the contractor
in the prescribed Proforma.

SECTION 23
PAYMENT TO CONTRACTORS

23.1 The condition of contract provides that no payments shall be made for works or
supplies estimated to cost up to Rs.50000/- (Fifty Thousand) till after whole of the
work or supply shall have been completed and a certificate of completion given. In
the case of works or supplies estimated to cost more than Rs. 50,000 the contractor
shall, on submitting the bill therefor be entitled to receive a monthly payment
proportionate to the part thereof then executed and passed by the Engineer-in-Charge.
The contractors should be required by the Engineer-in-Charge to submit their bills by
a fixed date in accordance with the terms of the contract. The Assistant Engineer
should supply to the contractor a copy of the measurements and statement of part rates
to be paid at least three clear days in advance of such date fixed by the Divisional
Engineer. The payment to the contractor shall be made only on submission of the bill
by him.

23.2 Ordinarily running payments shall be made monthly as per the terms of the contract but
payment may not be made if the amount of the bill is less than half the average monthly
value of contract i.e. contract value divided by stipulated period in months.

23.3 The Circle Officer, should maintain Work Register to keep a record of all running
payments made to the contractor in respect of contracts. As and when a bill is
submitted the same shall be entered in the Register. The Register should be reviewed
by the Circle Officer regularly to ensure that payments are being made to the
contractors in time. If any objection is raised by the Accounts Officer for payment of
a particular item or rate in any bill, the Engineer-in-Charge should make up his mind
and pass final orders then and there whether the item on which objection has been
raised should be allowed or not and if it is not to be allowed, then the item should be
retrenched from the bill but in no circumstances the payment should be delayed. The
register should be posted at the time of making monthly running payment to the
contractor.

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Final Payment
23.4 Final measurements should be recorded within one month of the completion of work.
Final payments for works costing more than Rs. 10 lakhs should be made within six
months of the completion of work and for other works within three months.
23.5 Before the work is declared completed in all respect and final payment is released to
the contractor in respect of the works contract value of which exceeds Rs. 30.00 lakhs
(Thirty Lakhs) it has to be inspected by the Superintending Engineer.

23.5 The Superintending Engineer shall also record the following certificate:
I have inspected the work of __________contract value of which is Rs
______________vide Agreement No____________ today. As a result of this
inspection and my previous inspections I find that the work has been carried out
generally to specifications and has been completed satisfactorily. There are no
noticeable defects except for the following:
(i) ____________________________
(ii) ____________________________

23.7 The above certificate is required to be recorded within a period of three months from
the date of completion of the work.

23.8 These defects should be rectified by the contractor or by the Department at his cost
and action for which should be taken in terms of the contract.

23.9 In the case of works where contract value is less than the above, similar certificate
should be recorded by the Divisional Engineer before forwarding the Final bill.

23.10 An attested copy of the completion certificate will be attached with the Office copy of
the final bill of the contractor and remain on record of the Circle. The Circle Office
shall not make final payment till this certificate is recorded and attached to the office
copy. The certificate, however, will in no way reduce the responsibility of the paying
authority and the Accounts personnel for due check of the work and the bill as
required by the Rules, Code and Practice of the Department.

23.11 The certificate is required to be recorded by the Superintending Engineer in whose

time the work is completed irrespective of the fact that a part of the work may have
been done during the incumbency of his predecessor. The Superintending Engineer
recording the certificate is not responsible for bad work which may have been covered
up during the incumbency of his predecessor, for instance, work in foundations or
below the concrete flooring but he is required to point out the defects which appear
outwardly, like defects in the doors and windows, plastering, flooring, painting etc
.The Superintending Engineer should necessarily record the completion certificate for
the works completed in his tenure on the post before he hands over the charge to his
successor on transfer.

23.12 In specific cases, where there are practical difficulties such as the Superintending
Engineer being no longer in the Department due to resignation, death etc. in getting
the completion certificate recorded by him, the Chief Engineer may decide any
relaxation of the existing instructions. Administrative action should be initiated
against the Superintending Engineer for not taking proper/timely action in getting the
completion certificate recorded, whatever justified as revealed by the facts of the case.

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Inspection of Works by Senior Architect

23.13 The Senior Architect in-charge of the work being executed by the contractor is
required to certify on completion of particular building that it has been constructed
according to the approved design and specifications.

23.14 In case of any un-authorized deviation, the certificate of completion shall not be given
unless the defect or deviation has been rectified to the satisfaction of the Senior
Architect. A certificate by the Senior Architect will be required for release of final
bill. However, the Chief Architect / Chief Engineer, may decide whether a particular
building involving less than Rupees Fifty Lakhs will require the certificate from the
Senior Architect or not. The form of certificate is as under:

Name of project…………………………………..

“I do hereby certify that the work……………………………….has been inspected

on……………………….by me and has been completed on ………….. according to
the plans, elevation, sections, details and specifications of architectural items prepared
by me. The work has been completed to my general satisfaction and the
workmanship and the whole of the materials used for finishing items are good.”

23.15 Completion Certificate from the Senior Architect is necessary before final bill is paid
to the contractor as per para 23.14.

23.16 In the case of such work the Divisional Engineer should inform the Senior Architect
concerned, of the work having been completed in all respects, within one month of the
physical completion of the work and request him to carry out his inspection and
record the required completion certificate.

Payment through Bank for any overdrafts of the Contractor

23.17 The State Government in no case shall be responsible for any loan / overdrafts granted
by any bank to the Contractor on the strength of the work order. Payment due to
contractor, if so desired by him, be made to his bank instead of directly to him,
provided the contractor furnishes to the Engineer-in-Charge and Drawing and
Disbursing Officer:-

1. An authorization in the form of a legally valid document such as a power of attorney

conferring authority on the bank to receive payment. However, this does not confer on
the bank any right of claims to the Department
2. While receipt given by such Bank shall constitute full and sufficient discharge for the
payment the contractor should wherever possible, present the bill duly receipted and
discharged through his bankers.

Deduction of Taxes and levies at Source

23.18 Under instructions of the Government deductions of these taxes and other levies is
required to be made at source from payments made to contractors. Before signing the
first and final, running account bill, final bill, supply bill, including advance, adhoc
payment bill, the Engineer-in-Charge should see that the statutory deductions on
account of these taxes and other levies has been made from the bill of the contractors.

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23.19 Recovery of these taxes is to be made at the rates applicable on the date of payment.
Procurement of forest produce like sand, stone etc., is subject to pre-payment of
royalty to the Forest Department and claims on account of carriage of Non- Stock
materials utilized on works is therefore to be checked and allowed with reference to
documents supported as proof of such pre-payment and place of lifting. The relevant
documents should remain attached with the office copy of the bill of the contractor.

SECTION 24
Advance Payment

24.1 Advance payments to contractors against on account bills received in the Circle
Office may be made by the Superintending Engineers. When an on account bill has
been received in the Circle Office and there is likely to be delay in authorizing
payment for special reasons which should be recorded, the Superintending Engineer
may at his discretion on receipt of an application from the contractor for financial aid
in the shape of part payment in respect of tenders accepted by Assistant Engineer,
Divisional Engineer and himself (and after obtaining necessary sanction from the
Chief Engineer for cases against contracts beyond his power of acceptance) make a
lump sum advance payment on Hand Receipt subject to the following conditions:

i. The bill in respect of which the advance is proposed to be made should actually be
under check in the Circle Office.
ii. The amount of advance should not exceed 75 percentage of the net amount of the bill
under check but no advance payment will be admissible in case where the amount of
advance payable works out to less than Rs. 1, 00,000/-.
iii. The payment should be suitably endorsed both on the running bill against which the
advance payment is made and the connected abstract of measurements in the
Measurement Book. The Hand Receipt Voucher on which payment is made should
bear reference to the number, date and amount of the bill against which payment is
made and also to the page number of Measurement Book and the number, date and
amount of the voucher, if any, on which the previous on account payment was made
The payment should be treated in the accounts as an advance.
iv. An undertaking should be obtained from the contractor before the payment is actually
made that should the amount of advance paid to him subsequently found to the more
than the amount of the running bill in respect of which the advance was paid, he will
refund to Government forthwith, the amount overpaid. The Superintending Engineer
will be held personally responsible to see that advance is adjusted when payment is
made on the running account bill in respect of which it was made and for any over
payment which may occur.

24.2 A record of advances authorized by the Circle Officer under his own competence with
the reason thereof will be kept in a special register which should be inspected by the
Chief Engineer at the time of his inspection of the Circle Office.

Payment to Private Firms/ Autonomous Bodies for Chemical Analysis and Testing of
Materials
24.3 Chemical analysis and testing of materials is obligatory in the case of works where the
contract value exceeds Rs. 1 crore.

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24.4 A list of laboratories shall be approved by the Chief Engineer. Advance payment may
be made by the Officer – in – Charge of the work to an enlisted laboratory, for which
no further approval shall be necessary.

24.5 The amount of advance shall be drawn on a simple receipt and accounted for under
the final head to which the expenditure on services in question would be debited.

Grant of Mobilization Advance to Contractors for Executing Capital Intensive Works

24.6 Mobilization Advances
In respect of certain specialized and capital intensive works costing not less than Rs.
10 crores (ten crores), advance limited to a maximum of 15% of the estimated cost put
to tender or tendered value or Rs. 2 crores (two crores) whichever is the least at a 10
% (ten percent) simple interest may be sanctioned to the contractor on specific request
as per terms of the agreement in two parts, viz. for Mobilization of Materials and
Plant and Machineries.
Principal Chief Engineer cum Secretary shall use his discretion carefully in deciding
whether any particular works shall be considered as a specialized or capital intensive.

24.7 Limitation of advance and recovery thereof:

i) The mobilization advance and plant and machinery advance as above bears simple
interest at the rate of ten percent per annum and shall be calculated from the date of
payment to the date of recovery, both days inclusive, on the outstanding amount of
advance. Recovery of such advance shall be made by the deduction from the
contractor’s bill commencing after first ten percent of the gross value of the work is
executed and paid on pro-rata percentage basis to the gross value of the work billed
beyond 10% in such a way that the entire advance is recovered by the time sixty
percent of the gross value of the contract is executed and paid, together with interest
@10% on the entire outstanding amount up to the date of recovery of the installment
unless the contractor offers to repay it earlier.

ii) The said bank guarantee for advance shall initially be made for the full amount and
valid for the contract period, and be kept renewed from time to time by the contractor
to cover the balance amount and likely period of complete recovery together with
interest.
Advance for Materials
1. Mobilization advance not exceeding 10% of the estimated cost put to tender
or tendered value whichever is less may be given, if requested by the
contractor in writing within one month of the order to commence the work.
2. For such advance, the contractor shall submit a Bank Guarantee Bond from
State Bank of Sikkim or other Scheduled Bank within Gangtok for the
full amount of such advance being released. Such advance shall be paid in
two installments to be determined by the Head of Department at his absolute
discretion. The first installment of such advance shall be released by the
tender inviting authorities. The second and subsequent installments shall be
released by the tender inviting authorities with the approval of Head of
Department only after the contractor furnishes a proof of the satisfactory
utilization of the earlier installment to the entire satisfaction of the Engineer-
in-Charge.
3.

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A. Plant and Machinery Advance

1. An advance for plant and machinery required for the work and brought to site
by the Contractor may be given if requested by the contractor in writing/within
one month of bringing such plant and machinery to site. Such advance shall be
given on such plant and machinery which in the opinion of the Engineer-in-
Charge will add to the expeditious execution of work and improve the quality
of work. The amount of advance shall be restricted to 5% percent of the
estimated cost put to tender or 5% of tender value whichever less is.
2. In the case of new plant and equipment to be purchased for the work the
advance shall be restricted to 90% of the price of such new plant and
equipment paid by the contractor for which the contractor shall produce
evidence satisfactory to the Engineer-in-Charge. In the case of second hand
and used plants and equipment, the amount of such advance shall be limited to
75% of the depreciated value of plant and equipment as may be decided by the
Engineer-in-Charge. The contractor shall, if so required by the Engineer-in-
Charge, submit the statement of value of such old plant and equipment duly
approved by the Chief Engineer Mechanical, Roads and Bridges Department.
3. No such advance shall be allowed for any plant and equipment of perishable
nature and on any plant and equipment of a value less than Rs. 1, 00,000/-.
Seventy five per cent of such amount of advance shall be paid after the plant
and equipment is brought to site and balance twenty five percent on
successfully commissioning the same. The advance shall further be subject to
the condition that such plant and equipment are in and are maintained in
working order and hypothecated to the Government as specified by the
Engineer-in-Charge before the payment of advance is released.
4. The contractor shall not be permitted to remove from the site such
hypothecated plant and equipment without the prior written permission of the
Engineer-in-Charge. The contractor shall be responsible for maintaining such
plant and equipment in good working order during the entire period of
hypothecation failing which such advance shall be entirely recovered in lump
sum. For this purpose steel scaffolding and form work shall be treated as plant
and equipment. The contractor shall insure the plant and Machinery for which
mobilization advance is sought and given, for a sum sufficient to provide for
the replacement at site. Any amounts not recovered from the insures will be
borne by the contractor.

CHAPTER V
SECTION 25
STORES

ACQUSITION OF STORES
25. General
Instructions in this Manual relating to “Stores” are supplementary to the provision of
Rule 120-138 of Sikkim Finance Rules 1979 and other orders issued by the Finance
Revenue and Expenditure Department on the subject from time to time.
Classification of Stores
25.1 The stores of the Public Works Department are divided into the following classes:-
i. Stores or General Stores;
ii. Tools and Plant; and
iii. Materials charged direct to works.

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25.2 Tools and Plants of a Division are further divided into following kinds:
(a) General or ordinary tools and plants i.e. those required for the general use of the
Division.
(b) Special tools and plants i.e. those required not for general use, but for a specific work.
The Cost of the supply, repairs and carriage of articles of class (a) above is charged to
the minor head “Tools and Plants” under the major head “2059” Public Works” where
as similar charges of Class (b) are borne by the work concerned.
25.3 In both cases, cost is charged in the accounts against sanctioned estimate in the same
way as expenditure on works, although for the purpose of sanction, it is treated as
expenditure on Tools and Plants.

Reserve Stock
25. 4 Ordinarily, the materials should be purchased only for the works in progress and no
reserve stock should be kept except with the specific sanction of and to a monetary
limit to be prescribed by the competent authority. Due consideration of the anticipated
requirements of the stores according to the nature and quantum of work to be
executed in each Division during a year should be taken and estimate prepared on the
basis of these figures.
25.5 In order to facilitate control over the purchase of stores for works particularly
maintenance, all estimates for a year should be sanctioned well in advance of
commencement of that year. A statement of materials required for the works in a sub
Division should be attached to each estimate. To facilitate consolidation, the materials
should be grouped in a predetermined order in each statement.
25.6 Before the commencement of the year, requirements of materials of all works in a Sub
Division and the Division should be consolidated.

25.7 The collection of materials involving an outlay of Rs. 50,000/- or upwards must, in all
cases, be covered by an estimate showing proposed outlay and the materials to be
received.

25.8 If the material is required for a work duly sanctioned, the estimate will merely require
the approval of the appropriate Departmental authority for purchase (provided no
advance payment is involved). In other cases it will require the administrative
approval, expenditure sanction and technical sanction of the competent authority as
though for an original work.
25.9 It should be ensured that the materials are purchased strictly in accordance with the
requirements of the work and utilized to the best advantage of Government. In case
certain materials are rendered surplus to requirements as a result of certain deviations,
alterations, substitutions or reduction in the quantity of items during the course of
execution of work or due to some materials becoming surplus on completion of work,
because these were purchased as a precautionary measure for avoiding any possible
delay in procurement or where some provisions have to be made for any other
contingencies arising during execution of work or when the outlay has been
prohibited for any considerable length of time, the Divisional Engineer should take
action to transfer such materials to other works in progress where those are likely to
be used within a reasonable time, or bring such materials to stock account as the case
may be, provided that they are serviceable. Where the materials rendered surplus
cannot be utilized in any of the manners indicated above the Divisional Engineer
should take necessary steps to dispose of the materials by sale with due approval.

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25.10 Ordinary tools and plant required for the general use of Division can be purchased
against sanctioned estimates. Before sanctioning the estimate for Tools and Plants it
should be ensured that necessary budget allotment exists under the minor head “Tools
and Plants”.
25.11 Purchase of Motor Cars, Trucks and other plant and machinery will be regulated by
special orders of the Government.

Special Tools and Plants

25.12 Cost of special tools and plants needed for a specific work would be included in the
estimate for the work concerned.

SECTION 26
PURCHASE OF STORES
Bulk Purchases
26.1 Materials required for construction and other purposes are procured by the Central
Stores in the Headquarters Office at Gangtok. For the purpose various Divisions are
required to furnisher annual requirement showing the materials and quantities by 1st
of April every year.
Purchase through STCS /Government undertakings:
26.2 The Central Stores arranges the bulk purchases through the State Trading Corporation
of Sikkim/Government Undertakings / open market for supply to stores at District
Headquarters directly with intimation to the Central Stores.
26.3 Under the Sikkim Financial Rules, purchases costing more than Rs. 10 lakhs, are
required to be made through the State Trading Corporation of Sikkim or on the basis
of open tenders to be opened at Gangtok by a tender Selection Committee of five
which should have one member from the Department concerned, a representative each
of Finance Department and the State Trading Corporation and such other members as
the Government may decide.
26.4 Tenders for purchase (up to Rs. 10 lakhs) are to be opened by a Departmental
Committee of at least 3 officers including the Accounts Officer or Officer dealing
with accounts.
26.5 The indenter should ensure that necessary financial sanction of the competent
authority exists before order is placed on the State Trading Corporation/other supplier.
26.6 Subject to availability of budget provision/resource, the Head of the Department shall
be competent to authorize payment to the State Trading Corporation of Sikkim or
other Government run Organization for supply of stores included in
schemes/estimates sanctioned by the Government. Advance payments, however,
require concurrence of the Finance Revenue and Expenditure Department.
26.7 Advance payments should be made only in cases where it is absolutely necessary. The
firms should be Government run or well established with reputation of fair dealing.
26.8 The amount of advance shall be accounted for under the head to which expenditure
and supplies would be debited.
Purchase of Cement and Steel
26.9 For purchase of cement and steel, open Tenders/Quotations will be called from the
main producers as well as secondary produces having valid license, through press
notice.
Purchase of Plant and Machinery
26.10 When indenting for plant and machinery etc., the indenting authority shall take a
decision as to the quantity of spares to be purchased along with the main equipment
and also to place indent thereof on the purchasing organization. The Indenting Officer

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should also specify whether any of the following guarantees is required to be obtained
from the supplier of the equipments.
i. Guarantee from the supplier of the equipment that he will supply spare parts to it as
and when required on an agreed basis for an agreed period. The agreed basis should
be an agreed discount on the published catalogue prices.
ii. A warranty to the effect that before going out of production for the spare parts, he will
give adequate advance notice to the purchase of the equipment so that the latter may
order balance of the lifetime requirements in one lot.
26.11 In the indent for spare parts, reference to the number and date of offer for the main
equipment and any guarantee/warranty incorporated therein should be quoted by the
indenting officers.
26.12 The indenting authorities should endeavor to adopt Indian Standard Specifications
wherever available and where such specifications are not available they should be
consistent with the requirement of safety, security and end use of the stores, permit
relaxation in indigenous production.

SECTION 27
PAYMENT FOR THE SUPPLIES

27.1 All the stores received are verified and measurements and details thereof are to be
recorded in the Measurement Book if the purchase is for specific work and in the
Goods Receipt sheet if the purchase is for stock. Payments are to be made on the
basis of the entries recorded in the Measurement Book or Goods Receipt sheet as the
case may be, according to the terms of the payment as finalized in the supply order.
Photocopy of the Measurement Book should be attached with the bill.

Advance Payments for purchase of stores

27.2 In the case of purchase of stores costing more than Rs. 10, 00,000/- (Rupees ten lakhs)
which are required to be made through the State Corporation of Sikkim, advance
payments are to be made to the Corporation with the concurrence of the Finance Cell
of the Department, if the advance is being made against the sanctioned project.
In other cases, where procurement is made directly from producers/manufactures advance
payment can be made only with the concurrence of the Finance Revenue and
Expenditure Department.

SECTION 28
LOSSES OR DAMAGES OF/TO STORES
Booking of Stores

28.1 Definite and clear instructions are required to be given in the indent/order with regard
to mode of dispatch and consignee’s address, which are necessary for correct and
intact delivery of the stores. To avoid losses and damages to Stores in transit, the
following information should be as detailed as possible as not to leave any loophole
for any dispute or misinterpretation at a later stage:
i. Consignee’s: Postal and Telegraphic address.
ii. Station of dispatch.
iii. Whether to be booked by goods train, passenger train, quick transport service.
iv. Whether to be booked at owner’s risk or transporter risk
v. Whether it should be covered by transit risk insurance.

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Taking Delivery of Consignment

28.2 The consignee is responsible for verifying at the time of taking delivery from the
supplier that the stores have been received in tact without loss or damage. The loss or
damages should in every case, be promptly reported to the suppliers as well as to the
Officers who placed the orders and are responsible for payment for the stores as
otherwise the consignee will be deemed to have accepted the stores. In any event, the
consignee should not before checking and verifying the stores, give a receipt
certificate to the supplier. Receipts for consignment of materials should be endorsed
in favour of the Store Keeper or Junior Engineer or any other responsible Officer of
the Department who should personally take delivery of Government stores and hand
them over to the carriage contractor.
28.3 When due to any practical difficulties it is not possible to deploy any Departmental
Officer for keeping a watch on the arrival of consignment and take delivery thereof,
after completing formalities and it is intended to endorse, the railway receipts in the
name of the carriage contractor, a condition for obtaining an additional security in the
shape of bank guarantee should be stipulated in the tenders for carriage of materials.
The amount of security in the shape of bank guarantee should be 10%.
28.4 In the case of stores purchased thorough the State Trading Corporation of Sikkim the
responsibility of taking delivery from Railways/Carrying Contractor rests on the
Corporation.

Losses /Damages in Transit

28.5 Whenever the losses or damages occur in transit the responsibility for the same varies
according to the circumstances of each case and the terms of contract. In the case of
contracts stipulating delivery FOR destination the contractor is liable for any loss or
damage that may occur in transit and to make good the same by replacement free of
charge at destination or accept deduction from his bill for the quantity lost or damaged
in transit.
28.6 In the case of contracts stipulating delivery, FOR destination, if the suppliers have
agreed to the indentor’s condition that they will be responsible until the stores
contracted for are received in good condition, the responsibility rests with the
suppliers as in para above.
28.7 For shortages / damages in consignments at owner’s risk until it is delivered to the
connected stores. The supplier shall have no right of claim of payment if the materials
are lost in transit or in between before receipt of materials by the designated officer in
destination.
28.9 In cases where consignees do not exhibit particulars mentioned in the Receipt
Certificates referred to above, it will be assumed that no recoveries were to be
effected.

SECTION 29
RECEIPT OF STORES

29.1 All materials received should be examined, counted or measured when delivery is
taken. The record of the detailed count / weighment or measurement should be kept
in the goods receipt sheets and the total number of quantity should be simultaneously
entered in the Bin Card.
29.2 In the case of Tools and Plant, the items should be brought on the form annexed with
complete details. For items of Plant and Machinery, detailed history sheets in

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prescribed form by Finance Revenue and Expenditure Department should be

completed forthwith and recorded carefully.
29.3 All stores of sundry nature, particularly sanitary fittings, electrical fittings and spares
etc. should be allotted an alphabetical and numerical number to the standards and
sizes available and the same should be indicated accordingly in the registers and on
racks where these are kept. Similarly stocks of pipes and steel of different kinds and
sizes should also be allotted a distinguishing alphabetical and numerical number to
facilitate maintenance of accounts.
29.4 When procurement of stock is of Steel and Bitumen required for construction works,
the procurement officer should also ensure that the articles shall comply with the
relevant IS or other standard specifications prescribed for such articles. The articles
should be inspected and tested in accordance with the provision of the specifications
before acceptance.
29.5 All procurement officer and officers authorized to receive the materials, should pay
special attention to these points and should take steps to ensure that adequate testing
and inspection arrangements are made in each case before bills are recommended for
payment.

SECTION 30
SAFE CUSTODY OF STORES

30.1 The Divisional Engineer is responsible to ensure that proper arrangements are made
throughout the Division for the safe custody of stores and for their protection from
deterioration and fire.
30.2 The stores will be under the strict supervision and vigilance of a Junior Engineer who
will be particularly responsible for the safe custody of stores. At the end of each day,
the locks of the stores should be properly sealed by the storekeeper in the presence of
chowkidar and entered in the register. At the time of change of duty, proper handing
over/taking over should be done by signing the register. The storekeeper should seal
the locks when he closes the godown at the end of the day carefully and examine the
seal before opening the godown next time to see that the seal has not been tampered
with. If he finds that the seal has been tampered with in his absence, he should at
once bring this fact to the notice of the higher authorities for reporting the matter to
the Police. In the absence of storekeeper, Junior Engineer will discharge these
functions.
30.3 On the occurrence of any loss, action against the person concerned with the upkeep of
stores should be taken promptly so as to avoid delay in obtaining evidence against
persons responsible for the loss.

SECTION 31
ISSUE OF STORES
Preparation of Indents
31.1 Materials should be issued on receipt of indent on specific form 7. The indent book
for drawing materials should be kept in safe custody in the Office of Assistant
Engineer. The indents shall be signed by the Junior Engineer/Assistant Engineer for
transaction within the Division and also by Divisional Engineer for Inter-Division
transactions.
31.2 A register to keep a watch on the issue of materials for works, with reference to
quantities specified in the agreements should be maintained by the Assistant Engineer
in the form prescribed to avoid excessive issue of materials to contractors and to keep

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a watch over the issues. In the register, a record of the materials drawn for use on
works done departmentally may also be kept, if considered necessary by the Assistant
Engineer. The Divisional Engineer should arrange to get the indent examined to see
that issues are roughly correct. For detailed check of the quantities issued, it is the
responsibility of the Assistant Engineer to ensure that the materials are not issued in
excess of the quantities actually required.
31.3 Indents are to be handed over to the contractor or his authorized representative to
receive the materials from the stores.

Issue of Materials
The following procedure should be followed for drawal of materials from stores:
i. The indent books should be machine numbered and kept in stock by the
Divisional Engineer-in-Charge of Stores. The Divisional Engineer-in-Charge of
Stores issues these books stamped with the stamp of his Office to the various
indenting authorities.
ii. The Divisional Engineer in charge of the work is required to send three sets of
specimen signatures of the Junior Engineer/Assistant Engineer in charge of the
work at the work site and that of the work Assistant, if any, authorized by the
Divisional Engineer for receiving stores in the Junior Engineer’s absence, duly
attested by him to the Stores. One set thereof will be kept by the Junior Engineer
security and the other two sets will be in the office under the personal custody of
the Assistant Engineer and Divisional Engineer, Stores. The specimen signatures
of the Divisional Engineer shall be attested by the outgoing Divisional Engineer.
For a new Division it is to be done by the Superintending Engineer.
31.4 The Signatures of the contractors or their authorized agents to whom the materials are
required to be issued are attested by the Assistant Engineer and the indent is
countersigned by the Divisional Engineer of the Indenting Division.
31.5 The indent shall be presented at the Stores within 15 days of signing by the indenting
authority.
31.6 After verifying the signatures of the Indenting Authority and the Contractor or his
authorized agent, the Assistant Engineer in charge of the stores will pass the indent
and give issue order thereon.
31.7 The Junior Engineer in charge of stores should put his signatures on both sides of the
indent in token of having issued the materials and on this authority the gate pass is
prepared in triplicate. The gate-passes are signed by the Junior Engineer in charge of
the stores after delivery of the materials is taken. The gate-pass in triplicate is handed
over to the contractor or his authorized agent who makes over the original copy to the
Junior Engineer Security on duty and the other two copies to the Junior Engineer in
charge of the work at the site of the work along with materials. The Junior Engineer
in charge of the work signs the gate pass in token of having received the materials
correctly, retains duplicate copy, for his record and returns the triplicate through the
carting agent to the Junior Engineer security to enable him to watch that the material
issued has been correctly received at the destination. The Junior Engineer should sign
and write his full name and put his stamp. In case of his absence, the gate- pass may
be receipted by his authorized representative i.e. Work Assistant who will receive the
material, sign and put his full name on the triplicate copy, along with name, of the
gate- pass on behalf of the Junior Engineer. If the gate pass is not received back in two
days, the indenting Divisional Engineer should be informed by the Stores. For
outstations, suitable time shall be fixed as per actual situation.

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31.8 The signatures of the Junior Engineer in charge of the work at site (or his Work
Assistant representing him) on the gate pass should be checked at the end of the day
with his specimen signatures and any doubtful case should be reported to the
Divisional Engineer, Stores, immediately.
31.9 Divisional Officers should ensure that the materials to be issued to a contractor for
work are handed over by the Departmental Officers only to those of his
representatives who have valid authorization to receive materials on behalf of the
contractor.

SECTION 32
DISPOSAL OF SURPLUS STORES

Excessive Stocking of Stores

32.1 The Divisional Officers should not store for long materials which are likely to
deteriorate within a short time. Some of the materials which are likely to deteriorate
within a short time are mentioned below:-
Cement
Tars and Bitumen
Paints
Distempers
Oils
Spirit
Bleaching Powder
Disinfectants
34.2 If such materials are indented for or ordered, these should be used on work as early as
possible and surplus quantity, if any, may be disposed off under the orders of the
Competent Authority.
Transfer to other Divisions
32.3 All articles of stock (excluding tools and plants) which are not likely to be required
during the following twelve months, should be reported to the Divisional Officer who
will, if necessary, take the Superintending Engineer’s order as to their disposal. Since
the materials which are surplus are liable to deterioration, if kept unnecessarily and
also involve an avoidable expense on chowkidars etc. and locking up of capital, it is
most essential that such materials should be disposed off either by sale or transfer to
other Division where these are required.

Disposal Surplus Stores

32.4 Chief Engineer, Stores, has full powers with the concurrence of Finance and Accounts
Cell of the Department to issue orders regarding the manner in which particular stores
which have already been declared surplus or unserviceable by the Competent
Authority are to be disposed off. The disposal can either be made by public auction
or through sealed quotations. The question as to who should supervise or conduct the
auction will be decided by the Superintending Engineer.
32.5 No public stores should be sold otherwise than by public auction.

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SECTION 33
LOSSES ON STORES AND THEIR WRITE OFF

Unserviceable Stores
33.1 When stores of any kind become unserviceable, a report thereof should be made in
Form 18. This should be done at once on discovery of the facts.
33.2 In case of Survey Reports of stores valued above Rs. 15 lakhs, the certificate that
materials proposed to be survey reported are really unserviceable should be recorded
by the Superintending Engineer concerned after inspection of the stores. In the case of
survey reports below this amount, the certificate should be given by the Divisional
Engineer.
33.3 All losses of stock should be immediately reported to the next higher authority as well
as to the Accountant General even when such loss has been made good by the party
responsible for it. Petty cases involving losses not exceeding Rs. 500/- each need not
be reported to the Accountant General unless there are in any case, important features
which need detailed investigation and consideration. The losses on stock should be
immediately investigated and steps taken to obtain sanction of the competent
Authority for their write off, if necessary.
33.4 In the case of serious losses, the Divisional Officer should hold a Departmental enquiry
and record the evidence and his findings thereon, including findings as regards the
responsibility and culpability of the persons concerned.

SECTION 34
STOCK TAKING

34.1 The Divisional Engineers are to have stock taken throughout their Division at least
once a year. It is not necessary that all the stocks of a Division or even of a Sub-
Division should be checked and counted at the same time, but the date on which the
articles are taken stock of should be entered in the stores returns. Stores should be
counted by an Officer not below the rank of Assistant Engineer who is not the
custodian, the Ledger Keeper or the Accountant of the stores.
34.2 Verification should be made in the presence of the authority responsible for the
custody of the stores or of a person deputed by him. If such an authority fails to be
present during physical checking of stores or fails to depute a person, the verifications
should be carried out in the presence of another Officer not in charge of the stores.
34.3 The results of all verifications of stock should be reported to the Divisional Officer for
orders but as soon as a discrepancy is noticed, the book balance must be set right by
the verifying officer, treating surplus as a receipt and a deficit as an issue, with a
suitable remark.
34.4 The shortages and damages, as well as unserviceable stores, should be reported
immediately to the higher authorities.
34.5 The verification of materials charged direct to works will be done in the manner
prescribed above.
34.6 Apart from the stock, dismantled materials, stores and materials at site account are
also to be checked in the same manner every year and certificates recorded in the
registers.
34.7 In the case of Tools and Plants, the stock taking should be done every six months
ending 31st March and 30th September in the same manner stated above and
certificates of physical verification recorded thereon.

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34.8 The report about required stock taking and physical verification and certification
thereof should be made immediately to the Superintending Engineer,

CHAPTER VI
WORKS OF OTHER DEPARTMENTS / AGENCIES
SECTION 35

General Rule.
35.1 The term “Works of other Department / Agencies” is applied to works of
constructions or repairs, the cost of which is not met out of departmental funds, but
being financed from other Department or other non-Government sources, or funds of
public expenditure nature, but not included in the financial estimates and accounts of
the State Government which may either be deposited in cash or otherwise placed at
the disposal of the Public Works Department. Works executed for other than the same
Public Work Department in the State Government , Municipalities, other public
bodies and fall under this category, when the cost is chargeable either to cash
deposits made for the purpose or to their heads of account at the Treasuries, Pay and
Accounts Office when the payment is released.
35.2 Where a work is to be carried out from the funds provided in the Budget Estimates of
the other State Government Department, (other than the deposit works) the work
should be executed in accordance with the procedure laid down in this manual for
execution of the works. However, before the work is executed the Public Works
Department shall insist upon the other Department / Agency to transfer the allocation
/ funds to the executing Department along with necessary authorization to operate the
Heads of Account.
35.3 All the payments for work done for other Departments, Municipalities and other
public bodies shall be made from the respective authorized Pay and Accounts Offices
/ Department of the State Government and in NO CASE the Public Works
Department should forward any bills for work done or other documents including the
measurement books for any of the construction or maintenance works, of other
Departments / Municipalities, other public bodies except for the purpose of Audit and
Investigations.
35.4 In addition to the amount to be transferred for the work to be done for the other
Departments / Municipalities, other public bodies, they are also required to deposit /
transfer funds for cost of establishment, T&P, which should include charges at such
percentage as are prescribed by the Government of Sikkim from time to time which is
also to be recovered in advance. The depositor or the authority on whose behalf the
work is to be done is also to be made to understand clearly that the Public Works
Department does not bind itself to complete the work within the amount of estimate
and that the authority depositing or administering the funds agrees to finance any
excess that may occur. An acknowledgement of this clear understanding is required to
be obtained from the concerned Depositor. The depositing department/ Agencies
should also be made aware of the fact that in case where the money is paid by
installments, the Public Works Department will not be responsible for any increase in
cost or damage to the uncompleted work caused by temporary stoppage of the work
pending receipt of further installment of funds.

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35.5 The Principal Chief Engineer cum Secretary, Roads and Bridges Department is also
required to prescribe the Departmental charges to be incorporated in each estimate
with the concurrence of Finance Department.
Powers to undertake Works of other Department / Agencies
35.6 The officers of the Public Works Department have been empowered to undertake
works of other department / Agencies as per powers delegated. The works may be
accepted by the Department to utilize the spare capacity and should not in any way
affect the Departmental Works.

Powers of the Public Works Officers to accept works of other Department / Agencies
35.7. The officers of the Public Works Department have been empowered to undertake
works of other department / Agencies of the amounts shown hereunder:-
Principal Chief Engineer cum Secretary : Full Powers.
Chief Engineer : up to Rs. 20.00 Lakhs
Additional Chief Engineer : up to Rs. 15.00 Lakhs
Superintending Engineer : up to Rs. 05.00 Lakhs
The above powers of officers to undertake deposit works or works of other
Department are to be exercised with levy of 9% establishment charge and other
Departmental charges as applicable.
35.8 The Principal Chief Engineer cum Secretary / Head of the Department may undertake
deposit works or works of other Department at lower rates of establishment and
Departmental charges as prescribed above.

Realization of funds
35.9. Whenever a deposit work / works of other department in the Government is to be
carried out, the transfer of fund or deposits should be realized before any liability is
incurred on account of the work. No interest will be allowed on sums deposited or
funds transferred at the disposal of Public Works Department.
35.10 Forty Percent of the estimated cost to be deposited / transferred in respect of Works of
autonomous bodies entirely financed by the Government. In case of deposit works of
autonomous bodies financed entirely from Government funds, and where receipt of
money is assured, 40 %( forty percent) of the estimated cost of the work may be got
deposited as advance in the case of construction works. Thereafter, the balance
amount is to be transferred based on progress of work upon submission of utilization
certificate to the extent of fund so transferred or deposited. Where delays are
experienced in obtaining funds, and where expenditure has to be incurred, the matter
should be brought to the notice of Superintending Engineer/Chief Engineer/Principal
Chief Engineer cum Secretary promptly for taking up the matter with the Client
Department. It is reiterated that no expenditure is to be incurred on such Works out of
Public Works Department grants and vice versa.
35.11 To enable the Client Department/ Agencies to provide additional funds on time,
revised estimates should be submitted by the Public Works Department, at the
appropriate stage during the execution of works, wherever required.
35.12 With regards to works involving autonomous bodies/departments who have earlier
defaulted in payments and where outstanding amount for work done exceeds Rs. 10
lakhs or where outlay is predominantly on purchase of capital equipment, the entire
deposit including Departmental charges should be obtained in advance.

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Transfer of Deposits from Civil Divisions to Electrical Divisions in respect of Deposit

Works / Transfer works.
35.13 It is enjoined on Principal Chief Engineer cum Secretary to transfer to the electrical
Divisions or the Civil Division, part of the fund / deposits received, in proportion of
Electrical Works/ Civil Works as the case may be, as per the preliminary estimate.
35.14 The onus of consequences arising out of delays in execution of works, as per
completion schedule, in spite of receipt of fund in the Department, shall rest on
Officer of the Public Works Department accepting the deposit as per delegation of
powers.
35.15 It should be ensured that the expenditure is not more than the deposits / authorization
for expenditure received for the work. Where the Superintending Engineers are
doubtful about the timely receipt of the deposits/ transfers, matter should be brought
to the notice of Principal Chief Engineer cum Secretary, who in turn takes the matter
with the Client Department / Agencies by giving notice that if further deposit /
transfer of funds are not received, work shall be stopped. Efforts should also be made
to realize the funds for excess expenditure already incurred on the project if any by
holding meeting with clients at higher level.

EXECUTION OF WORKS
35.16 With regards to the design, estimate and execution of work, instructions as contained
in the Public Works Department Code and Manual should be followed.
35.17 Superintending Engineer of the Circle is required to send to Chief Accounts Officer /
Sr. Accounts Officer in HQ, the statement of expenditure along with Schedule of
Deposit works showing the progress of expenditure on deposit work setting forth the
amount of the estimate, the total deposit / fund received and the progressive
expenditure for transmission to the depositor concerned after verification by the Pay
and Accounts Officer.
35.18 Divisional Officers should send a quarterly report to the Client Department /
Organizations showing amount transferred / deposited and the expenditure incurred
against different works and progress of works endorsing a copy of the statement to the
Superintending Engineer concerned to enable him to pursue the matter with the
Office.
35.19 It is necessary that in respect of works of other Department / Agencies, the
Department should settle their accounts against the deposits / transfers expeditiously
so that the amount in the book of audit as well as Government/Department/Agencies
does not remain unaccounted for a considerable period.

CHAPTER VII
SECTION 36

QUALITY CONTROL AND TECHNICAL AUDIT WING

Introduction
36.1 An independent quality assurance and technical audit wing for works under the
respective Principal Chief Engineer cum Secretary of Public Works Department shall
be constituted. The Quality Assurance activity, in order to be truly effective, has to
ensure a progressively improved and uniform quality of the finished work.
Experience gained over years indicate that “Process Control” is essential in building
construction and road works to ensure that the work in different phases is executed in
a manner predetermined and laid down in specifications. In order to achieve the

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above, the prerequisites cover among other things, availability of adequately manned
and equipped agency for exercising quality control, periodical appraisal of quality and
system of feedback for effecting possible improvements.

Quality Control System of the Department

36.2 In the Quality Control system of the Department, the field Engineer-in-Charge of
execution has to adopt the relevant Quality Control measures to ensure the desired
quality of work.
36.3 The direct responsibility for ensuring proper quality of work as per approved
specifications and for achieving designed life of the building and other works rests
with the construction team i.e. Divisional Engineer, Assistant Engineer and the Junior
Engineer including contractor. The Superintending Engineer shall be overall
responsible for management of Quality System and Procedures for works under his
charge.
For this purpose, a Quality Assurance Team headed by the Superintending Engineer
(QA) in Head Office is required to be provided in the Department. No powers have
been delegated for acceptance of sub-standard works. The Chief Engineer shall
periodically review and monitor the Quality Control System.
36.4 Independent Quality Assurance is set up which keeps a watch on the
effectiveness/adequacy of quality control measures at site and also provides guidance
to the field engineers.

Organizational Set Up of Quality Control Personnel.

36.5 The implementation of Quality Control in the field will require close co-operation
among the three agencies namely (a) field engineers (b) the Construction Agency and (c)
The Quality Assurance Team.

36.6 The broad responsibilities of the Engineer-in-Charge will be as under: -

1. To ensure that only materials duly approved by the competent authority are used in
the work confirming to IS standard.
2. Wherever necessary, the Divisional Engineer shall approve the sources for
respective materials.
3. Samples of materials should be approved by the Divisional Engineer and signed by
him and contractor and preserved till end of the project.
4. Samples of various materials, fittings to be used shall be approved well in advance
before placing orders and displayed at site of works with make and name of the
manufacturer/supplier.
5. To ensure that the laboratory tests as laid down in the specifications are carried out
at appropriate time and materials failing to conform to the required specifications are
promptly rejected and removed from site.
6. As far as practicable, all tests on materials will be carried out at the construction site
in a field laboratory, which will be set up under the control of the Divisional
Engineer. At least one laboratory should be established in each Division. The
equipment for such field laboratories may be purchased directly charging their cost
to the work. A Junior Engineer of the Division, with aptitude for testing should be
selected by the Divisional Engineer for manning the laboratory. He should be given
training in the Central Laboratory of the Department to familiarize with the various
tests and then placed in charge of the field laboratory.
7. Results of routine tests carried out in the field laboratory will be promptly
communicated simultaneously to the Engineer-in-Charge and the Quality Control

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Team functioning in the Department. The Junior Engineer-in-Charge of the field

laboratory will be responsible for carrying out tests correctly and for timely
communication of test results to authorities mentioned above.
8. Although testing of materials is a very important requirement for quality control,
often testing is not carried out by Assistant Engineer / Junior Engineer at site till the
lapse is pointed out by an inspecting officer. It is essential that the officers who
have to get the work executed at site should be aware of the various tests required to
be carried out during the progress of work and should be adequately prepared for the
same before the actual works starts.
9. It will be necessary for the Divisional Engineer to keep a watch over regular
testing of materials while making payment at the stage of each running bill. For this
purpose, a proforma may be prescribed which shall be checked by the
Superintending Engineer and the Accounts Officer before making payment.
10. No payment shall be released by the Superintending Engineer and the Accounts
Officer without the satisfactory quality control report.
11. Samples for tests are taken mostly by Superintending Engineer (QA). Samples for
10% of mandatory tests should be collected by Superintending Engineer. 10% of the
field tests should be done by Divisional Engineer in the presence of the Contractor.
12. To ensure proper Quality Control, detailed Procedures as may be laid down by the
Quality Assurance Cell of the Department, should be strictly adhered to by all
construction staff.
13. A Guard File shall be maintained at all work sites with copies of all inspection
reports to-date.
14. Inspection Register, Site Order Book, Record of tests, Hindrance Register, etc.
should be put up for entries and review to every inspecting officer.
15. The Inspecting Officers of the rank of Superintending Engineer and above shall not
confine themselves only to review of progress, co-ordination and general matters
but shall inspect the work from quality control aspects
16. The Superintending Engineer (QA), Superintending Engineer (Circle), Additional
Chief Engineer, Chief Engineer and Principal Chief Engineer cum Secretary should
invariably review and sign the Guard File of earlier inspections, inspection register,
Site Order Book, Registers of test carried out, Hindrance register etc.
17. The Divisional Engineer in-charge of Works should ensure that Assistant Engineer /
Junior Engineer as well as contractor’s supervisors-in-charge are fully aware of
specifications for any new/fresh items of work to be taken up in the next two weeks.
Assistant Engineer / Junior Engineer /Supervisors should ensure that this important
aspect is not overlooked. Senior Officers should guide the subordinates for
execution of specialized/selected items to avoid common defects.

18. Check list.

(i) As and when any important item is taken up for execution, Assistant Engineer /
Junior Engineer should go through the specifications and make a check list.
This check list should be got approved from Divisional Engineer. The
important items, inter-alia, include foundation, including reinforcement and
shuttering, brickwork, cast-in-situ mosaic flooring, doors and windows,
plumbing i/c water supply pipe lines, roof treatment, earth-filling etc.
(ii) In buildings works, one of the serious problem is dampness and leakage.
Divisional Engineer shall ensure that necessary tests are carried out for proper
slopes of canopies, chajjas, terracing, drainage arrangements water tightness of
expansion joints, joint in the water supply, drainage and sanitary works before

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these are covered/concealed and also ensure rectification of defects noticed and
certify the rectification carried out.
(iii) Divisional Engineer shall ensure availability of the required test equipment for
field tests as well as an updated copy of specifications and copies of Agreement
at sites of works.

Quality Control Team at Departmental Level

36.7 The Quality Assurance Team with Superintending Engineer of the Quality Control as
its head will comprise the Assistant Engineer (along with his J.E. for laboratory work)
whose main job is quality assurance.

(a) In order that the role of the Superintending Engineer / Assistant Engineer (QA) is
effective in the process of Quality Control, the following points are essential: -

(i) The periodicity of visit of works should be such that the process control at various
stages is possible.
(ii) There should be minimum delay between inspection of work and communication of
inspection information to Field formation.
(iii) The Superintending Engineer/ Assistant Engineer (QA)should carry out his tasks in
work that relates operationally to the quality specifications and standards laid down
for the work and to the control actions that can be applied to the construction
process. Thus, the Engineer in-charge of QA Cell should assess those aspects which
are important to the overall quality of the finished work.
(iv) The data received from Superintending Engineer/ Assistant Engineer (QA) should be
analyzed and organized by Superintending Engineer (QA) to evaluate significant
facts not only about the finished work but also the process leading to it.
(v) The analyzed and organized data should be presented to the Field Formation in a
form that enables them to see immediately its significance for control and necessary
action.

36.8 The functions of Quality Assurance Team at State level are as under:
(i) Every Superintending Engineer (QA) should carry out minimum 10 visits to different
works every month.
(ii) In pre-dominantly construction division, where maintenance work exists, at least 10%
of such visits should be of maintenance works.
(iii) Superintending Engineer (QA) should prepare his programme and take approval of
Chief Engineer. The programme should be sent to site in advance of inspection.

36.9 During periodical visits, efforts of the Superintending Engineer/ Assistant

Engineer (QA) should be directed at:

(i) To check the quality of materials used in the work.

(ii) In respect of the quality of finished items also, random checks shall be applied by
the Superintending Engineer/ Assistant Engineer (QA), with the help of handy
instruments like Impact Hammer, penetro-meter, moisture meter, etc.
(iii) The Superintending Engineer/ Assistant Engineer (QA) shall also carry out a
systematic check on the field test carried out by the Field staff during the progress
of the work. This is to be with particular reference to the mandatory tests laid
down in the PUBLIC WORKS DEPARTMENT Specification. In case of any
abnormal test results coming to his notice, the Superintending Engineer/ Assistant

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Engineer (QA), with the approval of Chief Engineer, shall send samples of such
items to the laboratory for repeat tests.
(iv) The Superintending Engineer/ Assistant Engineer (QA) is to also provide
guidance to the field staff in case of any problem relating to routine field tests.
(v) Finally, on the basis of these observations with regard to the quality of works,
general adherence to the quality control procedure and the standard of progress,
he shall submit an overall assessment report to the Superintending Engineer of the
Circle. Superintending Engineer shall forward the report with minimum delay to
the Sub- Division and Division.
(vi) The report of the Superintending Engineer/ Assistant Engineer (QA) while being
comprehensive should be simple and clear so that when communicated to the
field formation, the necessary control actions, become evident.
(vii) In case any new technology or material is being used at a site and if any defect is
noticed during site inspections, Superintending Engineer/ Assistant Engineer
(QA)) shall send a report to the Chief Engineer and Principal Chief Engineer cum
Secretary of the Department.

36.10 RESPONSIBILITY FOR QUALITY CONTROL

Following responsibilities are assigned to various field Engineers in respect of
assurance of quality control of Materials and Works. Any item not listed below shall
be deemed to be the responsibility of the concerned Divisional Engineer (DE) and his
subordinates (AE and JE).

Works Costing
Above 20 lakhs Upto20 lakhs
A. MATERIALS
Sand, stone, metal and chips, bricks,
(a) JE and AE JE
ord. glass panes etc
Timber, paints, polish, door, Shutters,
windows, door/Window fittings,
(b) JE and AE JE
Sanitary and water special glass panes
etc
Marble, granite, kota stone and similar
(c) AE and DE AE
items
(d) Cement and Steel AE and DE JE and AE

(e) Scaffolding / Shuttering of bridges etc AE and DE JE and AE

B. ITEMS OF WORKS

(i) Foundation upto plinth AE and DE JE and AE

Base and Sub- Base works in Road

(ii) work i/c Carpeting / Blacktopping
AE and DE AE and JE

(b) Brick masonry/stone masonry JE and AE JE

Scaffolding and shuttering of bridges

(c) AE and DE JE and AE
etc including adequacy

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(d) Reinforcement and RCC AE and DE JE and AE

(e) Structural steel work AE and DE AE

(f) Steel work AE JE and AE

(g) Aluminium work AE and DE JE and AE

Wood work/Wood substitutes i/c
(h) AE and DE JE and AE
furniture’s
Flooring-CC, i/c footpath, irrigation
(i). works, mosaic glazed/ ceramic tiles etc
AE and DE JE and AE

Flooring and cladding-marble, Granite,

(i) kota, Sandstone etc.
AE and DE AE

(k) Plastering, painting and polishing JE and AE AE & JE

Joints in pipes i/c testing. Slopes in
(l) flooring i/c verandah, balcony, toilets, AE and DE JE and AE
terrace

(m) Bitumen painting of roofs JE and AE JE

(n) Water proofing treatment AE JE and AE

(o) Fittings of doors/windows AE JE and AE

(p) False ceiling work AE and DE AE

(q) (i) Storage tanks AE and DE JE and AE

(ii) Sluice valves, fire hydrants AE JE and AE

Cl/Hume pipes and specials and their

(iii) Caulked joints
AE and DE JE and AE

(r ) (i) Sanitary installation i/c fittings AE and DE JE & AE

(ii) Manholes i/c covers and frames JE and AE JE

(iii) Cl Inspection bends and Chambers JE and AE JE

General quality of work with particular

reference to lines and levels/adherence DE and SE
(s) AE and DE
to drawings and specifications and (Circle)
functionality

C. Other important materials/items To be decided by the Chief Engineer

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SECTION 37
ARBITRATION AND LITIGATION CASES

Application of arbitration
37.1 Standard Contract Form provides for appointment of an Arbitrator in case of
questions and disputes relating to certain matters specified therein arising at any stage,
whatever, between the parties. This however, does not apply to action taken under
following clauses where the decision of the specified officer is final to the extent
given below:-

1. Decision of Chief Engineer regarding rate at which compensation is

recovered.
2. Expenses incurred by the Engineer-in-Charge in getting the work done either
by employing labour or through another agency.
3. Opinion of the Engineer-in-Charge as to the reasonability of the grounds
shown by the contractor for granting extension of time.
4. The proportion that the algebraic sum of amounts of deviations, altered,
additional or substituted work bears to the original contract value, for the
purpose of determining the reasonable extension of time for completion of
work due to these components.

37.2 The contractor cannot have recourse to a court of law for the redress of his grievances,
unless he has exhausted the channel of arbitration as envisaged in relevant arbitration
clause. Even if the contractor goes to the Court, the Superintending Engineer should
take a plea that the contractor being a signatory to the agreement containing
arbitration clause, any dispute arising out of or in any way connected with the
execution of work has first to be settled by reference to arbitration.
37.3 A standard application form seeking appointment of arbitrator has been evolved;
contractors seeking arbitration should apply in the prescribed form as per annexure.
37.4 The application form duly filled in shall be submitted by the Contractor to the Chief
Engineer with three copies thereof to the concerned Superintending Engineer. All the
three copies of the application form shall be accompanied by a statement of claims in
the matter indicated in the application form.
37.5 The arbitration clause can be invoked by the Engineer-in-Charge as well by applying
to the Chief Engineer for appointment of the Arbitrator. He should apply for
arbitration as and when the dispute arises and should not wait till the end.
37.6 The party invoking arbitration clause should give information enough to justify
existence of disputes. For this purpose the party has to give details about the demand
having been made and its refusal by the other party. It is held by Courts of Law that a
“dispute” implies an assertion of right by one party and repudiation thereof by the
other. Existence of a dispute is a condition precedent to arbitration. If there is no
existence of dispute there cannot be any right to demand arbitration.
37.7 In view of the above the Chief Engineer should ensure that before appointing
arbitrator, existence of dispute has been established. For this purpose, the party
invoking arbitration clause should be asked to produce documentary evidence of its
claims having been duly lodged with the other party and refusal by the other party to
accede to them.
Preparation for Arbitration Cases
37.8 The following steps should be taken by the Circle Office with a view to properly
defending the arbitration cases.

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(i) As soon as a contractor applies for arbitration, Circle Office should arrange to prepare
a detailed history sheet containing the data regarding estimates, designs and drawing,
NIT, agreements and substituted items, reduction statements, extension of
time/notices issued under clause 2.
(ii) List out important letters in respect of the issues raised by the contractor or the
important notices by the contractor or the important notices issued to the contractor
and places these originals in a separate file. In the routine file true copies of these
documents may be placed.
(iii) Keep original agreements, plans, designs including the calculations for these if
available, and details of measurements and analysis of rates attached to the technically
sanctioned estimates, all the Measurement Books connected with the work. Cash
books, site order book, cement register in safe custody of Superintending Engineer
along with the originals listed in (ii) above.
(iv) Measurement books should be closed.
(v) All the files connected with the work should be properly page numbered stitched and
sealed and kept by the Superintending Engineer along with the above record.
(vi) If there are important situations or circumstances which are not available on the file
but are only known to the Executive Staff, their signed statements regarding the
factual information should be obtained and kept on record, as after a lapse of time,
they may not be available for personal discussions, or they may be unable to recall
past events.
(vii) The Superintending Engineer may call the Executive staff in charge of the work from
their new stations for any information that he may need to collect by personal
discussions but only under orders from the Chief Engineer.
37.9 If the work has been completed the final bill should be proposed as early as possible,
in any case, before the disputes are referred to arbitration. The Superintending
Engineer/Divisional Engineer should ensure that the bills are finalized immediately, if
not already done.
37.10 A detailed note on the facts of the case dealing with each and every item of the claims
and /or counter claims should be prepared by the Superintending Engineer along with
reference to various relevant documents supporting the Government case or
negotiating the Contractor’s claim.
Processing of Contractor’s Application
37.11 The Superintending Engineer shall send one copy of the application of contractor to
the Chief Engineer, with the under mentioned information, without waiting for a
reference from the Chief Engineer within 15 days from the date of receipt of
contractor’s application in his office.
(a) An attested copy of relevant arbitration clause.
(b) A note regarding verification of factual data furnished by the contractor in the
application form.
(c) Brief comments on each claim of the Contractor while giving such comments the
admissibility of the claims in the light of arbitration clause and limitation act will be
kept in view and commented upon.
(d) Statement of counter claims of the Department if any. However, if counter claims are
not readily enlisted or available, comments on contractor’s claims should not be
delayed.
Appointment of Arbitrator
37.12 The standard form of appointment letter as prescribed in this Manual is to be used for
appointing an Arbitrator.

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37.13 In those cases where the amount of the claim is less than Rs. one lakhs Para 2 of the
standard form should be deleted. (Para 2 states that the Arbitrator shall give reasons
for the award if the amount of claims in dispute is Rs. one lakhs or above).
37.14 Whenever a notice for appointment of an arbitrator is received from a contractor, the
Chief Engineer should process the cases so as to appoint an arbitrator within 30 days
from the receipt of such a notice. The time limit of 30 days for appointment of
arbitrator should be strictly adhered to.
37.15 In cases, when no agreement exists or where no clause exists in an agreement for
referring the matter of dispute to the sole arbitration of a person to be appointed by the
Chief Engineer, the disputes should not be referred to arbitration by mutual consent
and no agreement should be drawn up for this purpose.
37.16 The authority of an appointed arbitrator does not become revocable except with the
order of the court. It shall not be revocable by the death of any party or parties to the
contract.
37.17 The draft letter for appointment of new arbitrator due to transfer or vacation of Office
by the old arbitrator shall be as per Annexure in this Manual
37.18 When the arbitrator enters into reference and writes to the parties to the contract to
file the statement of facts and counter statement of facts before him, the
Superintending Engineer should take prompt action to prepare the defense duly
supported by adequate documentary evidence and witness and arrange for its
submission to the Chief Engineer and get his approval and send to the arbitrator by
the date and within time specified by him. In cases where the claims (excluding
interest) exceed Rs. 10 lakhs advice of Law Department should be sought.
37.19 Superintending Engineer should deal with preparation of counter statements with
utmost urgency and submit the counter statements of facts normally within one month
and in really exceptional cases within two months from the date of receipt of the
statement of facts. However, in cases where some unavoidable delay in adhering to
the time limit is foreseen they should explain the position to the arbitrator and obtain
extension of time before the expiry of the stipulated date.

Production of Official Documents before Court /Application and Claiming ‘Privilege’

concerning the same
37.20 In the course of legal/arbitration proceedings, the court/arbitrators may either
themselves or at the instance of the opposite party, require production of official
record, e.g. files, correspondence, register or the other documents which are supposed
to have a bearing upon the case. While the court/arbitrator my require the production
before them of any document relevant to the case, it must be borne in mind that in
terms of sections 123 , 124 of the Indian Evidence Act, Government is permitted to
claim privilege for not producing the documents disclosure of which may be
considered detrimental to public interest. Such privilege may invariably be claimed in
respect of all unpublished records of the Government i.e. documents which have not
come to the knowledge of the other party. For this purpose “Notes Portion” of a file
and all communications and letters other than those emanating from or sent to the
party (original or copies) should be treated as “unpublished records” of the
Government in respect of which privilege, as aforesaid, can be claimed. This will be
done producing before the court/arbitrators declaration signed by Principal Chief
Engineer-cum-Secretary as Head of the Department stating that documents referred in
the declaration contain unpublished Official information relating to the affairs of the
State and that privilege in respect of the same is being claimed as their disclosure
would be detrimental to the public interest.

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37.21 A Departmental Officer may appear as a witness, if summoned by the Arbitrator at

the request of a contractor also. He is expected to give true and correct facts of the
case. Deterrent action should be taken against the Officials concerned, if they are
found responsible for giving wrong evidence or concealing material facts an
arbitration case.
The State Information Officer appointed by the Government for providing necessary
information against Right to Information Act, 2005, the State Information Officer
concerned shall be held responsible for not providing the information in time as
prescribed in the RTI Act within the stipulated timeframe. However, this clause will
be operated subject to the provisions on the RIT Act, 2005.

Default of a Party
37.22 If the claimant fails to communicate his statement of facts in accordance with the time
determined by the arbitrator without showing sufficient cause, the arbitrator shall
terminate the proceedings. If the respondent fails to communicate his counter
statement of facts within the time determined by the arbitrator, the arbitrator shall
continue the proceedings without treating the failure itself as an admission of
allegations by the claimant. In case a party fails to appear at the hearing or fails to
produce documentary evidence, the arbitrator may continue the proceedings and make
the award on the evidence before him.

Issue of Award
37.23 Whenever an award is made by an arbitrator appointed otherwise than through court
and if under the award, some money is payable to the Government by the Contractor
the Superintending Engineer should first supply to the Arbitrator stamped paper of
appropriate value, as may be asked for by the arbitrator according to the amount of the
award, and request the Arbitrator to write the award on the stamped paper (non
judicial) so supplied to him.

It is open to objection in a court of law to write the award on ordinary paper and
afterwards re write it on the stamped paper. The award should, therefore, always be
obtained on the stamped paper. It is for the Arbitrator to say as to which party should
supply the stamped paper in such cases. As per the provision in the Arbitration clause
in all cases where the total amount of all claims in dispute is Rs. One lakhs and above
the arbitrator shall have to give the reason for the award.

Filing of Award
37.25 After the award is published, it should be examined if it is acceptable to the
Government. Once the competent authority decides to accept the award immediate
action should be taken to make the payment to the contractor.
26.26 In cases where the awards are interest bearing and are proposed to be challenged the
awarded amount may be deposited in the court as provided under the provisions of
order 24 of CPC in order to avoid the accrual of interest thereon.
37.27 Whenever amount of an arbitration award is deposited in court, intimation to this
effect should simultaneously be given to the contractor.
37.28 The payment should be made to the contractor after obtaining an undertaking from the
contractor for acceptance of the award in full and final settlement. Immediate
payment ensures that the Department is absolved of the liability of payment of interest
on the amount awarded. The undertaking is to be obtained from the contractor on

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stamped paper. Before obtaining the said undertaking the contractor will be addressed
as per specimen letter at Annexure “IV” formally informing him of the intention of
the Department to accept the award. Thereafter the contractor will be called upon to
sign the undertaking.
37.29 Immediately on acceptance of the award by the Government or on receiving such
intimation from the Contractor a communication as per Annexure in the Manual
should be issued to the Contractor, intimating the fact of such acceptance and offer
payment in terms of the award if the Contractor communicates acceptance of the
award within the specified time. Payment so made would bar the contractor form
suing again in respect of the same dispute.
37.30 An Arbitration award shall not be discharged by the death of any party thereto either
as respect to the deceased or any other party, but shall in such event be enforceable by
or against the legal representative of the deceased.

Acceptance of Award
37.31 Acceptance of award lies with the State Government. Since for filing objections
against an award the period of limitation prescribed under the Arbitration and
Conciliation Act, 1996 is three months from the date of receipt of award by the party,
the decision regarding acceptance of arbitration award should be taken by the
competent authority on priority basis. The procedure followed in scrutinizing the
award consists of examination of merits from factual, technical and legal points of
view. The Superintending Engineer should within 7 days of receipt of arbitration
award send a self contained reference together with a copy of the agreement, a copy
each of the statement and counter statement of facts, a copy of the award financial
statement and his comments to the Chief Engineer. The Chief Engineer should
forward the same with his comments to the Law Department through the Head of the
Department within 4 days of the receipt of the case. The Law Department within a
reasonable time the latter should then obtain the decision of the State Government.

The Superintending Engineer should make payment to the Contractor in terms of the
award within a period of 30 days from the receipt of acceptance of award from the
competent authority and intimate the actual date of payment to the Chief Engineer.
The payments made on the Arbitration awards are treated as “Charged” expenditure.
Setting of Award
37.33 In all arbitration cases when awards of the arbitrators go against the Department
whether by upholding the claims of the contractors or by rejecting the counter claims
of the Department, detailed reasons and lapses, if any on the part of the concerned
officials due to which the awards have gone against the Department should be gone
into detail by the Chief Engineer concerned. The Chief Engineer should send his
recommendations to the Principal Chief Engineer-cum-Secretary on the issue of
fixing the responsibility and for taking action against the officers wherever necessary.
37.34 The question of challenging the arbitral award in a court of law should be considered
very carefully and the matter should be examined by the Law Department before the
award is challenged.
37.35 All proposals for filing appeal against the arbitration award irrespective of the value
of the award should be referred to the Law Department for final decision. The
following documents should be sent invariably with all awards:
1. Contract Agreement in original.
2. Award of the Arbitrator.
3. A statement in the Proforma.

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(i) Claim no.

(ii) Brief description of claim/counter claim as justified by the arbitrator.
(iii) Amount of claim.
(iv) Amount of award.
(v) Recommendations (Superintending Engineer)
(vi) Recommendations (Chief Engineer).

Period of Limitation
37.36 It is a term of the contract in the relevant arbitration clause that if the contractor
does/does not make any demand for arbitration in respect of any claims(s) in writing
within 90 days of receiving of intimation from the Government that the bill is ready
for payment the claim of the contractor will be deemed to have been waived and
absolutely barred from the liabilities under the contract in respect of these claims.

In spite of above specific provision in the Arbitration Clause the Chief Engineer
should not withhold appointment of arbitrator on the ground that the request was
received after the expiry of the specific period mentioned in the relevant arbitration
clause of the agreement, but should appoint the Arbitrator clarifying in the letter of
appointment of the arbitrator that the reference is without prejudice to the defense that
may be raised by the Government regarding the tenability of the claim on all
necessary and available grounds including those of limitation and the parties to the
agreement will be free to raise the question of limitation before the Arbitrator.

37.37 While examining the request for arbitration from a contractor or supplier or any claim
in a litigation case it should be examined whether the claim of the contractor is time
barred, in accordance with the provision of the Limitation Act, 1908 or 1963 as the
case may be. This point should be taken into consideration in preparing the defence.
The question as to whether any dispute had become time barred will itself be a dispute
which can only be settled by arbitration. The stage of reference is not concerned with
the question whether the claim of the party to the arbitration agreement is barred by
the Law of limitation and that a question falls within the province of the arbitrator to
whom the dispute is referred. The reference of the disputes, even though seemingly
time barred, would therefore be made to the arbitrator. The parties would be free to
raise the question of time bar before the arbitrator who would no doubt consider this
proof and give his award. However, it can be clarified in the letter of appointment of
the arbitrator that the reference is without prejudice to the defense that may be raised
by the Government regarding the tenability of the claim on all necessary and available
grounds including those of limitation.

An appeal before the Division Bench is to be filed within 30 days of pronouncement

of Judgment by the High Court. If for any reason delay occurs the Court has to be
approach for condonation of delay in filing the appeal and the Department has to
explain the day to day delay, to the satisfaction of the Court. Every care should
therefore, be taken in handling such Arbitration/Court cases and it should be ensured
that timely and prompt action is taken within the period of limitation.

Court Cases
37.39 Before any action is taken in a court of law against some party for amount due to
Government a reliable report of its financial standing should be obtained and
simultaneously the expenditure likely to be incurred to recover this amount should be

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carefully estimated so that unnecessary expenditure on litigation may be avoided,

where there is no reasonable chance of recovering the judgment debts from the party
concerned.

37.40 Although it is the primary responsibility of the Government Counsel to see the proper
defence of the case, it is equally the responsibility of Superior Officer of the
Department to keep constant watch over the progress of these cases and see that all
such cases, at every stage, are processed properly so that the cases do not go against
the Government interest by default resulting in financial loss etc to the Government.
The Superintending Engineer should therefore see that all such cases are reported to
the Chief Engineer as soon as a suit against government is launched by any aggrieved
party or the Department itself intends to file as suit against a contractor or third party.
The first report from the Superintending Engineer about such cases should give a brief
description of the case and the steps which are being taken or have been taken for the
proper defence or prosecution of the suit. Thereafter, fortnightly reports on each such
case should be sent to the Chief Engineer detailing the progress of the case and further
action taken or to be taken for its defence or its successful prosecution.

37.41 To enable him to discharge properly the responsibility that has been placed upon him
in the matter of defence of court cases, the Superintending Engineer should observe
the following instructions:
(i) He will collect all the relevant records and compile it for the benefit of the
counsel.
(ii) If it is considered necessary to obtain the advice of higher authorities at any
stage the Superintending Engineer should refer the matter immediately to the
Chief Engineer for advice either personally or in writing, according to the
needs of the occasion.
(iii) All defence statements to be filed by the Superintending Engineer should be
approved by the Chief Engineer and the Counsel before the statement is filed.

37.42 In all Court cases concerning the Department which the Superintending Engineers
have to defend with the assistance of Government Advocates/Counsels, the
Superintending Engineers should intimate the complete postal address and telephone
numbers (both offices and residences) to the Advocates/Counsels so that any
information/development relating to the case is intimated to them straight away
without referring the matter through the Departmental head or other high ranking
officer.

Judgment in Court Cases

37.43 The progress of the cases in the Court should be watched by the Superintending
Engineer who is in charge of the case as well as the office of the Chief Engineer on
the basis of the monthly reports. It shall be the responsibility of the Superintending
Engineer to send a report to the Chief Engineer directly within 48 hours after the court
has delivered a judgment which is adverse to the Government with copies to the Head
of the Department for information.

37.44 It will also be his responsibility to apply for and furnish with the minimum delay a
copy of the judgment and all other relevant papers, his own comments and opinion of
the counsel conducting the case on the advisability of filing an appeal/revision
petition to enable the Government to come to a decision whether an appeal/revision

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petition should be filed or not. There should be no delay in communication between

the Superintending Engineer and the Counsel and personal contact by telephone etc.
should be maintained with him.

37.45 On receipt of the relevant papers from the Superintending Engineer, the Chief
Engineer should consider advisability of filing an appeal/revision petition in the light
of comments of the Superintending Engineer. Thereafter the Chief Engineer should
forward his proposals, to the Secretary for seeking advice of the Law Department.

37.46 The proposal should be made well in advance of the last date of filing an appeal and
should be complete in every respect i.e. copy of the judgment (if such copy has not
been received, a verbatim report of the same) and all other relevant papers should
accompany the proposal. It is essential that there should be coordination between the
different district officers and the Chief Engineer’s Office in such matters i.e.
whenever any important decision of general interest is taken on a contractor’s claim.

37.47 In all cases where officers of the Public Works Department are required to give
instructions to Government advocates in connection with court cases, they should give
complete written instructions in regard to each case. In any case the instruction must
be communicated at least a day before the date of hearing.

Law Charges on Civil Suits

37.48 The costs and expenses incurred on civil suits in connection with the execution of
government works may be divided into three categories given below:
(i) The amount of the claim for which a decree is given.
(ii) The amount of incidental costs incurred by the executing Department in connection
with a work financed from its own Departmental head of expenditure e.g. when the
Public Works Department carried out a work chargeable to the Public Works
Heads of Expenditure, and.
(iii) The amount of incidental costs incurred by the executing Department in connection
with a work financed from a different head of expenditure, for instance the Public
Works Department executes a work the cost of which is debitable to the head of
account other than the Public Works Heads.

37.49 The decretal amount of the claim vide item(i) above should be debited in all cases to
the works concerned and the charges referred to in item, (ii) above to the sub head
“Establishment Contingencies” of the executing Department. As regard, (iii) the
amount should generally be borne by the Department on whose behalf the work is
undertaken on the ground that action of the executing Department was as agent and
taken in the interest of the work.

37.50 When however, it is established that the law suit has been caused by a deliberate act of
an employee of the agent Department for his personal gain the charges should be
adjusted by recovery from the individual concerned. Such cases should be submitted
to the Government for their orders.

37.51 In case of his transfer or relinquishing charge due to any other reason, the
Superintending Engineer should leave a self contained note on the file, at the time of
his handing over charge, giving full back ground of all the disputes that have cropped

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up to the time of his incumbency, various developments thereon and the order passed
with due reference to the connected files.

37.52 This should form a necessary and essential feature of all the handing over notes.
Suitable method and procedure should be devised by which such files are carefully
preserved and become available at the later stage to the Superintending Engineer who
is required to defend the case.

37.53 The transferred Superintending Engineers should make a comprehensive note about
the pending claims of all the contractors for works in progress or completed in their
time except those where counter statement of facts have already been prepared. The
note should indicate the admissibility or otherwise of each claim and the orders of
competent authority. The note along with attested true copies of important letters
mentioned there in should be handed over to their successors.

37.54 It should be made a rule that all drawings issued with the NIT and those subsequently
followed for execution of works are properly preserved and kept along with the
contract documents. It should be ensured by the Superintending Engineer that suitable
and adequate arrangements are made in his Circle regarding preservation of all
important documents, registers etc. Besides others, a list of all such records should be
prepared and kept handy so that correct position of each case may be known to the
Superintending Engineer who is required to conduct the case timely and properly.

37.55 The arbitration cases should not be considered as legacy of old and defunct decisions
handed over to subsequent Superintending Engineers. These should, on the other hand
be given due importance and dealt with on priority basis at all stages till these are
finally disposed off.

37.56 One of the important documents for defence in an arbitration case is the agreement. It
is essential that a copy of the Chief Engineer’s orders conveying his decision on
recovery of compensation and copies of sanctioned extra, substituted and deviated
items, details of abnormally high /low rated items and sanctions to the extension of
time etc. should be attached to the original agreement so that these are readily
available during the hearings of the arbitration case. It would be better if these papers
are got signed by the contractor as far as possible so that any claim on these issues can
be verified before the Arbitrator.

37.57 Before a dispute is put to Arbitration, the Department should know its exact position
with regard to each item of the claims under dispute. It is thus necessary that a very
close and thorough study of the relevant documents is made and the case prepared
accordingly.

37.58 The Superintending Engineers shall send a quarterly statement (ending March, June,
September and December) of pending arbitration cases in the year to the Chief
Engineer. These reports should be reviewed by the Chief Engineer at periodical
meetings with their Superintending Engineers to expedite the finalization of
arbitration cases.

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37.59 All correspondence between Superintending Engineer and Chief Engineer regarding
appointment of Arbitrator or on award and subsequent court cases should be through
D.O letters and should be sent through special messengers in the same station.

Jurisdiction of Courts:
37.60 The Courts of the place from where the tender acceptance letter has been issued shall
have the jurisdiction to decide any dispute out of or in respect of the contract.

SECTION 38
RULES FOR ENLISTMENT OF CONTRACTORS

38.1 The rules for enlistment of contractors in the Public Works Department are contained
in Annexure.

38.2 An individual or a firm having such individuals as one of its partners who is a
dismissed Government Servant or removed from the approved list of contractors or
having business banned/suspended by any Government Department in the past or
convicted by a Court of Law should not be enlisted as contractors in the Public Works
Department.

Registers of Enlisted Contractors

38.3 Each Office shall maintain registers showing the enlistment of various contractors in
different classifications. Whenever contractors are blacklisted, removed or
temporarily suspended from the list of approved contractor, a remark shall be made in
the register against the contractors concerned.

38.4 Each Division and Circle Office should maintain a register of Circulars imposing
penalty of one kind or the other as a result of review of the Performance Report in the
following Performa:-

1. Sl.No.
2. Name of the contractor.
3. Class of registration.
4. Warning issued.

CHAPTER VIII
PUBLIC BUILDINGS

39. These rules apply to buildings which are borne on the books of the Sikkim Public
Works Department and which are maintenance by Sikkim Public Works
Department.

39.1 General Rules

a) The Divisional Engineer should make some person of his establishment
responsible for the general condition of each building.
b) Insurance of Government buildings are not to be effected except in the
case of specially valuable property liable to special risks. In the later case
the sanction of Government should be obtained.

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c) The initial supply of fire extinguishing equipment and repairs and

maintenance of the same shall be made by the Departments to whom the
buildings are allowed. No fire extinguishing equipment should be provided
for residential buildings.

39.2 Furniture and Fixtures

a) Every public building should be provided with necessary fixtures by the Public
Works Department which should also arrange for repair of these fixtures
periodically. Petty repairs of fixtures and replacement of broken glasses in doors
and windows should be carried out by the Department occupying the building.
The Public Works Department will not ordinarily provide furniture for non
residential buildings occupied by other Department. In respect of residential
buildings under the control of the Public Works Department, furniture will be
supplied by Public Works Department according to the scale laid down for each
type of building/quarter. The furniture required for the offices of Public Works
Department should be charged to the contingent grant of the office concerned.
b) The furniture required for Public Works Department inspection bungalows and
rest houses should be supplied and repaired at the cost of Public Works
Department. Rent for furniture when charged should be 15% per annum on the
Capital cost of the furniture.
c) Numerical account of furniture supplied to residential buildings will be
maintained in the form of Tools and Plant accounts separately for each building
and acknowledgement of the occupant should be obtained for the furniture
provided to the quarter/residence.

39.3 Maintenance of buildings

The maintenance and repairs of all buildings, residential as well as non residential
shall be the responsibility of the Public Works Department. But maintenance and
repairs of non residential buildings cost of which does not exceed Rs.50, 000/- in
each case may be allowed to be carried out by occupying Department, though they
are borne on the Register of Public Works Department. The Public Works
Department will however extend such help or technical advice as may be required
by the Civil Engineering Department. The repairs and maintenance of residential
buildings is completely the responsibility of Public Works Department. The
occupants should not carry out any additions or alterations to the building or
dismantle any portion of the building even though they are prepared to bear cost
of such alterations, addition or dismantlement without prior approval of the
Government. If the damages are caused due to improper use, the cost of the same
shall be recovered from the occupants.

39.4 Gardens attached to Residential and Non-residential buildings

Only gardens attached to the non-residential buildings and residential buildings of
Ministers will be maintained by the Public Works Department. However, in
respect of vacant residential buildings the maintenance of garden shall be the
responsibility of the Public Works Department and the expenditure shall be
charged to the maintenance estimate of the building.

39.5 Purchase, Sale, Transfer of Government buildings

a) Purchase of buildings: No building may be purchased for public purpose without
the specific sanction of Government. In all such cases, the survey and valuation

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according to the accepted norms or any other authority recognized as valuation

authority under the laws should be obtained and submitted for approval of the
Government.

b) Sale and dismantlement of Buildings: The Principal Chief Engineer cum

Secretary / Head of the Department is competent to sanction the sale or
dismantlement of building, the book value of which does not exceed Rs. 10 lakh.
But in case the building is sold along with vacant land, if any, the approval of the
Government should be obtained before sale of building. Before a building is sold,
it should be ensured by the Chief Engineer that the building is not required by
Government for any public purpose. Temporary structures or buildings may be
dismantled with the sanction of competent authority as soon as the purpose for
which they are erected has been served and if they are no longer required for use.
When the cost of the building was originally debited to a capital account or
revenue account, the sale proceeds should be credited to revenue account as
recovery of expenditure.

c) No religious buildings should be destroyed damaged or dismantled during the

course of execution of any work without the full and free consent of the persons
interested in it and without the approval of the Government.

39.6 Hiring of private buildings for office as well as residential purpose

When any private building is taken on hire by Government either for office or for
residential accommodation by any Government department, the rent payable
should be assessed according to the formulae as approved and amended by the
Government from time to time. A lease or rental deed should be entered into with
the owner of the building and the lease deed should specify the liability of
municipal and other taxes as well as normal maintenance and repair. No addition
or alteration should be made at the cost of the Government for private building
taken on hire either for office or residential purpose.

39.7 Sanitary, Water Supply and Electrical Installations.

All works and repair in connection with sanitary, water supply and electrical
installations of Government buildings should be carried out by the Public Works
Department and the provisions for the same should be made in the construction /
maintenance estimate of the building.

39.8 Inspection of the Public Buildings:

Residential and non residential buildings borne on the books of Sikkim Public
Works Department should be inspected and examined every year by the officers of
the Department as indicated below:

1. Junior Engineer: building costing up to Rs. 20,00,000.00

2. Assistant Engineer: building costing up to Rs.1,00,00,000.00
3. Divisional Engineer: building costing above Rs. 1,00,00,000.00

A register of building should be maintained by the respective authorities to record

the date of inspection, result and remarks if any and any immediate attention is
required, the matter should be reported to the superior authority immediately.

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The Divisional Engineer shall maintain a register of all buildings of their

jurisdiction in the proforma provided for Register of Building.

39.9 Residence of Government Officials:

Government officials are allowed Government quarters subject to availability. The
officer occupying the Government accommodation is not entitle to draw house rent
and also pay license fee as notified by the Government from time to time. No
officials are authorized to occupy two quarters at a time. In the event of such
occupancy, the occupant is liable to pay standard house rent as may be assessed for
each type of quarter on the basis of market rate and the license fee.

APPENDIX - I
Scale of furniture for residential building:
CLASS – I CATEGORY
1 Wooden beds (double) 1 No.
2. Wooden bed (single) 4 Nos.
3. Armed chair 1 No.
4. Writing table / Computer Table 1 No.
5. Dining table with 6 Nos. Chair 1 set.
6. Ward robe 2 Nos.
7. Dressing table 2 Nos.
8. Sofa set (six pcs set.) 1 set.
a) Centre sofa 1 No.
b) Side sofa 2 Nos.
c) Centre table 2 Nos.
d) Tea poy 2 Nos.
9. Bed side table 6 Nos.
10. Book self 1 No.
11. Kitchen table and Chair 1 each.

CLASS – II CATEGORY
1 Wooden beds (double) 1 No.
2. Wooden bed (single) 3 Nos.
3. Armed chair 1 No.
4. Writing table / computer table 1 No.
5. Dining table with 6 Nos. Chair 1 set.
6. Ward robe 2 Nos.
7. Dressing table 2 Nos.
8. Sofa set (six pcs set.) 1 set.
a) Centre sofa 1 No.
b) Side sofa 2 Nos.
c) Centre table 1 Nos.
d) Tea poy 2 Nos.
9. Bed side table 4 Nos.
10. Book self 1 No.
11. Kitchen table and Chair 1 each.

CLASS – III CATEGORY

1. Wooden bed (single) 3 Nos.
2. Armed chair 1 No.
3. Writing table / Compute table 1 No.
4. Dining table with 4 Nos chairs 1 Set.
5. Ward robe 1 Nos.
6. Dressing table 1 Nos.

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7. Tea poy 2 Nos.

8. Bed side table 3 Nos.
9. Kitchen table and Chair 1 each.

CLASS – IV CATEGORY
1. Wooden bed (single) 3 Nos.
2. Armless chair 4 Nos
3. Armed chair 1 No.
4. Kitchen table with chair 1 each.
5. Ward robe 1 Nos.
6. Dressing table 1 Nos.
7. Tea poy 2 Nos.
8. Bed side table 2 Nos.

APPENDIX – II
POWER TO APPROVE SELF PROCUREMENT
As per para 20.7 of Sikkim Public Works Manual 2009
Sl No. Designation Power to approve self procurement at a time

Cement Steel GI Wire

Principal Chief Engineer cum
1 Full Power Full Power Full Power
Secretary / HOD
2 Chief Engineer 1000 Bags 10MT 10 MT
3 Additional Chief Engineer 600 bags 4000Kg 4000Kg
4 Superintending Engineer 400 Bags 2000Kg 2000Kg
5 Divisional Engineer 200 Bags 1000Kg 1000Kg

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