Contracts & Accounts

Procedure of Execution of work by P.W.D.

Introduction
• In government the construction, activates are normally carried out by public works
department (PWD).
• It deals with building, roads, bridges and culverts etc. As an engineer one must know
procedure of execution of work, as the general procedure and methods of executing
work are rigid and rules and procedure should be strictly followed.
• In PWD there are different branches of our work dealing with different engineering
department are:
PWD: It deals with building and road, bridges culvert etc.
Irrigation Department: It deals with dam, canal and other irrigation work. Contracts
& A/Cs (MSBTE)
Public Health Department: It deals with water supply work, sanitary work etc.
Electricity department: It deals with electrification installation of power lines and
connecting work.
Function of PWD personnel
Chief engineering (CE):
• Chief engineer is administrative head of the department. He is directly responsible to
the government, when department has to execute large number of works additional
chief engineer, regional chief engineer and deputy chief engineer are appointed to assist
the chief engineer.
Function:
1. To give administrative approval of work under his control.
2. Acceptance of tender under his control.
3. Sanction deposit work, full powers.
4. Purchase of livestock Rs. 30,000/- at only one time.
5. He prepares the budget estimates annually relating to the work under his control.
6. To keep close watch over progress of work and expenditure against it.

Functions of superintending engineer (SE):

He is responsible for execution of work in his circle.
Functions:
1. Administrative approval to the work under his control.

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2. He should give technical sanction to estimates within his power.

3. Technical sanction under his control
4. Inspect work in his circle.
5. Arrange payment of store and material.
6. Inspect division in his circle and report to chief engineer.
7. To check progress of work under his circle.
8. Financial control over execution of original repair work.

Function of Executive engineer / Divisional officer (EE):

1. Inspect sub divisional office once in a year
2. Execution of work under him.
3. Ensures all tools plants and machinery are properly maintained.
4. Invite tender for work valued within his power.
5. Maintenance of accounts.
6. He is responsible for preparation of project design, estimate etc.
7. Keep close watch on expenditure

Functions of Assistant engineer/SDE/SDO:

Assistant engineer is responsible to executive engineer for execution of work in sub division.
1. Execution of work
2. Check muster roll
3. Physical verification of measurement book and dead stock.
4. To ensure correct accounts, returns submitted punctually to divisional officer.
5. Submit monthly report to progress of work to divisional officer.
6. Administrative control over office and field staff division.

Functions of junior engineer (JE):

1. Supervision of work in his charge.
2. Maintain attendance of daily worker, labours.
3. Taking measurement of all work in MB.

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Contracts & Accounts

4. Preparation of bills running and final bills for work in his charge.
5. Prepares estimates for all types of works in his section.
6. Carry out field survey for proposed project.
7. Carry out half yearly check of all stores in his charge and submit report to SDO.
8. Report to irregularities in contract, specification, shortage of supply of departmental
materials or any difficulty during execution

PWD Procedure for Initiating the Work

• For any work it is necessary to prepare proposal for proposed project justifying the
project its necessity etc for favour of consideration.
• The department then study proposal considering all respect and when it is found the
project is really important and can be feasible then gives admirative approval.
• After getting administrative approval engineering department prepares a detail drawing,
Design and estimates and submit it for technical sanction.
• A competent authority study drawing design and estimate and then within rules and
regulation sanction the same called technical sanction.
• Once project is technically sanctioned budget provision is made as per government plan
and then work is taken for execution

Administrative Approval
• For administrative approval, the department sends a proposal to government for taking
up the work. After considering all aspect like feasibility of project financial aspect
government accept proposal called as administrative approval.
• For administrative approval, the department sends a proposal to government for taking
up the work.
• After considering all aspect like feasibility of project financial aspect government
accept proposal called as administrative approval.
• After getting administrative approval detailed drawing, design, estimate etc are
prepared and submitted for technical sanction.

Technical Sanctioning
• Technical sanction means the sanction of detailed estimate, design, rates and cost of
work.
• It is sanctioned by competent authority the work is taken for execution only after the
technical sanction.

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• If the estimated amount exceeds 10% of administratively approved amount technical

sanction is granted only after obtaining revised administrative approval for work
technical remains valid for 5 years.
The government gives power of sanction to various government officials as follows:
1. Chief engineer - full power.
2. Superintending engineer - up to 25 lakhs.
3. Executive engineer

Budget Provision
• After getting administrative approval and technical sanction a report is prepared
mentioning raw material, organization setup and total cost required for execution of
project.
• Considering proposal budget provisions are made in five-year plan and yearly
budgetary provisions are made and sanction is given Budget is prepared by finance
department.
• It is necessary to arrange required finance for various activities to carry out progress of
work in sequence and smoothly.

Methods used in PWD for carrying out works

The following are the various methods for carrying out
• Contract method:
1. Item rate or unit price method.
2. Item plus fixed percentage method.
• Departmental method
1. Rate list method
2. Piece work method
3. Day's work method
4. Employing labour on daily wages

Item rate/ Unit price rate

• In this type of method contractor required to quote rate for individual items of work on
basis of schedule of quantities supplied by department.
• In this full description of item and approximate quantities are mentioned, if actual
quantities are more or less than estimated quantities but rate of item remains fixed

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contract document is necessary for this method and payment is made on the basis of
measurement taken and work executed.

Item rate/ Unit price rate

Advantages-
• Quality of work is assured.
• It allows extra work/items.
• Early completion of work is possible.
• Economical as contractor is paid on basis of work carried out.
• Chances of excessive profit or loss is minimum. Thus provés economical.
Disadvantages-
• Exact cost of work is not known till completion of work.
• Both parties have to appoint staff for taking measurement and to prepare bill.
• Contractor may submit unbalanced tender.
This method is suitable for government work like, buildings, road, bridges etc.

Percentage Rate Method

• In this method bill of quantities consist of description of item as per sanctioned estimate
with their quantities, rates, unit and amount contractor is asked to quote only percentage
above or below the rates shown in schedule.
Percentage Rate Method
Advantages-
• Suitable for private work
• It allows extra items.
• Due to assurance of profit better quality of work is assured.
• Scrutiny of tender is simple.
• Overwriting and erasing of rates can be eliminated.
• Comparative statement can easily be prepared
Disadvantages-
• Final cost of work is not known till completion of work.
• Two or more contractor can quote same percentage this increases trouble during
allotment of tender.

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• Uncertain and unworkable rates can be quoted by contractor.

• Tenderer can easily form ring.

Percentage Rate Method

• Percentage rate method is further classification
• Cost plus percentage rate.
• Cost plus fixed fee contract.
• Cost plus variable fee contract.
• Cost plus variable percentage contract

Rate List Method

• This method is suitable for petty work the cost of work is small and hence various
contracting firms are not interested in carrying out work and advertisement in
newspaper is not justified for work of small magnitude petty workers are informed
accordingly to carry out work.
• For such petty work list of petty workers are kept in the office of executive engineer
(EE).
• Any number of petty workers can be employed on one work at same time provided that
cost of any individual work to be executed does not exceed Rs. 3000/-. The petty
workers will quote rate and lowest offer is accepted.
• The selected petty worker sign or affixes his thumb impression to the rate list as
acceptance of rates.
• No penalty and security deposit are not payable original work or special repair works
are normally carried by this method payments will be made on basis of work actually
executed at agreed rate.

Piece work Method

• This method is suitable for maintenance and repair work.
• Piece work is the agreement which involves the payment for work done at agreed rate
without reference to total quantity of work to be done or time of completion. Agreement
contains only description of item to be executed.
• The tender notice is displayed on notice board of the office of executive engineer
without mentioning the quantities of work to be done.
• Item rate quoted either in A, and A, form.

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• Form shall be invited from piece worker. The agreement is made on A, form for
percentage basis and A form for item rate basis.
• The piece worker has to arrange for all material and labour required for carrying out
work.
Advantages:
• Small works can be effectively executed.
• Rapid completion of work.
Disadvantages:
• No penalty clause
• Piecework is not valid contract and hence can be terminated at any time.
• Lack of co-ordination.

Day’s work Method

• There are certain works of special nature which cannot be measured hence their
valuation is made on basis of actual material and labour used.
• e.g., Decorative plaster work where it can neither be measured accurately and valued
correctly due to complex nature.
• In such cases day work method is adopted for valuation of above items on basis of
actual material used and number and class of labour employed and tools and plants
required for work.
• In this method contractor has to maintain day to day account of material consumed, the
labour, types of labour the hours for which each labour employed is filled in day work
sheet.
• Contractor is paid on the basis of net cost of various material required and wages paid
to the labour plus 20 -25 as his profit which includes overhead charges and rent for tools
and plants utilized it any.
This method is suitable for:
• Decorative work
• Artistic work
• Special work
• Ornamental dour
• Under water work

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Department Method or Employing Daily Labour

• In this method department purchase material directly from supplier and engage labour
on daily wages on muster as and when required.
• Daily labour-muster Roll system, workers such as mason, carpenters labour etc are
employed directly by department on daily wages.
• The material is supplied by department or can be purchased directly from market.
• The attendance of total number of labour employed is maintained in muster Roll form
No. 21 by Junior engineer and it is checked by assistant engineer. The payment is made
to labour weekly fortnightly or monthly according to requirement.
• When muster roll is closed for payment, it is necessary to measure the work done during
that period and enter it in measurement book (MB).
• The amount paid; total work done etc is also entered. Then muster is submitted to
competent authority who checks it and passes it for issuing payment order.
Part I:
• It is called as Nominal Roll in which daily attendance of labour employed is to be
marked with his name, father's name designation date of attendance, rates total amount
due signature of person taking attendance and signature of officer making payment etc
are entered
Part II:
• The details of measurement of the work done labours engaged on muster are recorded
in measurement book and item wise abstract is prepared and this abstract is recorded in
part II giving reference of MB No. and page etc. Unpaid wages are recorded in a register
of unpaid wages maintained in the sub division office and when payment is to be made
from unpaid wages it is made on hand receipt No. 28.

Rules for writing muster roll

• The person authorized for taking attendance should take attendance daily at time of roll
call.
• Muster roll should never be prepared in duplicate.
• The attendance absence, fine etc. should be marked in ink so that there will be little
scope for tampering after wards.
• Details of unpaid wages should be recorded in register of unpaid wages.
• Loss of muster roll should be immediately reported to higher authorities.

Er. Anup U. Nagpure Contact 9096985587