1.

Administrative Approval & Expenditure Sanction And Technical Sanction (T/S):-

Administrative Approval & Expenditure Sanction: Communication of formal acceptance of the proposals
by the competent authority of the Administrative Ministry/ Department requisitioning the work.
Technical Sanction (T/S): A certificate that the detailed estimate has been prepared and approved on the
basis of a properly detailed design.

.
2. Budgeted Works And Deposit Work-
Budgeted Works: The works that are undertaken under an outlay that provided wholly from the financial
estimates and accounts of the Union of India those laid before and voted by both the Houses of Parliament.
Deposit Work: The term ‘Deposit Works’ is applied to works of construction or repairs and maintenance, the
cost of which is met out of Government grants to autonomous or semi-autonomous bodies or institutions
through their Administrative Ministries, or is financed from non-Government sources wholly or partly from : (a)
Funds of public nature, but not included in the financial estimates and accounts of the Union of India or (b)
Contributions from the public.

3. Detailed Estimate And Preliminary Estimate-

Detailed Estimate: Complete and comprehensive estimate of a work, based on the rates given in the SOR
for those items covered by it and on market rates for the remaining items, supported by detailed drawings and
specifications.
Preliminary Estimate: Estimate prepared for construction/repair/maintenance works based on plinth area
cost basis with CPWD Plinth Area Rates (PAR) or any other method without detailed items of work for
obtaining A/A & E/S.

4. Extra Item And Substitute Item –

Extra Item: Items that are completely new and are in addition to the items contained in the schedule of
quantities of the contract.
Substitute Item: Item executed in place of item of work available in the schedule of quantities of the contract.

5. Tenders-

Percentage Rate Tender: Tenders in which the contractors are required to quote rates on percentage basis
i.e. above or below the estimated cost put to tender.
Item Rate Tender: Tenders in which the contractors are required to quote rates for individual items of work as
given in the schedule of quantities.
Open Call of Tenders: Tendering process in which tenders are not invited on a restrictive call basis.
Restricted Tenders: Tenders of Secret/ Special nature requiring specialized equipment or maintenance of
VIP residences/important buildings invited from limited prequalified contractors.
Composite Tenders: Tenders comprising of components of more than one discipline viz Civil,
Horticulture,Internal Electric Installations and other Internal &External Electrical Works including Services.

6. Works-

Original Works: Works involving all new constructions, site preparation, additions and alterations, special
repairs to newly purchased or previously abandoned buildings or structures, including re-modelling or
replacement.
Repairs and Maintenance works: All works undertaken to maintain the assets in a proper service condition
and for maintenance and operation of all services therein.
Special Repair Works: Major repairs or replacement or remodeling of a portion of an existing structure /
installation or other works which needs replacement of the major component of structure/ installation due to
major breakdowns, or its deterioration.
Specialized Works: Specialized works /items/ jobs are those works that requires expertise/specialized skill
and are executed after prequalification of agencies.
Upgradation Works: Works carried out to an existing structure pursuant to revised norms/specifications as
notified from time to time by the CPWD Directorate/ Client Department.
Urgent Works: Urgent works are works which requires fast start/completion within compressed schedule and
are to be taken up on top most priority at the instructions of competent authority or on specific request of the
user department.

Contingencies: Provision made in the estimates for meeting out unforeseen incidental expenses of a
miscellaneous character which cannot appropriately be classified under any distinct sub head or subwork, yet
pertain to work as a whole and are contingent to the completion of the work.
Cost Index: An indicator of the average cost movement over time of a fixed basket of representative goods
and services related to execution of works.

7. Computerized Measurement Book-

All measurements of all items having financial value shall be entered by the contractor and compiled in the
shape of the Computerized Measurement Book having pages of A-4 size as per the format of the department
so that a complete record is obtained of all the items of works performed under the contract.

All such measurements and levels recorded by the contractor or his authorized representative from time to
time, during the progress of the work, shall be got checked by the contractor from the Engineer-in-Charge

Whenever bill is due for payment, the contractor would initially submit draft computerized measurement
sheets and these measurements would be got checked/test checked from the Engineer-in-Charge and/or his
authorized representative.

8. Measurement Book-

All the Measurement Books belonging to a Division, should be numbered serially. A register should be
maintained in form CPWA 92 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 Divisional Office and date of its record after the required
review in the Divisional Office has been completed.

A similar register should be maintained in the Sub-Divisional Office showing the names of persons, i.e.
Assistant Engineer/ Junior Engineer, to whom the Measurement Books are issued.

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.

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, if and when required.
9. STANDARD MEASUREMENT BOOKS-

The Standard Measurement Books are maintained to record the measurements of permanent standing
in a building, and are required to be brought upto date from year to year on the basis of additions, etc. that
are made to the building during a year. These are used for preparing the repairs estimates and contractors'
bills for such repairs so as to avoid taking detailed measurements on each occasion.

Preparation and accounting of Standard Measurement Books

(1) The Standard Measurement Books shall be prepared after the completion of the work by the
Construction Division that has executed the work. The preparation of these books will ordinarily
be undertaken in accordance with the program for each Sub-Division or such other suitable unit
as may be fixed by the Divisional Officer.
(2) All drawings, Standard Measurement Books etc. should be properly documented before handing
over the building.
(3) All the Standard Measurement Books should be on Form CPWA 23-A, and should contain pages
in singleton. They should be numbered in an alphabetical series so as to be readily distinguishable
from those assigned to ordinary Measurement Books.
(4) These will be accounted for in the same manner as ordinary Measurement Books in a register in
Form No CPWA 92 (Part II).
(5) A similar register will be maintained in each Sub-Division showing the books belonging to it, and
reviewed as done in case of the ordinary Measurement Books.

10. Contract-
When two or more persons have a 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.''

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

11. Performance guarantee

The successful tenderer, hereafter referred to as the contractor, shall deposit an amount equal to 5% of the
tendered and accepted value of the work (without limit) as performance guarantee in one of the following
forms:
(i) Cash (In case guarantee amount is less than Rs. 10,000/-).
(ii) Deposit at Call Receipt/Banker's Cheque/Demand Draft/Pay Order of a Scheduled Bank. (In
case guarantee amount is less than Rs. 1,00,000/-)
(iii) Government securities.
(iv) Fixed Deposit Receipt (FDR) of a Scheduled Bank.

12. Security deposit

The security deposit shall be collected by deductions from the running bill of the contractors at the rate
mentioned below. The security deposit can also be deposited in cash or in the form of Government Securities,
Fixed Deposit Receipts etc

A sum @ 2.5% of the gross amount of the bill shall be deducted from each running bill as well as final bill of
the contractor. Such deductions shall be made unless the contractor has deposited the amount of security at
the rate mentioned in cash or Government securities or Fixed Deposit Receipts.
13. Earnest Money

The amount of the earnest money, which a contractor should deposit with the tender, is regulated by the
following scales. In case of petty works costing Rs.5,000/- or less the Executive Engineer may, at his
discretion, dispense with the conditions for calling for earnest money.
(i) For works estimated to cost upto Rs.Ten crores :
2% (Two percent) of the estimated cost .
(ii) For works estimated to cost more than Rs.Ten crores:
Rs.Twenty lakhs plus 1% (one percent) of the estimated cost in excess of Rs.Ten crores.

14. Central Works Board

As laid down in the CPWD Code, the Government of India has constituted a Central Works Board for approval
of tenders and other miscellaneous matters relating to execution of works.
Composition of Central Works Board
(1) The Board consists of a Chairman and two Members. The Director General, CPWD is the Chairman. The
Director (Works) of MoHUA, and Chief Controller of Accounts, MoHUA are Members. The Director (finance),
CPWD acts as the Secretary of the Board.
(2) The Board has the authority to co-opt members including non-official experts and the representatives of
the other Administrative Departments of the Government of India when so required for advice on matters as to
the execution of Specialized Projects i.e. Aviation Works, Factory Works, Projects, etc.

15. Regional Works Board

Regional works Boards are constituted in each region for approval of tenders within its delegation of financial
powers.
Composition of Regional Works Board
(1) The RWB consists of a Chairman and three members. Special DG of the respective region acts as
Chairman, ADG of the Sub Region and Director (Finance) CPWD/representative of CCA as members. The
NIT Approving Authority presents the case before the Board. Director (Finance) CPWD is the member of the
RWB for regions as notified by CPWD Directorate, while for other regions the member is nominated by CCA,
MoHUA. The DDG(HQ) of the Region is the Member Secretary of the RWB. The Secretarial work of the
Board is to be done by the office of the respective Spl. Director General.
(2) The Regional Works Board has the authority to co-opt the representative of client department as Member,
if so required.

16. Supplementary agreements

1) Where it is not desirable to keep the complete contract open for minor items, execution of which is not
immediately possible on account of:

(i) Certain prerequisite(s) which is(are) not the responsibility of the contractor, or
(ii) Execution of maintenance/operation of equipments and installations for a specified period after completion
of the construction/erection work.

(2) The authority competent to accept the tender will be the authority to order provisional closure of the
original contract and drawing up of the supplementary agreement.

(3) 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 (Yellow Paper) by adding the words "Provisional Final" on the
top as well as against the entry "Serial number of this bill" of the said Bill Form. As per condition 2 (f) 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
(Yellow Paper).

17. MAS Register

(i) All the MAS Registers including Cement and Steel Registers shall be maintained by Contractor
which shall be issued to the contractor by Engineer-in-charge in the same manner as being
issued to CPWD field staff.
(ii) Each of the entry of receipt of material at site shall be 100% test checked by JE or by AE if
there is no JE.
(iii) Each MAS Register shall be checked by JE at least twice a week and at least once a
week by AE. If There is no JE then MAS registers will be checked by AE at least twice a week.
(iv) Cement Register shall be reviewed by EE at least once in a month.
For outstations the frequency of checking the Registers by JE, AE & EE is to be decided by
NIT Approving Authority and should form part of QA Plan.

18. Site Order Books

(1) The Site Order Books shall be maintained in the form prescribed in Appendix 27. The Site Order
Book shall be printed and its pages machine numbered and issued by the Executive Engineer in
different sizes containing sufficient number of pages, depending upon the magnitude of the work.
(2) A flyleaf should be attached with each Site Order Book containing instructions regarding maintenance
of Site Order Books.
(3) These will be maintained properly and preserved for a period of 5 years or up to the time all disputes/
arbitration cases of the work are finally settled, whichever is later, after completion of a work in the
same manner as a Measurement Book.
(4) The following procedure shall be followed regarding the maintenance of Site Order Books:
As far as the Executive Engineer and Assistant Engineer are concerned, they should invariably
sign the Site Order Book in token of their having read all the instructions issued by various
Officers and replies made thereto. In case the Executive Engineer or Assistant Engineer himself
wants to give any instructions, he should record them in the Site Order Book. In regard to
important matters, they may find it necessary to communicate such orders even in writing in
the form of inspection notes.

The Junior Engineer/Assistant Engineer should also record his observations in the Site Order
Book if he finds any defective work going on, or if the contractor is not complying with any of
the terms of the contract, or on the slow progress of work, if any.

The Site Order Book should be maintained at the site of the work, and it should never be
removed from there under any circumstance.

Recording of observations by the contractor The contractor or his authorized agent will also
be at liberty to note his difficulties etc. in this Book.
19. Register of Buildings

Every Division should maintain a Register of Buildings upto date. The Executive Engineer should
certify to that effect at the end of every financial year after ensuring that necessary additions in
the cost and in structures are made upto date. This certificate should be furnished by him to the
Superintending Engineer every year in the month of July.

The Superintending Engineer, during his inspection of the Divisional Office, should examine this
register to verify that it is being posted and maintained upto date.

20. Publicity of Tenders

All tenders of any amount shall be invited through e-tendering system. Notices for all the works,
irrespective of their value, shall be published on the website www.tenderwizard.com/cpwdor as
instructed from time to time. Once published on the website, the tender notices will also become
available on www.eprocure.gov.in through system link. Sample notice for inviting tender forming
part of NIT and to be posted in website is given in Annexure 24 with SOP 4/8. In exceptional
cases, if press publicity is required to be given apart from website publicity, written permission
shall be obtained from next higher authority.

Time for publicity:.

(i) 7 days in the case of works with estimated cost put to tender upto Rs. 5 crores
(ii) 14 days in the case of works with estimated cost put to tender more than Rs. 5 crores

21. completion certificate

According to this clause a completion certificate is to be given by the Engineer-in-charge to a

contractor on completion of the work. No final bill will be accepted from a contractor unless such a
bill is supported by a completion certificate. Further, the date of the completion certificate will determine
the date upto which a contractor can be held responsible for making good damages under relevant
clauses of the agreement.

22. Mobilization Advance

Mobilization advance not exceeding 10% of the tendered value may be given, if requested by the
contractor in writing within one month of the order to commence the work. Such advance shall be in two
or more installments to be determined by the Engineer-in- Charge at his sole discretion. The first
installment of such advance shall be released by the Engineer-in-charge to the contractor on a request
made by the contractor to the Engineer-in-Charge in this behalf. The second and subsequent
installments shall be released by the Engineer-in- Charge only after the contractor furnishes a proof of
the satisfactory utilization of the earlier installment to the entire satisfaction of the Engineer-in-Charge.

Before any installment of advance is released, the contractor shall execute a Bank Guarantee Bonds not
more than 6 in number from Scheduled Bank for the amount equal to 110% of the amount of advance
and valid for the period till recovery of advance. This (Bank Guarantee from Scheduled Bank for the
amount equal to 110% of the balance amount of advance) shall be kept renewed from time to time to
cover the balance amount and likely period of complete recovery.
23. Test checking of Measurements

Test check by the Assistant Engineer

The Assistant Engineer must satisfy himself before passing a bill for payment, or before submitting
it to the Divisional Officer for payment, that the work or supply billed for has actually been carried
out/completed in accordance with the terms and conditions of the contract. He should personally
inspect all works of any magnitude before authorizing final payments in connection therewith.

In case of works at headquarters of the Sub-Division, AE should check measure not less than
50% of the value of the measurements recorded by his Junior Engineer before any running/final
bill is paid.

In case of works outside headquarters of the Sub-Division, the Assistant Engineer should check
measure upto 50% of the value of work done before preparing final bills or before making payment
of alternate running/final bills.

Test check by the Executive Engineer

The Executive Engineer should test check 10% of the measurements recorded by his
subordinates at least every alternate bill for works at his headquarter, and at least every third bill
for works outside his headquarter. Measurements selected by EE should be independent of
measurements test checked by AE.

24. Dismantled materials account

Dismantled materials arising out of dismantlement through departmental works

This register (even for "Nil" transactions) should be submitted by the Assistant Engineer regularly
each month along with the monthly accounts for scrutiny in the Divisional Office. In cases where
the Junior Engineers are stationed at places other than the headquarters of the Sub-Divisions,
separate registers should be furnished by them every month to the Sub-Divisional Office for
incorporating in the Register maintained in the Sub-Division before its submission to the Divisional
Office. After the transactions have been checked by the Divisional Accountant, the Register
should be laid before the Executive Engineer for monthly review. The fact of such review should
be placed on record in all cases preferably in Form CPWA 96

Dismantled materials arising out of dismantlement through contract

In case a building or structure is dismantled through contract, a stipulation/provision in the schedule
of work can be made in the NIT/contract that the contractor has to take away the dismantled
materials within specified time, and for which he should give credit to the Department at his
tendered and accepted rates.

Dismantled materials arising out of maintenance works

In case of dismantled materials of negligible salvage value arising out of departmental maintenance of
works, such as electrical lamps and tubes, A.C. sheet ridges, PVC flooring, etc., may not to
be taken in the dismantled materials account, and they shall be disposed of as deemed fit. The
Junior Engineer/Assistant Engineer/Executive Engineer shall exercise a check on the quantum
of materials dismantled from their normal consumption pattern.
25. Advance payment for work done and measured

(1) Advance payments to contractors against on account bills received in the Divisional Office may be
made by the Divisional Officers, on receipt of an application from the contractor for financial aid in
the shape of part payment, shall make a lump-sum advance payment on Hand Receipt Form 28,
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 Divisional Office.
(ii) The amount of advance should not exceed 80% of the net amount of the bill under check, but
no advance payment will be admissible in cases where the amount of advance payable works
out to less than Rs. 20,000.

26. Advance payment for work done but not measured

(1) The following rules should be observed with regard to advance payments made to contractors for
work done but not measured:
(a) Advances to contractors are, as a rule, prohibited and payments to contractors should not be
made until detailed measurements of the work have been taken and recorded. Advance
payments may, however, be made in cases of real necessity.
(b) An advance payment for work actually executed may be made on the certificate of a responsible
officer (not below the rank of Sub-Divisional Officer) to the effect that not less than the quantity
of work paid for has actually been done, and the officer granting such a certificate shall ensure
that no overpayment occurs on the work in consequence.

(2) Advance payments for work done but not measured should be made on bill Form no. CPWA 26, and
the same be classified in the works accounts under suspense Sub-Head "Advance Payments". No
such payment must be made on Hand Receipt.

27. Secured advances

Secured Advances on the security of materials brought to site may be made to the contractors for
items which are to be used on work.

The Divisional Officers can sanction the secured advance up to an amount not exceeding 75% of
the value of the materials as assessed by the Engineer-in-charge, or an amount not exceeding 75%
of the material element cost in the tendered rate of the finished item of work, whichever is lower.

(1) Administrative Approval and Technical Sanction :

Administrative Approval means the concurrence of the competent authority of the Secretarial
administrative department concerned of the proposals for incurring any expenditure in the P.W.D on
a work initiated by or connected with the requirements of such administrative department requiring
the work. Whereas, Technical Sanction is an order of the competent authority in the P.W.D that the
proposals are technically sound and its detailed estimates are properly and accurately calculated
based on the adequate data.
(2) Advance Payment and On Account Payment :
a payment made on a running account bill to a contractor for the work done by him but not measured
but on the basis of a certificate of a responsible officer not below the rank of sub-divisional officer.
Whereas, the term on Account Payment indicates a payment made on a running account to a
contractor for the work done or supplies made by him when the work has been duly measured.

(4) Deposit Works and Local Works:

Deposit Works indicates the work of construction or repair, undertaken by the P.W.D on behalf non-
Government organisation the cost of which is met not out of government funds, but out of funds from
nongovernment sources which may place at the disposal of the Divisional Officer

either in cash or otherwise. On the other hand, Local Loan Works indicates works executed by the
PWD on behalf of non-government organizations or other corporation when the cost is to form part of
a loan given to it by government for the purpose for which it was sanctioned.

(5) Contingencies (Works) and Contingencies:

contingencies (Works) denotes the miscellaneous expenditure to the execution of a work which
cannot be classified under any distinct sub-head or sub-work of a work yet pertain to the work as a
while. On the other hand , contingencies indicate the expenditure incurred in an office which is of the
nature of unforeseen charges, incidental charges for the maintenance of an office as an office.

(8) (a) First and Final payment and (b) Running Account:
First and Final Payment indicates a single payment made for a work or job or contract on its
completion. The payment is finalised by one payment after completion of the work. Whereas,
Running Account means an account with a contractor when the payment for work done or supplies is
made to him at convenient intervals subject to final settlement of the account on the completion or
determination of his contract.

(b) Final Payment:

Final Payment means the last payment on a running account made to a contractor on the completion
or determination of his contract and in full settlement of the account. On the other hand, the term
Running Account denotes to the account with a contractor when payment for work or supplies is
made to him at convenient intervals subject to final settlement of the account on the completion or
determination of his contract.

(9) Issue Rate and Market Rate :

Issue Rate denotes the cost per unit fixed, in respect of an article borne on the stock of the
department at a valuation, for the purpose of calculating the amount creditable to the stock account
by charge to the account or service concerned, when any quantity of that article is issued from
stock. It includes handling charges, storage charges and incidental charges based on percentage of
the previous year and fixed at the beginning of the year. Whereas, Market Rate indicates the cost
per unit at which the article of similar description can be procured at a given time at the stores-
godown from the public market suitable to the division for obtaining supply thereof which
include carriage and incidental charges.
 (11) Sub-head and Sub-work
Ans : The term, Sub-head describes the sub-divisions into which the total cost of a work is divided
for purposes of financial control and statistical mconvenience, e.g. earth work, boulder soil cutting,
concrete work, brick work, wood work, etc. are the sub-heads of a work of the construction of a
building.

Whereas, Sub-work means a distinct unit of a large work when it is sufficiently importance to
maintain the accounts thereof separately, e.g. main office building, hostel building, garage, outer
pucca wall, residential buildings etc. of the State Academy of Training.

(12) Works Expenditure and Works Outlay :

Both the terms are meant to indicate respectively expenditure and capital charges on special
services connected with construction, repair and maintenance of work. The charges falling under
these categories may be net and any receipts are taken in reduction of expenditure but they do not
include the cost of general services, Tools and plant and establishment or any other charges not
taken to final heads of account but kept under one of the suspense accounts till cleared.

(13) Advance Payment and Secured Advanced :

Advance Payment means a payment made on a running account to a contractor for he work done by
him but not measured. Whereas, the Secured Advance means an advance payment made to a
contractor on the security of materials brought to the site of work for bonafide use on work whose
contract is for the completed items of work.

(14) Rate of Cost and Inclusive Rate of Cost :

Rate of cost indicates generally the total cost of a work or supply divided by its quantity. Such
accounts represent the recorded cost per unit, as arrived at by dividing the uptodate final charges on
a sub-work, by the uptodate progress(quantity) thereof. Inclusive Rate of Cost, on the other
hand, means the rate of cost of the entire work relating to a sub-head including the cost of materials,
if recorded separately in the accounts.

(15) Departmental Receipts and Departmental Charges :

Departmental Receipts means the realisation of revenue receipts made by the officers of the
departments, and are credited to the Bank as Miscellaneous receipts of the P.W.D. Sale proceeds of
certain fruit trees and grass planted on the office compound of the department/Divisional officers,
for example, fall under departmental receipts. Whereas, Departmentalm charges denote
percentages on account of establishment, tools and plant, audit and accounts, recoveries by the
P.W.D in respect of works executed on behalf of local bodies, other governments and departments
etc.