Material on WORKS AUDIT

STATE AUDIT DEPARTMENT

TELANGANA
Material on Works Audit

INDEX
1. Definition of works
2. Classification of works
3. Preparation of Estimates (Rough /line Estimation)
4. Administrative sanction
5. Detailed-cum-abstract Estimates.
6. Technical sanction
7. Entrustment of Work – Nomination Method
8. Entrustment of Work – Tenders
9. Agreements and contracts
10. Work order/Site Hand over
11. Recording the Measurements in M. Book
12. Check-measurement of MB
13. Deviations- Revision of Estimates -Supplementary agreement
14. work Completion
15. Extension of Time-Imposition of LD Charges and its calculation
16. Memo of payment(part/final)
17. Statutory Deductions
18. Q.C. report
19. Defect Liability period- Release of Withheld Amounts
(EMDs, RMD and FSDs)
20. Repairs
21. Nominal muster rolls
22. Electricity works
23. Works register
24. Telangana state sand policy & mineral policy
25. Lead charts statement & calculation
26. Others
26.1. Departmental codes
26.2. Engineering departments TS
26.3. MORTH,MORD,CPWD Specifications
26.4. Concrete mix
26.5. Contractors registration

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1. Definition of “Works”

*As per ARTICLE-147 of The Fin code-The term “works” covers not only works
of construction and repair of buildings, roads, irrigation projects, etc., but also the
manufacture, supply, carriage and repair of tools and plant and other stores required
in connection with works of construction and generating stations and transmission
and distribution lines including service connection and other works incidental to
them.

2. Classification of “Works”

*As per Article-147 of The TS FC code & PWD Code paras 88-94-Works are
primarily classified under two categories:
I. ORIGINAL WORKS:- includes all new construction, whether of entirely new works
or of additions and alterations to existing works, reconstruction of entire
structures necessitated by wear and tear or by damage due to some calamity and
all repairs to newly purchased of previously abandoned buildings required to
make them usable.

II. REPAIRS AND MAINTENANCE:- include all the operations required from time to
time to maintain existing properties in a satisfactory state and make good the
damage due to wear and tear when complete reconstruction is not necessary,
widening of roads or culverts and reconstruction of culverts classified as
“Repairs”.

Repairs are further classified as…

A. ORDINARY REPAIRS: - Include the periodical Repairs which are done regularly as
a matter of routine, and are usually of the same nature (e.g., painting or white-
washing a building or spreading a new coating of metal on a road), and any
occasional petty repairs required from time to time, which may have to be
carried out between the times fixed for the periodical repairs.
B. SPECIAL REPAIRS: - are repairs which are not periodical or frequent, e.g., re-
roofing a building replacing beams or renewing a floor.

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3. PREPARATION OF (APPROXIMATE/ROUGH/LINE) ESTIMATES

*As per PWD Code-Para100 -Approximate or line estimates are prepared

based on sketch plans and statements of probable costs (based in the case of
buildings on cubic foot or plinth area rates) for the purpose of administrative
approval.
Approximate estimates should be accompanied by a preliminary report, and
such preliminary plans, information as to site, etc., as may be necessary to fully
elucidate the proposals.

4. ADMINISTRATIVE SANCTION

*As per PW ‘D’ Code Para-99 , PW’A’ code Para-3 & TSFC Code Article-185-
For every work proposed to be carried out, except petty works and repairs the cost
of which does not exceed Rs. 2,500/- Administrative approval of competent
authority is required.
No Administrative approval is required in respect of “Repairs” or
maintenance” works.

Administrative Sanction Powers in Local Body Institutions

Name of the institution Authority Amount

*As per G.O.Ms.No.91, PR & RD (Estt.III) Dept.,Dt.4.3.1999
General Body Up to 2 lakhs
GRAMPANCHAYATS Dl.P.O. Up to 3 lakhs
District Collector 3 Lakhs and above
Authority..?
M.P. General Body Up to 3 lakhs
Z.P. Standing
3 to 5 Lakhs
MANDAL PRAJA PARSHADS Committee
Z.P. General Body 5 to 10 Lakhs
State Government Above 10 Lakhs
Authority..?
Z.P. Standing
Up to 5 Lakhs
Committee
ZILLA PRAJA PARISHADS Z.P. General Body 5 to 10 Lakhs
State Government Above 10 Lakhs
Authority..?
AGRECULTURE MARKET COMITTE Director of Marketing All the Works

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Lapse of sanction to estimates:

*As per TS FC article 198 & PW’D’C Para-186- (a) the approval or sanction to an
estimate for a work other than ordinary annual repair will, unless the work has been
started/commenced cease to be in force, 5 years after the date when it was
accorded.
(b) The sanction to estimate for ordinary annual repairs to a road or building lapses
on the last day of the financial year.
(c) If it would be inconvenient in any exceptional case to stop a work of ordinary
annual repairs on the last day of the financial or working year, as the case may be, it
may be completed, but the expenditure after that date should be treated as
expenditure under a freash estimate for ordinary annual repairs for the next year.

5. PREPARATION OF DETAILED-CUM-ABSTRACT ESTIMATES

*As per PW ‘D’ Code-Para-102 -On receipt of Administrative approval to

works Detailed Estimates is prepared based on plans and designs.
*As per PW ‘D’ Code-Para-173 & FIN code Article-157- It is a fundamental
rule that no work shall be begun unless a properly detailed design and Estimate have
been prepared and sanctioned, by competent authority, unless it is so started strictly
in accordance with a special order of the government or some specific provisions,
departmental rule or order (see also article 169 and170 of PW ‘D’ code).

5.1. The Estimates in full shape contains the following parts:

i) Specification Report; ii) Abstract Estimates; iii) Detailed Estimate; iv)Data sheet; v)
Plans & Designs

i) Specification report:- the necessity and objective of the Estimate and origin/
back history, etc. is narrated and it may be generally seen whether the
intended objective is reflected in the Estimate.
ii) Abstract Estimate:- Rate per Unit and amount of each item and certain L.S.
Provisions are included and it should be seen whether they are properly
exhibited as worked out in the Detailed Estimate and Data Sheet, etc.
iii) Detailed Estimate:- the details of quantities are worked out and total
quantity is arrived at this should be verified in general and any defects in
computation shall be verified.
iv) Data Sheet: - The rate for each item of work is worked out with reference to
SSR of the year concerned. In respect of items which are not covered in SSRs,
the cost arrived at based on observed data approved by the Govt./Board of
CEs / other competent authority are adopted. In the case of materials like
cement/steel, etc. the approved rates ordered by the competent authority
like District Administration/ Industries Dept. / CE, etc. are adopted. In the

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case of certain materials like Pipes, Pumps, etc. the rates covered in the ‘Rate
Contract’ concluded by the authorities concerned are adopted. In the case of
other materials, rates based on competitive quotations (i.e., lowest quotation
obtained under Article 125/ FC-Vol.-I/ other instructions issued from time by
the Govt. /competent authority) are adopted. In the case of specified jobs
(like drilling of bore wells etc.) the rates are adopted as per the instructions /
orders of Govt. / District Administration/ other appropriate authority.

MATERIAL SSR RATES + LEAD

DATA SHEET
MACHINERY SSR RATES

LABOR SSR RATES

The Estimated Amount thus arrived will be the ECV

(Estimated Contract Value) of the tender put to bid

V). Plans & Designs:- Necessary Plans and Designs and also drawings, etc.
Approved by competent authority are enclosed to the Estimate.

5.2. STANDARD SCHEDULE OF RATES

*As per PW ‘D’ Code Para—116- The schedule of rates should be prepared
on the basis of rates prevailing in the locality, and as it is used for the important
purpose of preparing estimates and is also used as a guide in settling rates in
contract agreements, necessary analysis of the rates for each description of work
and the varying conditions thereof should be given as far as practicable.
In working out the rates for the tenders to be accepted for works in the
division, during the twelve months preceding the date on which their preparation is
due to begin, any tendency of the rates and prices to rise or fall should be taken into
account. When rates and prices are changing rapidly the Superintending Engineer
should issue orders at any time, that a certain percentage should be added to or
deducted from all the rates or from certain specified rates or from rates for certain
specified classes of items, e.g., for materials or for labor. In the data accompanying
the schedule of rates for works, the contractor’s profit should not be added as a
separate item.

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*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003, Annexure-I
,Tender Procedures-(1). PREPARATION OF REALISTIC ESTIMATES:
(a) Standard Data: i) the standard data which forms basis for preparation of
estimates for all Civil Engineering works shall be updated taking the improved
construction technology in to consideration.
ii) The Chairman Board of Chief Engineers and Engineer–in-Chief (Admn.)
I&CAD Department shall complete the updating of Standard data.
(b) Finalization of Standard Schedules of Rates (SSRs) The SSRs shall be
finalized before June without exception every year. The preparation of SSR shall be
made more transparent by associating the representatives of Construction Industry,
National Academy of Construction and the Institution of Engineers (India) A.P. State
Centre, at the time of finalization. For cities like Hyderabad and Visakhapatnam,
Unit rates will be prepared for various component items.

5.2.1. TS Revised Standard data

*As per the G.O.Ms.No.49, I & CAD (PW: Reforms) Dept., dt: 02-03-2009.
The TS Revised Standard data for various construction items has come into
existence.
The revision of Standard Data and Schedule of Rates in respect of work items
of irrigation Department has been taken up by the SPIU (Irrigation) and completed as
per the C.W.C guidelines and B.I.S standards and also observations and
recommendations made by the High Level Committee. In respect of other
Departments, MORTH data is adopted for Roads & Bridges, where higher capacity
machinery can be deployed and MORD date is adopted for Roads & Bridges in Rural
areas. For other works data as per MORTH, MORD, and C.P.W.D etc., is adopted.
The comparative estimates have been prepared by the T.R. & B Dept., Engineering-
in-Chief (Irrigation) and MA & UD Department for various types of works of a
magnitude of Rs. 15-20 crores, based upon the earlier data and the newly revised
and proposed data.
The Revised Standard Data is formulated under four Parts considering nature
of work, location of work and magnitude of work, which are applicable to all the
Engineering Departments and other Organizations under the control of Telangana
State Government.
▪ PART -1: Irrigation& CAD (Dam and Allied Works, Canals and Allied Works,
Canal C.D. Works, Tunnels and Allied Works, Preliminary and
Maintenance Works, Hydraulic Gates and allied works and Leads and Lifts
applicable to all Departments)
▪ PART -2: Roads and Bridges
▪ PART -3: Buildings including Electrical Works
▪ PART -4: Drinking Water Supply and Public Health (Only for works done by
manual means)

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5.3. L.S. PROVISIONS TO BE MADE IN THE ESTIMATES

5.3.1. L.S. For Unforeseen works

*As per PW ’D’ code Para 117 A- In the estimates for major works, provision
up to 2% of the estimated cost of the works portion may ordinarily be made for
“unforeseen works”. When found necessary, this provision may be utilized for new
items of works which are required by the administrative authority and which are
essential for the fulfillment of the precise object for which the estimate for the main
work is intended. The working estimates for such works will be sanctioned by the
Executive Engineer up to a limit of Rs. 2,500/- for each item by the Superintending
Engineer beyond this limit.
A provision at 1 percent of the cost of Cement towards construction of
temporary store shed shall be added on the data of relevant items.

5.3.2. Goods and service tax

*As per G.O. Ms.No.67 I CAD (REFORMS) dept.,Dt.04.07.2018 - The new Tax
regime in the form of the Goods and Services Tax (GST)came into effect from 1st of
July 2017 with Central Goods & Services Tax (CGST)Act No. 12 of 2017 and the
Telangana Goods & Services Tax (TGST) Act No. 23 of 2017. Section 2 (119) & Para
6(a) of schedule-II of CGST Act stipulates that all the work contracts shall be treated
as supply of services.

As per the GST Act all works contracts are to be levied GST with effect from
1/07/2017 i.e., including subsisting contracts as on that date at the rates mentioned
below:
i. From 01-07-2017 to 21-08-2017 for all work contracts GST at 18%
ii. From 22-08-2017 to 12-10-2017 for all work contracts GST at 12%
iii. From 13-10-2017 onwards
a. For works having earth work component of 75% and more in terms of cost of
the concerned works estimates GST is to be levied at 5% on the bills value.
b. For all the other works contracts of all Departments and sectors GST is to be
levied at 12% on the bills value.

5.3.3. Segniorage charges

*As per G.O.Ms.No.39, I & CAD (REFORMS) Dept.,Dt:17.09.2019- the
Seigniorage charges for all the materials required for a particular work is arrived and
included in the Part – II items of the estimate (i.e., under reimbursable items) in
similar lines of GST.
Note: The above procedure of keeping Seigniorage charges under Part-II of
reimbursable items shall be applicable for the new tender works only for which
technical sanctions are accorded on the above lines. In respect of ongoing works, the
concluded agreement rates shall be binding as per accorded technical sanction duly
following the prevailing practice.

5.3.4. NAC (National Academy of Construction)

*As per G.O. MS. No. 19, TRANSPORT ROADS AND BUILDINGS (R.II)
DEPARTMENT Dated: 24.04.2015.( National Academy of Construction) 0.1% of the

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estimate value will be added to the bill amount and equal amount will be deducted
from the bill amount creditable to corpus fund of NAC (The recovery of 0.1% of the
estimate value is only for the prospective new sanctioned works.)

5.3.5. Q.C. (QUALITY CONTROL) charges

Q.C (Quality Control) @ 0.5% only on the Value of Work Done.
Third party

5.3.6. *As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003,
Annexure-I,Tender Procedures-(1)(e)-Rates for Earth work Excavation [with
Machine]. Machine rates are to be adopted in all the cases for earth work excavation
where the quantities exceed 1000 cum, with relaxation on the following items of
works:
i) Earth work excavation for seating to lining for a depth of 0.10 m to 0.15m for
Canals / Channels
ii) ii) Removal of silt and slushy soils from the Canals / Channels where depth or
removal is less than 0.30m
iii) iii) Earthwork excavation for restricted foundation for small structures
building foundations etc.,
iv) iv) Silt in slushy soils removal in lined canals, where movement of machinery
is restricted
v) v) Earthwork excavation for model sections chutes etc., where the movement
of machinery is restricted.

6. TECHNICAL SANCTION

*As per PW ’D’ code Para 173- It is a fundamental rule that no work shall be
begun unless a properly detailed design and estimate have been sanctioned,
allotment of funds made, and orders to begin issued by competent authority.

*As per APPW’A’ code Para 64, TS FC Article-185 & PW ’D’ code Para 99 -A
Technical sanction has to be taken by competent authority for a properly detailed
estimate of the cost of the work.

*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003 Limits of
technical sanction

CATEGORY T. S. POWER
Executive Engineer Up to Rs.10 lakhs
Superintend Engineer Up to Rs.50 lakhs
Chief Engineer value of the administrative approval

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TS Power to Municipal Engineer:

*As per G.O.MS.No173, MA & UD (C2) dept. Dt: 17.06.2017

Technical Sanction powers of Muncipal Engineers

SL.NO CATEGORY T S POWER

1 Asst. Executive Engineer Up to Rs. 1,00,000/-
2 Dy. Executive Engineer Up to Rs. 5,00,000/-
3 Executive Engineer Up to Rs. 50,00,000/-
4 Superintend Engineer Up to Rs. 2,00,00,000/-
5 Engineer-IN-CHIEF Above Rs. 2,00,00,000/-
(PH)/Chief Engineer
*Note: AE/AEEs and Dy. EEs are not empowered to exercise their
powers if next higher technical official is available in the ULB.

TS Power to PRIs Engineers:

*As per G.O.MS.No.94, PR & RD (Estt.III) Dept. Dt: 8.3.1999

Technical Sanction powers for all works under
Panchayt Raj Engineering Department
SL.NO CATEGORY T S POWER
1 Asst. Executive Engineer Up to Rs. 25,000/-
2 Dy. Executive Engineer Up to Rs. 2,00,000/-
3 Executive Engineer Up to Rs. 10,00,000/-
4 Superintend Engineer Up to Rs. 50,00,000/-
5 Engineer-IN-CHIEF Above Rs. 50,00,000/-
/Chief Engineer

7. ENTRUSTMENT OF WORK – NOMINATION METHOD

*As per PW ’D’ code Para 154 - Note.1:- Tenders should invariably be called
for when the amount involved in a particular contract is (Rs. 5,000/-) or more. If it is
proposed, in any case whether for urgency or any other reasons to be recorded, to
depart from the rule, works may be entrusted on nomination at rates not exceeding
estimate rates by the EE, SE or CE up to the following limits indicated against each.
• Executive Engineer - Rs. 10,000
• Superintending Engineer - Rs. 25,000
• Chief Engineer - Rs. 50,000
When tenders are dispensed within the case of contracts exceeding Rs.20,000 a
report should be made by the officer entrusting the work on nomination to the next
higher authority indicating the reasons for dispending with the tenders. When the

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amount involved is less than (Rs. 5,000/-) the EE may call for tenders or not at his
discretion.
This rule does not admit of a major work being split up into parts and each part
being given out on contract without calling for tenders.
*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003- (14) (i)
ENTRUSTMENT OF WORKS ON SELCTION BASIS: The tenders received are found to
have abnormally high percentage or within the permissible ceiling limits prescribed
but under collusion or due to unethical practices adopted at the time of tendering
process, shall be rejected.
When such situation arises that even for second tender call, the reasonable
percentage in fair and free environment is not received, the works will be entrusted
on selection basis from out of the list of contractors who are possessing the eligibility
criteria as specified in the tender document with proven track record will be selected
in turns of 5 contractors at each time and will be asked to file their price bids at a
specified place and time before the competent committees as stated at para 14.11
to entrust the work. The committee assessing the reasonableness of excess
percentage quoted will recommend to award the work to the lowest of all the
contractors participated. The contractor to whom the work is entrusted on selection
basis will be provided necessary security and protection if requested at his cost.
(ii) COMMITTEES TO ENTRUST WORKS ON SELECTION BASIS. For the
purpose of above selection and entrustment of works to contractors the
composition of the committees at District and State level and powers delegated to
them are as under:
a) For the works costing up to Rs.1 Crore, a committee consisting of the
Collector of the District in which work is located, the SE concerned with the work and
two Superintending Engineers of two other works Departments viz., Panchayat Raj,
R&B and the Irrigation will recommend to the competent authority to award the
work.
b) For the works costing above Rs.1 Crore, the committee consisting of the
COT and the Chief Engineer concerned and Engineer-in-Chief (Irrigation) will
recommend and award the works on the selection basis.

*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003- (14) (iii)
ENTRUSTMENT OF WORKS ON NOMINATION BASIS: (a) for giving works on selection
lists of contractors with good track record will be prepared. In preparing these lists
the volume of works done by the quality of works done by them, the infrastructure
possessed by them and also works on hand and their capability will also be
considered. The list of contractors should be prepared and published in advance
regularly i.e., once in 6 months. From these lists contractors will be called for
negotiations in groups of 5 in rotation. The contractor offering to do the work at the

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lowest rate will be given the work. Time allowed for selection by the Committee will
be 5 days.
(b) The total value of works grounded in any year including works given
through tenders or through nomination shall not exceed the budget provided to
each division.
*As per G.O.MS.No.8 T,R & B(Roads)Dept.Dt.-8.1.2003,rules(8)
Grading of Contractors and Engineers: Grading of contractors should be undertaken
depending on their performance, maintenance of works and adherence of
agreement conditions. The Commissioner of Tenders shall take action and finalize
the modalities of grading of contractors within 60 days of the issue of this G.O and
submit proposals to Government. The grading should be updated every year and on
1st June.
Likewise, the Engineers should be graded depending on their performance
for which all Engineer Departments should issue guidelines that are specific to them.

Nominations in Panchayat Raj Institutions:

*As Per G.O.Ms No.124 PR&RD (PROGS-I) Dept, Dt:25.08.2014-Government after careful
examination of the circumstances, decide to keep the orders issued in G.O.Ms No.61 PR&RD
(PROGS-IA) Dept, Dt:01.04.2014 ( implementation of e-procurement in PRIs) in abeyance to
facilitate the entrustment of works upto Rs.5.00 lakhs on nomination basis.
Authority…?
❖ Gram Panchayats can give works up to 2 lakhs on Nomination basis

❖ Divisional Panchayat officer can give works up to 3 lakhs on Nomination basis

❖ Dist collector can give works up to 5 lakhs on Nomination basis

Nominations in Municipalities:

*G.O.Ms No.91, MA&UD (C1),Dept, Dt:25.03.2017-issues orders for

entrustment of Works costing below Rs.5.00 Lakhs to the Registered Contractors /
Self Help Groups (SHGs) / Resident Welfare Association (RWA) on Nomination basis
dispensing with the tenders on E-Procurement, for administrative convenience in
implementation of urgent maintenance of works and public utility works in the
Urban Local Bodies in the State with the following guidelines.

i. The works of urgent nature up to the above minority limit can be entrusted
to Registered contractors/ Ward Level Committee (WLC) / Resident Welfare
Association (RWA) / Self Helf Groups(SHG);
ii. A committee consisting of District Collector, Commissioner & Senior Most
Engineer in the ULB shall nominate the Registered Contractor
/WLC/RWA/SHG. In case Greater Hyderabad Municipal Corporation, the

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Commissioner, Chief Engineer and Zonal Commissioner concerned shall

nominate;
iii. In case of registered contractors, the work shall be entrusted @ 5% less than
the estimate cost. In case the trend of tender discount is more than 5%, the
Committee may entrust the work at higher discount than 5%;
iv. The Register contractors shall be entrusted with works on roaster basis as per
a roaster maintained by ULB. In Municipal Corporation, the roaster can be
maintained Zone/ circle wise;
v. Under no circumstances , the work shall be grounded prior to issue of
Administrative sanction by the competent authority;
vi. Current SSR rates shall be adopted;
vii. No work shall be deliberately split to bring them within Rs.5.00 Lakhs limit.
Any such action if noticed shall be liable for service disciplinary action against
concerned;
viii. All the major events shall be documented. Digital photographs of works/ sites
shall be taken before start/ during execution / after completion of the work
and also of meeting; and
ix. Recording Measurements, Check measurements, Quality Check Etc., shall be
as per Department norms and procedures.

*G.O.Ms No.97 MA & UD (ENGG), Dept, Dt:28.04.2018- Government

empowers the Municipal Commissioners of all ULB s for according Administrative
Sanction of civil works on Nominations basis (Roads & Drains) up to Rs.5.00 Lakhs
duly amending G.O.Ms.No.719,MA & UD (TC.2) Dept, Dt.18.10.2008 (Earlier through
the committee headed by the District Collector), to avoid delay in execution of works
, in accordance with existing rules.

8. ENTRUSTMENT OF WORK – TENDERS

8.1. METHOD OF EXECUTION OF WORKS

*As per the P.W.D code Para No.150 & TSFC article-163-I.
The works are executed in all PW department by one of the following methods:-
i. Departmentally, by the employment of daily labour, - is adopted where no
contractors available or where for other reasons, it is found more economical.
Under this method, the department manufactures or purchases its own
materials, the purchase of materials or tools and plant and machinery is
governed by store rules in Appendix 15 to the TSFC and PW’A’ code volume-II
Note:-is currently banned by Act@ of 1994

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ii. By piece-work agreement in form Public Works Department V-51,-is employed

for the works executed by the piece-workers at specified rates without reference
to quality or time. Under this system the department arranges for supervision,
setting out and measurement of all work. This system is to be adopted for the
works costing up to Rs.25,000/-. If it is proposed to adopt this method for the
works costing above this set limit in respect of constructions or repairs up to Rs.
1,00,000/- and transport up to Rs.5,00,000/-, reasons should be recorded in the
relevant file.
iii. By an agreement in form P W De V-53, based on a Lumpsum tender system, as
defined in the APDSS. –the contractor agrees to execute a complete work in
accordance with the specifications for a lump-sum payment. This method should
be adopted except when one of the other methods is considered more
advantageous.
The PS to APSS contain the details of the procedure to be followed under this
method such as the standardized forms of articles of agreement, tender notice,
tender format and the intermediate and final bill forms connected therewith.
iv. By an agreement in the form prescribed by the Government for EPC – in this
regard to method (iv), the details are set forth clearly in the form of articles of
agreement, tender notice and bid documents approved by the Government.
(Added by G.O. Ms. No. 50, I & CAD (PW-Reforms), Dt.2.3.2009)
In the case of each work executed under Method (ii) or Method (iii),
the authority accepting the contract will decide whether it is desirable to retain, in
the hands of the department, the supply of imported stores or other materials.

In cases where it is decided that the department should supply certain materials to
the contractor for use on the work, a description of every such materials and the rate
and place at which it will be supplied should be specified in the notice calling for
tenders and also in the schedule forming part of the agreement — vile also
Paragraph 327, A.P. Public Works Accounts Code.

In cases where the contractors are allowed to supply the required imported articles
themselves, the description of such articles must be clearly defined by governing
specifications. For cases where the “British Standard Specifications” standards are
not applicable, other suitable methods should be adopted, such as, specifying the
catalogue number product of a reputable firm. When test certificates are demanded,
full particulars shall be given in the tender notice and the agreement and it shall also
be stated therein that the cost of furnishing such certificates shall be borne by the
contractors.

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8.2. TENDERS :

*As per the P.W.D code Para No.154 - Tenders, which should always be
sealed, should be invariably be invited in the most open and public manner possible,
whether by advertisement in the Government Gazette or local news papers, or by
notice in English and the vernacular posted in public places, and tenders should have
free access to the contract documents. The Officer opening the tenders should
invariably date and initial on all the pages of the tender document.
❖ Note.1:- Tenders should invariably be called for when the amount involved in a
particular contract is (Rs. 5,000/-) or more.

8.3. TENDER NOTICE:

*As per the P.W.D code Para No.154-The notice should in all cases state—

(i) When and where the contract documents can be seen and the blank forms
of tender can be obtained and cost of tender schedule.
(ii) When and where tenders are to be received and opened, the date of
receipt of tenders should be at least 15 days for works costing Rs. 1.00 lakh and less,
and 21 days for works costing more than one lakh and upto Rs. 5.00 lakhs and one
month or more for work costing over 5 lakhs from the date of issue of the Chit tender
notice]. [G.O.Ms.No.1007, T.R. & B., Dt. 5-11-1976
Note:—Sale of tender schedules should be stopped three clear days before
the date fixed for receipt of tenders. The officer issuing tender notice may reduce the
time for any special reasons to be recorded.

(iii) [The amount of earnest money to accompany the tender

(iv) With whom or what authority, the acceptance of the contract will rest.

(v) No tender should be accepted from a person who has been or who has in
his employ, a person who has been in the Gazetted Service of Government in any
capacity, and has retired within a period of two years prior to the date of tender,
except in cases where the officer concerned has obtained specific sanction of
Government to do so prior to the date of tendering. (G.O.Ms.No. 1845, PWD, Dt. 8—
9—1963)

(vi) Authority should always be reserved to reject any, or all, of the tenders so
received without the assignment of a reason, and this should be expressly stated in
the advertisement.

(vii) No tender should be accepted from any person directly or indirectly

connected with the Government service — vide Paragraph 72 of this Code.

(viii) The Executive Engineer or the Superintending Engineer, as the case may
be, should open the tenders in the presence of the tenderers or their authorized
agents who may choose to be present at the time. The officer opening the tenders

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should invariably date and initial not only the corrections in the schedule of
quantities, schedule of materials to be issued, specifications and other essential parts
of contract documents but should invariably date and initial all the pages of the
tender documents irrespective of whether they contain or do not contain any
corrections, overwriting, etc. If there are corrections in the tender unattested by the
tenderer, a note of such corrections should be made on the tender itself, when it is
opened — vide Paragraph 9 of the Standard Tender Notice PWD Form No.15(a). The
Officer opening the tenders should keep a personal note of the total number of
tenders opened by him and verify therewith the number in the comparative
statement of tenders.

(ix)Tenders should be decided within a period of one/two/three months after

the expiry of last date prescribed for the receipt of the tenders by the EE/SE/CE
respectively and the decision regarding the disposal of tenders should be indicated at
any time within the said period. During the above mentioned period no plea by the
tenderer for any sort of modifications of the tender based upon or arising out of any
alleged misunderstanding or misconception or mistake or for any reason be
entertained. (G.O.Ms.No. 271, PWD, Dt. 20—2—1970)

*As per G.O. Ms No. 94 I & CAD (PW-COD) Dept. Dt. 01.07.2003-Annexure – I
Tender Procedures Para (3)-Tender Notice or Notice Inviting Tender (NIT) will be
approved by the Engineers for the works for which they are competent to accord
Technical Sanction.
The tender documents will be prepared by the concerned Engineers, Bringing
greater transparency indicating the provisions made in the estimates for items which
are reimbursable to the contractors with conditions therfore and other relavent
conditions relating to the implemaentation of the contract and other eligibility criteria
on both physical and financial requirements in addition to the conditions contained in
the DSS, PWD Code.

8.3.1. PUBLICATION OF NOTICE:

*As per the P.W.D code Para No.154,note 2-Notices calling for tenders should
invariably be published in prominent local newspapers in respect of all works costing
over 1,00,000/-

*As per G.O. Ms No. 94 I & CAD (PW-COD) Dept. Dt. 01.07.2003 Annexure –I
Tender Procedures Para (4)-For the works up to Rs. 50 lakhs the tender notice shall be
published in District editions of two Telugu dailies with the largest circulation.

-For works costing more than Rs. 50 lakhs, the tender notices will be
published in one Telugu daily and one English daily having largest circulation
at the State level.

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-To reduce the cost of each publication, the format for the tender notice in
the newspaper shall be finalized by the Board of Chief Engineers, so that the
cost of the advirtisements is kept to the minimum.

-The tender schedules should contain not only the quantities but also the
rates worked out by the Dept. and the amount for each item and the total
value of the contract. The tenderer will not be required to quote item wise.
He should indicate his willingness to do the work either at the estimated
value of the work of at a percentage in excess of the estimated value of the
work or at a percentage less than the estimated value of the work.

❖ Muncipalities
As per Municipal Tender Rules ,1967 G.O. Ms No. 620 , MA Dt. 7.10.1967 , Part-1
Rule No 4 (b)-When the cost exceeds rupees one lakh tenders shall be invited by
advertisement in at least one News paper circulating in the District and State.
❖ Gram pancahayat
As per G.O. Ms No. 441PR&RD (Rules) Dept. Dt. 10.12.2002 rule (3) -Tenders
should be published in one are more News papers having maximum circulation in
the district, if the estimation cost of the work exceeds rs. 50000

8.3.2. ADVERTISEMENTS

•*As per GO.Ms.No.52 GA (I&PR) Dept, Dt:14.02.2017, which says that, “The
Commissioner, Information and Public Relations Department is empowered to issue
the advertisements (Print, Electronic and Outdoor), as per rates approved
Government from time to time, without delay” and as per Memo.No.103/I&PR/2019-
1, GAD(I&PR) Dept, Dt:07.01.2019, which says that, “Any advertisements in Print,
Electronic and Outdoor are released only through the Information and Public
Relations Department without fail” .
• As per Circular.Roc.No.9334/2012/F2-2, dated:30-04-2012 of Municipal
Administration Department and as per Section 130 of Andhra Pradesh
Municipalities Act, 1965 instructions were issued for “prior permission of the
Government or the higher authorities as the case may be has to be obtained for
giving any Advertisements, other than the Tender Notices” and it should be followed
strictly. Advertisements for personal greetings or personal information’s are not
allowed
• It is suggested to get the advertisement bills rates shall be verified by the
Information and Public Relations department before payment of the bill.
Note: (Income Tax should be deducted @ 1% from Ad Agency Bills and @ 2% from
firm (like eenadu, sakshi, etc..,) before payment of the bill amount as per Section
194C of Income Tax Act 1961 whose bill amount exceeds Rs.30,000/-.)

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8.4. COLLECTION OF EMD AT THE TIME OF ISSUING TENDER DOCUMENTS

*As per TS FC -Article 193 :as a rule no tender for the execution of a work
should be received unless the tenderer presents along with it a challan showing that
he has paid into the treasury or the bank the Ernest money notified as necessary in
the tender notice.
*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003, Annexure – I Tender
Procedures Para (5)-: In order to discourage purchase of tender documents by non-
serious bidders, tender documents shall be issued to contractors on payment of
Earned Money Deposit, at 1% of the estimate contract value. Successful bidder will
pay balance EMD of 1½% contractor value at the time of concluding the agreement.

8.4.1. Exemption of EMD:

*As per G.O. Ms No. 29, I & CAD Dept. Dt. 26.05.2017,3 (II)-
i. The labour cooperative contract societies of SC/STs/Wadera/Sagara will
be exempted from payment of EMD to works costing up to Rs.50.00
Lakhs.
ii. The individuals belonging to SC/STs/Wadera/Sagara be exempted from
payment of EMD to works costing up to Rs.20.00 lakhs.
iii. However in order to provide level playing field to all, EMD will be
recovered from running bills after expenditure of 25 % of the concerned
works. This will also inculcate the responsibility for completion of the
works.
*As per G.O. Ms No. 59, I & CAD Dept. Dt. 21.05.2018,7 (5)- Exemption of EMD
shall be for the works costing up to Rs. 1.00 crore (ECV) and the same shall be
recovered from respective RA bills as stipulated under
G.O.Ms.No.29,I&CAD(Reforms)Dept:26.05.2017,

8.4.2. Collection of EMD from Contractors for works let out on Nomination

*As per PW’D’ code -Article 159- under Executive Instructions - (1) Earnest
Money Deposit should be collected even in respect of nomination contracts as in the
case of K-2 contracts, but when this is not done, in cases where 2 ½ % is not
collected in advance, deductions must be made from each bill at 5 per cent.

8.5. PREVENTION OF COLLUSION OF CONTRACTORS:

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (6)- With a view to prevent collusion or the formation into a ring by
contractors, the following orders are issued:-
(a) Tender schedules shall be issued till a date prior to the last date of
submission of tenders

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(b) once a contractor buys a tender schedule he shall not be permitted to

return the schedule. After buying a tender-schedule, if a contractor does not tender
for the work, his EMD shall be forfeited (cash or bank guarantee or both).

8.6. TENDER PREMIUM

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (13)-
▪ (i) Ceiling of Tender Premium: (G.O.Ms No.133 I&CAD (PW.REFORMS) Dept. Dt:
2.11.2004) For all works the ceiling of tender premium shall be 5% . As per the
guidelines, even after two calls if the tender premium quoted is more than 5%, the
matter should be refer to the Government and the Government may order for a fresh
call or may constitute a committee to avoid the work on nomination to a reputed
contractor from the list to be maintained by the Department on the basis of
performance of contractors.
▪ (ii) Discount Tenders: (Percentage less than estimated cost) : Tenders up to 15% less
than the estimate may be accepted but for tenders which are less by more than 15%
of the estimate, a bank guarantee or demand draft (Additional Security Deposit) for
the difference between the tendered amount and 85% of the estimate value should
be taken so that the tenderer leaves the works midway and the department is forced
to call for tenders for the work once again, the bank guarantee or demand draft shall
be used to finance the re-tendered work.

8.7. ISSUE AND RECIEPT OF TENDER SCHEDULE

(*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Dt.- 01-07-2003 Rule 7)

i) The tender schedule shall be issued up to one day prior to the last day of submission
of Tenders. The tenders shall be received at the place and time as specified in the
Tender Notice. The contractor shall be allowed to submit the tender either
personally or through his agent or by post. In case of submission of tender by post
the risk and responsibility for either loss or delays in transit of the same is to be
borne by the contractor. The tender opening authority will not consider any tender
received by him after the expiry of date and time fixed for receipt of tenders.

ii) Tender will be received in two parts in 2 different sealed covers.

Cover-A- Technical bid-shall contain the qualification data viz. Annual Turnover and
value of works under execution etc., as described at Para (10) of G.O.MS.No.94 I CAD
(PW –COD) Dept. Dt.- 01-07-2003.

Cover B- Financial bid for the work shall contain the Schedule-A which inturn
contains Part-I and LS provision as Part-II. The cover A and Cover B will be sealed and
kept in another sealed envelope (cover C) supplied by the department while issuing
Tender Schedules.

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iii) The EEs and SEs delegated with the power to invite the tenders will opened evaluate
the tenders as per the qualification criteria. While opening the tenders care should
be taken to first open Cover –C in the presence of the tenders or their authorized
representative and other officials concerned on the specified date and time and also
to verify whether the Cover –A and Cover –B are properly sealed and minutes by
recorded to this effect then and there only. In case the Covers A&B or any one of
them are found / unsealed, such tenders will not be opened and summarily rejected.

iv) First cover (cover –A) with superscription as “TECHNICAL BID” which shall contain
the qualification data as described at para 3.02 will be opened.

v) Second Cover (Cover-B) with the superscription of “PRICE BID” shall contain the
Schedule –A i.e., the statement of description of work, quantity, estimate rate and
amount, price bid (Cover –B) of those tenderers who are determined as qualified as
per eligibility criteria will be opened on the date specified in the tender notice and
the Cover – B of unqualified tenderers will not be opened and kept in the safe
custody till the tenders are finalized and there after shall be returned to them along
with EMD. The Schedule-A of price bid shall contain the working items indicated as
Part-I:- Containes the Statement of Description of Work, Quantity, Estimate
rate.
Part-II:- LS provisions( GST, QC, NAC, Segniorage).

The premium or discount quoted by the Contractor shall be applicable only for Part-I.
However, the provisions contained in the Part-II will be operable basing on the
conditions provided in the tender Schedules. The tenderers will have to state clearly
their willingness to execute the work at the percentage excess or less or at par over
the ECV indicated at Part-I at the space provided therein.

vi) Before recommending / accepting the tender, the tender accepting authority shall
verify the correctness of certificates submitted to meet the eligibility criteria and
specifically for experience, the authenticated agreements of previous works
executed by the lowest tenderer, shall be called for.

The EMD will be returned to the qualified but unsuccessful tenderer either after
finalization of tenders or on expiry of validity of tenders whichever is earlier.

8.8. ACCEPTENCE OF TENDERS

*As per PW’D’ code-154, Instructions-

(1) After tenders are called for and received based on sanctioned estimate rates,
comparison of tenders should not be resorted to with modified higher rates
based on latest SSRs or based on some data. If the rates are not workable, the
correct procedure would be to go for a fresh tender call with the estimation on
modified rates.
(2) ‘Single Tender’ shall not be normally accepted. If Single Tender is received for a
work, action has to be taken to recall the tenders giving wide publicity by sending

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copies to all Divisions/ Circles, publishing in News papers, etc. as prescribed by

the Govt. Even after such recall, if only single tender is received, the single tender
can be accepted, provided (i) the work is of emergent in nature,(ii) the further
tender calls are likely to be fruitless(subject to the limit of delegation of powers
to accept the tender at the quoted excess/less).
(3) Acceptance of tenders above the estimate rates when competition is low- There
are cases where tenders have been accepted nearly at 5% above the estimate
rates when the competition is low and even only one tender is received. The
powers of accepting tenders upto the permissible limits above the rates in the
sanctioned estimates should be used cautiously and only after making sure that
the acceptance of such tenders is unavoidable.
(4) In case where there is no response to a tender call and a further call is
considered fruitless, and the works are proposed to be entrusted on nomination,
the works should be entrusted at or below estimate rates,
(5) The authority accepting tenders should carefully observe the following points:

(1) The high rates against any item should not be accepted unless they are
justified with reliable data.

(2) The monopoly of works by one or a few contractors in a circle or project

should not be encouraged.

(3) When tenders with high rates are submitted by all the contractors in league,
they should be rejected, and departmental execution should be proposed.

(6) Calling for tenders and execution of works before administrative and technical
sanctions is contrary to the instructions in Para 173 of APWD Code. However, in
respect of really emergent cases instructions in Para 177 should be scrupulously
followed.
(7) The Tender-accepting authority will record on the comparative statement th
acceptance in figures and words and percentage excess/less under his signature.
In respect of Tenders accepted by the authority above SE (i.e. by CE/ENC/ or by
Tender Committee/ commissioner of Tenders), the Agreement is concluded by
the SE and in such cases the value of the accepted tender and percentage of
excess/less, etc. are indicated along with reference in the Check-slip of the
Agreement.

*As per TSFC Article 193- The government servant who has to select tender for
acceptance should take into consideration the financial status of each tenderer, his
capability, the security which he offers and his record in regard to the execution of
other works. When other conditions are equal, he should accept the lowest tender. if
the he accepts a tender other than the lowest, he should keep a confidential report
of his reasons for doing so and should produce this record for perusal by the
Accountant-General or a duly authorized member of his staff. if requested to do so.
Departmental inspecting officers should also examine every case of acceptance of a

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tender other than the lowest, and report to the higher authorities any such case for
which in the opinion of the inspecting officer, there, was not sufficient justification.

The acceptance or rejection of a tender is a matter within the description of the

Government servant to whom they duty is entrusted, and no tenderer should be told
the reason for rejecting his tender. When it is considered desirable to do so, a
superior authority or the Accountant-General or a duly authorized member of his
staff will call on the Government servant who dealt with the tenders to justify the
manner in which exercised his discretion and may require him to state his reasons
for rejecting any particular tender.

8.9. FINALISATION OF TENDERS

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (8)-
(i) Tenders will be finalized by the EES / SEs for the works costing up to their
powers to accord technical sanctions.

(ii) The Chief Engineer shall finalize the tenders up to Rs.2 Crore. The tenders for the
works costing more than Rs.2 Crore will be referred to COT along with Technical Bid
evaluation and Price Bid evaluation for consideration. The COT shall scrutinize the
tenders submitted by Engineers–in-Chief / Chief Engineers / Project Administrators
in accordance with the conditions stipulated in the Tender document and in case of
any discrepancy or non– adherence to the conditions, the same shall be
communicated which will be binding both on the Tender Concluding Authority and
the Contractor. In case of any ambiguity, the decision take by the COT on tender
shall be final.

(iii) Negotiations are not permitted to be conducted at any level.

(iv) The time allowed from the date of publication of tender notices to the date of
receipt of tenders is 14 days for the first call and 7 days for the second call. The
tenders will be received following three box system i.e., at SEs office, if the SP of the
District where the SE’s office is located and one in the office of the ENC or by post to
the SE concerned.

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (9)-VERIFICATION OF CERTIFICATES AND EXPERIENCE:
a) A website will be created and maintained by Commissioner of Tenders
wherein details of all contractors will be made available. Existing Contractors should
submit the details of their experiences with an affidavit before the Commissioner of
Tenders. The Commissioner of Tenders should place all these details on the web
site. Those having objections should file before the Commissioner of Tenders, within
a period of one month from the date of placement of experience particulars on the
website. The Commissioner of Tenders should conduct the investigation on the
objections of the contractors filed and final experience certificate should be
displayed on the website within one month from the date of receipt of objections

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filed by the contractors. If any contractor submits false information, he will be liable
for blacklisting. The Commissioner of Tenders should send proposals recommending
to the Government with proper justification for black listing such of those
contractors who furnish false information.

b) All Executive agencies in different departments will be given a password for

making necessary entries in the website from time to time. Updation of the
information on the website shall be done by the awarding authority as and when a
work is awarded. Similarly if a work is cancelled, the same should also be reflected
in the website by canceling authority. Verification of certificates by sending to
various agencies should be done away with while examining the eligibility. Instead,
the information in the website should be used by all. This information should be
cross checked by the Commissioner of Tenders every year. The Commissioner of
Tenders will also examine the objections as and when received. Those giving false of
objections shall be penalized up to an amount of Rs. 10, 000/-. Detailed orders in
this regard will be issued separately for which proposals shall be sent by
Commissioner of Tenders. The Commissioner of Tenders can also examine and have
details verified suo-moto.

c) The Commissioner of Tenders should issue pass books to each contractor

containing all the details covering experience, financial capacity etc. The contractors
should enclose a Xerox copy of the pass book along with tender applications. Works
awarded / cancelled should be entered in the passbook by an officer not lower than
the rank of Executive Engineer. The details in the passbook should tally with those in
the website.

Duplicate pass books can be issued on payment of an amount of Rs.5000/ on the

first occasion and Rs. 25,000/ - subsequently.

d) Contractors who execute their works within time as per specifications shall be
issued a merit certificate acknowledging their timely completion ensuring good
quality. The merit certificate shall be given in a public function wit due publicity to
increase the prestige and standing of the contractors in the society. While giving
works on nomination the contractors who have received the merit certificates for
quality and timely performance, shall be given preference over others. The
performance of the contractors on the works shall be obtained and maintained in
the offices of the Registering authorities viz., EEs, SEs, CEs and Board of CEs. The
performance shall be assessed annually and the results shall be made use of while
considering applications for renewal of contractor’s registrations.

8.10. SUB-CONTRACTS

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (15): If the prime contractor desires to sub-let a part of the work he
should submit the same at the time of filing tenders itself or during execution, giving
the name of the proposed Sub-Contractor, along with details of his qualification and

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experience. The Tender Accepting Authority should verify the experience of the Sub-
Contractor and if the Sub-Contractor satisfies the qualification criteria in proportion
to the value of work proposed to be sub-let, he may permit the same. The total value
of works to be awarded on sub-letting shall not exceed 50% of contract value. The
extent of subletting shall be added to the experience of the sub- contractor and to
that extent deducted from that of the main contractor.

8.11. E-PROCUREMENT/E-TENDER

*As per G.O. Ms No. 2 FIN (WORKS & PROJECTS-F7) Dept. Dt. 03.02.2014-
The Govt. after careful examination, hereby issue orders that for all works and
material procurement (for works and for stationery/Livery supplies for offices etc.)
costing Rs. 1.00 Lakhs and above the E-Procurement platform should be adopted so
as to enhance transparency and bring uniformity across all the departments.

*As per G.O. Ms No. 36, I & CAD (PW-COD), Dept., Dt. 07.03.2003-
Guidelines / Procedure to be followed in introduction of ‘e’ – procurement are
follows.

1. All the existing codal rules, G.Os executive instructions applicable to the
processing of conventional tenders are all applicable to the bids to be
procured through ‘e’ Procurement, except to the extent modified / revised in
the guidelines enclosed.
2. In respect of works which are included in ‘e’ procurement tenders will not be
received in the conventional method.
3. The Notice Inviting Tenders (NIT) and Tender documents etc., shall be in the
Standard formats as applicable to conventional Tenders and will be finalized /
approved by the officers competent as in the case of conventional Tenders.
4. Publication of NIT: The officers competent to publish NIT in case of
conventional Tenders will host the NIT in the ‘e’ market place @
“www.eprocurement.gov.in” Simultaneously, a notification should also be
published in the newspapers, and “Tenderla Samachara Patrika” as per
existing rules, in the following format, to affect economy:-

Government of Andhra Pradesh

Irrigation &CAD Department
“e” procurement Notice
1. Name of the work : ……………………………………………….
2. Estimated cost : Rs. …………………………………………………
3. Last date / Time for receipt of tenders. :
……………………………………………………..
4. Name and address of the SE concerned :
……………………………………………………… Further details can be seen @ ‘e’
procurement market place @ “ www.eprocurement.gov.in”

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[*As per G.O.Ms.No.14 IT,E&C Dept,(E-procurement)Dt.18.09.2017-

Development of New Version of e-Procurement and e-Auction Application-

The e-Procurement Project is a core e-Governance initiative and the platform of the
Telangana State Government and is being used by all Government Departments, Public
Sector Undertakings, Urban Local Bodies and Universities in the State. The project is very
efficient in procurement processes, transparent and also it delivers demonstrable benefits
like cost savings to the User Departments, significant reduction of tender process time.

All the Departments/HoDs/Corporations/Local Bodies/Universities and PSUs in the

Telangana State are directed to use the New Version of eProcurement application with new
Domain name i.e., “eprocurement.telangana.gov.in” with sub domains of
‘tender.telangana.gov.in’ for Tenders & ‘auction.telangana.gov.in’ for e-Auction Services
with effect from 03.10.2017. There should be no publication of New Tenders on existing e-
Procurement application from the date of Go-Live of New Version and the Tenders which
were published prior to Go-Live Date will be completed as usual practice on Old Version. All
the new Tenders should be published on New Version of e-Procurement application only.]

5. Time allowed for Tendering: Time allowed from the date of hosting of NIT at
‘e’market place to the last date of receipt of tenders at ‘e’ market place is 14
days, as in conventional Tenders.
6. The registered contractors are provided with online registration facility with
the respective participating departments.
7. The collection of cost of Tender documents is dispensed, as there is no
physical supply of tender documents and also to have absolute anonymity of
the bidders participating in ‘e’ procurement. The bidders can view /
download the tender documents, from the ‘e’ market place.
8. Submission of Bids: the bidders shall submit their Technical and Financial Bids
online duly uploading copies all the documents required to be submitted
along with the tender. Attested hard copies all bid documents except price
bid shall be submitted to the SE concerned so as to reach before the date of
opening price bid. Failure to do so entails forfeiture of EMD.
[As per G.O.Ms.No.6, I & CAD(PW-Reforms) Dept. Dt. 11.01.2005-
Furnishing of hard copies by the tenders before opening the technical bids is
dispensed with. The technical bid evaluation will may be done on the
uploaded documents through online. A minimum of 3 days gap shall be
maintained between opening of TB and PB. The successful (L1) tenderer shall
furnish the original hard copies of all the documents /certificates/statements
uploaded by him before concluding agreement.]
(Further)
[As per G.O.Ms.No.245, I&CAD(PW-Reforms) Dept. Dt. 30.12.2005-
Amendment made to GO-6 by incorporation of Para5(h)-the Govt. has further
decided that notwithstanding any existing provision of the PWD code as well

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as other orders and executive instructions in force , if any tenderer fails to

submit the hard copies of DD/BG for EMD, DD for transaction fee, Hard copies
of uploaded documents within the stipulated time, the tenderer will be
suspended /disqualified for a period of 12 months from the date of bid
submission. The suspension of tenderer shall be automatically enforced by
the E-procurement system.]

9. Payment of EMD ( Earnest Money Deposit) : Xerox copy of the DD / BG at 1%

of the contract value shall be (from a Nationalized Bank valid for a period of 6
months) scanned and uploaded along with the Bid, and the original DD / BG
shall be sent to the concerned SE so as to reach before the date of opening of
the Price Bid.
[As per G.O.Ms.No.6, I & CAD(PW-Reforms) Dept. Dt. 11.01.2005- The
original DD/BG shall be furnished either personally or through courier or by
post and the receipt of the same shall within the stipulated time shall be the
responsibility of the bidder. Dept. will not take any responsibility for any dealy
or non receipt.]

[*As per G.O.Ms.No.14 IT,E&C Dept,(E-procurement)Dt.18.09.2017-and-

G.O.Ms.No.15 IT,E&C Dept,(E-procurement)Dt.18.09.2017-
For the benefit of participating suppliers/contractors/bidders, to facilitate
them for payment of EMD/refund facility, the Government have decided to make
transactions are more transparent, the following should be followed for the
payments:

i. All the payments towards the EMD should be paid through Net
Banking/ RTGS/NEFT/Credit Card/Debit Card/ Bank Guarantee only.
ii. When the payment of EMD is made through Net Banking/RTGS/NEFT
from their registered bank accounts, the refunds will be reverted to
those accounts only.
iii. When the payments of EMDs are made using the Credit Card/Debit
Card, as per the VISA/Master Card guidelines, the refunds will be
reverted to the Originating Card from which payment was made.

10. Technical bids / Price bids opening: The result of Technical bid evaluation will
be displayed on the ‘e’ market place, which can be seen by all the bidders
who participated in the Tenders. Similarly, at the specified date and time, the
price bids of all the technically qualified bidders will be opened online by the
concerned Superintending Engineer and the result will be displayed on the ‘e’
market place which can be seen by all the bidders who participated in the
Tenders. Till the technical bids are opened, the identity of the bidders who

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participated in the Tenders are to be kept confidential. Similarly, till the price
bids are opened, the bid – offers are to be kept confidential.

11. Processing of Tenders: The Superintending Engineer will evaluate and

process the tenders and submit to the concerned Chief Engineer / ENC
(Irrigation) as done in the case of the Conventional tenders. The Chief
Engineer / ENC (Irrigation) after his evaluation will finalize tenders upto
Rs.200 lakhs and submit to the COT in case the value of tenders is more than
Rs.200 lakhs. The COT will examine the bids and decides the successful bidder
and communicates its decision to the Chief Engineer / ENC (Irrigation). The
Chief Engineer / ENC (Irrigation) in turn communicates the Commissionerate
of Tender’s decision to the Superintending Engineer. All this process will be
online.
12. Charges payable to M/s CI India Pvt. Ltd: The service charges payable to M/s
CI India Pvt.Ltd., as laid down in the GO 2nd read above are as indicated
below:
a) Tender – hosting charges : Rs. 4,500 =00 per Tender.
b) Transaction fee : 0.24% of the Agreement value of the work .

13. The transaction fee is payable by the successful bidder through a DD drawn in
favour of M/s C1 India Private Limited, Hyderabad at the time of conclusion
of the agreement. The said DD shall be sent to M/s C1 India Limited by the SE
concerned. Suitable provision should be made in the estimate of the
concerned work to meet the above expenses by the bidder

In panchayath Raj Institutions:

*As per G.O.Ms No.61 PR&RD (PROGS-IA) Dept, Dt:01.04.2014- In order to

implement e-Procurement process efficiently Government issued certain instructions to the
ENC (PR)/Commissioner, PR & RE/ENC RWS&S.

(Later)
*As per G.O.Ms No.124 PR&RD (PROGS-I) Dept, Dt:25.08.2014-Government
after careful examination of the circumstances, decide to keep the orders issued in
G.O.Ms No.61 PR&RD (PROGS-IA) Dept, Dt:01.04.2014 in abeyance to facilitate the
entrustment of works upto Rs.5.00 lakhs on nomination basis.

In Muncipalities:

*As per G.O. Ms No. 171, M.A. & U.D.(A1) Dept. Dt. 01.05.2004-It has been
agreed by Govt. for adoption of E-procurement in the ULBs, PHED, APUSP.,HMWS
&SB and UDAs,in respect of works materials costing above Rs.1.00 Lakh taken up
with the Government Funds (including HUDCO/Muncipal Contributions) .

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In Temples:

*As per G.O. Ms No. 418, REVENUE(ENDOWMWNTS.I) Dept. Dt.02.04.2011-

Govt. agreed to introduce the E-procuremant system in all major temples and
instructed the CED to take necessary action accordingly in the matter.

9. AGREEMENTS AND CONTRACTS

9.1. AGREEMENTS:

*As per APPW ’D’ code Para 174 & TSFC code article 166- Ordinarily no work
shall be started without a formal agreement or contract sanctioned by a competent
authority.

*As per AP State Universities Finance and Accounting Rules, 2014, Rule.
8.10.3-For every work given out on contract, an agreement on a non-judicial
stamped paper of the appropriate value shall be taken. As soon as an agreement is
entered into with the Contractors, it shall be entered in a register of Agreements in
Form 62 and given a number and date and year.

*As per APPW ’D’ code Para 174- Ordinarily no work executed by method (ii)
Piece work, method (iii) lumpsum or [method (IV) EPC] described in Para 150 should
be started without a formal agreement or contract sanctioned by a competent
authority. The procedure to be followed in emergent works is described inPara 178.
[Exemption-*As per APPW ’D’ code Para 174-No formal agreement is
necessary in regard to petty works and repairs, the estimated cost of which is Rs.
1,000 or less, but even in these cases there should be some written understanding—
though not in any prescribed form—specifying prices and rates.}

* As per TSFC code Para 166- No work which is to be executed under a

contract should be started until the contractor has signed a formal written
agreement, unless it is started without a formal agreement under the Provisions of
Article 167 or Article 170.

*As per AP State Universities Finance and Accounting Rules, 2014, Rule.
8.10.3- For every work given out on contract, an agreement on a Non-judicial
stamped paper of the appropriate value shall be taken. As soon as an agreement is
entered into with the Contractors, it shall be entered in a register of Agreements in
Form 62 and given a number and date and year.

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9.2. CONTRACTS:

*As per APPW ’D’ code Para 151- Before a work is given out on contract, the
authority competent to accept the contract must prepare “contract documents” to
include—
(i) a complete set of drawings showing the general dimensions of the proposed
work.
(ii) a complete specification of the work to be done and of the materials to be used
or reference to APSS number in Schedule-A.
(iii) a schedule of the quantities of work to be done in Schedule-A.
(iv) a set of “conditions of contracts” to amplify as necessary the preliminary and
other specifications of the APDSS forming part of contracts based on the lumpsum
tender system.
*As per APPW ’D’ code Para 152- The terms of a contract must be precise
and definite — there must b. no room for ambiguity or misconstruction therein. 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 competent
financial authority.
*As per APPW ’D’ code Para 153- Contracts should, where possible, be
executed on one or other of the standard forms, but they may be modified to suit
the requirements of any particular case, or for works of great magnitude, after
consultation with the legal advisers of the Government. In cases where it is
considered that none of the standard forms can be used even with suitable
modifications, the contracts should be got prepared specially by the Government
Law Officers.
Engineers and their subordinates are responsible that the terms of contract
are strictly enforced and that no Act is done tending to nullify or vitiate a contract.

*As per APPW ’D’ code Para 161-

(1) No officer may enter into a contract into which he is not empowered to enter
under the provisions of Paragraph 159 and Appendix III to this Code.
(2) The limitations defined in a Paragraph 415(v), 416(iv), 422, 431 or 436(d) shall
not be exceeded.
(3) No authority may accept any contract for a work until an assurance has been
received from the authority competent to provide funds for the same, that
such funds will be allotted before the liability matures — vide the last sentence
of Paragraph 173.
(4) On no account should rates in excess of those provided in the agreement be
paid, as the payment of such rates which are not due would nullify the
contract.

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(5) Duplication of agreements should in no case be required, that is to say, an

authority who has concluded an agreement should not be required to thaw up
and sign again an agreement already executed — vide also Rule 2 under
Paragraph 95, A.P. Public Works Accounts Code.
(6) No authority subordinate to the Local Government may waive the provisions of
the stores purchase rules in Appendix 15 to the A.P. Financial and Account
Code (Volume II).

10. WORK ORDER – SITE HAND OVER

* As per APDSS P.S. 58- On notification of possession of the site (or premises)
being given to the contractor by letter registered for acknowledgement , he shall
forthwith begin the work, shall regularly and continuously proceed, and shall
complete the same by the date of completion as defined in “Articles of Agreement,
subject, nevertheless, to the provisions of extension of time mentioned in the next
clause.
The contractor shall under no circumstances be entitled to claim any
damages from Government if he incurs any expense or Liabilities to payment under
the contract before the date of commencement defined above. The contractor shall
have the right to withdraw from the contract and obtain refund of his security
deposit is such intimation of handling over the site is delayed more two months
from the date of acceptance of the agreement by competent authority.

11. RECORDING THE MEASUREMENTS IN M. BOOK

*As per TSFC code article 174- All works done otherwise than by daily labor
and all supplies relating to a work should be paid for on the basis of measurements
recorded in a MB, common form 298. The MB is the original record of actual
Measurement or count. A MB is a very important record and must be kept with
great care, since it may have to be produced as evidence in a court of law.

*As per TS FC article 175 & PW’ D’ code Para 293 &294 & AP State
Universities Finance and Accounting Rules, 2014 8.20- General instruction for
maintaining the MB:
a) All measurements should be taken down neatly in a measurement book issued
for the purpose and nowhere else. No one may record any measurement in a
measurement book except a Government servant (Detailed measurements
should be recorded by only Asst. Executive or Asst. Engineers or Executive
subordinates ) who is empowered to make payment for the work done or a duly
authorized executive subordinate in immediate charge of the work who has

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been supplied with a measurement book. (Detailed measurements should be

recorded by only Asst. Executive or Asst. Engineers or Executive subordinates )
b) The lines under columns 1 to 4 and each page, beginning with the top line,
should invariably be filled up at the work. No line should be left blank. Any lines
that are not required on any page should be carefully scored through so that no
additional entry can be made afterwards.
c) Each set of measurements should begin with entry showing:-
(i). in the case of work done-
I. full name of work as given in the estimate,
II. situation of work,
III. name of contractor,
IV. number and date of his agreement, if any,
V. date of commencement of work (i.e., date on which site was
handed over),
VI. date of actual completion of work, and
VII. date of measurement; or
(ii). in the case of material supplied
I. name of supplier
II. name and date of his agreement, if any, or of the order,
III. purpose of supply,
IV. date of written order to begin supplies,
V. date of actual completion of supplies, and
VI. Date of measurement.
Each of measurements should end with the dated signature and designation of
the Government servant who takes the measurements. A suitable abstract
should then be prepared which should show, in the case of measurements for
work done, the total quantity of each distinct item of work related to each
sanction sub-head.
d) Since all payments of work or supply sir based on the quantities recorded in the
measurement book, the Government servant who takes the measurements
must take all possible care to record the quantities clearly and accurately. He
will also be held responsible for the correctness of the entries in the column
“contents for area” in respect of the measurement recorded by him.
The signature of the contractor or his agent should be obtained in the
measurement book after each set of measurements below the statement “I
accept the measurements”. If the contractor or is agent is illiterate, is thumb
marks should be attested by independent witness.
e) Entries should be recorded continuously in the measurement book. No page
should be left blank or torn out. If a page is left blank inadvertently it should be
cancelled by diagonal lines as soon as this is noticed and the cancellation should
be attested by the dated initials of the Government servant concerned.

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f) No eraser is permitted. If a mistake is made, the Government servant who is

responsible should correct it and attest the correction by his dated initials.
When any measurements are cancelled, the cancellation must be attested by a
reference to his orders installed by the government servant would took the
measurements. In either case the reason for the cancellation should always be
recorded.
g) Entries should be made, if possible, in ink and otherwise in indelible pencil.
Pencil and trees should never be inked over. Every entry in the “Contents of
area” column should be made in ink.
h) Each measurement book should contain index and the Government servant in
charge of it should keep the index up to date.
i) At the time of payment, to government servant who authorizes payment should
draw a diagonal red ink line across every page containing the detail
measurements relating to the work or supplies paid for and should record
reference to the number and date of the voucher or sub-voucher on the
abstract of measurements.
j) The measurement book should be produced for inspection on request by the
accountant general or a duly authorized member of staff.
k) The officer is specified for the purpose in the concerned department manuals
are competent to deal with losses of measurement books. All losses of
measurement book should at once be reported to them so that the losses may
be written off necessary disciplinary action taken against those responsible for
the loss.
l) All the M. Books belongs to a division should be numbered serially and the
pages of each book should be serially machine numbered and a register of them
should be maintained in Form PWD VI-120, in the Divisional Office showing the
serial number of each book, the names of the Sub-Division to which issued, the
dates of issue and the date of its return, so that its eventual return to Division
office is watched
A similar register should also be maintained in the Sub-Divisional office,
showing the names of the Sub-divisional Officer and Sectional Officer to whom
measurement books are issued.

12. CHECK-MEASUREMENT OF MB

*As per G.O.MS.No.94 I& CAD (PW –COD) Dept. Date- 01-07-2003-rule(22)
Payment will be made after proper check of quantity and quality within a reasonable
time limit.
*As per TSFC Article 176 , PW ’D’ code Para 294,295 & PW ‘A’ code Para
297-Work should be check measured before payment, the contractor should not be
paid for work done until it has been check-measured by the prescribed authority.

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a) Sub-divisional Officers should necessarily check measure before Payment and in

proper time in the following cases : —
(i) all final bills on running accounts.
(ii) all first and final bills over Rs. 500; and
(iii) Works including in all kinds of bills over Rs. 100/- (G.O.Ms.No. 244
P.W.D. 4-10-1960) which will not be susceptible of check measurement after a
certain stage.
b) The check measurements to be done by the Executive Engineer/Divisional
Engineer should be spread out throughout the year and there should be no rush
of check measurements towards the end of the financial year.
c) The object of check measurement is to detect errors in measurement and to
prevent fraudulent entries. Check measurement should therefore be conducted
with direction and method, those items being selected which appear obviously
incorrect or which would be most easily susceptible of fraud or which would
most seriously affect the total amount of the bill if inaccurate.
d) The check measuring officers shall put his initials on the left side of the
‘particulars’ column in token of his having check measured that line of
measurement and this has to be observed by all the Check measuring
Officers(DyEE/EE/SE).
e) After conducting the check measurement, the Check measurement Officer shall
record endorsement ‘Check measured by me from pages_____ to _____of this
MB’ under his signature with date on the left side of the appropriate page.
f) The EE shall invariably check measure all works costing Rs. 50,000 and above
covering all the major items not less than 30% of the total expenditure incurred
each time and a certificate to the following effect shall be recorded in MB and
Bill: ”certified that measurement by the Executive Engineer has been carried out
covering not less than 30% of the total expenditure incurred each time vide pages
of MB Nos.__”
g) The SE shall invariably check measure all works costing Rs.50,00,00 and above at
1/3rd,2/3rd stages of work, and before final measurements and such check
measurements shall cover not less than 30% of the total expenditure incurred
each time and a certificate to the following effect shall be recorded in MB and
Bill: ”certified that check measurement by the Superintend Engineer has been
carried out at 1/3rd,2/3rd and final stage of work, covering not less than 30% of
the total expenditure incurred each time vide pages of MB Nos.__”
h) A register of Check measurements should be maintained in each division showing
all check measurements made by the Divisional officer and this register should
be available for inspection by Audit Officer during his inspection.

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Check Measurement in PRIs:

(Authority…?)

Sl.No Category Measurement Officer Check-Measurement Authority

1 Gram Panchayat Below RS.5000-AE/AEE
AE/AEE
Above Rs.5000-DEE
2 Mandal Praja All works – byDEE
Parishad/ (But, at the time of final
Zilla Paraja payments check-measurement
AE/AEE
Pariashad shall be done atleast once by
EE for above Rs.1 lakh & by SE
for above 10.00 lakhs works.

13. DEVIATIONS- REVISION OF ESTIMATES -SUPPLEMENTARY

13.1. Revised Estimates

*As per TSFC article-197 & G.O.Ms No.1007 TR&B(C.1))Dept.Dt:05.11.1976

& G.O.Ms No.292 TR&B (C.1) Dept. Dt:08.09.1980 - A Revised Estimates / Work
slip for a work shall be sanctioned as per powers delegated (i.e. up to 5% EE, 10% by
SE and 15% by CE ,after excluding the Tender Excess if any). This may be observed
and the variation be explained fully and clearly in the Revised Estimates / Work slip.
A RE/WS is necessary where there is variation compared to the Original
Estimate, even if it be by way of reduction in the quantities by way of substantial
variations in quantities or in the value of the estimate, etc., because the said +/-
variations have to be explained in the RE/WS or Completion report as the case may
be, by the competent authority as per paras 214 and 215 of PWD code.

13.2. Revised administrative approval

*As per PW ’D’ code Para 102, Go. Ms No.242, PWD., Dt: 11.2.1966 & G.O.
Ms. No. 1582, PWD, (Y), Dt. 18.9.1970- Revised administrative approval should also
be obtained if the expenditure incurred has exceeded or is likely to exceed the
amount of original administrative approval and the technical sanction (i.e. up to 5%
EE, 10% by SE and 15% by CE, after excluding the Tender Excess if any) or when
material developments of deviations occur.

13.3. Supplementary estimates

*As per PW ’D’ code Para 213- Any development of a project though
necessary while a work is in progress, which is not fairly contingent on the proper

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execution of the work as first sanctioned, must be covered by a supplementary

estimate, accompanied by a full report of the circumstances which render it
necessary.

13.4. Supplementary items

*As per PW ’D’ code Para 154-Note 6 :— When once tenders have been
called for a work in accordance with Note (1) of this code, ‘supplemental’ or
‘additional’ items may be entrusted to the original contractor dispensing with
tenders as follows subject to the provisions of Para 176(e) of APPW ‘D’ Code.

1. Such items of work that are found necessary after letting out a contract
and cannot be taken up for execution independently without interfering with the
original work let out and have necessity to be executed along with the original
contract shall be considered as ‘Supplemental items of work contingent of the
original contract’.

2. Supplemental items of work contingent on the main contract have to be

necessarily carried out through the original contractor as ‘authorized extra’ by
entertaining into a supplemental agreement(s). The power for executing original
contracts according to delegation of powers in force regarding of who has executed
the main contract in a given case, subject to however, to the condition that if the net
effect of supplemental agreements to be entered into is to enhance the total value
of work under the main and supplemental agreement to such an extent at sanction
to revised estimate is required to a higher authority than sanction of the revised
estimate from the higher authority shall be obtained before entering into
supplemental agreement(s).

3. Such items of works that are found necessary after letting out a work and
be executed independently without affecting or interfering with the execution of the
work let out, shall be considered as ‘Additional items to work not contingent on the
original contracts’. Such additional items of work may be let out after call of tenders.
However, if at tender call is considered undesirable and it is considered necessary to
entrust the item of work on nomination to the original contractor involving the
provision in Note (1) above it may be done so, provided the total value of such
additional items does not exceed up to which the officers can entrust works without
calling for tenders as per the delegation of powers in force. If the value of the items
exceeds the limit, approval of the next higher authority shall be obtained. They can
be executed only after separate estimate or a revised estimate or a work slip
containing the additional items is sanctioned/approved by the competent authority.
Entrustment of such items shall be at rate not exceeding the estimate rate. [Subs. by
G.O. Ms. No. 169, TR, R&B( Cl ) Dept., Dt. 25—5—198 1]

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4. (a). Entrustment of the additional items contingent to the main work and
within the scope of contract will be authorized by employer and the contractor shall
be found to execute such additional items at no extra cost to the employer and the
cost of such items shall be deemed to have been included by the Government.

(b). Entrustment of additional items of work contingent to main work and

outside the scope of the contract will be authorized by the employer with the prior
approval of the Government and the contractor shall be bound to execute such
additional items and shall be compensated at the price decided by the Government.

(c). Whenever additional items not contingent on the main work and outside
the scope of originals contract are entrusted to the contractor, entrustment of such
items and the price to be paid shall be referred to the Government for final
decision.(added by G.O.Ms.No.50,I&CAD(PW-Reforms),Dt.2.3.2009.

Note:
*As per Govt. U.O. Note No.3274/F.8 (1)/03 Fin (W&P) Dept., Dt:26.12.2003
& G.O.Ms.No.1, FINANCE (WORKS & PROJECTS-F7) Dept. Dt.25.02.2012,
6(c) works should be executed only up to the limit granted by administrative
sanctions. No excess work should be undertaken without sanction of the competent
authority.
6 (e)- The discount tender (minus tenders) shall not be reckoned nor utilized for
additional purpose.

13.5. PRICE ADJUSTMENT

*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003, Annexure-
1,tender procedures, (16) : Price adjustment shall be granted where administered
prices are enforced and that too for works estimated at more than Rs. 2.00 Crores
and having completion period of more than 18 months. This should be applicable
within the original contract period or extended period owing to departmental
delays. This will not apply to cases attributed to contractors fault.

*As per G.O.MS.No.1,FIN(WORKS & PROJECTS-F7)Dept. Date-25-02-2012-

para 2(9)- Treatment of Price adjustment:- all the Departments should operate
variation in rates only to the extent where it is above 5% over the estimated rates.
Thus if the price excess is 10%, payment will be made only to the extent of 5% (10%-
5%) since the contractor factors into his original bid his risk of absorbing the first 5%
increase.

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14. WORK COMPLETION REPORT

*As per TSFC Article 181-When a work has been duly completed, the
government servant who pays for it should have a completion report prepared and
forwarded it to the prescribed authority in accordance with the rules applicable to
his department. The report should be prepared in the form specially prescribed for
the department concerned or in common form 296. Every completion report should
show the name of the work, the number and date of the order sanctioning it, the
amount of expenditure sanctioned and the actual expenditure incurred.
If the actual expenditure exceeds the amount of the sanctioned estimate, the
completion report should be sent to the prescribed authority through the authority
which sanctioned the estimate. The reasons for the excess expenditure should be
stated in the completion report, and the sanction of the authority competent to
sanction the total expenditure should be obtained and recorded.

15. EXTENSION OF TIME & IMPOSITION OF LD CHARGES AND ITS CALCULATION

15.1. EXTENSION OF TIME

*As per PWD code 154 –instruction 4 (G.O.Ms.No.37, T, R& B (B.I.) Dept.
Dt. 30-1-1990)- Since most of the works are on L.S. contract system, time is the
essence of a contract. It is therefore absolutely necessary that a realistic period for
the execution of the work is assured at the beginning and strictly adhered to.
For this purpose, At the time of entering into an agreement, the contractor
should be asked to give a detailed programme for execution of work, physically and
financially (item wise), completing the entire work well within the time prescribed. In
the alternative, the consent of the contractor should be obtained to the programme
work drawn up by the department. If the work is not completed at the end of the
contract period, action should be taken to determine the contract under the relevant
clause of A.P.D.D. S. If there are valid reasons for extending the contract period,
proposals for Extension of Time should be sent to the authority competent to accord
administrative sanction sufficiently in advance and in any case at least one month
before the expiry of the contract period.

*As per APDSS P.S.59 –

▪ No CLAIM for compensation on account of DELAYS OR HINDRANCES to the
Work from any cause whatever shall be.
▪ Reasonable EXTENSION OF TIME will be allowed by the Executive Engineer
(Or by the officer competent to sanction) for unavoidable DELAYS
from the causes beyond the control of the contractor.
▪ EXTENSION OF TIME also allowed in case any HINDRANCES caused by the
Written instructions of the Executive Engineer.
▪ The Executive Engineer shall asses the period of DELAY or HINDRANCEat Twenty
five per cent (25%) in excess of the actual working period lost the contractor is
entitled for extension of time, if the work is delayed on account of departmental

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default whatsoever, to the time actually lost plus-25% there on. No claim for
compensation is admissible on account of departmental delay.
▪ In the event of the Executive Engineer failing to issue necessary instructions and
thereby causing DELAYS OR HINDRANCES to the contractor, the contractor shall
have the right to claim an assessment of such delay by the Superintending
Engineer of the Circle.
▪ The decision of the Superintending Engineer is final and binding.
▪ The contractor shall Lodge in writing with Executive Engineer a statement of
claim for any DELAY or HINDRANCE referred to above within Fourteen Days
(14days) from its commencement.
▪ If the contractor do not Lodge, the Extension of Time will not be allowed.
▪ Whenever Authorized alterations or additions are made during the progress of
work, The Executive Engineer opines that in consequence of such alterations or
additions justify extension of time, such extension will be granted in writing by
the Executive Engineer or other competent authority when ordering such
alterations or additions.

15.2. LIQUIDATORY DAMAGE CHARGES

*As per G.O.MS.No.94, I & CAD (PW –COD) Dept. Date- 01-07-2003-rule
(21) the liquidated damages are imposed on the contractors as per the present
practice basing on the milestones.

*As per APDSS P.S.59– If, at any time the Executive Engineer opines that the
contractor is
• Delaying commencement of work,
• Violating any of the provisions of the contract,
• Delaying the progress of work, as defined by the statement “Rates of
Progress” in the “Articles of Agreement”
The Executive Engineer shall ADVISE the contractor in writing and demand
compliance. If the contractor neglects to comply with such demand within seven(7)
days after receipt of such notice, IT shall be lawful for the Executive Engineer to
determine the contract The determination shall carry with it The forfeiture of
• the security deposit,
• The total of the amount withheld under clause 68(Deposits),together with
• The value of such work as may have been executed but not paid for,
Or such proportions of such total sums, as shall be assessed by the Executed
Engineer.
[Any higher authority than the Executive Engineer may, it his discretion, Waive Or
Modify any penalty or forfeiture imposed by the Executive Engineer]
If, however, the Executive engineer notwithstanding the failure of the contractor
• To comply with the demand referred to in sub ‐clause(a) of this clause or

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• To maintain the “Rates of Progress” specified in the “Articles of Agreement +

Extension of Time that may have been allowed,
The Executive Engineer shall permit the contract or to proceed with the WHOLE
or PART and continue and complete the WHOLE or SUCH PART of work. Such
permission shall not be deemed to be a waiver in any respect by the Executive
Engineer of the right of forfeiture under this clause.
Provided however that Any such forfeiture under this sub ‐clause shall not
exceed 5 percent of the total of the contract.
Any higher authority than the Executive Engineer may, it his discretion, Waive Or
Modify any penalty or forfeiture imposed by the Executive Engineer under the
provision of this clause.
At any time the “Rate of Progress” in the agreement is not maintained, The
Executive Engineer shall have the right to give any part of the work to any other
contractor or contractors in order to maintain the “Rate of Progress” Upon the
completion of that part of work that is withdrawn. The Executive Engineer shall
certify the amount of expenditure incurred by the Department for getting the work
completed by another contractor or contractors.
Should the amount so certified be less than the amount which would have
been due to the original contractor on completion of that part of work by him the
difference shall not be paid to the contractor.
[Should the amount so certified be more than the amount which would
have been due to the original contractor on completion of that part of work by him
the difference shall be recovered from the original contractor by the Government.
Such recovery shall not exceed 5% of the total Contract amount.]

LDC Calculation:

If delay in execution of work L.D. charges is to be collected 1 % on 10% of

contract value per day. The maximum ceiling shall not be exceeding of 10%
contract value as per the agreement.

(Authority to be coated)

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16. MEMO OF PAYMENT (PART/FINAL)

16.1. Forms of Bills and Vouchers

*As per PW ‘A’ code Para 298. The authorized forms of bills and vouchers are
the following —
a. First and final bills-Form 24 (PWD VI-69).
b. Running account bill A-Form 25 (PWD VI-70).
c. Running account bill C-Form 27 (PWD VI-74).
d. Lumpsum contract bill-Forms 27-A and 27-B [PWD VI-75 (a) and 75 (b)
respectively].
e. Hand receipt-Form 28 (CF 476).
The use of the forms is explained in the following paragraphs and a few
explanatory footnotes are printed on the forms.

a. First and final bill-(PW ‘A’ code Para 299)-it 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.
b. Running account bill- (PW ‘A’ code Para 300 & 302)-is used for all running and
final payments to Contractors and suppliers under Piece Work Agreement
System.
c. Lumpsum contract bill- (PW ‘A’ code Para 303)-is used for making intermediate
and final payments to the contractors under Lumpsum Contractor system.
d. Hand receipt (PW ‘A’ code Para 305)-This is a simple form of voucher intended to
be used for all miscellaneous payments and advances, for which none of the
special Forms are suitable.

16.2. Preparation of Bills

*As per PW ‘A’ code Para 306- Before the bill of a contractor is prepared, the
entries in the measurement book relating to the description and quantities of work
or supplies should be scrutinized by the Sub-divisional Officer and the calculations of
“contents or area” should be checked arithmetically under his supervision. The rates
allowed should be entered by the Sub-divisional Officer in the abstract of
measurements, vide paragraph 294(c). The bill should then be prepared, from the
measurement entries, in one of the forms prescribed in paragraphs 298 to 305
applicable to the case.

• no increase in an authorized rate is suggested without the prior sanction in

writing of the competent authority;

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• When the authorized rate has not been fully earned, a suitable reduction is made
indicating the reasons therefore.
• Unforeseen items of work provided for by a Lumpsum provision in an estimate,
should be paid for only after actual measurement. The agreement should have a
clause to this effect.
• The revision of rates after work is carried out is entirely inadmissible.
• As a general rule, payment for supplies is not permissible until stores have been
received and surveyed, and provision for the observance of this rule should be
made in all contracts for the supply of goods.
• Advance payment may be not exceeding 90% in respect of items indented to the
firms of repute outside D.G.S. & D rate contract based on the strength of the
dispatch documents. In case of dispatch documents sent through Bank, advance
payment not exceeding 90% of the value of the stores covered by the dispatch.
In both the cases the firm should furnish the following undertaking before the
advance payment is made. “We undertake, in the event of any payment being
made in advance of delivery, to deliver the material in accordance with the terms
of the contract and in the event of its not being so delivered for any cases
whatsoever or the material delivered by us not conforming to the specifications
mentioned in the tender/purchase order, we will at option of the Government,
refund the amount so paid in advance of delivery.“

*As per PW ‘A’ code Para 307- Before signing the bill, the Sub-divisional
Officer should compare the quantities in the bill with those recorded in the
measurement book and see that all the rates are correctly entered and that all
calculations have been checked arithmetically.

• When the bill is on a running account, it should be compared with the previous
bill.
• Should observe carefully the check measurement of works in the case of first and
final bills and running account bills in excess of Rs. 500.
• The memorandum of payments should then be made up, any recoveries which
should be made on account of the work or supply or on other accounts, being
shown therein.
The following recoveries are generally made from the bills of contractors:
▪ Recoveries creditable to the Same Work
• Cost of Materials such as Cement Steel etc. issued for use on the Work
• Hire charges of Machinery
• Fine for Bad work
▪ Recoveries creditable to Other Works / Head of Account
• Security Deposit-EMD,FSD,ASD
• IT, GST, NAC, LC, Seniorage charges

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•Cost of materials supplied to contractors for use on other Works but

ordered for recovery from the bill
• Cost of Excess Materials issued for use on the Work but not returned by
the Contractor to the Department
• Supervision charges on the above item
• Court attachments
• Mobilization Advance/Other advances, Interest on such Advances
• Liquidated Damages, Penalties, Fines.
• The overall position of recoveries shall be furnished in various separate
statements, showing overall recovery to made under each kind of recovery, duly
deducting the recovery of each kind already made up to previous bill and the
balance amount to be recovered under each kind from the current bill shall be
furnished for each bill and recorded in MB for effecting the recovery. Copies of
these Overall Statements shall also be enclosed to every bill.

• The Officer, who is empowered to pay the bill, should then record a formal pay
order specifying, both in words and figures, only the net amount payable through
the payee who should be required to acknowledge in his acquaintance the gross
amount payable inclusive of the recoveries made from the bill.

*As per PW ‘A’ code Para 309- From the measurement books, all quantities
should be clearly traceable into the documents on which payments are made.
• When the bill is prepared for work or supplies measured a remark to the effect
“Bill submitted to the Executive Engineer on should be endorsed on the “abstract
of measurements.”
• The officer who signs the pay order should immediately on signing it cross out
every page containing the detailed measurements of the work or supplies paid
for by a diagonal red ink line.
• The officer who actually disburses the amount should enter the number and date
of the voucher of payment with the remark “Paid on by voucher No. “ on the
abstract of measurements.
Note: — The document on which payment is made should invariably show in the
space provided for the purpose, the number and page of the Measurement Book in
which the detailed measurements are recorded and the dates on which the
measurement and check measurement were made.

*Miscellaneous:

• While writing ‘Abstract of Bill’ in the MB, all items covered in the Agreement
should be written up with full description as found in the Agreement.

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• Any new / additional items covered by supplemental Agreement and not

contemplated in the original Agreement, shall be recovered in the ‘Abstract
of Bill’ after recording all the items of the Main Agreement.

16.3. MOBILISATION ADVANCE

*As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003, Annexure-
1,tender procedures, (17): The contractor shall have the facility of obtaining
mobilization advance up to 10 % of contract value on works costing more than Rs. 1
crore against Bank Guarantee which will attract suitable rate of interest. The
advance and interest shall be recovered from the contractor’s bills in appropriate
installments.

17. STATUTORY DEDUCTIONS

The following recoveries shall be made from the work bills as per the
applicability
(Including all the provisions which are reimbursed in part-II of the estimates):

17.1. GST
* As per section 51(1) CGST act 2017,TDS @ 2% is required to be deducted on
payment made to the supplier of taxable goods or services of both where the value
of such supply under a contract exceeds Rs.2.5 Lakhs w.e.f. 1.10.2018 (notification
No.50/2018-central tax dated 13.09.2018).

17.2. IT (Income Tax)

* As per Section 194C of Income Tax Act,1961 Tax need to be deducted 1%

(for individual, HUF)/ 2% (for others) of payment where payment is made for
carrying out any work (including supply of labor for carrying out any work and
advertisements) by a contractor/sub-contractor.
* As per Section 194J of Income Tax Act, 1961 Tax need to be deducted 10%
of payment where payment is made for fees for professional or technical services .

17.3. SENIORAGE FEE

* As per G.O.MS.No.94 I CAD (PW –COD) Dept. Date- 01-07-2003-rule(19)

The Seigniorage charges will be recovered from Contractors bills as per the rates
prescribed in the contract documents for the materials used on the work only. The
present practice of insisting for production of documentary evidence for having paid
the seigniorage charges in items of GO Ms No. 243, Dated 8.5.1986 and in the

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absence of such production of the evidence, the Imposition of five times penalty is
dispensed with.

17.4. NAC(National Academy of Construction)

*As per G.O.MS.No. 19, TRANSPORT ROADS AND BUILDINGS (R.II) Dept. Dt::
24.04.2015.( National Academy of Construction) 0.1% of the estimate value will be
added to the bill amount and equal amount will be deducted from the bill amount
creditable to corpus fund of NAC (The recovery of 0.1% of the estimate value is only
for the prospective new sanctioned works.)

17.5. LC (Labour Cess)

* As per G.O.MS.No.112 Labour Employment Training & Factories (lab-II)

Dept. Dt: 15.12.2009-1% labor cess on the cost of construction shall be deducted
from all bills paid to contractors/Agencies.

17.6. . Q.C. (Quality Control)

*As per G.O.MS.No.94, I & CAD (PW –COD) Dept. Date- 01-07-2003-rule (24) –
as per the provisions made in the part-II of the estimates.

18. QUALITY CONTROL REPORT

*As per G.O.MS.No.94, I & CAD (PW –COD) Dept. Date- 01-07-2003-rule (24)
QUALITY CONTROL: (a) The Contractor and the Engineers in charge of construction /
maintenance are responsible for the quality of construction / maintenance. The
departmental executing Engineers will act as Quality Assurance Engineers. The
Quality Control Officials are accountable for the quality of the work where
certification issued by them. They should also act as Quality Audit Engineers.

(b) If external agencies are engaged, for conducting quality audit, the following
methodology given below should be adopted.

i) Before inspecting the work, the external agency should inform the Head of the
Department. It should conduct quality control tests as per the standard
procedures in the presence of Construction and Quality Control Engineers and
the Contractor who is executing the work.

ii) The observations of the external agencies on the quality of work should be
recorded then and there and signatures of all the concerned obtained as a token
of acceptance of the observations.

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(c) For all works costing more than Rs. 2.00 Crores, the Contractor shall submit quality
plan and also show proof of owning Quality Laboratory or having tie –up with an
established Quality Laboratory. The details of Quality Control Test Equipment
required should be incorporated in the Tender Documents. The equipment needed
should be standardized by individual departments depending on nature of work.

(d) All the major contractors should be encouraged to have ISO certification and
those having the same may be given preference in awarding of works.

Muncipalities: As per QC mannual

19. SECURITY DEPOSITS & DEFECT LIABILITY PERIOD- Release of withheld amounts
(EMDs, RMD AND FSDs)
By collecting security from contractor, the Govt. will have the right to
confiscate the same in case of breach of contract, etc.

19.1. EMD (Ernest Money Deposit)-

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (5)-: In order to ensure that the Contractor performs the contract as
per the terms and conditions of the Agreement and that he does not default in
executing the work, Deposit is obtained from him along with the tender (at a
specified percentage 2.5% worked out of the value of work put to tender) and
retained with the Govt. as security and this Deposit is known as ‘ Earnest Money
Deposit’ (EMD)/Performance security.
Release: The EMD amount with held will be retained under ‘Deposits’ and
paid to the contractor together with the Further Security Deposit retained as security
after the “Defects Liability Period”(also known as “Observation Period”).

19.2. FSD (Further Security Deposit)

*As per DSS P.S.-68- in addition to EMD , from each intermediate bills 7.5 %
of work done value( recovered and kept under work without taking it to ‘Deposits’ of
the Govt) will be withheld and retained as security for due fulfillment of the
contractor.
In the final Bill of Contractor, 2.5% of the Security is recovered and kept under
‘Deposits of the Govt. (thus releasing 5% out of 7.5% withheld up to pre-final bill),
provided there is no recovery from or forfeiture by the contractor to be made under
Clause 60.

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Release: The amount with held from the final bill will be retained under
‘Deposits’ and paid to the contractor together with the earnest money deposit
retained as security after the “Defects Liability Period”(also known as “Observation
Period”)

19.3. ASD (Additional Security Deposit)

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Rule13(ii): Tenders up to 15% less than the estimate may be accepted
but for tenders which are less by more than 15% of the estimate, a bank guarantee
or demand draft (Additional Security Deposit) for the difference between the
tendered amount and 85% of the estimate value should be taken so that the
tenderer leaves the works midway and the department is forced to call for tenders
for the work once again, the bank guarantee or demand draft shall be used to
finance the re-tendered work.
Release: The amount withheld will be retained under ‘Deposits’ and normally
released to the contractor after completion of work or as specified in the conditions of the
agreement.

19.4. Defect Liability Period

*As per G.O.MS.No.94, I & CAD (PW –COD) Dept. Date- 01-07-2003-rule (25)
DEFECT LIABILITY PERIOD: The contractors are responsible for the quality of works
executed till the expiry of defect liability period, which is now prescribed as two
years for both original works and maintenance works. Each department should
formulate and issue guidelines based on the nature and life span of works.

Note: *As per G.O.MS.No.12, Finance(W&P) Dept. Date- 11-12-2013- the

Government after careful examination , deleted the Clause specifying substitution of
retention money of 2.5% with ‘on-demend’ Bank Guarantee.

20. REPAIRS

*As per Article-147 of The TS FC code & PWD Code paras 88-94
REPAIRS AND MAINTENANCE:- include all the operations required from time to time
to maintain existing properties in a satisfactory state and make good the damage
due to wear and tear when complete reconstruction is not necessary, widening of
roads or culverts and reconstruction of culverts classified as “Repairs”.

PW’D’C Para 92-There are certain operations of the PWD which fall under both
the categories of ‘original works’ and ‘repairs’, i.e., operations which are of the
nature of both, (The classifications and treatment of such mixed estimates for the

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purpose of this Code will be determined by the principles in Para 93. Vide in this
connection Explanatory Note 26(3) and (4) in Appendix 4 to Andhra Pradesh Public
Works Account Code also.

PW’D’C Para 93- When a portion of an existing structure is to be dismantled

for the reason that it is structurally unsound, and is to be replaced by a work which is
not in material essential the same as the work dismantled e.g., thatched roof
replaced by tiled roof, or by an addition, e.g., an extension of a building, the mixed
work shall, for the purpose of determining the authority competent to sanction it, be
treated as an original work. In the estimate and in the accounts, the following points
should, however, be observed—

(a) If the new work costs more than the original cost of the work which it
replaces, the whole cost should be first taken to original work but eventually
the difference should be charged under ‘original works’ and the costs of
dismantled portion under ‘repairs’. The costs of the dismantled portion should
be taken as its original cost of construction plus the cost of any additions
subsequently made, or where this is not known, its estimated cost.
(b) If the new work does not cost more than the original cost of the dismantled
portion, the difference between the two will be written off the capital accounts
where they are kept, and the entire cost of the new work charged under
repairs. [Note 1 :— If an existing structure dismantled for the reason that it is
structurally unsound is replaced by work which is in material essentials the
same as the work dismantled, the work is strictly of the nature of repairs unless
it falls under the last clause of Para 89. ]

If a work is dismantled and replaced, not because it is structurally unsound but

purely because of administrative reasons, the entire operation will be treated as an
original work, and the whole cost debited to original works, the cost of the
dismantled work being written off the ‘capital accounts’. The cost of dismantlement
in either case should be charged to repairs.

PW’D’C Para 94-When an entire structure is reconstructed owing to the

occurrence of fire, flood, earthquake, abnormal storm or other calamity or owing to
wear and tear, the work should be treated as an original work and the cost of
reconstruction as capital cost. On completion, the Government will decide what
amount should be written off the original capital cost.

*As per PWD Code Para 133 -Repairs are further classified as…
ORDINARY REPAIRS: - Include the periodical Repairs which are done regularly as a
matter of routine, and are usually of the same nature (e.g., painting or white-
washing a building or spreading a new coating of metal on a road), and any

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occasional petty repairs required from time to time, which may have to be carried
out between the times fixed for the periodical repairs.

C. SPECIAL REPAIRS: - are repairs which are not periodical or frequent, e.g., re-
roofing a building replacing beams or renewing a floor.

PW’D’C Para 135 Ordinary repairs —Except in the cases contemplated in Para
147, a separate estimate should be prepared annually for the anticipated ordinary
repairs of each building at work or group of works during the working year, as
detailed in the budget.

PW’D’C Para 136 An ordinary repair estimate lapse on the last day of the
financial year in the case of roads and buildings. In the case of irrigation works,
however, separate working years have been laid down.

PW’D’C Para 137. The sanction to an ordinary repair estimate lapses on the last
day of the year fixed by the State Government under Paragraph 136. If, however,
inconvenience would arise in any exceptional case from the stoppage of the work on
the fixed date, the repairs may be carried on to completion, the expenditure after
the date being treated as expenditure against a fresh repair estimate of the next
working year.

PW’D’C Para 138 Repairs estimate should, like those for original works, provide
for the removal of all rubbish which may have accumulated, filling in unsightly pits,
etc., round the buildings, all works establishment employed specially on the work;
and, under separate sub-heads, all watchmen sanctioned by competent authority for
the care of vacant buildings, guarding works, working sluices, etc.

PW’D’C Para 139 Estimates for special repairs remain current till the completion
of the repairs in the same manner as estimates for original works — vide Paragraph
186.

PW’D’C Para 140 In cases of urgency the Superintending Engineer may authorise
the commencement of periodical repairs in anticipation of the formal sanction to the
estimate; but in such cases an approximate sum must be fixed, to the expenditure of
which sanction is provisionally given, and the Executive Engineer will be responsible
that sanction of the competent authority is accorded to the regular estimate at the
earliest possible date.

PW’D’C Para 142 The administrative approval is required for works, which are of
the class either ordinary or special repairs. The class of mixed works described in
Para 93 PWD require the same approval as original works.

PW’D’C Para 143 To facilitate the preparation of estimates for periodical repairs,
a standard measurement of book may be kept in the office of each Executive

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Engineer, showing the detailed measurements of each kind of work which is usually
subject to renewal in each work under his charge — vide Paragraph 295, A.P.
PW’A’Code. Standard measurement book should, however, be maintained properly
in the case of repairs to floating plant which require periodical repairs such as
painting and tarring.

PW’D’C Para 145 The estimate when prepared will be submitted to the
officer occupying such building, or in the case of military buildings in charge of the
Public Works Department, to the Officer Commanding the station for
countersignature in token that all repairs now to be required are provided for. In the
case of buildings occupied by officers of a civil department occasional repairs not
provided for in the annual estimate will be executed on requisitions sanctioned
under Paragraph 110.

PW’D’C Para 146 Provision for the payment of municipal and other taxes on
public buildings should be made in the annual repair estimates in the cases indicated
in item 56 in Appendix No. 12, to the A.P. Financial and Account Code, Volume TI.

PW’D’C Para 147. If the cost of ordinary annual repairs, excluding the
municipal taxes to a building (residential or non-residential) is less than Rs. 1,000 the
Superintending Engineer may prescribe, subject to revision from time to time, a
lump-sum limited to Rs. 1,000 (plus the amount of the municipal taxes, if any
payable by Government under Paragraph 250) to cover the cost of ordinary annual
repairs and within this amount, expenditure will be permissible year after year
without any detailed estimate being prepared.

Electrical Maintenance Works-Similar lumpsum estimates may also be prepared and

sanctioned for ordinary repairs to electrical installations in civil buildings. Where the
cost of such annual ordinary repairs is less than Rs. 2,000, the Chief Engineer (Roads
& Buildings) may prescribe, subject to revision from time to time, a lumpsum limited
to Rs. 2,000/- to cover the cost of annual maintenance of electric installations in civil
buildings. The Electrical Engineer (General) may similarly prescribe lumpsums up to a
limit of Rs. 500/-. Within this amount the expenditure will be permissible year after
year without any detailed estimates being prepared and when the above limits are
exceeded in any working year detailed estimates will have to be prepared in
accordance with the ordinary rules and got sanctioned by the competent authority.

PW’D’C Para 148 It is irregular to classify under “Special Repairs” an estimate

which provides for items of ordinary repairs for the reason that the repairs cannot be
completed before the date fixed for the closure of annual maintenance estimates.

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21. NOMINAL MUSTER ROLLS

*As per TSFC Article 171- Except for the permanent and temporary
employees whose pay is charged to the head “ Establishment” and the members of
the work charged establishment, all persons who are engaged departmentally for the
execution of a work should be regarded as day labourers, and their wages should be
drawn on muster roll. The muster roll is the initial record of labour employed each
day on a work. the government servant in immediate charge of the work should
write it up daily.
*As per TSFC Article 172-Muster rolls should be prepared and dealt with in
accordance with the following rules:
• One more muster roll should be kept for each work but a muster role should
never be prepared in duplicate. One muster rule may be kept for labourers
employed on several small works, if there is no objection to regarding the total
unpaid wages as relating only to the largest work in the group.
• Entry in a muster roll should be made, if possible in ink and otherwise in indelible
pencil.
• Labourers rates may be paid more than once a month, and the period to be
covered by each payment may be determined locally. separate muster rolls
should be prepared for each period of payment.
• The daily attendance or absence of each labourer and any fine inflicted on him
should be recorded daily in part -I of the muster roll.
• After a muster role has been passed by the Government servant who is
authorized to draw the bill for the works expenditure, payment should be made
as soon as possible. Each payment should be made or witnessed by the
Government servant of highest standing available.
• Unpaid items should be carried forward continuously from muster roll to muster
roll until they are paid and the payment should be recorded and certified in part
-II in the same way as payments of current items.
• All wages not claimed within 3 months should, as a rule be forfeited.
• The progress of work done by the labourers should be recorded in part-III of the
muster roll, if the work can be measured. If it cannot be measured, remarks
should be recorded to that effect.
• The Government servant who is responsible for the payments need not submit
the paid muster rolls to any higher authority, unless is specially instructed to do
so.
(to be added- rule position of AE sign on muster roll)

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22. ELECTRICITY WORKS

* As per TSFC code Para 154- As a rule, all original electrical works connected
with Government buildings will be executed by the Electricity Department. If a head
of a department wishes to arrange for the execution of an electrical work himself
and not have it executed by the Electricity Department, he should apply to the
Government for the allotment of the work to his department. If the Government
allowed the work to his department, he should get detailed plans and estimates
prepared by a competent agency, call for tenders and get the work executed under a
lump-sum contract, by a suitable agency. He should request the Electrical
Engineering to give any technical advice or assistance needed in the execution of the
work. He should also inform the Executive Engineer of the expenditure he incurs on
the work so as to enable him to maintain the capital account of the building
correctly.

* As per TSFC code Para 201(a)- Whenever a new building is constructed or an

existing building is extended or improved in a place where there is a public supply of
electricity available and it is contemplated to provide an electrical installation in the
building, the estimate should provide for it.

As soon as administrative approval to a building is obtained and the detailed

building plans are approved, the Executive Engineer should communicate copy of the
approved plans to the Electrical Engineer (General). The Electrical Engineer (General)
should without delay and in consultation with the Head of the Department
concerned prepare detailed estimates and plans for full electrical equipment
required and obtain the counter signature of the Head of the Department to plans
and estimates. Electrical Engineer (General) should then obtain technical sanction of
the higher authority if and where such technical sanction is necessary. A copy of the
approved plans and estimates should then be sent to the Executive Engineer in
charge of the construction work.
After such detailed plans and estimates for the electrical and sanitary
installations are obtained, the Executive Engineer should incorporate them in the
detailed plan for the building work and obtain competent technical sanction. The
actual construction work need not wait until this final sanction is ready. It should be
started as soon as technical sanction to the building work is obtained.
As soon as the final plans and estimates incorporating details of electrical and
sanitary installations are ready, copies thereof should be sent to the Electrical
Engineer (General), Who will in cases where tenders have to be called for, take
necessary action in close consultation with the Executive Engineer as regards the
time when he should call for tenders and start the electrical work. The Executive
Engineer should similarly settle at an early date the time when electrical work or
sanitary installations should be commenced. Tenders for the building and sanitary

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and electrical installation should all be called for in proper order in a co-ordinated
programme, which should be settled by the Executive Engineer at the
commencement of execution of the work to ensure that the use of the building is
not delayed on account of failure of the sanitary and electrical contractors to
complete their works in time.
(b)- No authority subordinate to the Government is empowered to accord
administrative approval for the first installations of electrical works in a building
whether residential or non- residential. (Exceptions are shown in Appendix 14 and
article 154 of FC)

23. REGISTER OF WORKS

*As per PW ‘A’ code-368 & 369- The permanent and collective record of the
expenditure incurred in the division, during a year, on each work estimated to cost
more than Rs. 10,000 is the Register of Works. The object of this register is to get an
analysis of the cost of sub-works and sub-heads, the rate or cost of work and to
foresee is as possible excesses over estimates.

This is posted monthly from works abstracts assigning a separate folio to

each major estimate but entries relating to minor estimates can be made on a single
page.

24. TELANGANA STATE SAND POLICY & MINERAL POLICY

Telangana state new sand mining policy-2014 and Rules-2015 and Lead Charges
Sl.
Item Description Authority
No.
G.O.M.S. No.38 Industries and
Introduction of
1 Sand Policy Commerce
Ts new sand mining policy
(Mines-1) Dept., Dt:12.12.2014
G.O.M.S. No.3 Industries and
Framing of TS
2 Sand Policy rules Commerce
New Sand Policy Rules-2015
(Mines-1) Dept., Dt:08.01.2015
1) G.O.M.S No.03 ind & Comm
(Mines-I) Dept., Dt:08.01.2015
Govt. Dept. Shall be mandated Rule 9(v)
3 Rock Sand to use at least 50% of Manufactured sand in 2)G.O.M.S No.37
Govt. Constructions Ind&Comm(Mines-I) Dept.,
Dated:29.05.2018 and SOR
2018-19 Para No.03

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100% Seigniorage fee shall be remitted to the

General Funds under the Head of Zilla
Parishad concerned. The same shall be TS Sand Mining Rules-2015
apportioned in the ratio of 25:50:25 among G.O.M.S No.03 Ind&
4 Seigniorage Fee
Z.P.,MP, and GP respectively of Account:- Comm(Mines-I)
8448-Depositing Local Funds Dept.,Dt:08.01.2015 Para No.
109-Panchayath Bodies Fund
03-Zilla Parishad Funds

The D.P.O shall allocate 3% of revenue from

G.O.M.S.No.22 Youth
quarrying of sand for sports activities and
Advancement
5 Segniorage Fee distribute the same among the GP:MP:Dist
Tourism and culture(sports)
level sports authorities in the ratio of
Dept., Dt:18.03.2010
37.5:37.5:25
1.G.O.M.S. No.16
Ind&Comm(Mines-1) Dept.,
Dt:16.03.2016
6 Segniorage Fee Revised Rates of Segniorage Fee
2. GO.Ms.No.67, Ind &
Com(MINES-I)
Dept.Dt:26.09.2015

Inclusion of Seniorage Charges of 1)G.O.M.S No.39 I &

materials in Part-II i.e., under Reimbursable CAD(Reforms)
7 Segniorage Fee
items of tender schedule instead of adding Dept.,Dt:17.09.2019
the same in individual data 2) SOR 2018-19 Para No.06

Dist. Mineral Fund Trust shall be deemed to

have come in to existence w.e.f. 12th day of
G.O.M.S. No.03
Jan-2015 and introduced through the
8 DMF Ind&Comm(Mines-1) Dept.,
G.O.MS. No.03, DMF shall be deducted 10%
Dt:20.01.2016
on segniorage fee from 12.01.2015 to
31.03.2018

An amount equivalent to 30% on Seigniorage

fee shall be recovered by the Govt. Eng/
Consuming Dept along with the Seigniorage
DMF G.O.M.S.No.38 Ind &
fee from the contractor bills on the quantity
9 (Dist. Mineral Comm(Mines-1) Dt:31.05.2018
of minor mineral consumed in the
Trust Fund) Para No.13.01.04.03
construction and remitted to DMF account
for any Eng. works entered agreement for
execution on or after 1st April-2018

G.O.M.S. No.10 Ind & Com

(Mines-1) Dept., Dt:26.02.2016
SMET An amount equivalent to 2% on Seigniorage
Rule 5
(State Mineral Fee shall be recovered by all the Govt. Eng.
10 read with G.O.M.S.No.71 Ind &
Exploration Dept., implementing from the contractor
Com(Mines-1) Dept
Trust) bills, and remit to the S.M.E.T
Dt:30.11.2016 amended Rule
3(a)
Lead Statement The lead & lift charges are SOR 2018-19
11 (Contractors inclusive of contractor's profit and overhead Conveyance Charges
profit) charges of 13.615% Para No.12

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Hence, while arriving the finished item rate,

the lead charges are to be added to the
Lead Statement SOR 2018-19
material basic rates only after deducting the
12 (Contractors Conveyance Charges
provision of "Contractor's Profit and
profit) Para No.13
Overhead charges" Contractors Profit
13.615%

The high level committee has recommended

Lead Statement to adopt, for conveyance by head load, a SOR 2018-19
(Head Load and minimum lead of 50 meters and additional
13 Lead Charges
Mechanical lead up to 150 meters in the intervals of 50 Para No.08
Load) meters. Beyond 150 meters lead, only
machinery rates are to be adopted.

For the materials where the basic rates are

Lead Statement mentioned as “Quarry Rates” in the SoR, SOR 2018-19
14 (Mechanical which includes initial lead of 1.00km lead Lead Charges
Load) charges are to be added for the lead Para No.8.3
distances from the approved quarries as
applicable.

1. Loading and unloading charges are not

payable for conveyance by head load.
2. Loading and unloading charges are not
Lead Statement payable for conveyance by mechanical SOR 2018-19
(Loading and means, for disposal of excavated material
15 Loading and unloading Charges
unloading unless specified. Para No.9
Charges)
3. The rates for unloading of materials except
earth, sand, gravel, coarse aggregate, rubble,
size stone and cut stone, are inclusive of
stacking wherever applicable.
SOR 2018-19
Lead Statement 1. Lift up to 3m(initial lead) is covered
16 Lift Charges
(Lift Charges) in material rate
COM-LDLFT-6 F.

25. LEAD & SENIORAGE– (CALCULATIONS & CHARTS )

25.1. LEAD:

A. Leads and Lifts: “Lead” is the horizontal distance between the central line of the
pit cross-section and the central line of the bank, which is formed with the
excavated earth.
a) For total lead upto 150 m ( including initial lead ) lead charges by head
load only shall be adopted irrespective of mode of conveyance. For total
lead exceeding 150 m conveyance by mechanical means only shall be
adopted irrespective of mode of conveyance. The rates for loading at
quarry including idle hire charges of trucks and hire charges per for each

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kilometer and upto 5 km are cumulative and inclusive of total charges

for preceding lead.
b) Unless otherwise specified lead charges for Earth / Sand / Gravel /
Aggregates and Stones are for loose volume and not for compacted or in-
situ volume.
c) The rates for lift charges, lead charges hire charges are cumulative are
cumulative and inclusive of rates for preceding lift,load and hire
charges
d) Lift charges are not payable where conveyance of materials is by
mechanical means to final placing point. Loading and unloading charges
are not payable for conveyance by head load.
e) Loading charges are not payable for conveyance by mechanical means for
disposal of excavated materials beyond initial lead of 50 m wherever
specified. Loading and unloading charges are not payable for conveyance
by mechanical means for disposal of excavated materials beyond initial
lead of 1 km wherever specified.
f) The rates for unloading of materials except earth, sand, gravel, coarse
aggregate, rubble, size stone and cut stone are inclusive of stacking.
g) Hire charges are per 1KM for tippers and trucks for transport of materials
from work site to dump yard and other places are cumulative& includes
previous km upto 5 kms.
h) The lead & lift charges are inclusive of contractor's profit and overhead
charges of 13.615%
During the BoCE meeting held on 26-05-2016, it is observed that in some of the
estimates, Lead Charges are being added directly to the material basic rates for
arriving the finished item rate. In view of that, the BoCE has instructed to see
that while arriving the finished item rate, the lead charges are to be added to the
material basic rates only after deducting the provision of Contractor's Profit and
Overhead charges

B. “Lift ”is the vertical distance obtained by adding up A,B and C where
A=half the depth of the pit actually excavated
B=half the maximum height of the bank formed with the excavated earth over
existing ground or bank
C= the difference between the top level of the pit actually excavated and the
level above which the bank is formed.
“Extra Lift” by head load will be the sum of A,B and C as above defined less an
initial lift of two meters. For every “Extra Lift” of one meter or part thereof
payment will be made at the contract schedule rate.
In case of rock the rate shall be per cubic meter.

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C. Carriage: *As per Standard Preliminary Specification 34 (a), Rates for finished
work shall always include the cost of conveyance and all leads and lifts, loading,
unloading and stacking in the manner and at the place ordered by the officer in
immediate charge of the work, unless circumstances necessitate provisions for a
separate schedule item, in which case such will be specified in the tender notice
or schedule.
(b) Of the preliminary specification where the term “carriage” or
“conveyance” is used in a schedule item, it shall in the absence of other schedule
provision or modifying description in the specification be taken to include all
leads, lifts, loading, unloading and stacking in uniform stacks to the satisfaction
of the Executive Engineer.

D. Voids: These are the gaps between the pieces of materials like gravel, broken
stone when stacked for measurement

*As per SOR 2019-20 (Lead) Conveyance charges for machinery per kilometer
for transporting materials by tippers and trucks excluding loading, unloading and idle
hire charges of machinery.

(Lead)
charges
(Lead) (Lead) for trucks
(Lead) charges
charges for charges for and
for trucks and (Lead)
trucks and trucks and tippers
tippers for (Lead) charges
tippers for tippers for per
Cement/ charges for
Earth / Rubble/Size cu.meter
Sl Steel/ RCC for per trucks
Distance Sand stones/ Cut for PCC
No. poles/ AC & GI cu.meter per
/Gravel / Stones/ slabs/
sheets/ for water/ 1000
Murrum/ Coarse Shahabad
Packed 1000 litres Nos. of
Lime/ aggregate slabs/ CC
materials/tonn Bricks
Surki/ per per & Laterite
e
cu.meter cu.meter blocks/
Wood/
cum
1 Lead up to 1 km 34.70 33.60 21.00 49.50 20.80 56.10
2 Lead up to 2 km 48.60 47.10 29.40 69.30 29.10 78.50
3 Lead up to 3 km 64.80 64.80 40.50 95.30 38.80 104.70
4 Lead up to 4 km 78.70 78.70 49.20 115.70 47.20 127.10
5 Lead up to 5 km 92.50 92.50 57.80 136.10 55.50 149.50
For every km
6 beyond 5 km up 13.90 13.90 8.70 20.40 8.30 22.40
to 30 km
For every km
7 11.60 11.60 7.20 17.00 6.90 18.70
beyond 30km

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LEAD CALCULATIONS:

Example: Total lead for sand from approved sand quarry : 15 Km

Initial lead included in the basic rate in the SR : 1 Km

Additional lead charges :

Sl.No K.M. Range Lead charges Total
Amount Rs.
1 Lead charges for 5 km 92.50 92.50
Beyond 5 Km up to 15
2 13.90 X 10 139.00
Km-10km
3 Lead charges For total 15 Km 231.50
(-) Less 1 km initial lead charges /cum 34.70
Additional lead charges / cum
196.80
(including contractor profit)
Exclude contractor Profit @ 13.615% 26.80
Additional lead charges / cum
170.00
(EXcluding contractor profit)

25.2. SENIORAGE Calculation

*As per .G.O.M.S. No.16 Ind&Comm(Mines-1) Dept., Dt:16.03.2016

& GO.Ms.No.67, Ind & Com (MINES-I) Dept.Dt:26.09.2015 (schedule-I)

Seniorage Charges for CUM

Name of the minor mineral SEIGNIORAGE (Rs.)

Metal 75
Ordinary sand 40
Morrum/Gravel & Ordinary Earth 30

Standard specifications for Seniorage Charges

ITEM PROPORTION
Metal 0.90
Sand 0.45
Per 1 CUM
0.1125
Cement *(Subject to variation of Grades
i.e.-M10,M15,M20)

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Seniorage charges sample calculation sheet

Sl. Item of Work Qty. Standard Proportion Rate Amount
No *(sample) Specification quantity of
Proportion Metal/Sand
1. Base Gravel 39.92 39.92 30.00 1198.00
2. CC M 10
Metal 5.12 0.90 4.61 75.00 346.00
Sand 5.12 0.45 2.30 40.00 92.00
3. CC M 15
Metal 2.16 0.90 1.94 75.00 145.50
Sand 2.16 0.45 0.97 40.00 34.80
4. RCC M 25
Metal 9.04 0.90 8.14 75.00 611.00
Sand 9.04 0.45 4.07 40.00 163.00
2590.30

26. OTHERS

26.1. DEPARTMENTAL CODES

The FOUR Departmental Codes relating to Engineering personnel working in

Telangana State.

I. The Public Works Department Code (”D” code) deals with

• –Establishment and Organization of Department,
• –Classification of the operation of the Public Works Department,
• –Administrative approval,
• –Technical Sanction,
• –Preparation of Projects, Reports and Estimates,
• –Execution of Works,
• –Completion Reports,
• –Public Building,
• –Miscellaneous rules regarding office works.

II. The Public Works Account Code (“A” Code) deals with
• –Preparation of Bills and matters pertaining to the Bill,
• –Procedure of Scrutiny of work bills,
• –Contract Procedures relating to L.S. and K2 Contracts,
• –Agreements of peace works

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III. The A P Detailed Standard Specification (APDSS) deals with

(APDSS previously known as MDSS‐Madras Detailed Standard
Specification)
• It is an indispensable book to all Engineering Departments.
• It evolves to govern all the Engineering Branches of the Government or
Autonomous bodies.
• It is the authority which the contractors have to invariably follow.
• Contract Act , the Constitution and other laws prevail and not APDDS,
• This code consists of

i). PRELIMINARY SPECIFICATIONS‐73 N0 ::

• Embodies the contractual relationship between the Government and t
he Contractor.
• Are non‐statuary and are invalid before Law.
• Are amenable to (inclined to) the provisions of Contract Act.
• Additions and alterations will be approved by the Government.

ii). STANDARD SPECIFICATIONS –16 Sections::

• Are Technical Specification of works, River Conservation and Road
Works.
• Additions and Alterations (which do not involve Legal implications) will
be approved by Chief Engineer (General).

IV. The TS Standard Scheduled Rates and Standard Data.

Called in short as SSR and DATA.

26.2. ENGINEERING DEPARTMENTS IN TELANGANA

• Government of Telangana consists of Three branches ::
I. Public Works Department,
II. Irrigation Department,
III. Roads and Building Department.
• Autonomous Bodies of ENGINEERING Depts. in Telangana ::
I. Panchayat Raj Engineering Department,
II. Municipal Engineering Department,
III. Water Works and Drainage Board,
IV. Housing Board,
V. Roads Transport Corporation,
VI. Electricity Board,
VII. Police Housing Board.

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Note: A Government Order issued by the Engineering Department, on any particular

matter will apply to other Engineering Departments also, unless a different
Government Order is issued on the same matter in respect of other Department.

26.3. MORTH, MORD & CPWD SPECIFICATIONS

I. MORTH Specifications for Roads and bridge works

Ministry of Road Transport and Highways (MoRTH) an apex organization of

the central government is engaged in formulating and administering policies for road
transport, national highways and transport research in consultation with other
Central Ministries/Departments, State Governments/UT Administrations,
organizations ...
These specifications shall apply to all such roads and bridge works as are
required to be executed under the contract or otherwise directed by the Engineer-
in-charge.
II. MORD specifications for Rural roads
On the request of National Rural Roads Development Agency (NRRDA), an
arm of the Ministry of Rural Development, the Indian Roads Congress (IRC)
prepared and published Specifications for Rural roads in august ,2004, further
revised taking due guidance from the latest version of MORTH specifications and
various IRC codes/manuals/Guidelines/Specifications revised/published as also from
BIS standards and international Codes of Practice.
These specifications shall apply to all such rural roads and bridge works as are
required to be executed under the contract or otherwise directed by the Engineer-
in-charge.
III. CPWD specifications
The CPWD Specifications being published by Central Public Works
Departments (CPWD) from time to time are very comprehensive and useful in
execution of works and are used as guide by a number of Engineering Departments,
Public Sector Undertakings, Architects and Builders. These specifications not only
give the standards for building materials but also serve as guidelines for execution of
works, measurements and rates.

26.1. CEMENT CONCRETE MIXES

I. TYPES OF CEMENTS:
A. OPC-Ordinary Portland cement: is the most common cement used in general
concrete construction when there is no exposure to sulphates in the soil or
groundwater. ... To retard the faster setting time of cement resulted from (C3A)
compound a percentage of raw gypsum (selenite) is added during the grinding of the
clinker.

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OPC is the most commonly used cement worldwide. The cost of production is
not expensive making it the sought after cement in the building industry. They are
widely used for the construction of high-rise buildings, roads, dams, bridges,
flyovers. Also, Ordinary Portland Cement is used for making grouts and mortars.

OPC is available in 3 grades namely grade 33, grade 43 and grade 53.
Pozzolana is available in one grade and its strength matches the strength
of grade 33 OPC after curing.
A. PPC-Portland Pozzolana Cement: PPC Cement is prepared by adding Pozzolanic
materials (fly-ash) to OPC Cement. It can be confidently employed in construction of
hydraulic structures, marine works, mass concreting such as dams, dykes, retaining
walls foundations and sewage pipes. It is also suitable for use in common
applications such as masonry mortars and plastering. Pozzolana is available in
one grade and its strength matches the strength of grade 33 OPC after curing.

II. TYPES OF CEMENT CONCRETES

i. PCC-Plain Cement Concrete: Plain cement concrete is the mixture of cement,
fine aggregate (sand) and coarse aggregate without steel. PCC is an important
component of a building which is laid on the soil surface to avoid direct contact of
reinforcement of concrete with soil and water.
PCC is generally represented as 1:2:4, 1:1:2…..1:2:4 means, one part of
cement, 2 parts of fine aggregates and 4 parts of coarse aggregates.
ii. RCC -Reinforced concrete: is concrete that contains embedded steel bars,
plates, or fibers that strengthen the material. The capability to carry loads by these
materials is magnified, and because of this RCC is used extensively in all
construction.
Generally 1:2:4 and 1:1.5: 3 ratios of RCC are used in construction work.
Where cement concrete 1:2:4 is used; it means 1 part of cement 2 parts of fine
aggregate/coarse sand and 4 parts of coarse aggregate.

III. GRADES OF CONCRETE MIX

Grade of concrete determines the compressive strength of concrete. To
calculate grade of concrete, standard compression test is carried out on concrete
cube of 150 mm. Grade of concrete is demonstrated with M10, M20, M30 etc.
where M stands for Mix i.e. mix of constituents used for concrete. Numeric figure in
M stands for characteristics compressive strength (fck) that is stated MPa (N/mm2).
(MPa-mega Pascal, N/mm2-Newton/mm2).
IS 456-2000 refers to an Indian standard code of practice for general
structural use of plain and reinforced concrete used for determining the grades.
Up to M 20 grade is nominal mix and above M20 is design mix.

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Grade of
Proportion of Mix
Sl.No. Concrete Nature of work
Cement:Sand:Metal
Mix
Mass concrete for heavy walls,
1 M5 1 : 5 : 10
foundation, footings.
Mass concrete and foundation of
2 M 7.5 1:4:8
less importance
Mass concrete and foundation of
3 M 10 1:3:6
less importance
For general RCC works (Slab, beams,
4 M 15 1:2:4
columns. etc.)
Water retaining structures, piles,
5 M 20 1:½:3
and general RCC structure.
6 M 25 1:1:2 Heavily loaded RCC structures.

IV. STEEL
When determining the type of steel that you want to buy, it is important to know
there are four different types of steel that are classified based on their chemical
structure and physical properties: carbon steels, alloy steels, stainless steels, and
tool steels.
Basically, there are 2 kinds of bars that can be used in constructing buildings:

1. Mild Steel Bars

2. Deformed Steel Bars
Mild Steel Bars a.k.a plain bars have good tensile strength. They have a very
smooth surface and a round cross-section. These are used only for special purposes
like in the expansion joints of the dowels where the bars are expected to slide in the
metals smoothly and easily.
Deformed Steel Bars have a deformed and have indentations on them. These
indentations help to have a better grip and strength. It also helps in minimizing
slippage. When used with concrete, it becomes a very strong bond between the two
materials. They have greater tensile strength than the plain bars.
TMT stands for Thermo Mechanically Treated. The TMT bars have a hard outer
surface and a softer core. Their manufacturing process includes hot rolled steel wires
passed through water. This makes the surface hard and keeps the core warmer and
softer. This helps in making the steel corrosion resistance and also increase its
weldability.
HYSD stands for High Yielding Strength Deformed bars These bars have more
yield strength than Mild Steel. Unlike TMT bars, HYSD bars are both hot and cold
worked. They are graded as Fe 415 or Fe500.
Steel is graded as Fe 415N, 500N, 550 based on yield. Mild steel (MS) has yield
strength of approx 250 MPa in tension; Fe 415 grade has yield strength of 415 MPa.

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V. Wastage of Materials –*As per SOR

I) Cement: No wastage allowance is recommended towards the quantity of
cement used in works, as the wastage is already included in the input and in major
works bulk quantities are used.
II) Steel: The wastage of steel @ 2.5% is allowed for gates and allied
structures. For RCC works the wastage is @2.5% for the reinforcement rods above
36mm dia. and @ 5% for rods below 36mm dia. Including overlaps, if they are not
welded. If welding is adopted for the reinforcement rods even for below 36mm dia,
2.5% of wastage is only recommended.

26.2. CONTRACTORS REGISTRATION

*As per G.O.Ms. No.66, I & CAD (PW-Reforms) Dept. Dt. 20.04.2015
class of contractors, and monetary limits of works.
• 1. Special Class : Up to any amount
• 2. Class-I : Up to Rs. 30.00 Crores
• 3. Class-II : Up to Rs. 10.00 Crores
• 4. Class-III : Up to Rs. 4.00 Crores
• 5. Class-IV : Up to Rs. 1.00 Crore
• 6. Class-V : Up to Rs. 50.00 Lakhs

26.5.1 QUALIFICATION CRITERIA .

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender Procedures
Para (10)-To quality for award of the Contract, each bidder in its name should have,
during the last five years (specified financial years i.e. they should be immediately
preceding the financial year in which tenders are invited)

a) Satisfactorily completed as a prime contractor, similar works of value not

less than Rs. /- @ (usually not less than 50% of Estimated value of
contract) in any one year.

b) Executed in any one year, the following minimum quantities of works:

- Cement concrete including RCC and PSC Cum. - Earth work in both excavation
and Embankment Cum.
- (relevant principal items be indicated - (usually 50 percent of the expected
peak quantities of construction per year)

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B. Each Bidder should further demonstrate:

a) Availability (either owned or leased or to be procured against mobilisation

advances) of the following Key and critical equipment for this work. - - -

Note: (Based on the studies carried out by the Engineer, the minimum suggested
major equipment to obtain the completion of works in accordance with the
prescribed construction schedule/mile stones are shown in the above list)

b) Availability of the Key personnel with adequate experience as required should

be indicated based on the requirement for the work to be executed.

c) Liquid assets/credit facilities of not less than Rs. Lakhs (credit lines/letter of
credit/solvency certificates from Banks etc. shall be equivalent of the estimated cash
flow for three months in peak construction period)

d) EMD in the shape of Bank Guarantee in the standard format enclosed, for
Rs……. (one percent of the estimated contract value) to be valid for the period as
indicated at para 1.03 (d) i.e., period of completion plus defect liability period.

e) Experience relating to the works executed in State/Central Government

departments or State/Central Government undertakings shall only be considered.

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (12) & amendment through G.O.Ms. No.142 I & CAD(PW-Reforms)
Dept. Dt. 20.12.2004 : The qualification criteria at para.10 as well as modified
procedure of collecting EMD in the shape of Bank Guarantee will not be made
applicable for the works costing Rs.50 lakhs (ECV) and below. For above works single
cover system shall be followed and the EMD shall be submitted along with the
completed Tender Schedule.

[*As per G.O.Ms. No.140, I & CAD (PW-Reforms) Dept. Dt. 26.09.2015
(i). The qualification criteria at para.10 (A) will not be made applicable for the works
costing Rs.1000.00 lakhs (ECV) and below, for Civil works in all State
Government Departments / State Government undertakings / Corporations.
(ii). However for civil works costing Rs.50.00 lakhs (ECV) and below, collection of
EMD only in the shape of D.D. will continue.]

26.5.2 BID CAPACITY:

*As per G.O. Ms No. 94 I & CAD Dept. Dt. 01.07.2003 Annexure – I Tender
Procedures Para (11) (a) The sub contractor‘s / GPA holder’s experience shall not be
taken into account in determining the bidders compliances with the qualifying
criteria. The tenderers who meet the requirement qualification criteria will be

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qualified only if their available bid capacity is more than the estimated value. The
available bid capacity will be calculated as under:
Assessed Available Bid Capacity : A x N x 2 – B
Where A= Maximum value of civil engineering works executed in any one year
during the last five years (updated ….. * price level) taking into account the
completed as well as works in progress.

C:\Documents and Settings\Administrator\Desktop\GO 94.doc :: Page # 10

N= Number of years prescribed for completion of the works for which tenders
are invited.

B= Value of existing commitments and ongoing works to be completed during

the period of completion of works for which tenders are invited.

Note: The statement showing the value of existing commitments and ongoing
works as well as the stipulated period of completion remaining for each of the works
listed should be issued by the Engineer-in-Charge of Government department /
undertaking not below the rank of Executive Engineer or equivalent and
countersigned by the rank of SE or equivalent. The statement to the above effect
will be clearly enclosed to the Bidding document, and the tenderer shall furnish the
particulars invariably in the same format failing which the tender shall be treated as
incomplete and summarily rejected.

@ = at …. * Price level. Financial turnover and cost of completed works of

previous years shall be given weightage of 10% per year to bring them to ……., price
level *

* The financial year in which bids are invited.

(b) Even though the tenderer meets the above qualification criteria, he/she is
subject to be disqualified if he/she is found to have misled or made false
representation in the forms, statements submitted in proof of the qualification
requirements of record of poor performance such as abandoning works not properly
completed in the contract, inordinate delays in completions, litigation history and or
financial failures and / or participated in the previous tendering for the same works
and had quoted unreasonably high bid prices. In addition to the above, even while
execution of the work, if found that the Contractor had produced false/fake
certificates of experience, he/she will be black listed and work will be taken over
invoking clause 60 (a) of PS to APSS.

(c) Tenders shall be valid for a period of 1/2/3 months as the case may be.
Before the expiry of the validity, the authority competent to call for tenders shall
seek for further extension of validity from the contractors and in case the validity is
not extended his /her tender will not be considered and the EMD shall be returned.
During the period of validity if any tenderer withdraws his tender, his/her EMD shall
be forfeited

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26.5.3 RULES FOR REGISTRATION OF CONTRACTORS:

*As per(ANNEXURE - II -Enclosure to GO Ms No.94 I&CAD (PW:COD)

Department dt 01-07-2003 )
*(As issued in GO Ms No.521, I & CAD Department, dated. 10.12.1984 and as
amended in GO Ms No.8, TR&B Department, dt. 8.1.2003).

(1) REGISTRATION:
(a) The contractors registered will be called as contractors of all Engineering
Departments of A.P.State Government.

(b) The registration of the contractors will be done in the following categories: (i)
Civil contractors (of all public works departments) (ii) Public Health
Engineering. (iii) Furniture (iv) Electrical (v) Transport (vi) Fabrication and
Erection of structural scheme.

(c) Registration of contractors in each category will be done in the following

classes , separately under each one or more of the classes as they may desire.
(i) Special Class (ii) Class . I (iii) Class. II (iv) Class. III (v) Class. IV (vi) Class. V

(d) The contractors of Special Class, Class. I, Class. II and Class.III are eligible to
take up the works throughout the State. The contractors of Class. IV and
Class. V can tender for works only within the circle where registration is done

(e) Procedure for registration: The contractor shall submit an application in the
proforma given in the Annexure-IV to the concerned authority together with
necessary documents in support of his application (as mentioned below).
The authority competent to register the contractor in the concerned class will
take action to verify the credentials and antecedents of the contractor and
issue suitable order registering the contractor. Before registering in any
class or category the contract shall be asked to sign in the code of conduct
which shall be appended to the divisional copy of the APDSS. A draft form for
issuing orders of registration to be adopted by the registering authority is
given in Annexure-VI of this G.O.

(f) The following documents shall be submitted along with the application
seeking registration as a contractor in a particular class or category.
(i) Application form ( in the proforma prescribed in the Annexure-VI with
Rs.2/- court fee stamp, affixed thereon.

(ii) Proof of payment of registration fees

(iii) Solvency Certificate:

(a) The Solvency Certificate for the amounts shown under item (iv) of
the Annexure-III shall be obtained from the officer of the Revenue

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Department, of the rank not below the of the Tahsildar in the

proforma in Annexure(V)(a)

(b) The certificates may also be obtained from a scheduled bank in the
proforma given in the Annexure (V)(b).

(c) The Solvency certificate shall be valid for a period of one year from
the date of their issue.

(d) The solvency for registering various class of contractors is fixed as

10% of the minimum monetary limit of that class. This will apply to
all future registrations and renewal of registrations by existing
contractors.

(iv) A list of works executed by the contractor during the past five years
duly certified by the concerned departmental Engineer of the rank of an
Executive Engineer or equivalent officer.

(v) Latest Income Tax and Sales Tax Clearance Certificate: The names of the
firms / individuals shall be registered and included in the approved list
of contractors only when they produce income tax clearance certificate
in the form approved by the Income Tax authorities. No exemption
from this requirement shall be granted even to the Cooperative
Societies.

(vi) Copy of the partnership deed in the case of registration of partnership /

partners / companies

(vii) Form‘ C ‘ issued by the Registrar of Firms in the case of partnership /

companies.

(viii) A copy of the Engineering Degree in the case of employed Engineering

Graduates

(g) Rules for registration:

(i) The registration of contractor in any class once done shall be in force only
for five (5) years in that particular class. The contractor shall register
himself afresh every five (5) years thereafter. The registration shall
however be done only twice in a year i.e., January and June. The existing
contractors shall be given six months time for registration as contractors
afresh under these rules, from the date of issue of this order.

(ii) While submitting the application for fresh registration in the same class or
for registration in higher class, the contractor shall furnish the certificate
of his performance issued by the Executive Engineer in charge of the
works as detailed in Annexure.III, Sl.No.5 and Note. II against the item.

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(iii) The cases for firms or companies, through newly framed may be
considered provided concerned firms or companies have recruited or
already consist of highly skilled professional Engineers and experts, in
their organization.

(iv) A Contractor can register his name in more than one category.

(v) The contractor shall not apply for registration in his name and also in the
name of partnership / company which runs in his name in the same class
or category at a time.

(vi) Contractors of other States shall get themselves registered in this State
before offering their tender for works in this State.

(vii) Application of the contractors for registration in Special Class and Class–I
may be recommended by the individual Chief Engineers to the Engineer-
in-Chief for placing them before the Committee of ENCs for its
consideration and decision.

(viii) The contractor already registered in a particular class can form

partnership firms in the same class and category only by a separate
registration foregoing his individual registration at the time of biennial
registration as mentioned in Class (i) above.

(ix) In the case of partnership / Companies any changes in the partners shall
be reported to the registering authorities within one month of the date
of such change.

(x) The applicant is required to furnish the following certificate. Certified that
I will employ qualified technical personnel with suitable complimentary
staff to meet the requirements of the works as specified in the Tender
documents.

(h) Registration of contractors which is presently being done in each

specialization in Special Class and Class-I is dispensed with. In future,
Registration under these categories will be done without any
specialization as is being done in respect of other categories of
contractors. Existing contractors of Special Class and Class-1 will be
eligible for all categories of works unless otherwise specified in the tender
process, specialization if required for any works shall be specified clearly
in the qualification criteria in the tender process.

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The Registration of contractors shall be done as detailed.

CLASS OF
MONETARY LIMITS OF
Sl.N CONTRAC REGISTERING AUTHORITY
WORKS
o TORS
Special Committee of Engineer–in-Chief and the
1 Above Rs.10.00 Crores
class Commissioner, Commissionerate of Tenders.
Above Rs. 2 Crores upto Rs. Committee of Engineer-in Chief and the
2 Class –I
10 Cores Commissioner, Commissionerate of Tenders.
Committee consisting of the Chief Engineer
concerned, another Chief Engineer of the
Above Rs. 1 Crore upto Rs. 2 same or other Department and Member
3 Class –II
Crores Commissioner of Tenders to be nominated
by the Commissioner, Commissionerate of
Tenders.
District level Committee comprising the
Superintending Engineers available in the
4 Class –III Rs. 50 Lakhs to Rs. 1 Crore district and a representative / nominated by
the Commissioner, Commissionerate of
Tenders.
District level Committee comprising the
Superintending Engineers available in the
Above Rs. 10 Lakhs upto Rs.
5 Class–IV district and a representative / nominated by
50 lakhs
the 6Commissioner, Commissionerate of
Tenders.
Executive Engineer of the Division
Class – V Upto Rs. 10 lakhs
concerned.

(2) DEMOTION OF CONTRACTORS:

(a) The registering authority may demote a contractor to a lower class if he:

i) fails to execute contractor or executes it unsatisfactorily or is proved to be

responsible for constructional defects (or)

ii) has no longer adequate equipment, technical personnel or financial

resources: (or)

iii) violates any important conditions of contract:

iv) is responsible for any other matter which may justify his demotion to a
lower class.

v) If litigious by nature.

(b) The fact of and the reasons for demotion shall be communicated and two
weeks time shall be given to the contractors to offer his explanation before
demoting him.

(c) Copies of the order together with a memorandum containing reasons for
demotion should be forwarded to the Government through the concerned
Chief Engineer and to the Engineer–in-Chief.

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(d) In case of contractor registered for more than one category or work (viz., civil
sanitary, electrical, transport and fabrication and erection of structural steel ),
the order regarding demotion would apply only to one category unless
otherwise stated in orders.

(3) SUSPENSION OF BUSINESS:

(a) Suspension of business with a contractor may be ordered by the registering
authority for any indefinite period pending full enquiry into the allegations, the
registering authority is prima facie or the view that the contractor is guilty of an
offence in relation to the business dealings which if established would result in
his removal, black listing and it is not desirable to continue business with the
contractor.

(b) The reasons for suspension of business shall not be intimated to the contractor
and two weeks time shall be given to him to offer his explanation. If the
explanation is not satisfactory, action may be initiated for suspension of
business.

(c) Copies of the orders together with a memorandum containing reasons thereof
should be forwarded to the Government trough the concerned Chief Engineer
and Engineer–in-Chief.

(d) Suspension of business with the contractor for a specific period may be
ordered to the registering authority when the contractor is responsible for
minor technical offence(s) or when he fails to furnish the I.T.C. In such a case
the fact of the suspension should be communicated to the contractor giving
reasons for the same This action need not be reported to the Government.

(4) REMOVAL FROM THE APPROVED LIST:

(a) Registering authority may remove the name of a contractor from the approved
list, if the contractor
i) has on more than one occasion failed to execute a contract or has
executed it unsatisfactorily (or)
ii) fails to abide by the conditions of registration or is found to have given
false particulars or information at the time of registration.
iii) Persistently violates any important condition(s) of the contract; or
iv) Is proved to be responsible for construction defects in a number of
cases;(or)
v) Is declared or in the process of being declared bankrupt in solvents
wound up dissolved or partitioned (or)
vi) Persistently violates the labour regulations and rules;

(b) The reasons for removal form the approved list shall be intimated to the
contractor and two weeks time shall be given to him to offer his explanation. If
the explanation is not satisfactory action may be taken to remove the
contractor from the approve list. The EMD shall also be forfeited.

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(c) Copies of orders together with a memorandum containing reasons therefore

should be forwarded by the registering authority to the Government through
concerned Chief Engineer and the Engineer –in-Chief.
(d) In respect of contractors registered various categories of work (civil, technical,
transport and fabrication and erection of steel structure) orders regarding the
removal should apply only to the particular category unless otherwise stated.

(5) BLACK LISTING : Only the administrative department will black list the
contractor.
(a) The head of the department (Chief Engineer) may blacklist a contractor with
the approval of Government, where:
(i) there are sufficient and strong reasons to believe that the contractor or
his employee has been guilty or malpractice (s) such as irregular
practices including formation of ring, bribery corruption, and fraud
including substitution and in tenders smuggling, pilfering of
unauthorized use of disposal of Government materials issued for
specific work.
(ii) A contractor continuously refuses to pay Government dues without
showing adequate reasons.
(iii) A contractor or his partner or his representative has been convicted
by a court of law for offence involving moral turpitude in relation to
business dealing (s).
(iv) Security consideration including suspected disloyalty to the State as
warrant.
(v) The EMD shall also be forfeited.
(b) Contractor should be given an opportunity of two weeks time for offering his
explanation on the proposal to black list him before taking final decision.
(c) Copies of such orders together with the reasons for the action taken and also
the names of the partners and the list of allied concerned coming within the
effective influence of the blacklisted contractors will be forwarded to the
Secretary of the concerned administrative department who will in turn
intimate the other Departments in the Government for ordering immediate
cessation of all future business with the contractor.
(d) Decision for black listing of a contractor under sub-para 6.1 ( c) will be taken
by the concerned administrative department and communicated to the
concerned Chief Engineer giving reasons for blacklisting the contractor as also
the names of all the partners of the contractor and allied concerned coming
within the effective influence of the black listed contractor. Blacklisting of
orders would however be issued by the Chief Engineer. The Chief Engineer
shall intimate the reasons for blacklisting of the contractor concerned.
(e) Action for blacklisting a contractor should be taken only where it is
established that the offence was committed in order to secure advantage to
the contractor and not where the object ma be to secure advantage to any
employee or representative of the contractor personally.
(f) Care should be taken to see that the contractor blacklisted does not transact
business with Government under different name or title.

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(g) The administrative department in the Government while examining any case of
blacklisting of a contractor may refer doubtful marginal cases for advice to the
Law Department wherever justified necessary.
(h) Once the blacklisting orders are issued they should ordinarily not be revoked
unless:-
i) On review the Government is of the opinion that the punishment already
undergone is adequate in the circumstances of the case.

ii) in respect of the some offence, the accused has been honorably
acquitted by a court of law.
(i) The Engineer –in-Chief shall be responsible for keeping up to date list of black
listed contractors ( including those black listed at the instance of the
Government) and circulate the list periodically to the Chief Engineers of al the
engineering departments. The Engineer –in-Chief will also circulate every
quarter a list of additions and revocations during the previous quarter.

(6) RESTORATION: Upgrading a demoted contractor revoking the suspension of

business, restoring registration, withdrawal of blacklisting etc., may be considered at
an appropriate time on the merits of each case by the authority who has passed the
original orders. Copies of restoration orders should also be furnished to the
concerned administrative department of the Government.

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