Government of Andhra Pradesh

ABSTRACT

Codes:- Rationalization of provisions – Modification of contract rules – Delegation of

enhanced powers to the officers of Public Works Department – Orders – Issued.
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TRANSPORT, ROADS & BUILDINGS (C1) DEPARTMENT

G.O. Ms. No. 1007 Dated. 05-11-1976

Read the following:-

G.O. Ms. No. 1196, Transport, R&B, dated 11-11-1975

ORDER:

Government have for some time been considering the need for delegating more powers
to field officers of the Public Works Department, and rationalizing the procedures involved.
Towards this and it was decided to undertake a thorough review of the important provisions in
the P.W.D. Codes. They accordingly appointed a Committee headed by the Chief Secretary to
Government in G.O.Ms. No. 1196, Transport, Roads & Buildings, Dated 11-11-1975 with the
following terms of reference:

1. A review of the more important paras of the A.P.W. “D” code., A.P.W. “A” code and
A.P.D.S.S. and suggesting appropriate modifications or changes if called for.
2. A critical review of the existing administrative, financial and technical powers of the
State Engineers at various levels and suggesting appropriate recommendations thereon.
3. Review of work relationships between the Central and the State Governments in the
case of centrally sponsored/financed works.
4. A fresh look at the existing budgetary system of the P.W.D. in all its aspects.

2. The committee in its report submitted to Government has made a series of recommendations
for enhanced delegation of powers to filed officers of the P.W.D. and also revision of methods
and procedures.

3. The Government have carefully examined the recommendations and decided to accept them
in to. They direct that, in supersession of all existing orders on the subject, the decisions of the
Government as indicated in the annexures to this order shall come into force with immediate
effect unless specified otherwise.

4. In addition it has also been decided to disband the special cell in the Secretariat and
accept the suggestions of the Committee to address the Government of India, Ministry of
Transport for enhancing the powers of the Chief Engineer (National Highways) and the State
Government in regard to technical sanction upto Rs. 25 Lakhs and acceptance of tenders for
works of National Highways upto 30 % and for issuance of letters of credit quarterly to the
extent of Chief Engineers quarterly forecast of requirements.

5. The Chief Engineer (major Irrigation & General) is requested to suggest suitable draft
amendments to the Codes wherever necessary.

6. This order issues with the concurrence of the Finance & Planning (Exp.PW.D)
Department vide their U.O. No. 4070/FPSP/76, dated. 5-11-1976.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

G.R. NAIR,
Secretary to Government.

To

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All C.Es. under T.R&B, I&P and Major Projects Depts.
Copy to the P.A. (Projects).

//Forwarded: By Order//

Sd/-
Section Officer.

//True Copy//

Government of Andhra Pradesh,

Financial Adviser and Chief Accounts Officer,
Major Projects Department: Secretariat: Hyd-22.

Endt. No. 9550-FA/F.VIII (2)/76-2 Dated. 15-11-1976

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Copy forwarded to the following:

1. Dy. Chief Accounts Officer, N.S. Project, Hill Colony (15 Copies)
2. Director of Accounts, Srisailam (^ Copies)
3. Director of Accounts, Pochampad Project (10 copies)
4. Sr. Pay & Accounts Officer, G.B. Project (6 Copies)
5. Asst. Pay & Accounts Officer, Vamsadhara (5 Copies)
6. Pay and Accounts Officer, TBPHLCs, Ananthapur (6 Copies)
7. All Sections.

S. Radhakrishna Murthy,
Asst. Financial Adviser.

//Forwarded: By Order//

SECTION OFFICER

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 ANNEXURE – II

RECOMMENDATION OF THE COMMITTEE

Decision of
The Government.

1. Full details of the estimates including quantities under each item of the work, the
estimate rate, the total value of each item of the work etc., should be disclosed to the tenderers
at their request even at the time of issue of tender schedules. The present practice of keeping
the sanctioned estimate and the schedule of rates as secret documents should dispensed with.

The recommendation is accepted:

2. The Piece Work (K2) contract form may be adopted for construction works costing upto Rs.
1.00 lakh and for transport contracts upto Rs. 5.00 lakhs, as against the present limit of Rs.
20,000/- as per G.O. Ms. No. 859 PWD Dt. 30-04-1970.

The recommendation is accepted.

3. The Earnest Money Deposits of unsuccessful tenderers should be refunded immediately

on the expiry of the period of validity of the tenders or on the entrustment of the work to the
successful tenderer, whichever is earlier.

Recommendation of the Committee

Decision of
The Government

4. Advance to the contractors, for the acquisition of new machinery required for the works,
upto 75 % of their cost and limited to 10 % of the contract value for works valued upto Rs.
10.00 lakhs each, and 6% of the contract value for works costing more than 10.00 lakhs each,
should be given by the Government, if asked for and this condition clearly indicated in the
tender documents. Interest at the prevailing commercial bank rate should be recovered from
the contractor on such advances.

ALTERNATIVELY
The Government may procure the machinery required for the works by the contractor, and sell
the same to the contractors on the usual hire-purchase terms. The conditions governing the
advances and of the sale of machinery to contractors on hire purchase should be clearly
specified in the tender schedules.

Recommendation of the Committee

Decision of
The Government

5. A new class of contractors (Class-IV), in addition to the existing four classes, should be
introduced for undertaking works costing between Rs. 2.50 lakhs and Rs. 50.000/- with a
solvency of Rs. 25,000/-. The existing class – IV may be renamed as class-V.

The recommendation is accepted.

6. The earth work items in the P.W.D. projects should be put to tender on the basis of the actual
classification of the soils and the basic rates and not on the “Through Rate” basis.
Classification of soils may be broadly under the four categories.

1. Hard rock
2. Hard disintegrated rock

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 3. Fissured and fractured rock.
4. All other soils including Soft Disintegrated Rock.

In canal excavations trial trenches to the full section of the canal down to the level of rock, if
any, should be got opened out at intervals of 33 metres and the estimate prepared on the basis
of soils met with. The method should be followed for all canal excavation works let out from
June, 1977 onwards.

Recommendation of the Committee

Decision of the
Government

The recommendation is accepted.

7. A smaller Committee consisting of the Chief Engineer (MI&GL) and the Chief Engineer
(R&B & Admn) instead of the entire Committee of the Chief Engineers may decide the annual
S.S.Rs. If the Committee proposes to reduce rate of any item in any circle it shall be approved
by the full Board of the Chief Engineers.

The recommendation is accepted.

8. The monetary limit of Rs. 1.00 lakh for publication of tender notices in news papers may be
raised to Rs. 5.00 lakhs.

The recommendation is accepted.

The Officer inviting tender may be permitted to send the tender notices for publication to
prominent news papers.

The recommendation is accepted.

For works costing over Rs. 1.00 lakh and upto Rs. 5..00 lakhs a minimum advance notice of
three weeks for receipt of tenders from the date of first publication may be prescribed.

Recommendation of the Committee

Decision of the
Government

The recommendation is accepted.

9. All tenders which are beyond the powers of Chief Engineers for acceptance may be finally,
without reference to Government, decided by a tender committee which may be constituted
with (1) the concerned Chief Engineer (2) another Chief Engineer to be nominated by the
Government and (3) the Secretary, Fin. & Plg./ the F.A. (Projects) or/his nominee as the case
may be. The Committee may meet once in a fort-night.

The recommendation is accepted.

10. Once a work is administratively sanctioned by Government and the estimate therefore is
technically sanctioned by the competent authority, and a contract is concluded for the
execution of the work, no work should be stopped or slowed down (rare emergencies excepted)
or payment to contractors withy-hold or delayed, even if there is need for a revised estimate to
be sanctioned by the Government. Such payments should however, be subject to the existence
of adequate budget provision within the relevant head of. When the expenditure on a work is
likely to exceed 10% over the contract value of the work (in the case of premium tenders) the
chief Engineer should inform the Government of the approximate extra commitment involved
and also follow up with a revised estimate as early as possible. If, however, only a part of the
work covered by the estimate has been entrusted on contract at premium rates, this 10%
referred to above should be over the total value of the work, comprising the contract amount
for the portion or portions already entrusted plus the total estimated value of the items not yet

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entrusted or utilized. The instructions issued in Govt. Memo. No. 3088/PP.2/75-3, Irrigation &
Power (Projects Wing), dt. 19-12-1975 may be modified to the effect that the Chief Engineers
may provisionally sanction the revised estimates and submit them to Government for regular
sanction before the final payment for the work is made. The Memo., as modified may be
retained on permanent basis and made applicable to all branches of Public Works Dept.

The recommendation is
accepted. The Chief
Engineer (MI&Gl) should
place the matter before the
Committee of Chief Engineers
evolve a suitable form and
submit it to Govt., for
approval.

11. For Works costing over Rs. 50.00 lakhs each and taking more than 18 months for
completion, a price escalation clause may be incorporated in the tender schedules and thereby
in agreements providing for both increase and decrease in the prices of materials and labour.
In case prices come down the Department will be entitled for a rebate from the contractor. The
clause may be on the pattern prescribed in the report of the working group set up by the
Planning Commission to prepare a Standard contract Form. The Committee of Chief
Engineers may be entrusted with the work of suggesting the nature scope and wording of the
price escalation clause.

The recommendation is accepted.

12. At present there are two systems of Audit and Accounts in the Major Irrigation Projects of
the State, viz., with the Director of Accounts and with the Deputy Director of Accounts
Officer. The Director of Accounts works under the administrative control of the Chief
Engineer of the Project, while the Deputy Chief Accounts Officer works under the Financial
Adviser (Projects) and is independent of the Chief Engineer of the Project. It is desirable that
only one pattern of Audit and Accounts wing i.e., either with the Director of Accounts Officer,
should be adopted in all irrigation Projects. The Government may decide on the new set up of
the Audit and Accounts Wing of Projects in consultation with the Project Administrator.

The recommendation is accepted.

13. Minor Irrigation scheme which are within the powers of administrative approval of the
Chief Engineer (MI) may be cleared by the Collector of the District in which the work lies and
reference to the Board of Revenue may be dispensed with. Schemes which are to be
administratively approved by the Government may be referred to the Board of Revenue for its
clearance before sanction.

G.R. NAIR.
SECRETARY TO GOVERNMENT.

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 ANNEXURE – I

AMENDMENTS TO THE ANDHRA PRADESH DETAILED STANDARD

SPECIFICATIONS.

Sl.No. Preliminary Amendments approved

Specification
No.
1. 11 In the first sub-clause of P.S. 11 after the words “as he deems
necessary” Add the words “Provided there is no change in the
overall scope of the work”
2. 28 For the existing second sub-clause of P.S. 28, substitute the
following namely:-

“In the event of the Government taking over portions of the work
as and when they are completed, the liability of the contractor
shall be limited to the period of six months from the date of
taking over the portion of portions of the work, provided that the
portion or portions taken over has no connection with the
remaining portions of the main work, and is independent of it”
3. 29 At the end of clause P.S. 29, add the following namely:-

“In the case of any difference between Executive Engineer and

the Contractor on matters regarding materials, workmanship,
removal of improper work, interpretation of contract drawings
and contract specifications, mode of procedure and the carrying
out of the work, the contractor shall have a right of appeal to the
next higher authority viz., the Superintending Engineer of the
Circle, and the decision of the latter shall be final and
conclusive”
4. 35 In P.S. 35 for the second sub-clause the following shall be
substituted namely:-

“If the department intends to supply any Tools & Plant to the
contractor on hire, the details of such Tools and Plant, the hire
charges leviable, and the terms of hiring them should invariably
be specified in the tender schedule and in the agreements and the
same should not be varied during the contract period. If,
however, the Department is not able to supply any of the Tools &
Plant indicated in the agreement, the Contractor shall claim no
compensation, but can only claim reasonable extension of
contract time. If any other Tools and Plant, that are available
with the department but are not indicated in the agreement, are
supplied to the contractor during the course of the work, the hire
charges and the conditions of hire prevailing in the Department at
the time of actual supply shall be applicable.
5. 43 To clause 43 of P.S., add the following:-

“The Executive Engineer should take over the work within one
month of such notice from the contractor, if the work has been
satisfactorily completed in terms of the agreement.”
6. 56 In clause 56 of P.S., for the works “accepted the tender” the
words “entered into the agreement” shall be submitted.
7. 60 To clause 60 (a) of P.S., the following shall be added namely:-
“However, any authority higher in rank than the Executive
Engineer may, in his absolute discretion, waive or modify any
penalty of forfeiture imposed by the Executive Engineer, under
the provisions of this clause”.

For the existing clause 60 © the following shall be substituted:-

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 “It shall be a further right of the Executive Engineer, under this
clause, at any time the “Rate of Progress” in the agreement is not
maintained, to give any part of the work to any other contractor at
his discretion, in order to maintain the “Rate of Progress” upon
the completion of that part of the work that is withdrawn, the
Executive Engineer shall certify the amount of expenditure
incurred by the Department for getting it completed by another
contractor or contractors. Should the amount as certified be less
than the amount which would have been due to the contractor on
the completion of that part of the work by him, the difference
shall not be paid to the contractor. Should however the former
exceed the latter, the difference shall be recovered from the
contractor by the Government, provided however that such a
recovery shall not exceed 5% of the total finished contract
amount”.
8. 62 For the existing sub-clauses (a) & (b) of clause 62 of P.S., the
following shall be substituted namely:-

(a) Payment for the work done by the Contractor will be

made on the basis of the measurements recorded in the
measurement books or level field books by an officer not
below the rank of a supervisor and check measured by an
officer not below the rank of an Assistant Engineer. The
measurements will be recorded at the various stages of the
work, while it is in progress, for the proper assessment of
the quantities of work done, and also after the work is
completed or when the contract is determined. The
contractor of his authorized agent shall be present at the
recording of each set of measurement and check
measurement and accepted them, then and there, so as to
avoid disputes at a later stage. The set of measurements
and check measurements may also be taken by the
Department, even in the absence of the contractor of his
authorized agent, three days after the issue of a notice to
the latter, in writing, of such intention by the Department.
(b) (b) In cases of over-payment or wrong payment made, if
any to the contractor due to wrong interpretation of the
provisions of the contract, the A.P. Detailed Standard
Specification or otherwise, such unauthorized payment
will be deducted in the subsequent bill or final bill of the
work, or failing that, from the bills under any other
contract with the Government from the contractor, or at
any time thereafter, from his security deposits available
with the Department.
9. 63 The existing sub-clause (a) &(b) of clause 63 of P.S. the
following shall be substituted namely :-

“The contractor is bound to execute all supplemental items that

the found essential, incidental and inevitable during the execution
of the work, at the rates to be worked out as detailed below:-

(a) For all items of work in excess of the quantities shown in

Schedule-A of the tender, the rates payable for such items
shall be either the tender rates or the standard schedule of
rates for the items plus or minus the overall tender
percentage accepted by the competent authority,
whichever is less.
(b) For items directly deducible from similar items in the
agreement, the rates shall be derived by adding to or
substracting from the agreement rate of such similar item,
the cost of the difference in quantity of material or labour

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 between the new items and the similar items in the
agreements, worked out with reference to the Schedule of
Rates adopted in the sanctioned estimate plus or minus
the overall tender percentage.
(c) For new items which do not correspond to any items in
the agreement, the rate shall be the Standard schedule rate
plus or minus the overall tender percentage.

The term “Standard Schedule of Rates” used in the above

sub-clauses (a), (b) and (c) means the schedule of rates on
which the sanctioned estimate was prepared”.

The existing sub-clause © shall be renamed as sub-clause

(d).

G.R. NAIR,
SECRETARY TO GOVERNEMT

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 ANNEXURE – III
DELIGATION OF POWERS
Chief Engineers Superintending Engineers Executive Engineers
Sl. Nature of Powers Power Powers Powers Power existing Powers Powers Power existing Powers Powers Delegated
No. existing Recom Delegated Recommended Delegated Recommended
mended
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
1. (a) The administrative approval to 5.00 10.00 lakhs Rs. 1.5 lakhs 3.00 lakhs 3.00 lakhs Rs. 20,000 Rs. 40,000 Rs. 40,000
estimates for works (other than lakhs Rs. 1.00 lakhs Rs. 4.5 lakhs Rs. 4.5 lakhs Rs. 15,000 Rs. 60,000 Rs. 60,000
residential buildings and electrical
works)
i) plain areas : Irrgn.
R&B 3.00
ii) Tribal areas lakhs

The split over requirements of 15.00 15.00 lakhs

new works should be correctly lakhs The
worked out by the C.E., recommendati
concerned well in advance of the on is accepted
next financial year. There should
be vigorous pre-budget scrutinity
by the Govt., in the finance and
Planning Dept. A list of new
works approved by the Govt.
may be communicated to the C.E.
and the A.G. in the form of a G.O.
in such a case the C.Es may have
full powers of administrative
approval without any monetary
limit and Govt., sanction for
individual estimates may not be
necessary.

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1. (b) Purchase of T&P Rs. 2.5 lakhs Full powers subject to limit of budget The recommendation Rs. 30,000 No change No change Rs. 5,000 No change No change
allotment and clearance by the screening is accepted
Committee will also assess and decide
The on the actual need for the purchase of
screening T&P
Committee
1. (c) Purchase of and Rs. 25,000 Rs. 50,000 Rs. 50,000 - - - - - -
improvements to
floating plant for
which rent or hire is
recoverable
1. (d) Administrative Full powers No change No change Rs. 50,000 Rs. 1.00 Rs. 1.00 Rs. 7,500 Rs. 15,000 Rs, 15.000
approval to full lakh lakh
contributional works

2. Technical sanctioned Full powers. Upto amount of administrative No change No change Rs. 10.00 lakhs No change No change Rs. 1.00 No change No change
to detailed estimate approval plus excess indicated below (1) for subject to lakhs
of works. works costing upto Rs. 2.00 lakhs 10% subject condition that subject to
to a limit of Rs. 10,00,000/ (ii) for works excess over condition
costing above Rs. 200 lakhs 5% subject to a administrative that the
limit of Rs. 20,00,000/- sanction shall not excess
exceed 10% over
administra
tive
sanction
shall not
exceed
10%
3. Excess over i) For works costing Rs. 200 lakhs 10% subject 15% above 15% 10% subject to a No change No change 5% No change No change
estimates to a limit of Rs. 10,00,000/- the amount above the limit of powers of subject to
(Passing of excess ii) For works costing above Rs. 200 lakhs 5% of Technical amount of technical sanction a limit of
expenditure over subject to a limit of Rs. 20,00,000/- sanction technical his powers

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 technical sanction) sanction. of
technical
sanction
4. Passing excess Rs. 10,000 No change No change Rs. 6,000. The No change No change Rs. No change Nochange
expenditure on all S.E. has no 2,0000/-
works irrespective of powers to The E.E.
total sanctioned sanction excess has no
estimate without over revised powers to
percentage limit estimate sanction
sanctioned by excess
higher authority over
revised
estimate
sanctioned
by higher
authority
5. Acceptance of tenders Can accept tenders for all works upto Technically No change No change Can accept upto No change No change Can accept No change No change
sanctioned estimates plus such percentage excess as sanctioned tenders
C.E. is competent to sanction under excess over technical estimate upto
estimates. plus excess as he is sanctioned
competent to estimate
sanction excess plus excess
over estimates as he is
subject to a competent
maximum of Rs. to sanction
11.00 lakhs per excess over
each tender, S.E. estimates
(Major projects) subject to a
can accept tenders maximum
upto Rs. 30.00 of Rs.
lakhs provided they 1,05,000/-
are the lowest.

6. Dispensing with tenders )Powers of Nomination) Rs. 50,000 Rs. 1,00,000 Rs. 1,00,000 Rs. 25,000 Rs. 50,000 Rs. 50,000 Rs. 10,000 Rs. 20,000 Rs. 20,000

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7. RESIDENTIAL BUILDINGS Nil Nil Nil Nil Nil Nil Nil Nil Nil
Sanction of estimates
Administrative approval to estimate for works
8. Sanitary works Rs. 1,000 Rs. 2,000 Rs. 2,000 Rs. 5,00 Rs. 1,000 Rs. 1,000 Nil Nil Nil
Administrative approval to Minor works for construction
of Latrines and Septic tanks
9. Electrical Works
(Residential and non-residential buildings)
i) To accord administrative sanction of estimates for the Rs. 50,000 Rs. 1,00,000 Rs. 1,00,000 Rs. 20,000 Rs. 40,000 Rs. 40,000 Non Rs. 5,000 Rs. 5,000
first installation of Electrical fittings for all buildings. Non residential Non residential Residential
Residential Rs. 40,000 Residential
Rs. 50,000 Rs. 50,000 Residential Rs. Rs. 2,500 Rs. 25,000
20,000
ii) To accord administrative approval to additions, Rs. 10,000 Rs. 15,000 Rs. 15,000 Rs. 5,000 No change No change Rs. 1,000 No change No change
improvements and alterations, to electrical works in
non-residential buildings
iii) To accord administrative approval to additions, Rs. 2,000 No change No change Rs. 1,000 No change No change Nil Nil Nil
improvements and alterations to electrical works in
residential buildings
iv) To accord technical sanction for detailed estimates for Full powers No change No change Rs. 50,000 Rs. 1,00,000 Rs. Rs. 15,000 Rs. 30,000 Rs. 30,000
electrical works 1,00,000
v) Acceptance of Tenders Can accept upto - - Rs. 50,000 Rs. 1,00,000 Rs. Rs. 25,000 Rs. 50,000 Rs. 50,000
Technically 1,00,000
sanctioned
estimate plus
such percentage
as C.E. is
competent to
sanction under
excess over
estimates
10. Dispensing with Tenders Rs. 50,000 No change No change Rs. 25,000 No change No change Rs. 1,000 No change No change
(Powers of nomination)

G.R. NAIR,
Secretary to Government

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