DEFENCE

WORKS PROCEDURE
2007

PUBLISHED BY
ENGINEER IN CHIEF BRANCH
INTREGATED HQ OF MOD (ARMY)

The information given in this book is not to be

communicated either directly or indirectly to the Press or
to any person not holding an official position in Government
of India. It should not be kept in rooms to which
unauthorized persons have access; and it will only be issued
to persons who require it for performance of their duty.
 No.B/01247/Q/Policy(Works Procedure)/237/D(Works-I)
Government of India,
Ministry of Defence,
Sena Bhavan,New Delhi,
Dated 21st June, 2007
To
The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff
DEFENCE WORKS PROCEDURE 2007
Sir
The Jafa Committee had recommended the revision of Defence Works Procedure,
986 to streamline the existing procedure so that delay in planning and execution of works
may be minimized and cost over runs in Defence Works could be reduced

2. The recommendations of the Jafa Committee were considered in the Ministry of

Defence and accordingly, the Defence Works Procedure 1986 revised with the approval of
the competent authority. The revised procedure will henceforth be known as Defence
Works Procedure, 2007 abbreviated as DWP 2007

3. A copy of the Defence Works procedure 2007 is enclosed. This will supersede the
earlier defence Works Procedure, 1986 issued vide letter No 9533/POL/CSS/E2
WPC/687/DO-II/D(W-I) dated 17th June, 1986 and as amended from time to time and will
be effective from the date of issue of this letter.

4. This issues with the concurrence of the Defence Finance Division vide their U.O.
No.532/D/F(W-II) dated 21st May 2007
Yours faithfully

(Rosy Sharma)
Director (Works)
Copy to:-
1. JS(C&W)/JS(Air)/JS(Navy) / JS(O/N)/JS(Trg.) & CAO/JS(OF)/JS(S)/
Addl. FA(AM)
2. The Chairman, Ordnance Factories Board
3. QMG's Br/Q3W (Policy}-300 copies
4. E-in-C's Br/E2W(PPC)- 100 copies
5. NHQ/Dte of Naval Works -100 copies
6. Air HQ/Dte of Air Force Works-I 00 copies
7. DG NCC -20 copies, DGI- 10 copies
8. DO(Works) -05 copies
9. The CGDA, The DADS, The (CsDA, SC, EC, WE, CC &
NC
10. The Sr. Dy. DADS, All Audit Officers, Def Services, All
Asstt DADSs
11. The CDA, Patna, The CDA (Navy) Bombay,
The CDA (Air Force) Dehradun,
12. DO DL&C, DGBR
13. Min. of Def/D(N-II) & D(Air-II)
14. DFA(W)- 20 copies, DFA(Navy) 10 copies
15. Dir(Air Force) -10 copies
16. DGNP
17. Dte. of (CW&E), DRDO, Deptt. Of Def. Research &
Development
 REGISTER OF AMENDMENTS
Amendment Date of Para referred Dated initials of person by
Number amendment to in amendment whom amendment inserted

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.
 INDEX
Sl. No Contents Page No.
I Objective 1
II Basic Principles 1-2
III Classification of works 2
IV Original works 2-4
V Repairs 4-6
VI Scales and Specification 6-7
VII Annual Works Program and Budgeting 7-9
VIII Processing of Major Capital Works 9-10
IX Demand for Planning of new works 10-12
X Acceptance of Necessity 12-13
XI Approximate Estimates 13-14
XII Administrative Approval 14-15
XIII Revised Administrative Approval 15-17
XIV Urgent Works 17-19
XV Special Powers for Engineers 19-20
XVI Processing of Low Budgeted Works 20
XVII Revenue and Minor Works 20-21
XVIII Technical Control over Original Works 21-23
XIX Technical Control of Repairs and Purchase and 23
Maintenance of Tools and Plant and Plant
XX Powers of Technical Sanction 23-24
XXI Appropriation of Funds 24-25
XXII Tender Action 25-26
XXIII Acceptance of Contracts 26-27
XXIV Reduction of Scope of a Project 27
XXV Execution of Works 27-28
XXVI Monitoring and Review 28-29
XXVII Procedure for Special Projects 29-34
XXVIII Completion Reports 34
XXIX Imprest and Assignments 35
XXX Demolition of Buildings 35-36
XXXI Re appropriation of Building 36-37
XXXII Works entrusted to other agencies 37
XXXIII General 37-38
 Appendix
‘A’ Budgetary system for Defence Works 39-44
‘B’ Rough Cost Estimate 45-46
‘C’ Format for Engineer Appreciation 47-48
‘D’ Power of acceptance of necessity & Administrative 49-51
Approval
‘E’ Approximate Estimate 52-53
‘F’ Time frame for pre-Administrative Approval planning 54
‘G’ Approximate Estimate 55-56
‘H’’ Composition of Project Management Committee and 57-58
Terms of Reference
‘I’ Completion Report for Original Works 59-60
‘J’ Power for Demolition of Buildings 61-62
 - 1 -

DEFENCE WORKS PROCEDURE - 2007

I OBJECTIVE

1. The objective is to ensure that all defence works and services-capital, revenue and
maintenance are completed with the minimum of delay and in a cost-effective manner
compatible with the efficient functioning of the Defence Services. This revised Defence
Works Procedure enumerates the mechanisms of and conditions for planning, programming,
budgeting, approval and execution of such works and services.

II BASIC PRINCIPLES

2. The basic principles of undertaking Defence works are:-

(a) No new works should be sanctioned without careful attention to the assets or
facilities already available and the time and cost required to complete the new
works.

(b) As budgetary resources are limited and granted on an annual basis, adequate
provisions should be ensured for works and services already in progress
before new works and services are undertaken.

(c) If an approved work is not commenced within one year of the date of
Administrative Approval, fresh Administrative Approval of the Competent
Financial Authority (CFA) should be taken.

(d) Since time is of the essence, the completion period stipulated in the
Administrative Approval will not be exceeded as far as possible.

(e) No works services will be executed without administrative approval, formal

allocation of funds and technical sanction having first been obtained from the
Competent Authority in each case. However, the procedure to be followed in
case of works initiated for urgent military reasons are laid down in Paras 34 to
36 below.

(f) No officer will, in the course of the financial year, exceed the aggregate
budget allotment made to him for any works or under any sub-head of
maintenance.

(g) No officer will exceed any specific budget allotment made to him under any
minor or detailed head, except in so far as he may within his powers of
transfer of funds, be able to meet excess expenditure on one item by
equivalent savings on another.
 - 2 -

(h) The final cost of any service will not exceed the amount of Administrative
Approval by more than 10%. An officer will take no action which will commit
Government to expenditure beyond 10% of Administrative Approval amount
without obtaining prior sanction of the Competent Financial Authority in the
form of a Financial Concurrence (FC), a Corrigendum or a Revised
Administrative Approval.

(j) The CFA according Administrative Approval should be kept informed of the
progress of the works till their completion through regular periodical reports.

(k) No project or work services will be split up to bring it within the powers of a
CFA at a lower level.

III CLASSIFICATION OF WORKS

3. For purposes of budgeting and control the operations of Defence Works are divided
into two broad categories, namely:

(a) Original Works

(b) Repairs

IV ORIGINAL WORKS

4. (a) Original Works comprise works services like construction of buildings,

workshops, storage depots, etc. including their internal fittings and fixtures as
well as roads, runways, blast pens, marine works, Electrical and Mechanical
services, water supply, drainage, other utility services, arboriculture, ranges,
furniture etc. as well as purchase and additions. Reconstruction of buildings and
roads, widening of roads, additions and alterations necessitated by
administrative/technical reasons, works necessary to bring into use buildings and
services newly purchased/acquired or those previously abandoned or rendered
unusable by extraordinary causes such as storm, fire or earthquake also fall in
the category of original works.

(b) Original works of petty nature costing up to *Rs.10,000/- may, at the discretion
of the CWE/GE (Independent) be treated as "Repairs". The CWE/GE
(Independent) may delegate all or a portion of his powers under this paragraph
to GEs or outstation AGEs by name.

(* Approval of competent authority required).

 - 3 -

(c) The purchase and installation of static plant and machinery and equipment and
the provision of furniture are treated as original works.

(d) Provision of furniture which does not form part of any works project will be
treated as Original Works.

5. (a) For administrative purposes Original Works are divided into the following
categories:

(i) Major Capital Works i.e. original works costing Rs.15 lakh or more

(ii) Low-Budgeted Capital Works i.e. original works costing more than Rs.2 lakh
but less than Rs.15 lakh.

(iii) Revenue Works i.e., original works costing more than Rs.1 lakh and not
exceeding Rs.2 lakh.

(iv) Minor Works i.e. original works costing not more than Rs.1 lakh.

(b) Major Capital Works and Low-Budgeted Capital Works will be budgeted under
Capital Heads.

(c) Revenue Works and Minor Works as defined above will be budgeted under
Revenue heads.

6. New Original Works are further sub-divided as follows:-

(a) Authorised Works. Works Services for which scales are authorised in
regulations or by separate orders of a general or specific nature issued by
the Government of India are referred to broadly as Authorised Works.

(b) Special Works. Items of works services not falling within sub para (a) above
are referred to as "Special Works". These may be approved only when
exceptional local conditions justify the necessity, or as an important
experimental measure. Special Works should not be approved if the effect
would be to introduce a new practice or change of scales.

(c) Engineer authorities will not be asked to undertake preparation of estimates

of a project which includes special items of work unless the Competent
Financial Authority has accorded formal approval in principle of such items.
 - 4 -

Note:
(i) Where no scales have so far been laid down and there are no orders prohibiting
the undertaking of those works, the Competent Financial Authority for "Special
Works" may sanction such works if it is customary or technically essential to
provide the same.

(ii) If a building or service required is categorized as "Special", all connected items

thereto will be termed as "Special" and sanctioned as such under the powers of
the Competent Financial Authority.

(iii) Superior specifications to those on which approved/sanctioned Plinth Areas

rates are based will be termed "Special". Their incorporation in works at any
stage during planning or execution without prior approval of the Competent
Financial Authority is not permitted.

V REPAIRS

7. (a) Repairs comprise all maintenance and periodical services, renewals and
replacements as well as alterations and improvements necessitated by technical
or engineering reasons.

(b) Works required to make good damages caused to existing buildings, roads,
installations and services due to extraordinary causes, but which are still
usable, are also classified as 'Repairs'. The question whether a building etc. is
still "usable" or not will be decided by a Board of Officers convened to
investigate the matter.

(c) A property when taken off from care and maintenance is deemed to be
abandoned and will not be entitled to maintenance funds.

8. Repairs are classified into two broad categories

(a) Ordinary Repairs; and

(b) Special Repairs

9. (a) Ordinary Repairs are further sub-divided into the following categories:

(i) Petty Repairs

(ii) Periodical Services as per MES Regulations Table 'G'.

(iii) Replacements and renewals costing up to *Rs.1,50,000/- for each item.

 - 5 -

(iv) Repairs, renewals and replacements of E/M installations and other external
utilities costing up to *Rs.2,00,000/- in each case.

(v) Replacements of furniture of value up to 50 % of annual allotment for

maintenance of furniture on station basis subject to a ceiling of Rs.4.00
lakh per annum to be allowed only in respect of furniture declared as
condemned/beyond economic repairs by the appropriate authority.

(* Subject to formal approval on file by Competent Authority).

(b) Ordinary Repairs will be carried out in accordance with MES Standing Orders.

(c) No administrative approval is necessary for ordinary repairs including purchase

and maintenance of ordinary tools and plants for this purpose. Allotment of
funds for the purpose implies administrative approval to that extent. No work
will be carried out without the technical sanction of the competent engineer
authority and no expenditure will be incurred in excess of allotment under the
relevant budgetary head, except in so far as such excess can be met by re-
appropriation from another head within the competence of the authority
concerned.

10. (a) Special Repairs consist of renewals and replacements as well as alterations of
improvements costing beyond the monetary ceiling for ordinary repairs in each
case and replacement of furniture beyond the limit laid down in Para 9 (a) (v)
above. These will be carried out in accordance with MES Regulations.

(b) The Garrison Engineer will be the competent authority for grouping of buildings
for the purpose of Special Repairs.

(c) Special Repairs will be treated as Original Works, but irrespective of the cost, all
Special Repairs will be budgeted for under Revenue Head.

(d) In case where special repairs and additions and alterations to a building become
necessary at the same time, the work will be sanctioned as one project and
treated as an Original Work for all purposes.

11. (a) Amendment to the capital value of existing structure due to repairs will be made
in accordance with MES Regulations (para 228). In calculating the addition to be
made to the capital value, credit will be taken for the value at current rates of
any portion of the original structure which has been demolished or replaced.
 - 6 -

(b) Notwithstanding sub-para (a) above, changes in capital cost up to Rs.15,000/- in

respect of all buildings and those due to renewals and replacements costing
Rs.60,000/- or less to temporary buildings will be disregarded.

(c) Amendments to capital values on account of E/M renewals will be carried out in
accordance with MES Regulations (Paras 259 and 260).

VI Scales and Specifications

12. Scales of Accommodation. The scales of accommodation approved and issued by

the Government of India from time to time are intended as a close guide. Petty variations
in individual cases can be made at the discretion of the Competent Financial Authority at
the time of according Administrative Approval with reasons recorded in each case,
provided such variations are not of general application and do not create any precedent in
the matter of scales of accommodation.

13. Specifications

(a) All works catering to short-term requirement. i.e., accommodation not expected
to be required for a period of over five years from the anticipated date of
completion of the work will be in temporary construction and built to
specifications of the lowest possible type having regard to availability of
material and the purpose of the facility or service.

(b) All works catering to long-term requirement, i.e., accommodation expected to

be required for a period of more than five years from the anticipated date of
completion of the work, will be built to permanent specifications.

(c) The above-mentioned period of five years will be taken as a close guide.
Competent Financial Authority will use their judgment to decide about the
choice of permanent or temporary specifications in special cases and record the
reasons thereof while according Administrative Approval.

(d) Building will be identified as prestigious at the stage of approval of the Annual
Works Programme (AWP). However, for such projects, a separate detailed
justification win be submitted by the service HQs to MOD After the
approval of MOD declaring the building as prestigious, it will be permissible
 - 7 -

to add in the Approximate Estimates a specific percentage subject to a

maximum of 10% of the total cost of the buildings towards providing special
architectural features and superior specifications.

(e) Temporary specifications will be laid down by Zonal Chief Engineers on

individual basis in accordance with general guidelines issued in this regard by E-
in-C's Branch.

VII Annual Works Programme and Budgeting

14. Under the existing system of budgetary control, so far as it applies to works
expenditure during a financial year is generally restricted to the amount provided in the
annual budget estimate for the purpose. Details of budgetary heads and the system of
appropriation and re-appropriation of funds for this purpose are explained in Appendix'A'.

15. Well before the commencement of next financial year, assessment of funds
required in that year for making satisfactory progress of works already sanctioned and
commenced in and up to the current year should be made, before fresh budgetary
provisions are proposed for New Works in the next financial year. Thus, Carry Over works
will have higher priority than New Works in regard to budgetary estimates for any
financial year.

16. No New Works should be sanctioned and/or commenced in any financial year unless:-

(a) In case of Major Capital Works each costing Rs.15lakh or more, such a new work
has been included in the Annual Major Works Programme (AMWP) for the
relevant financial year of the concerned Service or organization as approved by
Government of India.

(b) In case of Low-Budgeted Capital Works such a new work has been included in the
Annual Low-Budgeted Capital Works Programme of the concerned Command or
formation of equivalent level and duly approved by the GOC-in-C or officer of
equivalent level; and

(c) In case of Revenue Works and Minor Works, these are planned and approved at
appropriate CFAs' level against bulk funds placed at their disposal for this
purpose by Command HQrs in each financial year.
 - 8 -

17. The Service HQrs may direct the Command HQrs and other lower formations to
plan new works programme for two years at a time, including holding Board Proceedings and
preparation of Indication of Costs, after careful assessment of the liabilities of Carry
Over Works and of anticipated budgetary ceilings on new works as well as the physical
capacity of the engineers. The Annual Major Capital Works Programme for a financial year
can be prepared out of such two years' works plans. Those works proposals excluded from
the finalized A WP of the new financial year can be rolled over for inclusion in the next
year. Their Indications of Cost should, however, be updated before inclusion in the next
year's AWP.

18. (a) The Annual Works Programme for Major Capital Works costing Rs.15 lakh or more
for the relevant financial year should be prepared and submitted by 31st October
and approved by the Government before 31st December of the previous financial
year. While preparing such a programme, the physical progress and financial
commitments to Carry Over Works whether approved by CCS, MOD, Service
HQrs, Command HQrs or lower formations and the time and effort as well as
funds required for planning and executing New Works should be carefully
projected. To achieve this objective before the works are included in the AMWP
adequate ground, i.e., holding of preliminary Board of Officers proceedings as well
as preparation of rough estimates of the cost involved for new works will be
required to be done. There will be no embargo on the number of works to be
included in the AMWP but the total value of works to be cleared will have to be
within the AMWP ceilings. In order to provide flexibility within AMWP ceilings,
the number of works to be projected for inclusion within AMWP ceilings of the
year, could exceed by 20%, but actual sanction for Major works will be restricted
within the approved financial ceilings. Such items which were included in the
projections made for the AMWP ceilings of a particular year but could not be
sanctioned for one reason or the other, will automatically be included in the next
year AMWP ceiling unless any of these cases are required to be deleted. This
should provide flexibility and ensure achievements of target of sanctioning works
up to AMWP ceiling even if some works had to be carried forward due to reasons
beyond control.

(b) Approval of this Annual Major Works Programme by Government will be considered
as approval in principle of the implementation of the works programme in respect of
those works whose BPs and rough estimates have already been scrutinized by
 - 9 -

Competent Engineer Authority (CEA) and administrative & associated financial

authorities. This approval will however be subject to adequate allocation of funds.
This will enable the engineers to obtain a 'Go Ahead' sanction from CF As wherever
considered essential not exceeding 5% of the approximate cost estimate in a
specific case as per the provision in Para 27 below. In such of the cases where BPs
and rough estimates have not been scrutinized as mentioned above, inclusion of
these cases in MWP/AWP will provisional subject to these being scrutinized
subsequently.

(c) If during the current financial year any new works project, not included in that
year's Annual Works Programme, has to be subsequently approved and/or
commenced for extraordinary reasons, separate approval of the Government should
be taken for revision of the Annual Works Programme.

19. The Annual Low Budgeted Capital Works Programme should be prepared and
approved at the GOC-in-C or equivalent level before 31st March of the previous financial
year after careful assessment of the liability of ongoing works. All such works as well as
Major Revenue Works should be completed within twelve months of their commencement.

20. Minor works should not be carried over. Hence these works should be planned and
sanctioned well in time in consultation with the concerned Garrison Engineer for feasibility
of execution so as to ensure their completion during the same financial year.

VIII Processing of Major Capital Works

21. There are nine main stages in die planning, sanctioning and execution of new Major
Capital Works, viz.

(i) Demand for and Planning of New Works.

(ii) Acceptance of Necessity

(iii) Preparation of Approximate Estimates

(iv) Administrative Approval

(v) Appropriation of Funds

(vi) Technical sanction

(vii) Tender Action

 - 10 -

(viii) Contract Action

(ix) Execution of Works

The details of procedural requirements at each of these stages are explained below.

IX DEMAND FOR PLANNING OF NEW WORKS

22. Demands for new Major Capital works services will be submitted in the form of a
Statement of Case to the Competent Financial Authority for consideration and approval.
The Statement of Case will inter alia explain:-

(a) The need for and scope of the works proposed.

(b) Whether besides construction works, the proposed project includes

procurement manufacture / installation / storage of new / special equipments or
armaments, or setting up new operation related facility including special repair
and maintenance of capital assets with which the civil works have to be
integrated.

(c) The type of construction - authorized or special, permanent or temporary –

required:

(d) The target date by which the completion of the proposed works is desired.

(e) The desired location and availability of land, if any.

(f) If land is not available, the time likely to be taken for obtaining the same and
for site development, environment clearance, etc.

(g) Extent of enabling works and external services or utilities of !preparatory

nature required.

(h) Need for engaging an outside consultancy agency, if any, for the total-project or
any part thereof, viz., pre-and post-administrative approval planning, design,
detailed engineering, project management, etc.

(i) A rough cost estimate in the format at Appendix 'B'.

(k) An Engineer appreciation in the format at Appendix 'C',

 - 11 -

23. (a) After examination and, approval of the Statement of Case, the Competent Financial
Authority will convene a Recee-cum-Siting and Costing Board. Such Board
Proceedings (BPs), while examining the various features of the new works proposal,
will also deliberate on the need, if any, for compressing the normal time-frame of
carrying out the works, issue of a 'go ahead' sanction for preliminary works in case
of works proposals costing more than Rs.1 Crore and delegation of special powers to
the Chief Engineer for planning and execution of the works and make necessary
recommendations.

(b) The completed Board proceedings, as ordered by Comd. HQ, along with detailed
engineer appreciation and rough cost estimates will be required to be submitted
within three months from the approval of Annual Works Programme in the following
manner:-

(i) Works to be Sanctioned by MOD & Service HQ The Board Proceedings

shall be checked at Comd. HQ and approved at Service HQ level.

(ii) Works to be Sanctioned at Command HQ level. The Board to be

submitted to Area HQ / Corps HQ / equivalent HQ of Navy & Air Force and
approved by GOC-in-C and equivalent ranks in other services.

(c) The approval of these Boards is required to be communicated to engineer

authorities within a period of 45 days of its submission after settling any
observations thereof. Respective engineer authorities namely CE Zones will,
accordingly, submit the AEs within four weeks of receipt of approved Board
Proceedings from respective CFAs.

(d) The requisite directions / guidelines to various lower HQs will be issued by Service
HQs / Comd HQs in consonance with time frame and procedures laid down in this
para.

24. In case of new works projects, the cost of which may require approval of the
Government, the Service HQs will convene and approve such Board Proceedings. In case of
works requiring Cabinet approval, after approval of the Government on the basis of a
Statement of Case as per Para 22 above, a Detailed Project Report (DPR) will be prepared
and submitted to the Government for consideration and approval. If it is proposed to
engage an outside consultancy agency for preparation of such DPRs, then prior approval of
the Government is to be taken in this regard. Whenever any such outside consultancy
agency is engaged for this purpose, the broad parameters of scales of accommodation and
specifications (vide para 12 and 13 above) as applicable to Defence Works should be
 - 12 -

clarified to them as guidelines in advance. Should there be any serious departure from the
approved scales and/or specifications in the DPR finally submitted then that should be
specifically brought to the notice of the competent financial Authority for approving the
necessity of the works proposed as Special Works as per provisions of para 6 (b) & (c)
above and Notes thereunder.

X Acceptance of Necessity

25. Acceptance of necessity at the lower level is based on rough estimates, however, at
the Ministry level, it must be based on a detailed AE. If, after careful consideration of the
new works proposal as explained in the Statement of Case and Board Proceedings, it is
decided to carry out the proposed work services then formal orders will be issued by the
Competent Financial Authority accepting the necessity of the proposed works and ordering
the preparation of Approximate Estimates. The CFA will also ascertain that funds will be
made available at the appropriate time for carrying out the works before passing such
orders.

26. Powers of the CFA at various places accepting the Necessity and according
Administrative Approval for various types of works with or without financial concurrence
are indicated in Appendix 'D'.

27. If it is proposed to engage any outside consultancy agency for carrying out any part of
the proposed works services at the planning and / or execution stages, either for technical
reasons or for compressing time frame the time frame of the works then the cost estimate
for such consultancy should be indicated by the engineers and accepted by the CFA while
according Administrative Approval to the proposal. Further in a specific case, where in the
opinion of the Chief engineer concerned, a proper technical or cost appreciation of a works
project or its timely implementation requires certain preliminary activities like site
surveys, soil investigations, enabling works, preparation of basic designs or estimate etc,
and / or engaging an outside consultancy agency. then a ‘Go-Ahead' sanction of an amount
not exceeding 5% of the rough cost estimate will be taken for such activities from an
officer of the level of GOC-in-C or equivalent or above with concurrence of the Integrated
Financial Adviser concerned. Such proposals for 'Go-ahead' sanction should be submitted
to Ministry of Defence / Defence (Finance) in case of works proposals for which
administrative approval would have to be accorded by Government / Cabinet, A copy of such
a 'Go-Ahead' sanction will be sent to the CDA concerned.
 - 13 -

28. In case of new works proposals requiring administrative approval of a CFA of the
level of Service Headquarters /Government, such proposals may be submitted to the CFA
along with both Board Proceeding and Approximate Estimates for obtaining Acceptance of
Necessity and Administrative Approval at the same time.

XI Approximate Estimates

29. (a) The engineer authorities will prepare the Approximate Estimates in the prescribed
proforma (Appendix ‘E’) as per the lines indicated in the approved statement of case
and/or Board Proceeding/DPR. Office and domestic accommodation requirements
for the MES constructional staff, consultancy charges, if any, necessary external
services, and other requirements of technical nature will be included in the
Approximate Estimates, even if no specific recommendation of the Board of
Officers is existing.

(b) No provision will be made in the estimate for special tools and plants since a central
provision is made for this purpose under Sub Head E(a) of Minor Head 111 - Works
to cater for special tools and plants for all projects. Nevertheless, if for special
technical reasons any special tool or plant is required for any works project and
cannot be met out of the above mentioned budget provision then a specific approval
of the Government should be taken for inclusion of the estimated cost thereof with
due recommendation of the Director General of Works.

(c) Contingencies will be provided at 3% of the estimates. Establishment charges will

not be included in the MOD establishment works but will be included in the
estimates after recording reasons therefor in each case, but will not exceed 2% of
the estimates. In addition consultancy charges not exceeding 3% may be included
in the estimates. Any additional expenditure on consultancy will require-the
approval of concern CFA.

(d) No special item of works or superior specifications will be included without specific
approval of the Competent Financial Authority. Verification in specifications from
those included in approved plinth area rates, but considered essential to suit
peculiar local conditions due to technical reasons will be highlighted.
 - 14 -

(e) Permissible tolerance limit of 10% beyond Administrative Approval amount as per
para 2(h) above and savings achieved on conclusion of contracts will not be utilized
either to enhance the scope of the work or to enrich the specifications afterwards.

(f) Approximate Estimates (as also rough cost at the acceptance of necessity stage)
will be prepared by Engineer Officers competent to do so as per guidelines laid down
by the Director General of Works. Checks of such Approximate Estimates will be
made by the next higher Engineer Authority as per directives laid down from time
to time.

(g) In case of works scheduled to be completed within two years, no escalation, except
statutory increases, will be allowed in the contracts for execution of such works.
Approximate Estimates for such works will be prepared accordingly.

(h) While submitting Approximate Estimates, application will be made for allotment of
funds required for execution of the works in the relevant financial year(s).

30. The above stages of processing a new works prop9sal, namely, Initiation of Demand,
Board Proceedings, Acceptance of Necessity and Preparation of Approximate Estimates
can be undertaken, if urgency so requires, even before finalization and approval of the
Annual Works Programme for the relevant financial year. However, in order to avoid in
fructuous expenditure of time and effort on such matters, by 31st October of the previous
year, the Service HQ/Command HQ will priorities the new works out of their two years'
work plans cited in Para 17 above and also indicate the ceilings of funds expected to be
made in respect of new works services in the next financial year at Command/formation
levels.

XII Administrative Approval

31. (a) Administrative Approval will be accorded by the Competent Financial Authority
(CFA) to the execution of the works after due examination of the Approximate
'Estimates. It will state clearly whether the works being approved are authorized
or special. Special items of works will be specified and reasons for approving the
same will be stated.

(b) At the stage of according Administrative Approval, it will be ensured that

Approximate Estimates are updated to conform to prevailing percentage of market
variation and difference in Cost of stores. As far as possible these administrative
 - 15 -

approvals are to be accorded before the commencement of the financial year in

which the works are to commence. Detailed guidelines regarding methodology for
computing market variation and difference in stores will be issued by the E-in-
C with the concurrence of Defence Finance.

(c) Time for completion of the works will be clearly indicated in the Administrative
Approval. Any extension of time for completion will be notified to the CDA
concerned. Delay in commencement of the works beyond 12 months would
necessitate a Revised Administrative Approval.

(d) Whenever any time bound projects are entrusted to the MES with the
stipulation by the Govt. on completion of facilities by stated dates, Chief
Engineer to exercise the special power as under Para 38 in connection with the
planning and execution of such projects. This will come as a separate Para in
the Administrative Approval accorded by the Govt.

(e) While issuing Administrative Approval, the requirement of formal allocation of

funds as per Para 2(e) above and para 45 (a) below will be complied with.
Administrative Approval will be considered as release of the works and conveyed by
a letter specifying the budgetary source from which funds will be provided in the
year the work is sanctioned. A copy of this letter together with a copy of the
Approximate Estimates will be sent to the CDA concerned and to the engineer
adviser concerned who will issue such technical instructions as may be required. The
Time frame for pre-Administrative Approval planning is indicated at Appendix 'F'.

XIII Revised Administrative Approval

32. (a) In case it becomes necessary to obtain- a revised administrative approval as per
para 2(h) above, a revised estimate will be prepared in the Proforma at Appendix
'G', the original and revised figures being shown in parallel columns of a
comparative statement. The causes of the excesses should be set out clearly and
concisely in the remarks column of such a comparative statement.

(b) There is no limit as to the number of times that an estimate may be revised.
Immediate action in fact should be taken to revise estimates as and when the
occasion demands, the procedure explained above being followed in the each case.
 - 16 -

(c) When an administrative approval involves conclusion of number of contracts and in

the event of the tender cost for the item or items of work exceeding their
corresponding administrative approval amount by more than 10% (i.e. tolerance limit)
and also if there be no prospect of savings on other items of work, the case will be
submitted to the CFA along with a statement of financial analysis for the grant of
financial concurrence to enable Engineer authority to conclude the contract. The
statement of case will also include a revised estimate for part/parts of the work
covered in the tender in the form of Appendix ‘G’. Following the financial
concurrence, Revised Administrative Approval will be accorded by the CFA covering
the part affected by the tender in the shape of a Corrigendum.

(d) Revised Administrative Approval will be essential before tender action if there is
any change in scope of work due to any reason., irrespective of whether the cost is
within the tolerance limit or not.

(e) No change in site is permissible. However, in exceptional circumstances, approval of

CFA one level higher will be obtained.

(f) If upward revision of cost estimates beyond the tolerance limit is anticipated
without any change in scope of work, then preparation and submission of Revised
Approximate Estimates will be initiated. However, tendering and contract planning
may continue; but acceptance of tender / conclusion of contract will be made only
after obtaining Financial Concurrence of the CFA.

(g) It is mandatory to obtain a Revised Administrative Approval from the CFA in the
form of a Corrigendum at the earliest after the issue of the FC. As such a
Corrigendum or Revised Admin Approval is not based on actual completion cost, the
tolerance limit of 10% as per para 2(h) above will be applicable to the revised
administrative approval.

(h) No revised administrative approval will be essential if increase in cost beyond the
tolerance limit is solely due to payment of statutory escalations scheduled as part of
the contract agreement for the originally stipulated time of completion of the
works. On completion of the works, the final completion cost will reflect all approved
revisions of cost estimates and escalations granted under this para.
 - 17 -

33. If additions become necessary due to revision of scales or establishments or for

other specific administrative reasons, a supplementary estimate will be prepared and
revised administrative approval obtained from the CFA to the entire work, including both
original and supplementary estimates.

XIV Urgent Works

34. Urgent military reasons must be made very explicit and CFAs must be held
responsible for their decision. Notwithstanding the procedures laid down in Paras 22 to 31
above, if for urgent military reasons delay involved in the issue of administrative approval
based on approximate estimates cannot be accepted, the Competent Financial Authority is
empowered to order commencement of work on essential items of required work prior to
the issue of administrative approval. In doing so, however, the CFA should ensure that no
accommodation or facility is constructed in excess of requirements. The "Go-Ahead"
sanctions accorded under this para by CFAs lower than the Government of India will be
subject to the following conditions :-

(a) The "Go-Ahead" sanction will be ordinarily restricted to items like collection of
stores, site clearance, external services, construction of essential temporary
accommodation for the staff and stores, residential accommodation for the
construction staff and preliminary works necessary for the execution of the
project. Work related to piling and reclamation may be also covered by the "Go-
Ahead" sanction, provided it is duly supported by an approximate estimate for
such piling and reclamation.

(b) The "Go-Ahead" sanction will not exceed 20% of the rough cost estimate for
the entire project made by the Engineer authorities. The percentage will not
include the cost of acquisition of land required for the project.

(c) Provisions under Para 38 below will be applicable to work sanctioned under this
Para at the discretion of the Competent Financial Authority.

35. (a) Further, notwithstanding the procedures laid down in Paras 22 to 31 above,
unexpected circumstances may arise which make it imperative to short-circuit
normal procedure. Such circumstances may arise from unforeseen operational
necessity or urgent medical grounds or out .of natural disasters when reference to
the appropriate CFA would entail dangerous delay. In such circumstances, any
 - 18 -

Commander may order the commencement of required work by furnishing an order in

writing to the engineer officer concerned. The following principles will guide the
Commander concerned in taking such an action:-

(i) Can the appropriate CFA be referred to and his approval received without
causing dangerous delay in commencement of work?

(ii) The facts of the case satisfy the Commander that, if the appropriate CFA
could be referred to in time, the latter would have given the same order for
commencement of works under the prevalent circumstances.

(iii) The Commander is satisfied that he will be held responsible for any failure
or disaster that may ensure, if he neglects to order commencement of
necessary works.

(b) Should the concerned Commander decide that it is necessary to order

commencement of necessary works in departure from the procedures laid down in
Paras 22 to 31 above, he will report the fact in writing to the appropriate CFA at
the earliest possible moment within a week with copies to the CDA concerned and
also inform his immediate superior Commander at the same time.

(c) Provision under Para 38 below will be applicable to works sanctioned under this Para
at the discretion of the concerned Commander. Further, skilled / semi-skilled /
unskilled manpower may be employed on daily rates of pay as per Nerric rates
prevalent in the station by the Garrison Engineer ordering the work not exceeding
15 days overall in terms of time and 1000 man days in effort, with reason and
justification. For employing skilled, semi-skilled, unskilled manpower beyond these
limits sanction of CF A will be obtained.

36. (a) Again in the case of imminent danger to buildings, roads etc., or of a breakdown of
supply from an E/M or water supply installation, when delay would be seriously
detrimental to the public service, the local MES or PWD officer will take steps to
protect Government property or the inhabitants etc. But he must at once report the
facts of the case and the reasons for his action to the superior engineer authority,
the local military Commander and to the CDA concerned indicating the financial
liability he is incurring.
 - 19 -

(b) Provisions under Para 38 below will be applicable to works sanctioned under this Para
at the discretion of the local Engineer Officer. Further, skilled / semi-skilled /
unskilled manpower may be employed on daily rates of pay (as per Para 35 (c) above)
by the Engineer Officer not exceeding 15 days overall in terms of time and 1000
man days in effort.

37. The procedures outlined in Paras 34 to 36 above do not dispense with the necessity
for the issue of Administrative Approval by the CFA based on subsequently prepared
Approximate Estimate at the earliest opportunity not exceeding six months after
commencement of works. Further such works can be started without waiting for specific
allotment of funds for the project subject to the condition that necessary allotment of
funds for the purpose is applied for and obtained at the earliest opportunity as per
provisions in Para 45 below.

XV Special Powers for Engineers

38. When an urgent work (under paras 31(d), 34 -36) is entrusted to the engineers for
completion of the works in a compressed time frame, the Chief Engineer can exercise the
following special powers in connection with planning and execution of such works: -

(i) Detailing officers anywhere in the country.

(ii) Resorting to consultancy for any item of work.

(iii) Purchasing of stationery, reprographic equipments, typewriters or any other

office equipment required.

(iv) Installation of Telex, Fax, Internet or other communication equipment in CE /

CWE / GE office.

(v) Payment of charges for telephone connections including STD facility on

priority basis.

(vi) Hiring of civil transport for project work.

(vii) Hiring of office and temporary accommodation for construction staff.

(viii) Procurement of Cement and Steel from open market, if necessary;

(ix)* Selective tendering.

(x)** Dispensing with advertisement for tendering and contracting.

 - 20 -

Note:

The expenditure to be incurred for items cited in Sub-Paras (iii) to (vii)

above will be met out of contingencies of the project. The cost of consultancy will
be also met out of Contingencies if not separately provided for.

*The dispensation mentioned in Para 38 (ix) & (x) would be clearly spelt out in the
administrative approval accorded by the Govt. / CF A not below the level of GOC-in-
C and equivalent. The reasons for dispensing with competition will be placed on
record in writing.

** Chief Engineer could exercise these powers in connection with the urgent work,
after taking the approval of IFA.

XVI Processing of Low Budgeted Works

39. In case of Low Budgeted Works, i.e., original capital works costing more than
Rs.2Lakh, but less than Rs.15Lakh, these works will be sanctioned by the CFAs after the
Annual Low Budgeted Works Programme has been approved as per para 19 above and bulk
allotments of funds for this purpose in the relevant financial year have been made to the
respective CFAs. Board Proceedings can be dispensed with in case of Low Budgeted Works
costing up to Rs.10Lakh, if so decided by the CFA. Administrative Approval in such cases will
be based on consideration and approval of a Statement of Case as per Para 22 above by the
CFA and Approximate Estimates as per Para 30 above.

40. In case of Low Budgeted Works carried out for urgent reasons as cited in Paras 34
to 36 above, the procedures laid down therein can be adopted.

XVII Revenue and Minor Works

41. (a) In case of Revenue Works and Minor Works as defined in para 5 (a) (iii) & (iv) above,
these works will be sanctioned by the CFA after consideration of a Statement of
Case as per Para 22 above and Approximate Estimates as per Para 30 above against
bulk allotments for this purpose made in the relevant financial year. No Board
Proceedings will be necessary in these cases. In case of Minor Works costing less
than Rs.50,000/-, no Approximate Estimates will be necessary.

(b) In case of Barrack Damages, subject to the condition that barrack damages have
been recovered from the individual / unit concerned at the rates commensurate
 - 21 -

with the cost of repair or replacement as Paras 634 and 635 of MES Regulations,
the engineer officer concerned may carry out repairs without waiting for any
specific sanction of the CFA. The expenditure incurred for this purpose will be
charged to allotments for maintenance.

XVIII Technical Control over Original Works

42. (a) Technical sanction, which is issued by the competent engineer authority, amounts to
no more than a guarantee that the works proposals are structurally sound and that
the estimates are accurately calculated and based on adequate data. Ordinarily such
technical sanction is accorded only after Administrative Approval. But in case of
authorized items of work based on approved scales of accommodation and
specifications, necessary documents including designs and drawings can be prepared
in advance so that the stages of technical Sanction and Tender Action can be
covered expeditiously after Administrative Approval is accorded.

(b) The Government may also issue special instructions specifying the categories of
works cases where technical sanctions can be issued to facilitate Tender Action
even before Administrative Approval. In such cases, if necessary, revision of
Technical sanction will be made on the basis of finalized scope of work, scale and
specifications as per the Administrative Approval before Contract Action is taken.

(c) Schedules of works will be prepared along with requisite designs and drawings,
costed and technically sanctioned by the competent engineer authority before
tender documents are issued. The technical sanction will include the anticipated
contractor's percentage based on the Engineer Officer's appreciation of market
trends.

(d) Costed schedule of works will be in strict accordance with the administrative
approval so far as scope of work and scales are concerned. The engineer officer
competent to accord technical sanction to a project may, wherever necessary,
deviate from specifications shown, in the approximate estimate provided that:

(i) The deviations are necessitated by engineer/aesthetic reasons and are not such
as to alter the scope of the work;
 - 22 -

(ii) There is no serious departure from authorised general specifications; and the
total cost of the project as administratively approval is not exceeded beyond
the tolerance limit.

(e) In case of works carried out by specialist firms based on their own designs,
technical sanctions will be accorded on the basis of the accepted design on receipt
of the tender but before the acceptance of the contract.

(f) Schedules of works may be sanctioned for the project as a whole or part of such
projects. Large projects may, for convenience of planning, siting and execution, be
broken into sub-projects. The term 'Sub- projects' is to be applied to a distinct
self-contained unit of the project if that unit is sufficiently large or important to
be kept distinct for purposes of planning, siting and execution. Further, any self-
contained external service may be treated as a sub-project.

(g) In order to ensure that sub-projects are kept within the scope of the whole project
as defined in the Administrative Approval, Technical Sanction to all sub-projects of
a project must be accorded within as short a time as possible after issue of
administrative approval.

(h) The competent engineer authority before according technical sanction to a sub-
project must be satisfied that the amount of technical sanction for the whole
project is not likely to exceed the amount of administrative approval including the
tolerance limit of 10 per cent.

(j) In case the technical sanction amount for the whole project is likely to exceed the
amount available in the Administrative Approval amount including the tolerance limit
of 10 percent, but without any change of scope of the project, then the Technical
sanction can be issued to enable taking Tender action, subject to the stipulation, to
be recorded in writing, that revised administrative approval is being obtained and
that no financial commitment will be made until the revised administrative approval
or financial concurrence is received.

(k) In the case of purchase of buildings, the valuation statement will be taken as
technical sanction. The valuation statement will be prepared / approved by the
competent engineer authority as in the case of technical sanction for construction
work, In cases where there is a time lag of one year or more between the
preparation of valuation statement and final purchase, a certificate that the
property has not- deteriorated / depreciated during the interval will be taken by
 - 23 -

the Engineers before the purchase is made. A fresh valuation statement will be
prepared in case of deterioration. A copy of the valuation statement will be
endorsed to the CDA concerned.

(1) The Competent Engineer Authority must also satisfy himself that the amount of
Technical Sanction he is giving does not exceed the power under MES Regulations,
Table 'B'. Provisions of Para 44 below also refer.

XIX Technical Control of Repairs and Purchase and Maintenance of Tools and Plant

43. (a) Estimates or requisitions will be, prepared, costed and technical sanction accorded
by the competent engineer authority before work is commenced.

(b) The competent engineer authority, before according technical sanction, must be
satisfied that the amount of technical sanction for the repair estimate is not likely
to exceed the funds placed at his disposal for the purpose.

(c) The engineer executives are responsible for the construction fitness, accuracy and
economy for repair estimates and requisitions.

XX Powers of Technical Sanction

44. (a) Powers of technical sanction are laid down in MES Regulations, Table 'B'.

(b) The engineer officer competent to sanction the project as a whole is technically
responsible for the project and for ensuring that the amount of the project as a
whole is not exceeded except in the circumstances and subject to the conditions
laid down in para 42 above. He may delegate authority at his discretion to local
engineer officers to accord technical sanction to sub-projects, as defined in para
42 above, which he orders them to plan locally within the limits of their powers
under MES Regulations Table 'B'. When delegating such authority he will lay down
in each case the total sum, up to which technical sanction will be accorded; and this
sum will not be exceeded without the prior concurrence of the delegating authority.
Copies of such delegation of powers will be forwarded in all cases to the CDA
concerned.
 - 24 -

(c) Chief Engineers are authorized in exceptional circumstances to increase the powers
of any officer subordinate to them by name to the extent they consider necessary
within their own limits for technical sanction of designs and acceptance of
contracts. It will be ensured that while delegating such powers the following
requirements are complied with :-

(i) Enhanced powers are granted in exceptional circumstances and in respect of

individual projects.

(ii) Sanctions are given by name to officers.

(iii) The period for which the delegated power is to be exercised is specified

(d) In the case of works carried out by agencies other than the MES, the normal
procedure in force in the agency concerned for according technical sanction will be
followed. In the case of projects costing more than Rs.50 lakh, however, it should be
ensured that detailed plans and specifications conform to the scales and
specifications approved by Ministry of Defence, before technical sanction is
accorded.

XXI Appropriation of Funds

45. (a) Appropriation of funds means the allotment of a particular sum of money to meet
expenditure on a specified work through the annual allocation of funds under the
budgetary heads indicated at Appendix 'A' immediately after passing of the
Defence Service Estimates by Parliament. No new Major Capital W9rk will
commence i.e., no Contract Action as per para 48 below will be taken in respect of
that work, unless and until such specified allotment of funds is made for that work
or project.

(b) In case of Low Budgeted Works, Revenue Works and Minor Works, a certificate will
be given by the concerned CFA in case of each of these works that it has been
sanctioned and ordered to be commenced against adequate bulk allotment of funds
made to that CFA for this purpose in the relevant financial year. It will be the
responsibility by every CFA to ascertain that such allotment of funds has indeed
been made adequately for these categories of works during the relevant financial
year before such a certificate is given. A copy of the certificate will be sent to the
CDA concerned for watching the adequacy of funds against sanction of works of
these categories.
 - 25 -

(c) Notwithstanding sub para (a) and (b) above, in cases of urgency to be recorded in
writing, the CFA may order commencement of preliminary works like site clearance,
external services, etc. in specified cases subject to the condition that the said new
works services, etc. in specified cases subject to the condition that the said new
works services have been accorded Go-Ahead sanction and also in the approved
Major Capital Works / Low Budgeted Capital Works programme of the relevant
financial year and that the estimated cost of such preliminary works does not
exceed 5 per cent of the total cost approved in each Case. Simultaneously, he will
forward a demand for a special allotment of funds to the appropriate higher
authority explaining the urgency.

XXII Tender Action

46. (a) After the schedule of work for a project or sub-project has been technically
sanctioned by the competent engineer authority, tenders will be invited for the
execution of the work. Normal method of contracting will be based on competitive
tendering.

(b) Special tenders such as those of single cost plus type require the approval of E-in-C.
Separate guidelines will be issued by the E-in-C for such projects with the approval
of Defence Finance.

(c) In case of the following categories of works, the practice of advertisement in news
papers and Indian Trade Journals, giving notices inviting applications for issue of
tenders, will be dispensed with and tenders will be distributed to selected eligible
contractors who are already on the approved list of MES and have got the capacity
and experience to undertake the proposed work..

(i) All works costing up to Rs.5lakh.

(ii) All works approved under Paras 34, 35 and 36 above.

(d) However, the notice shall be got displayed on the notice boards of the following
offices:-

(i) SE/EE of CPWD & State PWD in station

(ii) Local Municipalities and Cantonment boards

(iii) State Bank of India, Local & nearest branches to places of work.
 - 26 -

(iv) Railway and post offices nearest to places of work

(v) MES formations in station.

(vi) Head Offices of Builders Association of India

(vii) Internet Publication of tenders should be on the website of concerned Deptt/

MOD.

(e) Scrutiny of tender document by Audit prior to acceptance of tender is not

necessary. Chief Engineers are empowered to alter standard contract documents at
pre-tender stage to suit urgent requirements particularly with reference to security
deposits, percentage payments, speed of payments, issue of stores, deviation limits
and similar matters. They will, however, consult the CDA / IFA concerned wherever
possible. Where the decision of Chief Engineer on such alterations involves a major
departure from the existing procedure, he shall send a copy thereof to the E-in-C /
DGW and CPA / IFA for information.

(f) In case only a resultant single quoted tender is received, the same can only be
accepted after permission of next higher Engineer Authority and a report to
the same will be furnished to the concerned CDA/PCDA.

47. Mobilization Advance - In case of works to be carried out in remote difficult

location and / or requiring mobilization of special equipment, tools or plants, or works to be
completed on stringent and compressed time-frame, the Chief Engineer may include in the
tender notice the offer of mobilization advance to the prospective contractors so as to
prevent avoidable delay in commencement of works after acceptance of contract. E-in-C's
Branch will issue necessary guidelines with the approval of Defence Finance from time to
time on the amount of mobilization advance subject to maximum of 10% of the value of
the contract that can be granted, the interest to be charged and the method and schedule
of recovery and / or adjustment of such advance in different categories of cases. .

XXIII Acceptance of Contracts

48. (a) Powers of acceptance of contracts are laid down in MES Regulations Table 'B' read
with Paras 428 and 440 ibid.

(b) It is emphasized that no officer is empowered to accept a contract which is likely to

cause excess over the amount of administrative approval after taking into account
the tolerance allowed vide para 2(h) above. In case the contract is covering only a
 - 27 -

part of the work covered in the administrative approval, the procedure indicated in
para 32 above will be followed. .

49. When an excess over the tolerance limit of 10 % over Administrative Approval,
which cannot be met by savings on other items, occurs or appears likely to occur on account
of technical reasons, a report will be made at once to the competent engineer authority who
granted the technical sanction for the work. If there is still time to curtain the work or
modify it, the orders of the CFA will be taken. If no modification is ordered, a revised
estimate will be prepared and revised administrative approval of the CFA obtained as per
Para 32 above.

50. In the case of projects estimated to cost Rs.3 1akh or more, when the amount of
accepted contracts reduces the cost of the project below the administratively approved
amount by more than 15 %, the approved amount for that project will be reduced by the
amount exceeding 15 % by the CE / CWE / GE within whose powers of technical sanction the
work falls. The details of reduction win be sent to the CDA and an others concerned. The
amount of saving up to 5% (of the original A/A amount) thus retained will be used to
cover variations in cost for technical reasons.

XXIV Reduction of Scope of a Project

51. When the scope of a work service is reduced for administrative or other reasons,
the Administrative Approval need not be revised; but the approved amounts for the
abandoned or reduced items of the service and the total approval amount will be reduced
accordingly by the concerned engineer authority within whose powers of technical sanction
the work falls. Details of such reductions of scope will be sent to the CFA, the CDA and all
others concerned.

XXV Execution of Works

52.(a) After acceptance of contract, the execution of works and their supervision will be
carried out by the engineers-in-charge as per MES Regulations read with MES
Standing Orders. Deviations on and amendments of contracts, if necessary, will be
carried out as per MES Regulations and Standing Orders.

(b) While constructing a building, new specifications or materials can be introduced if

technical or aesthetic reasons so justify, with the prior approval of the Zonal Chief
Engineer concerned, subject to the condition that this must be within the existing
 - 28 -

tolerance limit as applicable and not exceeding 5% of the original Administrative

Approval amount.

53. The technical sanctions accorded to costed schedule as per para 42 above will be
revised only for the following reasons :-

(a) Engineering / technical reasons such as changes in designs, specifications, drawings

etc. Revision will not, however, be necessary if such variations are sanctioned by the
authority competent to revise the technical sanction, before deviation orders or
amendments to contracts are issued under provisions of the contract However, such
competent authority may, on his own responsibility, delegate the powers of revision
of technical sanction to the authority issuing deviation orders for the specific
purpose.

(b) On account of revision of administrative approval, if the variations are not already
covered by sanction to deviation order or amendments to the contract vide clause
(a) above. Revision will not, however, be necessary where the variation is due to non-
technical reasons, such as difference in cost of stores or where the percentage in
the accepted contract differs from the anticipated percentage provided in the
costed schedules.

(c) The original technical sanction is found to have been based on inaccurate estimates
initially. In cases, however, where scope of work is changed due to administrative
reasons, the technical sanction will be revised and issued before such items of work
are actually executed.

XXVI Monitoring and Review

54. (a) To enable effective monitoring and timely course-correction of works in progress,
Quarterly Progress Reports indicating physical and financial progress of all major
capital works will be prepared and submitted to respective CFAs for information and
direction. Avoidable delays or stoppages in progress of works which have occurred
or are foreseen will be identified, reasons for shortfalls examined and necessary
remedial steps taken promptly through on-line communications systems to prevent
cost and time-overruns.

(b) Works Review Committees will be set up for each Service by the Ministry of
Defence at the level of Joint Secretary including Defence (Finance) representative
for carrying out Quarterly Review of the planning and implementation of works
 - 29 -

projects costing more than Rs.15Crore. The review procedure may be revised as and
when required so that the Ministry's attention is focused on Capital works projects
sanctioned at Government level.

(c) In case of all projects/works costing more than Rs.1crore, a representative of the
User will be nominated as Project Officer to coordinate functional aspects of the
User's requirement with the engineers from the commencement to the completion
of such works.

(d) In addition, depending on the relative importance and value of various works
projects, project management authorities may be set up at the level of Ministry of
Defence, Service HQrs, Command HQrs and other formations and entrusted with
suitable responsibilities and powers to review the progress of works, resolve
bottlenecks and take suitable decisions to ensure timely and cost-effective
completion of such works. The Users' representative, the Zonal Chief Engineer and
Defence (Finance)/IFA representative will be associated with such project
management authorities.

XXVII Procedure for Special Projects

55. Notwithstanding the provisions made above, in case of works projects requiring the
acceptance of necessity and administrative approval at the level of MOD/, the special
procedures outlined in Paras 56 to 60 below may be adopted if such works are of the
following categories :-

(a) Strategic importance

(b) High Tech Complexity

(c) Urgent necessity

Note:- Such works may be requiring close interaction with user, specialist design
consultants and vendors of plant and equipments and transfer of technology.

56. Preparatory Stage

(a) For initiating the demand for new works services for a special project, the User
establishment/formation will prepare a Statement of Case on the lines indicated in
Para 22 above.
 - 30 -

(b) The Statement of Case will be then examined by the Command Hqrs/Service Hqrs
for setting up a Board of Officers who will examine the detailed features of the
works proposal with a view to:

(i) Defining clearly the scope, scales and specifications of the works proposed.

(ii) Programming the various implementation phases of the project and the time
schedule for each phase.

(iii) Indicating the time and efforts required for acquisition and development or
land and for environmental clearance, if any.

(iv) Suggesting the extent of site preparation, enabling works and external
services / utilities of preparatory nature required.

(v) Nature of consultancy required at any stage of the works project, viz.,
preparation of feasibility / project reports, programming schedules of works,
external services and utilities, structural/architectural drawings / designs,
cost estimates, preparation of bills of quantities and / or tender packages,
appraisal of tender documents, project / construction l1I1anagement, etc. for
the whole or for part(s) of the project.

(vi) Details of rough cost estimates.

(vii) Phasing of fund requirements.

(NOTE: It would be the primary responsibility of the User establishment and the
Command Hqrs/Service Hqrs to complete this preparatory stage systematically and
expeditiously.)

57. Steps up to Go-Ahead Sanction

(a) After examination of the recommendations of the Board of Officers, the Command
HQrs will take the following steps through the Service HQrs:-

(i) Propose inclusion of the works proposal in the Annual Works Programme, if not
already done.
 - 31 -

(ii) Propose specific phasing and allocation of funds to ensure adequate fund
availability for the entire duration of the project.

(iii) Initiate preparation of Detailed Project Report (DPR) for works projects of
high value requiring MOD/Cabinet approval under departmental or outside
consultancy arrangements.

(iv) Approval of CFA will have to be obtained from the MOD for appointment of
Consultants for any purpose related to the project, including preparation of
the DPR, subject to the stipulations made in Para 24 above based on Estimates
produced by Engineer Authorities.

(b) It is reiterated that the CFA in such cases is always MOD. A proposal will be
submitted after acceptance of Detailed Project Report (DPR) to the CFA for
granting a "Go-Ahead Sanction" amounting to 5 per cent of the rough cost estimate
for approving:

(i) The broad scope and features of the works proposed.

(ii) Site surveys and development of land and enabling works including preparatory
external services and utilities.

(iii) The engagement of outside consultancy, designing or estimating work, and the
cost thereof, subject to the stipulations made in para 24 above.

(iv) Delegation of special powers under Para 38 above to the Zonal Chief Engineer
/ Project Chief Engineer.

(v) Appointment of a Project Management Authority for steering the project

through all other phases such as detailed planning and estimation,
administrative approval, finalization of designs and drawings, control action,
execution and monitoring of the physical and financial progress of the works.
The composition of and powers which can be entrusted to such a Project
Management Authority is illustrated in Appendix 'G',

(c) On receipt of the "Go-Ahead" sanction the preparatory activities mentioned at sub-
para (b) above will be started.

(NOTE: It will be the responsibility of the Service HQrs to complete this stage up to "Go-
Ahead" sanction expeditiously).
 - 32 -

58. Steps up to Administrative Approval

(a) After the "Go-Ahead" sanction the engineer authorities will start preparation of
basic designs and Approximate Estimates. However, in cases where a Detailed
Project Report has to be prepared as per Para 57 (a) (iii) above, the preparation of
the Approximate Estimates may be undertaken on the basis of the approved DPR.

(b) The AEs for works which are to be completed in two years shall be so framed that it
caters for escalation for two years. However, the contract shall not include any
escalation clause except statutory increases.

(c) On the basis of the Approximate Estimates, the Technical sanction for the works
will be given by the competent engineer authorities to enable taking of Tender
Action. In case of works of high technical complexity tendering for Item Rate,
Contracts may be resorted to.

(d) (i) In case of selective tendering, when approved by the CFA the time to submit
tenders will be normally restricted to 4 weeks from the date of issue of tender
notice.

(ii) The offer of Mobilization Advance as indicated in Para 47 above will be made to
ensure prompt mobilization of resources and commencement of works.

(e) Simultaneously with the issue of tenders, the Engineer Authorities will submit the
Approximate Estimates to the CF A, for issue of Administrative Approval. The
administrative approval will indicate the detailed scope of the works sanctioned, the
date by which the works will be completed and the budgetary sources from which
funds will be allotted. The administrative Approval will also indicate the scope 'of
consultancy required for the implementation of the project.

59. Steps up to Contract Action

(a) On receipt of tenders, the Engineers will evaluate the tenders and prepare a tender
appraisal report comprising:

(i) Comparative evaluation of tendered rates.

(ii) Finalized Approximate Estimates based on approved scope of work, technical

sanction and lowest acceptable tender.
 - 33 -

(b) The competent engineer authority will ensure completion of detailed designs and
drawings as well as costed schedules and, if considered necessary, issue revised
technical sanction without delay after receipt of Administrative Approval.

(c) On receipt of Administrative Approval and technical sanction, the contract will be
concluded

(NOTE) It will be the responsibility of the Competent Engineer Authority (CEA) to

ensure that necessary documents are handed over to the contractor and the latter starts
the works on the site within a pre-determined time stipulated in the contract.

60. Execution and Monitoring of Works

(a) With a view to completing the works strictly as per approved scope of works and
time-schedule, the Project Management Group will be institutionalized by the
competent Administrative Authority who, in turn, will regularly monitor the progress
of the works, help the engineers in mobilizing physical and financial resources and
removing procedural bottlenecks. The review by the Project Management Group will
be carried out periodically every six months. Such PMGs will invariably be
constituted for Projects costing Rs.1Crore and above.

(b) User establishment will nominate a representative to the Project Management Group
to coordinate the functional requirements of the users with the Engineers.

(c) The Zonal Chief Engineer / Project Chief Engineer concerned may approve deviations
/ amendments to the Contracts up to 10% of the Contracted Amount (CA). Deviation
beyond this limit but up to 20% of CA value will be referred to the Project
Management Authority, so long as overall cost remains within 10 % of Administrative
Approval amount.

(d) During the execution of the works, as far as possible, any demand for change in
scope of work or retrofitting of designs and / or specifications will be discouraged
as it leads to interference with works programmes and delay in completion of the
projects. However, if considered necessary, the Project Management Group may
engage Engineers/Architects and other specialists to review any part of the works
project including designs in order to expedite/improve the implementation and / or
quality of the works in progress or to detail other technical requirements of the
total project of which the works may be a part, subject to the condition that the
 - 34 -

cost of such consultancy and resultant additional works do not lead to exceed the
tolerance limit.

NOTE: The Project Management Group will obtain regular reports from the Chief Engineer
on the physical and financial aspects of the constructions in progress and report the same
to the CFA at regular intervals and also ensure that revised administrative approval of the
CFA is taken for expenditure beyond tolerance limit well in time.)

XXVIII COMPLETION REPORTS

61. (a) On completion of a work, completion reports will be rendered in accordance with the
following procedure in the form set out in Appendix 'H'

(b) Part' A' of the form will be completed as soon as the Project is Physically completed,
and will be forwarded through engineer channels to the Engineer Adviser of the
CFA. After being noted, they will be returned direct to the CE concerned for
completion of Part 'B' and resubmission of the form in accordance with the existing
procedure in para 379 MES Regulations.

(c) For the purpose of rendition of part' A' of the completion report, each
administrative approval, whether it relates to a phase of a project or to an item of
supplementary work, will be treated separately. These reports will be replaced by a
consolidated completion report 'A' at the final stage.

(d) However, the various phases and the supplementary works, if any, will be treated as
one project for purpose of savings and excesses.

(e) Once Part' A' of the final completion report has been completed, the work will be
regarded as completed for all purposes of the MES Regulations although the
accounts may not have been settled. No further supplementary estimates may be
accepted.

(f) The financial closure of the project i.e., part '8' will be rendered as soon as possible
but not later than 12 months from the date of physical completion of the project.
 - 35 -

XXIX IMPREST AND ASSIGNMENTS

62 (a) The procedures for making payments to contractors, labour, etc. are prescribed in
the MES Regulations. Cash assignments will be placed by CsDA at the disposal
CsWE, GEs and the AGE (if an AEE/AE). In the case of each CWE or GE the amount
of the assignment will be fixed by the Chief Engineer in consultation with the CDA.
Within the amount so fixed the assignment will be recouped on application to the
CDA as need arises. Generally each CWE, GE and AGE (if an AEE/AE) will be placed
in account with one Treasury or authorized bank; but, where necessary, the
assignment may be apportioned between two or more treasuries or authorized banks.

(b) However, to enable petty payments being made, CsWE, GEs and AEEs/ AEs holding
cash assignments may be also allowed an imprest up to a limit of Rs.10,000. In case
of works carried out in remote locations or under Para 55 above, this limit of
imprest amount to be provided with a CWE/GE may be further enhanced. The
imprest will be authorised in consultation With the CsDA concerned by CsWE in the
case of GEs and AEEs/AEs and by CEs in respect of CsWE. The amount of imprest
will be drawn from cash assignment and accounted for initially under the Suspense
l1ead "Departmental Account Military Cash Balance" which should be cleared at the
end of the financial year, the balance being deposited into the Treasury or
authorized bank as the case may be. The amounts drawn from the imprest for
payment will, however, be recouped as and when necessary and charged to the
Service Head till the end of the financial year.

(c) Outstation Junior Engineer B/R or E/M will be allowed imprest by CsWE/GEs/AGEs
(if AEEs/AEs) within the limits specified in para 531 of the MES Regulations up to a
limit of Rs.1500/-. These imprests will be advanced and recouped by CsWE/ GEs/
AGEs (if an AEE/AE), as the case may be.

XXX DEMOLITION OF BUILDINGS

63 (a) The demolition or sale of any building etc., for demolition may be approved on a
demolition statement (IAFW 1819) by the authorities indicated in Appendix 'I',
provided the book value of the building does not exceed the limit shown against each
of the authorities cited therein.
 - 36 -

(b) In order to determine the authorities competent to sanction demolition under the
powers at Appendix 'I', the book value of each building (including ancillary buildings)
will be taken separately and not the total book value of all the buildings in a
demolition statement.

(c) An assessment will be ma<le whether It would be more advantageous to undertake

the demolition through departmental labour and the salvaged material used for
other works. Thereafter, the decision to undertake demolition as per MES
Regulations will be taken.

(d) The cost of demolition will be dealt with as a work, and any proceeds from the sale
or demolition being dealt with as laid down in para 828 MES Regulations.

(e) A demolition certificate on IAFW 2201 will be submitted In support of bills in which
charges for demolition appear.

(t) In an estimate or reconstruction administrative approval to the execution of the

service is authority for any demolition involved irrespective of the value of the
buildings to be demolished.

XXXI REAPROPRIATION OF BUILDINGS

64. Re-appropriation means the use of a group of buildings, a building or a portion

thereof, for any purpose other than for which it was constructed. Re- appropriation may be
temporary or permanent and may be intended either for an authorized or for a special
purpose. They will be dealt with as under:-

(a) A re-appropriation entailing no alteration and no cost This can never be

permanent re-appropriation as the room or building must of necessity be available
for its original purpose. This is initiated by the unit and sent to the local
Commander. Such appropriations may be approved in writing by any of the
authorities mentioned in Appendix 'D' irrespective of the Capital value of the
building involved. All sanctions accorded by an authority lower than the Commander
of an Area / Corps will be reported to him. Each sanction will specify the period for
which the approval will remain in force and will be communicated to the Controller of
Defence Accounts and Garrison Engineer concerned. It will be renewed as required.
No IAFW 1831 is necessary nor will the particulars be recorded in the Register of
Buildings.
 - 37 -

(b) A re-appropriation entailing alterations and expense. This will be initiated by the
unit concerned on IAFW 1831, who may obtain the assistance of the local MES
authorities to advise on the best method of adaptation, and sent to the local
Commander who, if he accepts the proposal in principle, will ask the local MES
authorities for the approximate cost. The powers of sanction in respect of re-
appropriation involving expenditure will be the same as laid down in Appendix 'D',
but no expenditure will be incurred unless funds are available. All sanctions accorded
by an authority lower than the Commander of an Area/Corps will be reported to him.
Each sanction will state whether the re-appropriation is permanent or temporary
and the period for which it remains in force and will be communicated to the CDA
and Garrison Engineer concerned. It must be renewed as required and the
particulars including expenditure will be recorded in the Register of Buildings.

(c) Re-appropriation involving minor increases in scales up to 5% of the authorized area

necessitated by constructional reasons can be permitted by the authority
competent to sanction expenditure for re-appropriation. Any re-appropriation
involving change of scales beyond 5 % or introducing a new practice will require the
sanction of Government of India.

(d) Re-appropriation included in an administrative approval will not be approved

separately on IAFW 1831. The particulars including expenditure will, however, be
recorded in the Register of Buildings.

XXXII WORKS ENTRUSTED TO OTHER AGENCIES

65. The procedures for various works services outlined above are designed principally
for use in MES. But it is intended that they should apply up to the Administrative Approval
stage also to works carried out on behalf of the Ministry of Defence by outside agencies
like State Governments, Central PWD, P & T; Railways, State PWD; Port Trust and such
other Departments as may be notified from time to time. In the case of works projects
costing Rs.5 lakh and above, however, detailed plans and specifications will be shown to the
Users and a view to ensuring compliance with the scales and specifications as approved by
Ministry of Defence, before technical sanction is accorded.

XXXIII General

66. The MES formations may resort to direct purchase of stationery and office
equipments for all engineer activities such as pre-administrative, approval, planning, post
administrative approval planning and maintenance services. The office equipment includes
 - 38 -

typewriters, intercom equipments, calculators, electronic stencil cutters, Dictaphones, tape

recorders, photocopiers, copying machines, franking machines, addressographs, filing and
indexing systems and computers including peripherals/software. The list of items to be
procured out of contingency establishment shall be updated / revised by E-in-C's Branch
periodically. Expenditure incurred on initial purchase will be charged to project
contingencies (up to 3% present). Repair and maintenance expenses will be chargeable to
repairs to T & P-Sub head E- Minor Head 111-Works. No reference to DMR & F is necessary
for purchase of the items mentioned above and chargeable to project contingencies. The
powers of MES officers for procurement of this item will be as laid down in item 4 & 5 of
Table 'B' of MES Regulations.
 - 39 -

Appendix 'A'
(Para 14)

BUDGETARY SYSTEM FOR DEFENCE WORKS

All works expenditure for Defence Services will be budgeted and accounted for as
under:-

Works Expenditure under Revenue Head

(a) Expenditure on Revenue Works, Minor Works, Ordinary and Special Repairs,
Maintenance. of buildings, roads, railways, communication etc., Maintenance and
operation and installations/ workshops including payment of tariff, General Charges
like rents for buildings and lands, rates and taxes, Tools, plant & machinery, Stores
for works and maintenance, Stores for Parks & Divisional Stocks and their
maintenance, MES Advances as well as Wage& and Salaries of MES establishment
assigned to such services are budgeted and accounted for under Revenue Head. The
relevant Budgetary Heads for such Revenue expenditure for works and maintenance
in respect of the various services/ organizations are indicated below: -

Revenue Heads

(i) Army- Major Head 2076- Minor Head 111

(ii) Navy- Major Head 2077- Minor Head 111
(iii) Air Force- Minor Head 2078- Minor Head 111
(iv) Ordnance Factories- Major Head 2079- Minor Head 111
(v) Military Farms- Major Head 2076- Minor Head- Misc.
(vi) R & D Organisation- Major Head 2076- Minor Head 108(1)
(vii) Inspection Organisation- Major Head 2076- Minor Head 109(F)
(viii) Rashtriya Rifles- Major Head 2076- Minor Head 112 (0)
(ix) National Cadet Corps- Major Head 2076- Minor Head 113 (E)

(b) Details of sub-head wise budgetary classification and account code Nos. are
explained in Defence Services Estimates and MES Regulations. The details of the
procedure for budgeting and booking expenditure on various items of Revenue works
and maintenance services are explained in Section 13 of the MES Regulations.
 - 40 -

(c) Revenue Works and Minor Works chargeable to Revenue Head, have been defined in
Para 5 of this DWP. Similarly Ordinary Repairs and Special Repairs have been
defined in Paras 8-10 ibid. Although treated as Original Works, Special Repairs are
budgeted and accounted for under Revenue head.

(d) In case of Revenue Works the ceiling on total value of sanctions to be accorded in
each financial year is to be restricted to 1.5 times the budget provided for in that
year, while in case of Special Repairs such ceiling is to be restricted to 3 times the
budget provided for.

(e) Works in Progress – Falling in this category are revenue works which were
commenced (including those in respect of which liabilities were incurred) during the
previous year(s) and / or the accounts of which' are not finally closed. After the
provisions for such works made in the annual budget have been accepted, funds for
such works will be placed in lump sum at the disposal of Commands on the basis of
demands made by them and other known factors. Allotment of funds for individual
works will be made by Commands in the normal manner. Any funds not required will
be surrendered to Service HQrs through first and subsequent changes-in-grants. If
for any reason, funds placed at the disposal of a Command are found inadequate,
application supported by full details should be made to the Service HQrs concerned
for additional funds in the various changes-in-grants.

(f) New Revenue Works - For new Revenue Works sanctioned in a particular year,
provisions will be made in the budget on lump sum basis without the list of such
works being prepared. After the demands for grants are approved, the accepted
provisions for new works under Revenue Head will be placed at the disposal of
Commands for subsequent allotment for individual works. Any surplus or shortfall in
allotment of funds for such new works during the year will be adjusted in the same
manner as explained in sub-para (e) above.

(g) Minor Works -All revenue works costing less than Rs.1Lakh both new and those in
progress on 31st March fall in this category. Lump sum provision will be placed at the
disposal of Commands for such works. It wi11 be incumbent on Commands to restrict
expenditure or minor works to the funds placed at their disposal, irrespective of
the number of such works sanctioned.
 - 41 -

(h) After the annual Demands for Grant are accepted, the funds for carrying out other
maintenance services, etc. as classified under Minor Head-Works of Major Head
Revenue of the respective Services! Organizations will be placed by the Service
HQrs at the disposal of Commands after assessment of their respective demands
and expenditure trends. It is not permissible to exceed the amount under each
category placed at the disposal of the Command. Any surplus or shortfall in
allotment of funds for these items of services during the year will be adjusted in
the same manner as explained in sub-para(e) above.

2. Works Expenditure under Capital Head.

(a) The budgetary classifications for Major Capital Works and Low Budget Capital
Works, as defined in Para 5 of this DWP, for each Service / Organization are
indicated below:

MAJOR HEAD 4076 -CAPITAL OUTLAY

(i) Minor Head 01 -Army

Sub Head 050 -Land
Sub Head 105 Military Farms
Sub Head 112 Rashtriya Rifles
Sub Head 113 National Cadet Corps
Sub Head 202 Army Construction Works
(ii) Minor Head 02 -Navy
Sub Head 050 -Land
Sub Head 202 -Construction Works
Sub Head 205 -Naval Dockyards/Projects
(See Defence Services Estimates for further
Sub-division of Sub Head 205)
(iii) Minor Head 03 -Air Force
Sub Head 050 -Land
Sub Head 202 -Construction Works
Sub Head 206 -Special Projects
(iv) Minor Head 04 -Ordnance Factories
Sub Head 111 -Works
(v) Minor Head 05 -R & D Organization
Sub Head III -Works
 - 42 -

(vi) Minor Head 06 -Inspection Organization

Sub Head III -Works

(NOTE: Details of budgetary classification and account code nos. are indicated in
Appendix 'C' to MES Regulations)

(b) Carry over Works -Falling in this category are capital works which were commenced
(including those in respect of which liabilities were incurred) during the previous
year(s) and the accounts of which are not finally closed. As stated in para 15 of this
DWP, Carry Over Works will have higher priority than New Works while preparing
budgetary estimates and allotting funds for Capital Works in any financial year.
After careful assessment of the liabilities already committed and likely to occur for
such Carry Over Works in each Command, funds for the same will be placed lump
sum at the disposal of Commands/Service HQrs after approval of the Demands for
Grants. Allotment of funds for individual works will be made by Commands in the
normal manner.

(c) New Works -Provisions will be made in the annual budget for such new capital works
as are included in the year's Annual Works Programme. After the demands for
grants are approved, the accepted ; provisions for new Major Capital Works will be
indicated project/work-wise and placed at the disposal of Commands/Service HQrs
for subsequent allotment as and when the individual works are sanctioned.
Supplementary work to a main project sanctioned / released during the previous
year(s) will be treated as new major work for the purpose of allotment of funds.
Funds for new Low-Budgeted Works will be provided through bulk allotment or funds
for the purpose to Commands.

(d) Any surplus or deficit in allotment of funds for Carry Over / New Works will be
adjusted in the manner explained in, Para I (e) above.

(e) Works not included in the Year's Programme -Apart from the circumstances
explained in Paras 34 to 36 of this DWP, necessity may arise for the execution of
unforeseen emergency works for which no provision has been specifically made in
the Budget. To meet the expenditure on such works, a reserve of funds will be
placed at the disposal of the Service HQrs who may, if necessary, sub-allot it to
commands.

3. Allotment of Funds. The initial allotment of funds up to the total sanctioned

Budget grant both under Capital and Revenue Heads and also subsequent allotments from
 - 43 -

the balance in the sanctioned Capital and Revenue Budget grants held by Service HQrs/E-
in-C's Branch will be made with the concurrence of Ministry of Defence (Finance). Copies of
all allotment letters will be endorsed to the CODA, CsDA and DGADS who are responsible
for conducting the audit of Appropriation.

4.1 Transfer of Funds

Transfer of funds may be carried out as under: -

(a) By the OMG/Equivalent Appt in other Services

(i) Between one major work in progress to another major work in progress.

(ii) Between one major work (whether in progress or new) to a new major work
if the latter is administratively approved and is included in the year's
works programme.

(iii) No other transfer of funds is permissible.

(b) By the GOC-in-C/Equivalent Appt in other Services.

(i) Between one major work in progress and another major work in progress.

(ii) Between one new major work to another new major work so long as the
latter has been administratively approved and released for execution by
CF A.

(iii) Between a major work in progress and a new major work provided the
tatter is administratively approved and its cost does not exceed
Rs.15,00,000.

4.2 Sub-para (ii) and (iii) above are subject to the condition that the new work is
included in the annual works programme and is administratively approved.

Note: Transfer of funds in the above categories of work is permissible only in respect of
works of the same category i.e. from Capital to Capita1 and from Revenue to
Revenue.
 - 44 -

4.3 Maintenance Services

(a) By HQ Command/AOC-in-C/Commands Chief Engineers between the Heads of

Accounts relating to, Buildings and installations but not between the two categories
- Normal to Special and vice versa.

(b) By Chief Engineers and Cs WE within the funds placed at their disposal between the
detailed Heads under Sub Head B (Normal Repairs), C (Normal Maintenance), D
(General Charges) and between the detailed heads 1, 3 & 4 of Sub Head E (a) Tools
and Plans under Minor Head 111- Works. Similarly, the Chief Engineers and the
CsWE will also have full powers of Transfer of Funds between sub Detailed Heads
under the relevant detailed Heads for norn1al repairs, normal maintenance and
general charges in respect of Air Force and Naval Works. All the above Transfer of
Fund are subject to the provision that:

(i) Authorized percentages for maintenance etc., where laid down are in no case
exceeded.

(ii) All Transfer of Funds made by Chief Engineers and CsWE are reported to
Service HQ concerned before 15th March at the latest. No Transfer of Funds
6.
will be permissible after this date..

(c) No other transfer/re-appropriation will be allowed.

5. General It is of great importance that expenditure is spread evenly over the

periods during which works is possible and every effort must be made to avoid a rush of
expenditure at the end of the year.

6. Acquisition of Land

(a) Funds on this account will be provided for respective service HQ under major Head
4076 - Capital outlay on Defence Services, Sub Major Head '01' Army, Minor Head
050 -Land, Sub Major Head 02 -Navy, Minor Head 050 -Land and Sub Major Head
03 -Air Force, Minor Head 050 -Land.

(b) Budgeting and accounting of funds under this Head will be done by DGDE as per
instructions of the concerned Service HQ.
 - 45 -

Appendix '8'
(Para 22)
Rough Cost Estimate
STATION -

NAME OF PROJECT

Sl. No Item of Work Basis of Cost (Rs.) Remarks

Calculation
(a) (b) (c) (d) (e)
1. (a) Cost of land Basis will be
(b) Surveys and Soil Plinth Area
Investigation Rate
(c) Site clearance and approved by
development including MOD plus
demolition Add for
2. (a) Building (including market
internal services like variation and
water and electric supply difference in
etc.) cost of
(b) Air-conditioning & stores.
Refrigeration

3. Special items including

cost of installation of
equipment, plants, if any.

4. Furniture At 5% of
item 2(a)

5. External Services (rough at 25% of

cost of roads, water and item 2(a)
electrical supply, sewage
disposal and area
drainage)

6. Arboriculture, if any

7. Consultancy, if any
 - 46 -

8. Contingencies (3 % on
items 1 to 6)
9. Establishment (limited to
2% on items 1 to 6)
10. Add for works involving Total
other agencies

NOTE:

For AEs for MOD Establishment works, establishment cost will not be included,
however for deposit works it will be included
 - 47 -

Appendix 'C'
(Para 22)

Format for Engineer Appreciation

1. Board categories of works proposed-Married and / or OTM accommodation,

workshop/storage facilities, roads, runways, utilities or any other construction facility.

2. Details of each category of works including size and nature of accommodation and
scales and specifications proposed.

3. Type of constructions proposed-permanent / temporary, authorized special.

4. Brief details of preparatory works or services required-site surveys and

development, roads and communications, external services etc. and the rough cost thereof.

5. Time required for preparatory works before commencement of the main works

6. In case of married accommodation

(i) total number to be provided for (rank-wise separately for
single and married)
(ii) number to be accommodated by additions and -do-
alterations with purpose for which originally
constructed
(iii) number to be accommodated in new construction -do-
or in tent plinths or a combination of both (each
indicated separately) with brief description i.e.,
permanent semi-permanent, prefabricated or
temporary

7. (a) Type of construction for which A/As are to be

done
(b) Brief description of original accommodation
Permanent, semi -permanent or temporary
 - 48 -

(c) Approximate area of buildings involved

(d) Brief description of A/A involved

8. Are any special items of works involved including those which depart from approved
scales of accommodation? If so, reasons for deviation, approximate quantities such as
square footage of floors and costs separately.

9. Any new or special technical facility works or accommodation beyond approved or

known scales/specifications required for which detailed study and cost-estimation has to be
made? If so, details thereof.

10. Approximate storage, garage, etc., area to be provided (with brief description).

11. Approximate workshop area to be provided (with brief description).

12. Are any repairs required? If so, brief description of buildings to be repaired and
nature of repairs required.

13. What external and internal services are required? Does any service exist? If so,
extent thereof.

14. What repairs and/or additions and alterations are required to existing services?

15. Does the site involve any unduly high expenditure on any service(s)?

16. Feasible target date of completion.

17. Time required for completion of various phases of the works in normal
circumstances.

18. Special measures, if any, including adoption of special procedure under Para 55 of
this DWP required for completing the project by the target date.

19. Is any consultancy, departmental or outside, required? If so, details thereof

20. Nature of Project management organization and staff required for planning and
execution of the works.

21. Any other engineering / technical/management aspects of the project which require
to be highlighted while planning, sanctioning or implementing the project
 - 49 -

Appendix 'D'
(Para 26)
A. POWERS OF ACCEPTANCE OF NECESSITY AND
ADMINISTRATIVE APPROVAL
(Rs. In Lakhs)
Competent To be exercised To be exercised with Remarks
Financial Without IFA's IFA's concurrence
Authority Concurrence
Authorised Special Authorise Special
Works Works d Works Works
(1) (2) (3) (4) (5) (6)
(1) Govt. of Full Full Full Full
India
(2) COAs / CNS 120.00 20.00 1500.00 75.00
/ CAS
(3) GOC-in-C / 75.00 7.00 500.00 30.00
AOC-in-C /
FOC-in-C
(4) Corps 37.00 3.75 300.00 15.00
Commander

(5) Cdr of an 22.00 0.75 200.00 8.00

Area
Independent
sub-Area
GOC of a
Div/ Indep.
Bde Gp/Flag
Offr Comd
Area
Fortress
Cdr
Andaman
and Nicobar
Island
(6) Cdr of a 15.00 0.5 100.00 2.00
sub-Area/
 - 50 -

(7) Stn Cdr of 5.00 0.5 - -

the rank of
a Col &
above
(8) Stn Cdr 5.00 0.5 - -
below the
rank of Col.
(9) QMG - - 50.00 2.00 In r/o Arm HQ
offices.
Responsibility
placed on Adm &
Coord vide MOD
letter No. letter
No A/21634/CAO
/Coord dt 24 Mar
06.
B. Powers for Demolition of Building
- - 50 Lakh -

COAS
- - 25 Lakh -

GOC-in-C

NOTE:

1. Powers delegated to GOC-in-C will be also exercised by GOC-in. ARTRAC for HQs /
Ests of ARTRAC, Shimla.

2. The financial powers vested in officers can also be exercised by their locum tenens
which the incumbents are on leave.

3. In determining the CFA in a case where the project includes be authorized and
special items of work the criterion shall not be the financial powers for the authorized
items of work alone. In such a case, therefore, if t estimated cost of the total of the
special items of work exceeds the financial powers of the CFA for those items the
administrative approval shall be issued by the CFA under whose powers the special items of
work fall.
 - 51 -

4. The financial powers delegated to Station Commanders will be exercised by all

Station Commanders irrespective of whether they are appointed under Rule 20 (a) or Rule
20 (b) of the Regulations for the Army.

5. There will be no separate stage of release after the issue of administrative

approval. CF A will make initial allotment of funds to enable MES to commence planning /
execution of works.

6. The Works executed under Para 34 & 35 of the Defence Works Procedure, 2007
will also be subsequently approved under CF A Powers given above within a period of six
months.

7. The works proposals be sanctioned by CF As mentioned above personally before Adm

approvals are issued.

8. Special dispensation to RR Force to execute Revenue Works in one Adm Approval up

to Rs.10Lakh.

9. Expenditure for RR Forces to be booked to Major Head 2076, Head 112 G

 - 52 -

Appendix 'E'
(Para 29)
APPROXIMATE ESTIMATE
PART -I: Abstract of Cost
STATION
NAME OF PROJECT
BRIEF PARTICULARS OF WORK TO BE DONE

Srl. No. Items of Work Cost Remarks

1. Cost of Land

2. (a) Surveys and Soil Investigation

(b) Site Clearance and development

3. (a) Buildings (including internal water

supply and electrical work)
(b) Internal Sanitation
(c) Air-conditioning & Refrigeration

4 Furniture

5 Special items of work

(to be detailed in Part II)

6. External Services
(a) Roads
(i) Internal
(ii) Access
(b) Water Supply
(c) Electric Supply
(d) Sewage disposal
(e) Area Drainage

7. Arboriculture, if any

8. Consultancy, if any

9. Contingencies (3% on items I to 7 above)

 - 53 -

10. Establishment Charges

(limited to 2% on items 1 to 7 above)

11. Railway Works

----------------
Grand Total
=============

a) Time required for physical completion of

works under normal circumstances from date
of administrative approval

B) Time required for physical completion of

works if carried out as per Para 55 of DWP

N.B.- The items of work in this Project necessary for other projects. The items may be
varied as necessary for other projects.

Part-II

Memorandum explaining Basis of Cost of Items in the Abstract of Cost (Part -I).

N.B. (a) Instructions for preparing this Memorandum will be issued by Engineer-in-Chief.

(b) In part I of the approximate estimate a note will be given against the provision for
each item of work indicating the percentage added in part II for variation of
rates.

NOTE: For AEs for MOD Establishment works, establishment cost will not be included,
however, for deposit works it will be included.
 - 54 -

Appendix 'F'
Para 31 (e)
TIME FRAME FOR PRE-ADMINISTRATIVE
APPROVAL PLANNING

Initiation of Demand for new works with Statement of Case, 6

RIC & Engineer Appreciation

Approval of case by Comd. & convening of BOO 3.-

Board Proceedings 9

Scrutiny of BPs & Acceptance of Necessity 3

Preparation of AEs 6

Scrutiny of AEs by E-in-C Branch 6

Scrutiny of BPs & AEs by Service HQ 2

Scrutiny of AEs and Administrative Approval by Service HQ 9

Receipt of Administrative Approval 2

46-48 Weeks
 - 55 -

Appendix 'G'
(Para 32)
APPROXIMATE ESTIMATE
PART -1: Abstract of Cost
STATION

NAME OF PROJECT
BRIEF PARTICULARS OF WORK TO BE DONE

Srl. No. Items of Work Original Revised Remarks

Cost Cost

1. Cost of Land

2 (a) Surveys and Soil Investigation

(b) Site Clearance and development

3. (a) Buildings (including internal water

supply and electrical work)
(b) Internal Sanitation
(c) Air-conditioning & Refrigeration

4. Furniture

5. Special items of work

(to be detailed in Part II)

6. External Services
(a) Roads
(i) Internal
(ii) Access
(b) Water Supply
(c) Electric Supply
(d) Sewage disposal
(e) Area Drainage

7. Arboriculture, if any

8. Consultancy if any
 - 56 -

9. Contingencies (3% on items I to 7 above)

10. Establishment Charges

(limited to 2% on items I to 7 above)

11. Railway Works

------------------------
Grand Total
===================

(a) Time required or physical completion of

Works under normal circumstances
from Date of administrative approval.

(b) Time required for physical completion

of works if carried out as Para 55 of
DWP.

N.B.- The items of work in this format are appropriate for a building project. The items
may be varied as necessary for other projects.
 - 57 -

Appendix 'H'
(Para 57(b) (v)
COMPOSITION OF PROJECT MANAGEMENT COMMIITEE AND
TERMS OF REFERENCE

COMPOSITION

(i) Senior Engineer Officer DGW/ADG Chairman

(To be nominated by E-in-C)

(ii) Rep. of Users / Service Hqrs. Member

(iii) Rep. of Def (Finance)/IFA Member

Or
Rep. of Def(Finance / Works) }
(in case of works projects) } Member
approved by Government) }

(iv) Zonal/Project Chief Engineer Member

(v) Project Officer ACE (Plg) of

Zonal CE

TERMS OF REFERENCE

1. To steer, monitor and review the physical and financial progress of the project unit
its completion.

2. To take suitable management decisions for helping the engineers to expedite

initiation and completion of various works programme schedules, viz.

(a) To approve mobilization advance up to 10% wherever considered necessary.

(b) To approve recommendations of Zonal/Project Chief Engineer for issue of

deviations / amendments to the Contract beyond 10% and up to the limit
stipulated in the Contract Agreement including change in specifications,
material and technology, but subject to the condition that the ceiling of
sanctioned cost of the project including tolerance is not exceeded
 - 58 -

c) To review and issue directions on extension of time granted to Contractors as

per recommendations of the Zonal/Project Chief Engineer for a period of over
and above three months.

(d) To engage Engineer / Architects and other specialists to review any part of
the works project including designs for the purposes indicated in Para 60 (d)
of the DWP.
 - 59 -

Appendix 'I'
(Para 61)
COMPLETION REPORT FOR ORIGINAL WORKS

Head of Account ………………………………………………………………………..

Name of Area ………………………………………………………………………..

Division ………………………………………………………………………..

Part A

1. Name of Work ………………………………………………………………………………………………………

2. Authority according administrative approval and amount …………………………..

3. Total amount of Technical Sanction ………………………………………………………………..

4. Date physically completed ………………..………………………………………………………………..

5. Recorded expenditure up to (4) ………………………………………………………………………..

6. Estimated amount of liabilities outstanding on (4) ……………………………………….

7. Certified that the necessary entries have been made in the Register of
Buildings/plant Record Book (in the case to furniture, certified that the articles
have been brought on ledger).

Station ……………………………………………………………………………………………………………………..……..

No …………………………… Date …………………………… AGE

Forwarded to CWE through U.A. GE

Forwarded to CE CWE

Forwarded to E-in-C CE

Noted and returned to GE E-in-C

CE
CWE
 - 60 -

Part B

8. Completion cost. Rs

9. Percentage of excess over administrative approval

10. Authority passing the excess

11. Certified that the following have been completed in respect of this project: -

(a) Record Drawings of buildings.

(b) Periodical Services Measurements.

(c) Alteration of Cantt. Plan where necessary.

(d) Completion cost recorded in the register of Buildings.

Station ……………………………………. Date.....................AGE

No ……………………………………………. Date......................GE

Date......................UA

Date…………………..CWE
 - 61 -

Appendix' J'
(Para 63)
POWER FOR DEMOLITION OF BUILDINGS.

Authority Power (Rs. In Lakh)

(i) Government of India Full powers
(ii) COAS/CNS/CAS 50.00
(iii) GOC-in-C/FOC-in-C 25.00
FOC South (Indep)/AOC-in-C
(iv) Corps Commander 5.00
(v) Comdr of an Area/lndep Sub Area 1.50
Indep Bde Gp/Equivalent Navy/
Air Force Comdr
(vi) Comdr of a Sub area/Bde Gp/Air Force 00.30
Stn Comdrs of the rank of Air Commodore
(vii) Station Commander of and above the rank 00.10
of Lt Col/NOICs of and above the rank of
Commander/Senior most among Commanding
Officers of shore establishments in
stations Other than Mumbai.
Vishakhapatnam & Cochin Holding the rank
of Commander & above, Chief Hydrographer
while holding the rank of Commander and
above/OsC Station of the rank Of Group
Captain/Commandants of Air Force
Academies/College, OsC Eds and BRDs and
Independent SUs of the rank of Group
Captain.
(viii) Station Commanders below the rank of Lt Col/ 00.05
( NOrCs below the rank of Commander/
Senior most Among Commanding Officers
of Shore Establishment in Stations other
than Mumbai, Vishakhapatnam and
Cochin/OsC Station below the rank of Gp
Captain, Commandants of Air Force
Academies/ Colleges OsC Eds and BRDs and
independent SUs Below the rank of Gp
Captain.
 - 62 -

NOTE:- (a) Demolition of buildings may be sanctioned as part of work project by the
Competent Financial Authority to sanction the work.

(b) The demolition or sale of any building etc for demolition will be approved by
the authorities cited at (ii) to (vii) above with financial concurrence.

(c) For items at (vii) and (viii) at Mumbai Vishakhapatnam and Cochin the powers
on Navy side will be exercised by the FOC-in- C/FOC Area.

(d) The financial powers delegated in Station Commander vide (vii) (viii) above will
be exercised by all Station Commander irrespective of whether they are
appointed under Rule 20 (b) or under Rule 20 (b) of the regulations of the
Army