DEFENCE

WORKS
PROCEDURE
2007
Amended up to

Anand
 No. B/01247/Q/Policy (Works Procedure)/237/D (Works-I)
Government of India,
Ministry of Defence,
Sena Bhawan, 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,

1. The Jafa Committee had recommended the revision of Defence Works Procedure, 1986 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. His will supersede the earlier
Defence Works Procedure, 1986 issued vide letter No 95533/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 U.O. No. 532/D/F (W-
II) dated 21st May 2007.

Yours faithfully,

Sd/------------
(Rosy Sharma)
Director (Works)

Copy to:-

1. JS(C&W)/JS(Navy)/JS(O/N)/JS(Trg)&CAO/JS(OF)/JS(S)/Addl. FA(AM)
2. The Chairman, Ordinance Factories Board
3. QMG’s Br/Q3W (Policy)-300 copies
4. E-in-C’s Br/E2(WPC)-100 copies
5. NHQ/Dte of Naval Works-100 copies
6. Air HQ/Dte of Air Force Works-100 copies
7. DG NCC-20 copies, DGI-10 copies
8. DG (Works)-05 copies
9. The CGDA, The DADS, The CsDA, SC, EC, WC, CC and 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. DG 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
 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 Specifications 6-7
VII Annual works Procedure and Budgeting 7-9
VIII Processing of Major Capital Works 9
IX Demand for Planning of new works 9-11
X Acceptance of Necessity 11-12
XI Approximate Estimates 12-14
XII Administrative Approval 14-15
XIII Revised Administrative Approval 15-16
XIV Urgent Works 16-18
XV Special Powers for Engineers 18-19
XVI Processing of Low Budgeted Works 19
XVII Revenue and Minor Works 19-20
XVIII Technical Control over Original Works 20-22
XIX Technical Control of Repairs and Purchase and Maintenance of 22
Tools and Plants
XX Powers of Technical sanction 22-23
XXI Appropriate Funds 23
XXII Tender Action 24-25
XXIII Acceptance of Contracts 25
XXIV Reduction of Scope of a Project 26
XXV Execution of Works 26-27
XXVI Monitoring and Review 27
XXVII Procedure for Special Projects 27-32
XXVIII Completion Reports 32-33
XXIX Imprest and Assignments 33
XXX Demolition of Buildings 33-34
XXXI Re-appropriation of Buildings 34-35
XXXII Works entrusted to other agencies 35
XXXIII General 35-36
APPENDIX
‘A’ Budgetary system for Defence Works 37-42
‘B’ Rough Cost Estimate 43-44
‘C’ Format for Engineer Appreciation 45-46
‘D’ Power of acceptance of necessity & Admin Approval 47-49
‘E’ Approximate Estimate 50-51
‘F’ Time frame for pre-Administrative Approval Planning 52
‘G’ Approximate Estimate 53-54
‘H’ Composition of Project Management Committee and Terms of 55-56
Reference
‘I’ Completion Report for Original Works 57-58
‘J’ Power for Demolition of Buildings 59-60
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 work 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 he may within his powers of
transfer of funds, be able to meet excess expenditure on one item by
equivalent savings on another.
 (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
Revised Administrative Approval.

(i) The CFA according Administrative Approval should be kept informed of

the progress of the progress of the works till their completion through
regular periodical reports.

(j) 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

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, E/M 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 or 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 portion of his powers under this
paragraph to GEs or outstation AGEs by name.

(* Approval of competent authority required)

 (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 but 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.
 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 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) Original 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 items.
(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 or 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 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 the capital valve, credit will be taken for the valve at
current rates or any portion of the original structure which has been
demolished or replaced.

(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 valves on account of E/M renewals will be
carried out in accordance with MES Regulations (Para 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 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 will be submitted by the service HQs
to MoD. After the approval of MoD declaring the building as
prestigious, it will be permissible 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
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. 15 lakh or more, such
a new work has been included in the Annual Major Works Programme
(AMWP) for the relevant financial year of the concerned Services or
Organisation as approved by Government of India.

(b) In case of Low-Budgeted Capital Works, such as 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 or 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 HQs in each financial year.

17. The Service HQs may direct the command HQs and other lower formations
to plan new works programmes 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 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 AWP of the new financial
year can be rolled over for inclusion in the next year. Their Indications of Costs
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 and more for the relevant financial year should be prepared and
submitted by 31st October and approved by Government before 31st
December of the previous financial year. While preparing such a
programme, the physical progress and financial commitments t6o Carry
Over Works whether approved by CCS, MoD, Service HQrs, Command HQrs
or lower formations and the time and time 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 sanctioned works up to AMWP ceiling even if some
works had to be carried forwarded 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 Competent Engineer Authority (CEA) and
administrative and 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 CFAs 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 BRs
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 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 the 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
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 cope 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 are
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’.

(j) An Engineer appreciation in the format at Appendix ‘C’.

23. (a) After examination and approval of the Statement of Case, the
Competent Financial Authority will convene a Recee-cum-Sitting 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.

(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 such Board Proceedings. In case 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 Paras 12 and 13
above) as applicable to Defence Works should be 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 there under.

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 s detailed AE. If, after careful
consideration of the new works proposal as explained in the Statement of Case
and the Board Proceedings, it is decided to carry out the proposed works 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 levels for 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 parts of the proposed works services at the planning and/or execution stages,
either for technical reasons or for compressing the time-frame of the works then
the cost estimate for the 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 require certain preliminary activities like site surveys, soil
investigations, enabling works, preparation of basic designs or estimates, 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. Copy of such a ‘Go-Ahead’ sanction will be
sent to the CDA.

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 Proceedings 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 Performa (Appendix ‘E’) as per the lines indicated in the
approved Statement of Case and/or Board Proceedings/DPR. Office and
domestic accommodation requirements for the MES contractual staff,
consultancy charges, if any, necessity 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 estimates 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 the 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 to
be taken for the inclusion of the estimated cost thereof with due
recommendation of the Director General of Works.

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

charges will not be included for MoD establishment works but will be
included for deposit works. Establishment charges, if any, may be included
in the estimates after recording reasons thereof 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 concerned
CFA.

(d) No special items of works or superior specifications will be included

without specific approval of the Competent Financial Authority. Variations 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.

(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 proposal, 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 infructuous 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 authorised 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 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 Engineers to exercise the special powers 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
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 Advisor concerned who will issue such
technical instructions as may required. The timeframe 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 excess
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 each case.

(c) When an Administrative Approval involves conclusion of a 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. the tolerance limit) and also if there be no prospect of savings on
other items of the work, the case will be submitted to the CFA along with a
statement of financial analysis for the grant of financial concurrence to
enable the 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 at 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 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 the 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 from the CFA in the form of Corrigendum

at the earliest after the issue of the FC, As such a Corrigendum or Revised
Administrative 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 cost will
reflect all approved revisions of cost estimates and escalations granted
under this para.

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 or 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 ordinary 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 CFAs would entail dangerous
delay. In such circumstances, any 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 ensue, 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 21 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 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 CFA 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.

(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 of 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 work:-

(i) Detailing officers anywhere in the country.

(ii) Resorting to consultancy for any item of work.
(iii) Purchasing of stationary, 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 OYT
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.

Note:

The expenditure to be incurred for items cited in Sub-Paras (ii) 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 Govt. /CFA not below the level of GOC-in-C equivalent.
The reason for dispensing with compensation 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. 2 lakh, but less than Rs. 15 lakh, 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. 10 lakh, if so
decided by the CFA. Administrative Approval in such cases will be asked on
consideration and approval of 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 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.
50000/-, 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 with the cost of repair or replacement as per
Para 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, amount 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. Originally such technical sanctions are 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 sanctions 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 work;

(ii) there is no serious departure from authorised general

specifications; and

(iii) 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 projects as a whole or

part of such projects. Large projects may, for convenience of planning,
siting and execution, be broken into sun-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
including the tolerance limit of 10 percent.

(i) In case the technical sanction amount of 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.

(j) In 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 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.

(k) 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 TOOL AND
PLANT

43. (a) Estimates or requisitions will be prepared, costed and technical

sanction accorded by 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

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 delegated 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 delegated authority.
Copies of such delegation of powers will be forwarded in all cases to the CDA
concerned.
 (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 of 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 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 0.50
lakh, however, it should be ensured that detailed plans 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 Work 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 in 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.

(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 percent of the
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, 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. 5 lakh.

(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.
(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 websites of
concerned Deptt./MoD.

(e) Scrutiny of tender documents 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 will send a copy thereof to the E-in-C/DGW and
CDA/IFA for information.

(f) In case only a resultant single quoted tender is received, the

same can 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 Advances – In case of works to be carried 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 CONTRACT

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 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 lakh 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
the 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
will be sent to the CDA and all 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 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 approved
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 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, delegates 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 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 base on

inaccurate estimates initially. In cases, however, where scope of work is
changed due to administrative reasons, the technical sanction will be revised
and issue 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 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 projects costing more than Rs. 15 Crore. The
review procedure may be revised as and when required so that the Ministry’s
attention is founded on Capital works projects sanctioned at Government
level.

(c) In case of all projects/works costing more than Rs. 1 crore, 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 Para 56 to 60 below may be adopted if
such works are of the following categories:-

(a) Strategic importance

(b) High Tech Complexity
(c) Urgent necessary

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.

(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 of 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
management, 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.

(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 percent 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.

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) (ii)
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 carries for escalation for two years. However, the contract
shall not include any escalation clause except statutory increases.

(c) On the basis of the Administrative Estimates, the Technical sanction

for the works will be given by the competent 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 the tender notice.

(ii) The officer 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 CFA, the 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 appraisal report comprising:

(i) Comparative evaluation of tendered rates.

(ii) Finalized Approximate Estimates based on approval scope of

work, technical sanction and lowest acceptable tender.

(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 s 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. 1 Crore 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 the
CA value will be referred to the Project Management Authority, so long as
overall cost remains within 10% of Administrative amount.

(d) During the execution of the works, as far as possible, any demand for
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 cost of such
consultancy and resultant additional works do not lead to exceed the
tolerance limit.

Note: The Project Management Group will obtain regular 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 REPORT

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 with the existing procedure in
para 379, MES Regulations.

(c) For the purpose of rendering 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 ‘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 ‘B’ will be rendered as
soon as possible but not later than 12 months from the date of physical
completion of the project.

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 of 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 allocation 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 authorised 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
Head “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 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 537 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 each of the authorities cited therein.

(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 made 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 in para 828, MES
Regulation.

(e) A demolition certificate on IAFW 2201 will be submitted in support of

bills in which charges for demolition appear.

(f) 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.

(b) A re-appropriation entailing alteration 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
adaption, and sent to the local Commander who, if he accepts the proposal
in principle, will ask the local MES authorities for the approximate estimate
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 involving 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 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 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 typewriters, intercom equipments, calculators, electronic
stencil cutters, Dictaphones, tape recorders, photocopiers, copying machines,
franking machines, addressographs, filling 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 in item 4 & 5 of Table ‘B’ of MES Regulations.
 Appendix ‘A’
(Para 14)

BUDEGTARY SYSTEM FOR DEFENCE WORKS

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

1. 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
Wages and Salaries of MES establishment assigned to such services are
budgeted and accounted or under Revenue Head. The relevant Budgetary
Heads for such Revenue expenditure for works and maintenance in respect
of the various services/organizations are below:-

Revenue Heads

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

(ii) Navy - Major Head 2077-Minor Head 111
(iii) Air Force - Major Head 2078-Minor Head 111
(iv) Ordinance 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(I)
(vii) Inspection Organisation- Major Head 2076-Minor Head 109(F)
(viii) Rashtriya Rifles - Major Head 2076-Minor Head 112(G)
(ix) National Cadets 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.

(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 Para 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. 1 lakh both
new and those in progress on 31st March fall in this category. Lump sum
provisions will be placed at the disposal of Commands for such works. It will
be incumbent on Commands to restrict expenditure on minor works to the
funds placed at their disposal, irrespective of the number of such works
sanctioned.

(h) After the annual Demands for Grant are accepted, the funds for
carrying out 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 Rastriya 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 – Ordinance Factories

Sub Head 111 Works

(v) Minor Head 05 – R&D Organization

Sub Head 111 Works

(vi) Minor Head 06– Inspection Organization

Sub Head 111 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 assessment of
the liabilities already committed and likely to occur for such Carry Over
Works in each Command, funds for the same will be 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/workwise 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 of funds for the purpose to
Commands.

(d) Any surplus or deficit in allotment of funds for Carry Over/New Works
will b adjusted in the manner explained in Para 1(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 the balance in the sanctioned Capital and Revenue
Budget grants held by Service HQrs/E-in-C’s Branch will be made the concurrence
of Ministry of Defence (Finance). Copies of all allotment letters will be endorsed to
the CGDA, 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 QMG/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 to 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 CFA.
(iii) Between a major work in progress and a new major work
provided the latter 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
Capital and from Revenue to Revenue.

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
detailed the two categories – Normal to Special and vice versa.

(b) By Chief Engineers/CsWE 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 Plants 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 normal repairs, normal maintenance and general charges in
respect of Air Force and Naval Works. All the above Transfers 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 1st March at the latest.
No Transfer of Funds will be permissible after this date.

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

5. General It is 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 Funds

(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.
 Appendix ‘B’
(Para 22)

Rough Cost Estimate

Station :

Name of project :

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

Calculation
(a) (b) (c) (d) (e)
1. (a) Cost of land

(b) Surveys and Soil

Investigation
Basis will be
(c) Site Clearance Plinth Area
and development Rate approved
including demolition by MoD plus
Add for market
2. (a) Building (internal variation and
services like water difference in
and electric supply, cost of stores.
etc.)

(b) Air-conditioning &

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

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.
 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
facilities.

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 - -do-
additions and alterations with
purpose for which originally
constructed

(iii) number to be accommodated in - -do-

new construction 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 - -do-

are to be done

(b) Brief description of original - -do-

accommodation - permanent,
semi-permanent, or temporary

(c) Approximate area of buildings involved - -do-

 (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 on planning, sanctioning or implementing the
project.
 Appendix ‘D’
(Para 26)

A. POWERS OF ACCEPTANCE ON NECESSARY AND

ADMINISTRATIVE APPROVAL

(Rs. In Lakh)
Competent Financial Authority To be exercised To be exercised with Remarks
without IFA’s IFA’s Concurrence
Concurrence
Authorised Special Authorised Special
Works Works Works Works
(1) (2) (3) (4) (5) (6)
(1) Govt. of India Full Full Full Full
(2) COAS/ CNS/CAS 120.00 20.00 1500.00 75.00
(3) GOC-in-C/AOC-in-C/FOC- 75.00 7.00 500.00 30.00
in-C
(4) Corps Commander 37.00 3.75 300.00 15.00
(5) Cdr of an Area/ Indep. Sub- 22.00 0.75 200.00 8.00
Area/GOC of a Div/Indep.
Bde. Gp./Flag Offr. Comd.
Area/Fortress Cdr.
Andaman & Nicobar Island
(6) Cdr of a Sub-Area/Bde/ 15.00 0.50 100.00 2.00
Gp/Comdt of Training
Institutes/Establishments/
Colleges of the Army/AOC
of an Air Force Station/
Comdts of Training
Institutes/Establishments/
Colleges of the rank of Air
Commodore and above/
Naval Station Cdr/Naval
Officers-in-Charge of the
rank of Commodore
(7) Stn Cdr of the rank of Col & 5.00 0.50 - -
above/ NOICs/ Naval Stn
Cdr of the rank of
Captain/OsC Stn of the
rank of Group Captain/
Commandants of Air Force
Academies/ Colleges/
Institutes headed by
Officers below the rank of
Air Commodore
(8) Stn Cdr below the rank of 5.00 0.50 - -
Col/ NOICs/ Naval Stn Cdr
below the rank of Captain/
Chief Hydrographer below
the rank of Captain/ OsC
Stn below the rank of
Group Captain/
Commandants of Air Force
Academies/ Colleges/ OsC
Equipments Depots, Base
Repair Depots and
independent SUs below the
rank of Group Captain
(9) QMG - - 50.00 2.00 In r/o Army
HQ offices/
Responsibility
placed on Adm
& Coord vide
MoD letter No
A/21634/CAO/
Coord dt 24
Mar 06.
B. Powers for Demolition

COAS - - 50 -
GOC-in-C - - 25 -

Note:

1. Powers delegated to GOC-in-C will be also exercised by GOC-in-C ARTRAC

for HQs/Ests of ARTRAC, Shimla.

2. The financial powers vested in officers can be exercised by their locum

tenens which incumbents are on leave.

3. In determining the CFA in a case where the project includes both 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, there, if the 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.

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. CFA 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 CFA Powers given
above within a period of six months.

7. The works proposals be sanctioned by CFAs 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. 10 Lakh.

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

112G.
 Appendix ‘E’
(Para 29)

APPROXIMATE ESTIMATE

Part – I : Abstract of Cost

Station :
Name of Project :
Brief particulars of work to be done . . . . . . . . . . . . . . .

Srl. Items of Work Cost Remarks

No.
1. Cost of Land
2. (a) Surveys and Soil Investigation
(b) Site Clearance
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 1 to 7 above)
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 the date of
administrative approval

(b) Time required for physical completion of works

if carried out as per Para 5 of DWP

N.B. - The items of work in this project are approximate for a building
project. 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.
 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 3-5

Board Proceedings 9

Scrutiny of BPs & Acceptance of Necessity 3

Preparation of AEs 6

Scrutiny of AEs by E-in-C Branch 6

Processing of BPs & AEs by Service HQ 2

Scrutiny of AEs & Administrative Approval by Service HQ 9

Receipt of Administrative Approval 2

46-48 Weeks
 Appendix ‘G’
(Para 32)

APPROXIMATE ESTIMATE

Part – I : Abstract of Cost

Station :
Name of Project :
Brief particulars of work to be done . . . . . . . . . . . . . . .

Srl. Items of Work Original Revised Remarks

No. Cost Cost
1. Cost of Land
2. (a) Surveys and Soil Investigation
(b) Site Clearance
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 1 to 7 above)
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 the date of
administrative approval

(b) Time required for physical completion of works

if carried out as per Para 5 of DWP

N.B. - The items of work in this project are approximate for a building
project. The items may be varied as necessary for other projects.
 Appendix ‘H’
Para 57 (b) (v)

COMPOSITION OF PROJECT MANAGEMENT COMMITTEE

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 approved by Govt.)

(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.
(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 full/part

of the works project including designs for the purposes indicated in
Para 60 (d) of the DWP.
 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 of physically complete

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 case of furniture, certified that the articles have
been brought on ledger)

Station

No Date AGE

Forwarded to CWE through UA GE

Forwarded to CE CWE
Forwarded to E-in-C CE
Noted and returned to GE E-in-C
CE
CWE
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
 Appendix ‘J’
(Para 63)

POWER FOR DEMOLITION OF BUILDINGS

Authority

(i) Govt. of India Full Powers

(ii) COAS/ CNS/CAS 50.00

(iii) GOC-in-C/AOC-in-C/FOC-in-C 25.00

(iv) Corps Commander 5.00

(v) Cdr of an Area/ Indep. Sub-Area/GOC of a Div/Indep. 1.50

Bde Gp./Equivalent Navy/Air Force Comdr

(vi) Cdr of a Sub-Area/Bde/ Gp/Air Force Stn Comdrs of the 0.30

rank of Air Commodore

(vii) Stn Cdr of and above the rank of Lt Col/ NOICs of and 0.10
above the rank of Commodore/Senior most among
Commanding Officers of shore establishments in stations
other than Mumbai, Vishakhapatnam & Cochin holding
the rank of Commander and above/Chief Hydrographer
while holding the rank of Commander and above/OsC Stn
of the rank of Group Captain/Commandants of Air Force
Academies/Colleges/ OsC Eds and BRDs and Independent
SUs of the rank of Group Captain

(viii) Stn Cdr below the rank of Lt Col/ NOICs below the rank
of Commander/Senior most among Commanding Officers
of shore establishments in stations other than Mumbai,
Vishakhapatnam & Cochin/OsC Stn below the rank of
Group Captain/ Commandants of Air Force Academies/
Colleges/OsC Eds and BRDs and Independent SUs below
the rank of Group Captain
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) The financial powers delegated in Station Commander vide (vii)

& (viii) above will be exercised by all Station Commanders irrespective
of whether they are appointed under Rule 20 (a) or under Rule 20 (b)
of the Regulations of the Army.
REGULATIONS FOR THE MILITARY ENGINEER SERVICES
TABLE ‘G’

Normal Periodical Services

Internal and External Lime Washing (white or tinted)

Half-yearly Pantries, cookhouses and other buildings or rooms where food is dealt
with, bakeries, grain stores, foul-linen stores, mortuaries, latrines and
urinals

Yearly All other buildings except store houses in general but including Medical
and QM stores of hospitals

Every two years Store houses excluding Medical and QM stores of hospitals

Distempering (including whitening of ceilings)

Yearly One coat of oil bound distemper for hospital wards, operation theatres,
Specialist consulting rooms, MI waiting rooms, Admn officers rooms in
hospitals, Labour rooms, Dental Surgery and X-Ray rooms

Every two years One coat of size distemper for offices, schools, etc or two coats of
distemper where one coat is authorised every year

Every four years Two coats of distemper where one coat is authorised every two years

Tarring and treating with wood preservative

Yearly Dadoes of stable (to be tarred)

Every four years Huts, fencing and other external work (to be tarred or treated with
wood preservative as the case may be)

Yearly One coat on all wood work, iron work, etc not otherwise treated for the
following in the hospitals:-
Wards, Operation theatres, Specialist consulting rooms, Admn Officers
rooms, Labour rooms, Dental Surgery, X-Ray room, Pantry, Sanitary,
foul-linen stores, cook houses and other bldgs/rooms where food is
served

Every two years One coat on all wood work, iron work etc not otherwise treated for the
following in the hospitals:-
Admn bldgs except Admn Officers rooms, bathrooms, dispensary,
laboratory, mortuary, Medical and QM stores

Every three Two coats on all wood work, iron work, iron work, etc not otherwise
years treated for all buildings/portions except those mentioned above
 Internal painting and oiling
Every two years One coat on all wood work, iron work, wall surfaces, ceilings, etc not
otherwise treated for the following in the hospitals:-
Wards, Operation theatres, Specialist consulting rooms, MI Waiting
rooms, Admn Officers rooms, Labour rooms, Dental Surgery X-Ray
room

Every two years One coat on all wood work, iron work, etc not otherwise treated for the
following in the hospitals:-
Pantries, Sanitary, foul-linen stores, cook houses and other
bldgs/rooms where food is dealt with

Every three One coat on all wood work, iron work, etc not otherwise treated for the
years following in the hospitals:-
Admn bldgs except Admn Officers rooms, bathrooms, dispensary,
laboratory, mortuary, Medical and QM stores

Every four years One coat on all wood work, iron work, etc not otherwise treated for all
buildings/portions except those mentioned above

Sweeping of chimneys
Monthly Unit cookhouses

VARIATIONS:-
Variations of the intervals laid down above may be made as follows: -
(a) Hospitals wards may be distempered half-yearly if requisitioned by the
OC hospital.

(b) Rooms in hospitals in which infectious diseases have occurred may

(after disinfection by the Medical authorities) be re-distempered, repainted
etc on the certificates of a medical officer that the work is necessary.

(c) Internal painting of schools may be executed every three years.

(d) Lime wash in mortuary may be done earlier on the certificate of a

medical officer that the work is necessary.

(e) The external wood work and iron work of new buildings, except
those to be treated yearly should be repainted within two years of the
completion and thereafter at the normal intervals. The dadoes of stables
should be treated twice in the first year after erection and thereafter at the
normal yearly interval.

(f) Steel palisading etc in exposed situations and steel shutters etc of
works of defence may be treated to prevent rusting when considered
necessary by the CWE.
 (g) The following may, at the discretion of GE, be carried out in officers
quarters at every change of occupancy provided not less than one year has
passed since the service in question was last carried out :-

(i) Internal painting to the extent of one-fourth the normal

periodical expenditure on internal painting.

(ii) External painting to the extent of one-third the normal

periodical expenditure on external painting.

(iii) One coat of distemper.

(h) The case of Factories/Installations falling under the Factories Act, the
intervals of periodical service may be reduced to conform to the
requirements of the Act or Rules framed there under.

(j) Proposed periodicity may be suitably altered by the CWE if there

is a reduction in the allotment of maintenance of funds, so as to avoid
diversion of funds authorised for other buildings.

2. The execution of periodical services in a building should, whenever

possible, be synchronised so that all such services in the buildings may be
carried out at the same time. It may, therefore, be expedient to advance or
postpone the time when certain portions of the work would normally fall due.
Para 228 Amendments to the capital cost of all buildings borne on the
Register of Buildings (see para 380 et. seq) will be made when the effect of
improvements or additions is to enhance the rentable value.

In calculating the addition to be made, credit will be taken for the cost at
current rates of any portion of the original structure which has been demolished or
replaced.

Changes in capital cost up to Rs. 15,000 in respect of all buildings and

those due to renewals costing Rs. 60,000 or less to temporary buildings will be
disregarded.

Para 380 On completion of an original work, separate records will be

maintained in the Register of Buildings for permanent and semi- permanent
buildings and structures erected and record plans completed or amended as the
case may be.

The permanent danger notice boards (see para 250 of Chapter IV) will be
taken on charge in the Register of Permanent Military Buildings.

A record of temporary buildings and structures will be maintained in such

form as may be prescribed by the Government from time to time.

Para 250 The responsibility of the MES in respect of maintenance of ranges is

restricted to the maintenance of only those parts of the range which are
authorised for execution by the MES. Minor repairs to the earthwork of stop butts
and firing points, arising out of the use of the range will, however, be done by the
unit or units in charge (see Scales of Accn). The custody of ranges, when in
general use by troops in the station, is the responsibility of the Stations
Commander.
Permanent danger Notice Boards (in English/Hindi and/or the regional scripts
concerned) warning the public that firing may be taking place at any time when
red flags are displayed, will be erected at prominent locations on all roads/tracks,
leading into the ranges and at other vantage points.
The erection of notice boards will be carried out in accordance with the
normal works procedure.
Para 259 An E/M renewal may be defined as the replacement of a complete
installation, or whole of a definite portion of an installation or of a complete unit
forming part of an installation.

The following will also be treated as renewals: -

(a) Extensive reconstruction of a supply system.
(b) Increased capacity of plant or accommodation for the installation.
(c) The substitution of superior for an inferior class of work. When
however the portion replaced is still serviceable, it will be classed
as an original work.
(d) Replacement and supply of major spare parts.

In case of any dispute, the CWE’s decision as to whether a particular

work shall be classified as an original work, renewal or petty repair, shall be final.

Para 260 Repairs, renewals and replacements of E/M installations and

other external utilities costing up to Rs. 50,000/- in each case will be
treated as ordinary repairs and charged to the appropriate installation under Sub-
Head C. Those exceeding Rs. 50,000/- will be financed from Detailed Head
(d)-Special Repairs (see para 125 of sub head B).

All alterations to the capital cost arising out of renewals of whatever value
will be entered in the Plant Record Book (IAFW-2208) maintained for each
installation (see para 903 et seq).

Para 903 The capital cost includes the provision of all buildings, including
accommodation for installation staff, and the fittings thereof, land, plant and
apparatus which are appropriated solely for the generation, collection, reception,
storage and control of electric energy, water and ice, and the distribution of
electric energy and water up to and including the main switch and stopcock
respectively, and the meters where provided. It will also include T & P
permanently required for use only in one installation workshop. Expendable spares
will not be included in the capital cost of an installation.
Para 634 Barrack Damages vouchers will be prepared at replacement cost in
such cases and the amount recovered from units or individuals
responsible. In case of dispute, should the Commander Sub-Area/Bde
decide that the whole or part of barrack damage is not properly chargeable to
unit or individual, it will be regularised by the CFA as a loss against the State on
the barrack damage voucher itself.

Recovery of barrack damages in respect of imported article should be

based on the procurement cost of the original article, if known. Where the
procurement cost of the damaged article cannot be ascertained, recovery should
be affected on the basis of the cost of the best acceptable indigenous
substitute. In rare cases where replacement has to be imported the amount of
damage will be the procurement cost of the imported article including all
expenses incidental to its import.

Should a part or the whole of the charges for barracks damages become
irrecoverable, it will be treated as a loss of public money and regularised under
orders of the CFA on the barrack damage voucher.

No separate loss statements are required in respect of any barrack damage.

Repairs of an urgent nature may be carried out rending finalisation of the

barrack damage voucher.

Para 635 Barrack damages will be assessed but these will not be included
in license fee bills. Separate vouchers will he prepared for these charges
and sent to units and formations concerned for payment of the amount into
the nearest treasury. The treasury receipt will be forwarded to GE concerned
for adjustment. Vouchers in respect of individuals in Government employ will
be sent to their units for recovery in cash or with their agreement through their
pay bills. Cash may be deposited with GE or the treasury as convenient to the unit
concerned.

In the case of persons not in Government employ recovery will be made in

cash [see para 715 (a)].

Recoveries will be credited as Revenue Receipt and compiled against the

Receipt Head of the Service concerned.
A record will be kept in the Register of Barrack Damages (IAFW- 2269).

When an individual/user is charged barrack damages at the full

replacement value of the damaged article (inclusive of removal/re-fixing charges)
the damaged item may be handed over to the individual/user if he so desires.
Para 715 In the following cases alone cash payments may be received by GE’s
or imprest-holding
SDOs:–
(a) Barrack damages other than from units (Para 635).
(b) Cash sales of stores.
(c) Miscellaneous amounts such as license fees, electricity or
water charges, deposits for works & barrack damages from units and fees for
charging secondary batteries etc., not exceeding Rs. 100 in each case.
As a general rule, no individual other than an imprest holder may receive
cash. In special cases the CWE may, with the concurrence of the CDA, authorise
any other individual to receive cash, specifying amounts which may be received.

Para 428 The powers of acceptance of tenders are laid down in Table B. A
tender may be accepted only if the costed schedule of works relating to tender
has been technically sanctioned by the competent Engineer authority and the
resultant cost of the project as a whole does not thereby exceed beyond the
permissible limit of the amount of the administrative approval for the project.

Para 440 An officer competent to accept a contract is also competent to

amend it provided that contract as amended is within his powers, except that the
sanction of the next higher authority must be obtained.

(a) if an amendment involves enhancement of contract rates.

(b) to any amendment after the contractor has signed his final bill or
in the case of running or term contracts for minor works,
maintenance, supplies, etc., after expiry of the period covered by the
contract.

Para 537 Outstation JE B/R. or E/M may, with the approval of the CWE and
concurrence of the PCDA/CDA, be allowed an imprest upto Rs. 2000/- for payment
of muster rolls, industrial personnel bills and petty bills (see para 573). This limit
may be exceeded under the orders of the CE with the concurrence of the
PCDA/CDA. The imprest will be advanced and recouped by the GE/SDO (if AEE/AE)
concerned from his cash assignment.
Para 573 An outstation imprest holder may pay muster rolls and industrial
personnel bills without audit check before payment; he may similarly pay petty
bills up to [Rs.5000]2 if authorised by the GE.
Para 379 On completion of an original work or special repair, a completion
report will be rendered on IAFW-2266A in accordance with the following
procedure: –
(a) Part A of the report will be initiated by the GE as soon as the work
is physically complete and transmitted in duplicate to the AAO (GE) who will,
after verification and check forward the original to the CWE for disposal,
retaining duplicate in his office for subsequent check by the local audit staff.
Reports will be forwarded by the CWE through engineer channels up to the
engineer adviser of the CFA. After being noted all reports will be returned direct to
the GE concerned for completion of Part B and resubmission.

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 separate. These reports will be
replaced by a consolidated Completion Report ‘A’ at the final stage.

However, the phases and supplementary of a project will be treated as one

project for purpose of savings and excesses.

Once Part ‘A’ of the final report has been submitted by the GE, the work
will be regarded as complete for all purposes of these Regulations although the
accounts may not have been settled; no further new works will be sanctioned
against the project and no further supplementary estimates may be accepted.

(b) Part B of the report will be completed as soon as the accounts of

the work have been closed and will be forwarded through the AAO GE to higher
engineer authorities in a manner similar to that for Part A. After scrutiny the
reports will be returned to the CWE for record.

A note that the completion report has been rendered will be

made in the Construction Account.
Para 828 The sale proceeds or the assessed value of materials obtained from
demolition of buildings, etc., (see para 171) will be adjusted as under:–

(a) In the case of additions and alterations to existing buildings, including

repairs and renewals, the work will be credited with the proceeds from sale
by auction, transfer to stock or use on other works. No adjustment will be
carried out for stores re-used on the same work.

(b) In the case of buildings demolished but not replaced which are written
off the Register of Buildings; the proceeds from the disposal of the materials
will be credited to the revenue head concerned.

(c) In the case of buildings demolished to clear a site for replacement or for
a new building, etc., and written off the Register of Buildings; the proceeds
will be credited to the ‘Demolition’ item of the project. The assessed value of
any stores re-used in the project will be debited to the building in which they
are incorporated.

Para 171 The cost of demolition will be included in the estimate for a work or
sanctioned as an independent work as the case may be. Any proceeds from the
sale or demolition will be dealt with as laid down in para 828.
 TABLE B: POWERS OF TECHNICAL SANCTION, ETC.

The powers of Engineer authorities for according Technical Sanction, entering into contracts, purchase of stores etc., are given in table below :-

Item Description of Work etc E-in-C CE CWE GE AEE I/c SDO Remarks Ref to
No. Indep. AE/ Paras
sub AEE
div.
1 2 3 4 5 6 7 8 9 10
1. Technical sanction in respect of :- 201
(a) Major works (including Sub- projects FP FP 50 15 2.5 50,000
and Minor Works) lakhs lakhs lakhs
(b) Maintenance of building FP FP FP 15 2.5 50,000
communications, etc, and maintenance lakhs lakhs
and operation of installation

(c) Purchase, manufacture and repair of FP 7.5 2 0.75 40,000 7,500

tools and plant except (d) below lakhs lakhs lakhs

(d) Purchase of camp equipment or FP 2 40,000 7,500 4,000 2,000

furniture and equipment for MES lakhs
offices and Inspection Houses

(e) Manufacturing operations FP FP FP - - - These apply to 886

Manufacturing
operations carried
out under the rules
for workshops.
(See also Appx. ‘K’)
Item Description of Work etc E-in-C CE CWE GE
AEE I/c SDO Remarks Ref to
No. Indep. AE/ Paras
sub AEE
div.
1 2 3 4 5 6 7 8 9 10
2. Entering into contracts, including contracts for local materials and petty supplies:-
1
(a) Through competitive tenders FP FP 50 15 2.5 50,000 428,746,
lakhs lakhs lakhs 934

1
(b) Through single tender 60/125* 25/125* 6.0 0.25 - - 432
lakhs lakhs lakhs lakhs

* For proprietary items only.

1
Powers in column 3 are to be exercised in consultation with FA. CEs will exercise power exceeding Rs. 10 lakhs with the approval of E-in-C &
FA. Powers up to Rs. 10 lakhs will be exercised in consultation with CDA. Similarly powers in columns 5 & 6 will be exercised in consultation
with CDA except where for reasons of urgency (to be recorded) it is not considered possible to do so.

3. Execution on the basis of trade FP 3 lakhs 75,000 30,000 - - 934

quotations, of retreading of tyres and of 955
such repairs to plant and machinery
(including vehicles) of MES repair
responsibility as are beyond the
capacity of local MES facilities or are
urgently required and where delay is
detrimental to public service
Item Description of Work etc E-in-C CE CWE GE AEE SDO Remarks Ref to
No. I/c AE/ Paras
Indep. AEE
sub
div.
1 2 3 4 5 6 7 8 9 10
4(a) Purchase of stores on any one indent on DGS & D
i) Items on Rate Running FP FP FP FP 60,000 15,000 743
Contacts
(ii) Items not on Rate Running FP FP FP FP 30,000 7,500
Contracts
(b) Purchase of stores on any one indent FP FP FP FP 30,000 7,500 747
on any other Supplying Deptt. 748

5 Direct purchase of–

(a) Stores, tools, plant and machinery 747
(including spare parts) etc. for which 748
there are no rate running contracts.

(i) against normal requirements FP 3,00,000 1,50,000 75,000 40,000 - 747

(ii) in emergent cases when delay is FP 3,00,000 2,25,000 1,00,000 60,000 - 748
detrimental to Public Service
(b) Stores for which DGS & D rate or – 50,000 35,000 25,000 15,500 – Not exceeding 743
running contracts exist when these are Rs. 2,00,000/-
urgently required or can be more In Aggregate in a
conveniently obtained locally or from year
nearer station
(c) Cash Purchase Powers - - 10,000 5,000 - - 536
747
Item Description of Work etc E-in-C CE CWE GE AEE I/c SDO Remarks Ref to
No. Inde AE/AEE Paras
sub
div.
1 2 3 4 5 6 7 8 9 10
6. Disposals of-
(a) Surplus buildings sanctioned for FP 30 lakhs 15 lakhs 6 lakhs - - Amount represent 160,
demolition the total book 163,
value of assets in 166
any one camp, set
of lines or
installation put up
for disposal
(b) Surplus or unserviceable stores, tools, FP FP 75,000 - - - Amount represents 672
plant and furniture, or materials the total book 673
obtained from dismantled buildings. value in case of 820
surplus 929
stores, etc. and 960
the total assessed
value in case of
salvage etc. on a
station wise basis.
7 Write off of stores, furniture, tools & FP FP 1,00,000 40,000 20,000 2,000
plant etc., rendered unserviceable due
to fair wear and tear.
Item Description of Work etc E-in-C CE CWE GE AEE I/c SDO Remarks Ref to
No. Inde AE/AEE Paras
sub
div.
1 2 3 4 5 6 7 8 9 10
8(a) Write –off of losses, including those in 1,50,000 30,000 2,400 1,200 - - *In respect of E-
transit, of stores etc., not due to theft, in-C’s Stocks held
fraud or gross neglect in respect of E-in in Engr. Parks and
–C’s stock. Sub Parks etc.
(b) Write off of actual losses not due to - 30,000 6,000 3,000 - - **In respect of E-
theft, fraud or gross neglect as laid in- C’s stock
down in Section 34 but excluding located in the
transit losses in respect of MES Stocks Park. These
(i.e., those operated under Major Head Powers can be
2076, Minor Head 111, Sub Head ‘F’) exercised under
held as Divisional Stocks, or in Engr. the same terms
Parks, Sub Parks, etc. as Command and conditions as
Stocks. are applicable to
store losses not
due to theft, fraud
or gross neglect
dealt with under
FR Part I Vol. I
1983.
(c) Write off of losses of stores including FP FP 1,50,000 3,000 1,200 600
losses in transit not due to theft, fraud
or gross neglect.
Item Description of Work etc E-in-C CE CWE GE AEE I/c SDO Remarks Ref to
No. Inde AE/AEE Paras
sub
div.
1 2 3 4 5 6 7 8 9 10
9. Terminal Compensation payable on 3,00,000 1,50,000 72,000 30,000 - - In respect of each 619
release of hired lands or buildings. property.

E-in-C
/DGW
10. Execution of agreements or FP 100 lakhs 30 lakhs 5 lakhs - - Amount represents 841
memoranda of terms for taking bulk annual payment in
supplies of electric energy or water each case
from outside sources. (See also Appx
‘M’).

E-in-C
/DGW
11. Execution of agreements or FP 100 lakhs 30 lakhs 5 lakhs - - Amount represents
memoranda of terms for giving bulk annual recovery in
supplies of electric energy or water to each case
non military consumers. (See also Appx
‘M’).
Note:–

1. The Powers of the holder of an appointment may be increased by name upto that of the next higher grade by the CWE in the case of a GE
and an SDO, by the CE in the case of a CWE and by the E-in-C in the case of a CE.

2. The normal powers of an officer may be restricted by his immediate MES superior, but in such cases a report must be made to the CE in
the case of GE’s, and to the E-in-C in the case of Cs W.E.

3. An officer officiating in an appointment will exercise the full powers of the appointment as given in this table.

4. A CE may delegate at his discretion powers in full to ACEs working under his jurisdiction.

5. The E-in –C may delegate his powers in full to the officers concerned on his staff by name.

6. Powers under Column 7 and 8 are applicable also to military officers of equivalent rank holding the appointments.

7. The powers authorised above are applicable in all cases on whosoever behalf the works, etc., are carried out by the MES.

8. The E-in-C and CEs have full powers in respect of purchase of books, newspapers and periodicals; CsWE and GEs may purchase books,
newspapers and periodicals to the extent of [Rs. 3000] and [Rs 1500] per annum respectively. Payment for publications obtained direct from
firms outside India will be arranged by the PCDA/CDA. This rule does not apply to such items as Area, Sub-area or Station Orders which
may be purchased as required.

9. Officers Commanding ESDs will exercise the following powers under this Table:–

(a) Items 1 (c), 3, 4 and 5 (i) If a Lt. Col/SE Same powers as a CWE.
(ii) In all other cases Same powers as a GE.

(b) Item 8 (a) and 8 (b) (i) If a Lt. Col/SE Same powers as a CWE.
(ii) If a Major/EE/SBSO Same powers as a GE.
10. The powers of Engineer authorities to sanction expenditure for grant of rewards for information leading to the discovery of prevention of
theft from their respective Engineer establishments are as follows:–

(i) OC Engineer Stores Depot Rs. 200

(ii) GE Engineer Park Rs. 200
(iii) GE MES Division Rs. 100
(iv) CASO Rs. 20

11. The powers delegated to Cs WE and GEs vide item 1 (a), (b) and item 2 (a) are not applicable to:–
(a) Cs WE posted/attached to CE in charge of large projects, if they are serving in the same station and employed on the same project
as the Chief Engineer.
(b) GEs posted/attached to Cs WE/CEs in charge of large projects, if they are serving in the same station employed on the same project
as the CWE/CE.

These officers will exercise the powers as laid down below.

Reference CWE GE Remarks

Item 1 (a) Powers under item 1 (a) will be delegated by the authority competent to technically sanction
15 lakhs 5lakhs
the project as a whole.

Item 1 (b) FP 5 lakhs

Item 2 (a)
15 lakhs 5 lakhs

12. The power for emergent cases for the direct purchase of stores vide item 5 (a) (ii) will be exercised only when immediate no-acquisition
of the stores concerned is likely to hold up a work or when delay is detrimental to the public services. These powers will not be exercised to
replenish stocks of items of Divisional stock. Direct. Purchase also includes job works like “Repair work Orders/ Fabrication Work Orders’ but
excludes B/R and E/M works which are required to be got executed as Minor Works through the Term Contracts.