Volume – I - 5


Methods of executing works:

The piece work contract method (see Article 63) should ordinarily be used only for works (including improvements and repairs) costing not more than Rs.2,500 it may also be used for Volume – I - 5 a work of improvements and / or repairs costing over Rs. 2,500, when that is considered desirable, but the reasons for doing so should be recorded. In the scheduled areas or any other tract Volume – I - 5 where satisfactory contractors under the lump sum contract method are not available, the piece work contract method may be adopted even for original works costing over Rs.2,500 each.The necessary details in regard Volume – I - 5 to the lump sum contract method are set forth, clearly in the preliminary specification of the Detailed Standard Specifications, the standardized forms of articles of agreement, tender notice and Volume – I - 5 tender mentioned in those specifications, and the prescribed intermediate and final bill forms.

The following para to be added

In respect of EPC works the method of execution shall be as per the provisions of agreement Volume – I - 5.

Article 192

Invitation to Tender:

Before a work is given on contract, the government servant who is competent to enter in contract on behalf of the government should have the necessary “contract Volume – I - 5 documents” prepared. He should invariably invite tenders when the amount involved in the contract is Rs.2,500 or more unless a competent authority has given special permission to dispense with tenders. When the amount Volume – I - 5 involved is less than Rs 2,500 the authority competent to sanction the work has discretion to decide whether or not tender should be invited, as seems desirable in each case. A work Volume – I - 5 must not be split up into parts or some of which cost less than Rs.2,500 with a view to giving contracts without calling for tenders should invariably be invited as Volume – I - 5 publicity as possible eg., by advertisement in the AP Gazettee and the local newspaper and by posting a notice in English and the Indian languages used in the neighbourhood in public places, and intending Volume – I - 5 tenderers should be given free access to copies of the contract documents. The notice should always state.

  1. When and where the contract documents can be seen and the blank forms of tender obtained Volume – I - 5, and the charge for a set of plans or other tender documents;

  1. When and where the tenders are to be submitted and are to be opened (if the contract is a Volume – I - 5 large one, the latest date or the submission of tender should be atleast a month after the date when publicity is first given to the invitation to tender);

  1. The amount of Volume – I - 5 earnest money that should be sent with the tender and the amount and nature of the security deposit to be мейд by the successful tenderer (the amount of earnest money for either a Volume – I - 5 piece work contract or a lumpsum contract, and the additional security required from the successful tenderer for a lumpsum contract should each be 2 ½ percent of the sanctioned estimate figure when the contract is Volume – I - 5 for the whole of a work of 2 ½ percent of the estimated amount of the contract when it is only for part of the work included in the estimate); and

  1. Who or what Volume – I - 5 authority has power to decide as to the acceptance of a tender.

^ Note.4 under Article 192

In respect of EPC works bid documents approved by Government shall be adopted for inviting Volume – I - 5 tenders.


Power should always be reserved to reject any, or all, or the tenders received without the assignment of any reason, and this should be expressly stated in every invitation to tender. No Volume – I - 5 tender should be accepted from any person directly or indirectly connected with government service. The tenders should be opened in the presence of any of the tenderers or their authorised Volume – I - 5 agents who are present at the notified time and place.

The government servant who opens the tenders should initial every correction in each tender which has been initialed by the tender, if Volume – I - 5 there is any correction in a tender itself when it is opened. He should keep a personal note of the total number of tenders opened by him and check it with the number shown Volume – I - 5 in the comparative statement or tenders.

After the receipt of the comparative statement and before the selection of a tenderer, the officer concerned should examine all the tenders and satisfy himself that Volume – I - 5 no corrections which were not in the tenders at the time he received them have been мейд in any of them.

Note.1:- The rule that tenders should be invited when Volume – I - 5 the amount involved in a contract is not less than Rs.2,500 applies to

  1. Contracts for the execution of work including supply of materials for such works by the contractors themselves, but not contracts involving only the Volume – I - 5 supply of materials (other than road quarry materials) or tools and plant; and

ii. Contracts for the supply of road quarry materials.

Note.2:- Notice calling for tenders should invariably be published Volume – I - 5 in prominent local newspapers in respect of all works costing over Rs.1,00,000.

Note.3:- In the case of road work in the scheduled areas, the EE may, if he thinks it desirable to do Volume – I - 5 so, refrain from calling for tenders even when the amount involved exceeds Rs. 2,500 but if he does not call for tenders for such a work, he should record his reasons Volume – I - 5.


Article 193

Acceptance of Tenders:

As a rule, no tender for the execution of a work should be received unless the tenderer presents along with it a challan showing that he has paid into Volume – I - 5 the treasury or the bank the earnest money notified as necessary in the tender notice. The Government servant who has to select tender for acceptance should take into consideration the financial status Volume – I - 5 of each tenderer, his capability, the security which he offers and his record in regard to the execution or other works. When other conditions are equal, he should accept the lowest tender. If the Volume – I - 5 accepts a tender other than the lowest, he should keep a confidential record of his reasons for doing so and should produce this record for perusal by the AG or Volume – I - 5 a duly authorised member of his staff, if requested to do so. Departmental inspecting officers should also examine every case of acceptance of a tender other than the lowest, and report Volume – I - 5 to the higher authorities any such case for which, in the opinion of the inspecting officer, there was no sufficient justification.

The acceptance or rejection of a tender is a matter within the discretion Volume – I - 5 of the government servant to whom the duty is entrusted, and no tenderer should be told the reasons for rejecting his tender. When it is considered desirable to do so, a superior authority Volume – I - 5 or the AG or a duly authorised member of his staff will call on the government servant who dealt with the tenders to justify the manner in which he exercised Volume – I - 5 his discretion and may require him to state his reasons for rejecting any particular tender.

When tenders have been invited for a work in accordance with Article 192 and there is no response Volume – I - 5 or all the tenders received are rejected as being unsatisfactory and it is considered that a call for further tenders would be fruitless or in undesirable, the government servant who is competent to Volume – I - 5 accept a tender for the work may select a contractor and allot the work to him after obtaining the sanction of his immediately superior authority.

^ Note.1 under Article 193

The procedure prescribed by Government Volume – I - 5 for acceptance of tenders in respect of EPC shall be followed.

Article 195

Agreement with contractors:

  1. Rates in excess of those stated in an agreement must on no account be paid, since Volume – I - 5 the payment of rates not due under the contract would nullify it.

  1. When a piece work contractor refuses to execute any work at the rates stated in his piece work agreement, the Volume – I - 5 government servant incharge of the work should terminate the agreement and have the work already done measured up and paid for at the rates included in the sanctioned agreement. He should Volume – I - 5 also forfeit the contractor’s security according to the terms of the agreement, unless a competent authority orders that the forfeiture be waived. He should not enter into any contract for the execution Volume – I - 5 f the remaining work at higher rates, unless he has publicity invited tenders and obtained the most favourable rates, that are available.

Note:- In the case of works executed by the Volume – I - 5 PWD if it is necessary, in any case, to give out the balance of work at higher rates to another contractor without calling for open tenders whether on account of urgency or Volume – I - 5 any other reasons, the previous approval of the SE should be obtained where the

  1. As a general rule, no rate stated in an accepted agreement should be revised whilst the agreement is in Volume – I - 5 force. When the government servant incharge of a work considers it desirable for good and sufficient reasons, to revise a rate stated in a current agreement, he should apply for the sanction of Volume – I - 5 the authority next above that which accepted the original agreement. If the revision is sanctioned, he should place on record with the agreement the reasons for the revision and its effect in Volume – I - 5 the total amount of work to be done under each item concerned and under the agreement as a whole. Whenever a revised rate is sanctioned in connection with an agreement, it Volume – I - 5 will take effect only from the date of according sanction unless the sanctioning authority specifically orders that it should be given retrospective effect.

  1. In every case falling under Clause (b) or Volume – I - 5 (c) above, the government servant concerned must strictly comply with all the rules applicable to the revision of the estimate.

^ The following shall be added below ‘f’

  1. Entrustment of the additional items Volume – I - 5 contingent to the main work and within the scope of contract will be authorised by the employer and the contractor shall be bound to execute such additional items at no extra cost to the employer Volume – I - 5 and the cost of such items shall be deemed to have been included in the contract price quoted.

2.Entrustment of additional items of work contingent to main work and Volume – I - 5 outside the scope of the contract will be authorised by the employer with the prior approval of the Government and the contractor shall be bound to execute such additional items and shall be compensated Volume – I - 5 at the price decided by the Government.

  1. 3 Whenever additional items not contingent on the main work and outside the scope of original contract are entrusted to the contractor, entrustment of Volume – I - 5 such items and the price to be paid shall be referred to the Government for final decision.


e. Any correction мейд in an agreement should be attested with dated initials by both the government Volume – I - 5 servant who accepted the original agreement and the contractor, in order to indicate acceptance of the altered rate and also with a view to preventing any tampering with agreements after approval.

f Volume – I - 5. A government servant incharge of a work should not order any extra item of work not covered by the original agreement to be done, unless a competent authority has sanctioned it. If it Volume – I - 5 has been duly sanctioned, he should see that the rate is fixed in accordance with conditions printed in the form of piece work agreement or clause 63 of the preliminary specification of Volume – I - 5 the Detailed Standard Specifications.

Note:- the concessions shown to contractors in the PWD under clause (b) and (c) above will be extended also to contractors in the Revenue Department subject to Volume – I - 5 the conditions specified to clauses (d) and (c) above in Article 127 below:


Article 196

Alteration to design during construction:

If any important structural alteration is found to be desirable whilst a work is Volume – I - 5 being constructed, the proposal to make it should be submitted for fresh administrative approval by the authority which gave the original administrative approval, even when it is not likely to cause any Volume – I - 5 increased outlay. Revised detailed plans and estimates should be submitted for technical sanction, if the alteration involved any substantial change in the cost of the work.


Article 197

Revised Estimates:

A revised Volume – I - 5 estimate should be submitted when the sanctioned estimate is likely to be exceeded by more than 5 percent for any cause whatever or when material developments or deviations have necessitated revised administrative approval. A Volume – I - 5 report should be sent with it showing the progress мейд up to date and explaining fully why the revision is necessary. The revised estimate need not contain details of the items which are not Volume – I - 5 altered, but merely a note stating that they are not altered; a comparative statement should be furnished for the items that are altered. The sanctioned estimate should always be sent Volume – I - 5 with the revised estimate. If, however, the likelihood of an excess of actual expenditure over the sanctioned estimate of more than 5 percent becomes known only at such an advanced stage in the construction Volume – I - 5 of a work that it would be useless to submit a revised estimate, the facts should be explained in completion report.


^ Amendment to Code for E.P.C. Works “D Volume – I - 5” Code

“D” Code

Provision as per Code

Amendment as per EPC

Para No.20

The SE should generally prepare designs and save detailed plans and estimates prepared in his office for all original works improvements likely to Volume – I - 5 cost more than Rs.1,00,000. In the case of estimate for improvements to existing structures amounting to over Rs. 1,00,000 where the SE could not undertake the preparation of estimates without being supplied by the EE with Volume – I - 5 an amount of data which would make it more convenient if the latter himself prepared the plans and estimates in question, the EE should prepare them. The SE will be Volume – I - 5 responsible for the engineering features of all designs prepared by him, his Personal Assistant will be responsible for the calculations and for the accuracy of the rates.

Note.1 under Para 20.

Superintending Volume – I - 5 Engineer should prepare project profile and basic project parameters with project cost under EPC Agency. The same shall be approved by

i) Superintending Engineer - upto Rs.50 Lakhs

ii) Chief Engineer - More than Rs.50 Lakhs

and equal Volume – I - 5 to Rs.200 Lakhs

iii)Committee constituted by Government for works :

costing more than Rs.200


Para No.99

Administrative Approval & Technical Sanction:

For every work proposed to be carried out, except Volume – I - 5 petty works and repairs the cost of which does not exceed Rs. 2,500/- a detailed estimate must be prepared by the PWD for the sanction of competent authority; this sanction is known as the Volume – I - 5 technical sanction to the estimate. Except where definite provision is мейд in this Code to the contrary, such sanction can only be accorded by Government or, where powers has been delegated Volume – I - 5 to them, by officers of that department. Sanction accorded to the construction of work by any other department of Government is merely an administrative approval of the work, which is in effect an order to Volume – I - 5 the PWD to execute a certain specified work for the department

as a stated cost.

Note .1 under Para 99

The estimate shall be prepared based on available preliminary data, the scope of works Volume – I - 5 and project parameters taking into consideration the points mentioned in Para 390 and duly furnishing approximate financial break up of component parts as envisaged in Para 101 of A.P.P.W Volume – I - 5 “D” Code and submitted in case of works to be taken up under EPC for according Administrative approval.

Para No.102

On receipt of administrative approval to works costing below Rs. 50,000 the PWD should Volume – I - 5 prepare detailed estimates and plans and after the professional authorities are satisfied that the proposals are structurally sound, the counter signature of the Head of the Department or of the local Volume – I - 5 Head of the Department who applied for the execution of the work should be obtained to the plans and estimates in token of approval for technical sanction should then be accorded.

  1. In the Volume – I - 5 case of work costing Rs.50,000/- and above, the procedure indicated below should be observed. As soon as possible after administrative approval is obtained tot any such building scheme, detailed plans and estimates should Volume – I - 5 be prepared with lumpsum provision for electrical and sanitary fittings. When the detailed plans are ready in a rough shape the Consulting Architect to Government should consul the HOD who should in his Volume – I - 5 turn obtain the advice of and circulate the plans to, experienced officers of his department. The HOD should also consider specifically such points as layout and orientation of the buildings on Volume – I - 5 the site with an eye on sanitation, water and electric supplies and the suitability and economy of arrangement of the building. The Consulting Architect to Government should ascertain the exact Volume – I - 5 requirements from the HOD and incorporate them in building plans which are then to be countersigned. Such approved plans countersigned by the HOD should not be altered subsequently without the sanction of Government. As soon Volume – I - 5 as the plans have been countersigned, the EE should immediately proceed to obtain technical sanction communicating at the same time copies of the certified plans to the Electrical Engineer (General) and in Volume – I - 5 cases in which the Sanitary Engineer has to be consulted, to the Sanitary Engineer also for further guidance in the preparation of detailed plans and estimates for electrical and Volume – I - 5 sanitary installations.

1. If in the preparation of detailed technical estimates, it is found that the cost will exceed the amount administratively approved by more than the limits prescribed by the Government, from Volume – I - 5 time to time for this purpose, viz., for sanctioning technical estimates in excess of administrative approval, revised administrative approval must be obtained before the technical sanction can be accorded.

2. Revised administrative approval should Volume – I - 5 also be obtained if the expenditure incurred has exceeded or is likely to exceed the amount of original administrative approval and the technical sanction by more than the limits prescribed by Volume – I - 5 the Government from time to time or when material developments of deviations occur.

Note.1 under Para 102

On receipt of Administrative Approval for EPC works the department should verify the estimate prepared as envisaged in Note Volume – I - 5.1 under para 99 and if satisfied Technical sanction be accorded by the competent authority.

In case the department has any new facts which will materially affect the cost of the project they Volume – I - 5 shall be taken into consideration for arriving at the estimate for according Technical sanction.

If that cost of estimate is found to exceed the Administrative approval, Revised administrative approval must Volume – I - 5 be obtained before according Technical sanction.

Para No.112

Preparation of estimates:

The papers to be submitted with the project for a work will consist of a report, a specification and a detailed statement of measurements Volume – I - 5, quantities and rates, with an abstract showing the total estimated cost in rupees only of each item. These documents form what is called the estimate in the sense of Volume – I - 5 this Code. The form of the abstract will depend on the method proposed for the execution of the work. If it is intended to purchase or supply materials and to employ labour for construction separately Volume – I - 5 (whether by contract or departmental agency), the abstract of the estimate should be so framed as to show separately for each distinct item of artificer’s work (1) the cost and quantity Volume – I - 5 of “labor”, and (2) the cost of materials. But if this is not the case, e.g., when any item of work is to be executed by contract and it is proposed to contract Volume – I - 5 for the completed items of work, the abstract of the estimate may show merely the quantity and cost of each item of work. In the case of a project consisting of Volume – I - 5 several works, the report may be single document for all the work and likewise the specification, but details of measurements and abstracts may conveniently be prepared for each work, supplemented by a Volume – I - 5 general abstract bringing the whole together. In the case of estimates for “Repairs or Maintenance”, only the specification and the detailed statement of measurements and quantities with the abstract will ordinarily be Volume – I - 5 required. The report should state clearly the purpose of the work estimated for, and explain any peculiarities which require elucidation including where necessary, the reasons for adoption of the estimated project Volume – I - 5 or design preference to others.

^ Note.1

In case of works taken up under EPC estimate shall be prepared as envisaged in Note.1 under para 102 of “D” Code.

Para No. 117

In the estimates for Volume – I - 5 works provision may be мейд at the following rates for petty supervision and contingencies:-

1. Estimates upto Rs.10,000/- 5%

2. Estimates from Rs.10,000/- 4% subject to a minimum of

Rs. 500/- to one lakh

3. Estimates from Rs Volume – I - 5.1 lakhs to 3% subject to a minimum of

Rs 4,000/-

Rs. 100 lakhs

4. Estimates above 100 lakhs ½ % subject to a minimum of

Rs.3 lakhs

All incidental expenditure which can be foreseen such a compensation for or cost Volume – I - 5 of land, sheds for workmen and stores, should be separately provided for in the estimates. The provision for contingencies should not be diverted to any new work or repair which is not provided for Volume – I - 5 in the estimate and f which the cost exceeds Rs.2,500/- without the sanction of the SE vide also Para 428(c). The provision for petty supervision should in no case be diverted Volume – I - 5 to meet expenditure on other items of work. A provision of 1 percent of the estimated cost may also be мейд towards handling charges in the estimates for purchase of machinery.

In respect Volume – I - 5 of EPC works provision towards contingencies may be мейд as under subject to the x indicated there in

Estimates upto Rs.1.00 crore @ 0.25% maximum Rs. 20,000/-

Estimates above1.00 crore and upto

Rs. 10.00 crore @0.20% maximum

Rs. 1.00 Lakh

Estimates Volume – I - 5 above Rs.10.00 Crores and upto Rs. 100.00 Crores @0.10%

Maximum Rs.5.00 lakh.

Estimates above Rs.100.00 Crores @0.05% maximum Rs.10.00 lakhs.

Para No. 120

Important structural designs should, as far as possible, be prepared in Volume – I - 5 the Chief Engineer’s office together with the schedule of quantities, and the remaining designing work of importance should be concentrated in the SE’s office, the executive offices being left to deal only with Volume – I - 5 designs for the alterations of existing building and less important new works. The responsibility for the technical features of a design lies with the office of origin. Local officers Volume – I - 5 will be responsible, however, for settling locally, questions connected with the foundations and other similar matter. Subordinate officers should always bring to the notice of their higher authorities any unsuitability or technical defect in Volume – I - 5 a design.


In case of EPC works the designs are to be submitted by the executing agency which shall be approved by the competent authority The EPC agency responsible for the Volume – I - 5 technical features of designs. The competent authority approving the designs is accountable to the department.

Para No. 150

Methods of Execution of Works:

The works executed by the department are carried Volume – I - 5 out by one of the under mentioned three methods. Lumpsum form of contract is to be adopted for contracts exceeding Rs. 20,000/-. If not, prior approval of the next authority is necessary, but Volume – I - 5 CE has got full powers.

  1. Deparmentally, by the employment of daily labour.

  2. By piece work agreement in form Public Works Department V-51, and

  3. By an agreement in form Public Works Department V-53, based Volume – I - 5 on a lumpsum tender system, as defined in the A.P. Detailed Standard Specifications.

Method (i) is adopted in cases where no contractors are available or where, for other reasons, it is Volume – I - 5 found more economical. Under this method, the department manufactures or purchases its own materials. The purchase of materials or tools and plant and machinery is governed by the store rules in appendix Volume – I - 5 15 to the AP Financial and Accounts Code (Volume.II).

Method (ii) the piece worker merely agrees to execute a specified work at specified rates without reference to quantity or time. The conditions of the Volume – I - 5 contract add the security to be taken from the piece workers for the due fulfillment of the contract are set forth in form PWD V-51. The piece worker usually possesses little Volume – I - 5 professional knowledge or capital and employs no supervising staff. The department arranges for the supervision, the setting out and the measuring of all work. The piece work system shall ordinarily be confined Volume – I - 5 to works costing not more than Rs.25,000/-. Rupees one lakh for construction or repair works and Rupees Five lakhs for transport works. If, any case of improvements and repairs costing above Volume – I - 5 Rs.2,500/- it is considered preferable to adopt the piece work system instead of method (ii) reasons therefore should be recorded in the relevant file. The schedule of rates in the piece work agreement should show Volume – I - 5 the rates either for finished work or for labour and material, as the case may be even for items for which lumpsum have been provided in the sanctioned estimates.

In regard Volume – I - 5 to Method (iii) the details are set forth clearly in

  1. the preliminary specification of the AP Detailed Standard Specificatitons.

  2. the standardized forms of articles of agreement, tender notice and tender mentioned in Volume – I - 5 the APDSS (PWD Form No.s V-53(a) and 53(b) respectively) and

  3. the intermediate ad the final bill forms connected therewith {PWD Form Nos. VI-75(a) and 75(b)}

In the case of each work Volume – I - 5 executed under method(ii) or method (iii) the authority accepting the contract will decide whether it is desirable to retain, in the hands of the department, the supply of imported stores or Volume – I - 5 other materials.

In cases where it is decided that the department should supply certain materials to the contractor for use on the work, a description of every such materials and the Volume – I - 5 rate and place at which it will be supplied should be specified in the notice calling for tenders and also in the schedule forming part of the agreement

In cases where the contractors are Volume – I - 5 allowed to supply the required imported articles themselves, the description of such articles must be clearly defined by governing specifications. For cases where the “British Standard Specifications” standards are not applicable, other Volume – I - 5 suitable methods should be adopted, such as, specifying the catalogue number product of a reputable firm. When test certificates are demanded, full particulars shall be given in the tender notice and the agreement Volume – I - 5 and it shall also be stated therein that the cost of furnishing such certificates shall be borne by the contractors.

^ In addition to the three methods of execution fourth method Volume – I - 5 is introduced for execution of EPC works.

(iv) By an agreement in the form approved by Government for EPC.

In regard to method (iv) the details are set forth clearly in the form of Volume – I - 5 articles of agreement, tender notice and bid documents approved by Government.

Para No.151

Contract Documents and Enforcement:

Before a work is given out on contract, the authority competent to accept the contract Volume – I - 5 must prepare “contract document” to include

  1. a complete set of drawings showing the general dimensions of the proposed work and so far as necessary details of the various be clearly defined Volume – I - 5 by specifications or drawings, as necessary

  2. a complete specification of the work to be done and of the materials to be used, unless reference can be мейд to specifications contained in the APDSS Volume – I - 5 and its Addenda Volume ( in the case of the items of work for which there are already standard specifications, the numbers of the relevant specifications of the APDSS should be referred to Volume – I - 5 in the schedule attached to the agreement)

  3. a schedule of the quantities of the various descriptions of work. (This is necessary only in the case of contracts based on the lumpsum tender system as Volume – I - 5 defined in the APDSS. In such a case, the total under the Schedule.A of the agreement must be equal to the lumpsum entered in the agreement), and

  4. a set Volume – I - 5 of “conditions of contracts” to simplify as necessary the preliminary and other specifications of the APDSS forming part of contracts based on the lumpsum tender system; ( in the case of piece work Volume – I - 5 contracts, the conditions considered necessary for any particular case in addition to those printed in Form PWD V-51 should be attached to the agreement).

Note1 under Para 151:

Contract documents approved by the Volume – I - 5 Government for EPC works in terms of Para 153 of “D” Code shall be followed whenever tenders are invited for EPC works.

Para No.154


Tenders, which should always be sealed, should be invariably be Volume – I - 5 invited in the most open and public manner possible, whether by advertisement in the Government Gazette or local news papers, or by notice in English and the vernacular posted in public Volume – I - 5 places, and tenders should have free access to the contract documents. The Officer opening the tenders should invariably date and initial on all the pages of the tender document.

The notice should Volume – I - 5 in all cases state:

  1. when and where the contract documents can be seen and the blank forms of tender can be obtained and also the amount to be paid for Volume – I - 5 set of plans or other tender documents.

  2. When and where tenders are to be received and opened, the date of receipt of tenders should be atleast 15 days for works costing Rs.1.00 lakh and Volume – I - 5 less, and 21 days for works costing more than one lakh and upto Rs.5.00 lakhs and one month or more for work costing over 5 lakhs from the date of issue of the Chit tender Volume – I - 5 notice.

Note:- Sale of tender schedule should be stopped three clear days before the date fixed for receipt of tenders. The officer issuing tender notice may reduce the time for Volume – I - 5 any special reasons to be recorded.

  1. The amount of earnest money to accompany the tender shall be 1 ½% of the estimated amount of the contract, subject to a maximum of Rs.1.00 lakh in the case Volume – I - 5 of contractors, who have not deposited a lumpsum of standing security deposit of Rs.1.00 lakhs with the CE concerned and one percent only subject to a maximum of Rs.75,000/- in the Volume – I - 5 case of contractors who have deposited a lumpsum of standing security deposit of Rs.1.00 lakhs with the CE concerned.

Note.1:- Tenders should invariably be called for when the amount involved in a particular Volume – I - 5 contract is (Rs. 5,000/-) or more. If it is proposed, in any case whether for urgency or any other reasons to be recorded, to depart from the rule, works may be entrusted Volume – I - 5 on nomination at rates not exceeding estimate rates by the EE, SE or CE upto the following limits indicated against each.

Executive Engineer -Rs. 10,000

Superintending Engineer-

Rs. 25,000

Chief Engineer Rs. 50,000

When Volume – I - 5 tenders are dispensed within the case of contracts exceeding Rs.20,000 a report should be мейд by the officer entrusting the work on nomination to the next higher authority indicating the reasons for dispending Volume – I - 5 with the tenders. When the amount involved is less than (Rs. 5,000/-) the EE may call for tenders or not at his discretion.

This rule does not admit of a major work being split Volume – I - 5 up into parts and each part being given out on contract without calling for tenders.

Exception:- This rule shall not apply to road works in the Agency tracts. In the case of Volume – I - 5 such works, EEs are authorised to exercise their discretion as to whether tenders should be called for or not, even though the amount involved may exceed the limit of Rs Volume – I - 5.2,500/-. In cases where the EE decided not to call for tenders, the reasons for the decision should be recorded by him.

Note.2:- Notices calling for tenders should invariably be published in prominent local Volume – I - 5 newspapers in respect of all works costing over 1,00,000/- .

Note.3:- The CEs may authorise dispensing with tenders in the case of contracts pertaining to major works provided that the total aggregate value of such contracts Volume – I - 5 in respect of a particular major work does not exceed Rs.10,000/-

Note.4:- When once tenders have been called for a work in accordance with Note(1) above and there is no response Volume – I - 5 or all the tenders received are unsatisfactory and have to be rejected and it is considered that a call for further tenders will be fruitless or undesirable, the officer who is competent to Volume – I - 5 accept the tender may allot the work to a contractor selected by him with the sanction of his immediate superior authority, at rates not exceeding estimate rates.

Note.5:- The rule Volume – I - 5 in Note (1) above applies.


  1. to contracts for execution of works including supply of materials for such works by the contractors themselves, but to contracts involving only supply of materials (other than road quarry materials Volume – I - 5) or tools and plant; and


  1. to contracts for the supply of road quarry materials.


In case of supply of materials (other than road quarry materials) and tools and plant, the stores rules in Volume – I - 5 Appendix.15 of the AP Financial Code (Vol.II) apply – vide also Article 187 of the AP Financial Code (Vol.I) Asphalt, tar and such bituminous products for road surfacing are Volume – I - 5 governed by the stores rules.


Note.6:- When once tenders have been called for work in accordance with Note (1) above, “supplemental” or “Additional” items may be entrusted to the original contractor dispensing with tenders Volume – I - 5 as follows subject to the provisions of Para 176 (c) of A.P.P.W. “D” Code.

  1. Such items of work that are found necessary after letting out a contract and cannot Volume – I - 5 be taken up for execution independently without interfering with the original work let out and have necessity tot be executed along with the original contract shall be considered as “Supplemental items of work contingent Volume – I - 5 of the original contract”.


  1. Supplemental items of work contingent on the main contract have to be necessarily carried out through the original contractor as “authorised extra” by entertaining into a supplemental Volume – I - 5 agreement (s). The power for executing original contracts according to delegation of powers in force regarding of who has executed the main contract in a given case, subject to however, to the condition Volume – I - 5 that if the net effect of supplemental agreements to be entered into is to enhance the total value of work under the main and supplemental agreement to such an extent at sanction to Volume – I - 5 revised estimate is required to a higher authority than sanction of the revised estimate from the higher authority shall be obtained before entering into supplemental agreement(s).


3. Such items of works that Volume – I - 5 are found necessary after letting out a work and be executed independently without affecting or interfering with the execution of the work let out, shall be considered as “Additional items to Volume – I - 5 work not contingent on the original contracts”. Such additional items of work may be let out after call of tenders. However, if at tender call is considered undesirable and it is considered necessary Volume – I - 5 to entrust the item, if at tender nomination to the original contractor involving the provision in Note(1) above it may be done so, provided the total value of such Volume – I - 5 additional items does not exceed upto which the officers can entrust works without calling for tenders as per the delegation of powers in force. If the value of the items exceeds the limit, approval of Volume – I - 5 the next higher authority shall be obtained. They can be executed only after separate estimate or a revised estimate or a workslip containing the additional items is sanctioned / approved Volume – I - 5 by the competent authority. Entrustment of such items shall be at rate not exceeding the estimate rate.



  1. In the case of river conservancy works, reach wise major estimates can be split up Volume – I - 5 into the various working estimates, for different items of work, such as supply of stones, conveyance of stone by Punts along the River Channels or Canals and other miscellaneous works of pitching or packing Volume – I - 5 stone or Earth work etc., where all these items of work cannot be successfully and speedily executed by one single contracting agency in time.



  1. In the case of collection of stone which Volume – I - 5 has to be мейд at short notice, the agencies for supply of stone and its conveyance can be fixed in advance by calling for open tenders for rate contract quotations annually Volume – I - 5 for the period from July to end of June each year on the analogy of the rate contracts awarded by Director General of Supplies and Disposals, for supply of stone Volume – I - 5 materials and Tools and plant articles. 

  1. For the other miscellaneous items of works and those involving labour and earth work etc., reach wise tenders may be called for. These tenders are to be compared with Volume – I - 5 the basic rates and decided. The basic rates are arrived at by taking the average of the accepted tenders of the past three years.

During the above mentioned period no plea Volume – I - 5 by the tenderer for any sort of modifications of the tender based upon or arising out of any alleged misunderstanding or misconception of mistake or for any reasons should be entertained.

The following Volume – I - 5 shall be added under Para 154 before sub para (1):

In respect of EPC works limited/ open tender system shall be followed.

The following shall be added under Para 154 (iii).

In Volume – I - 5 case of EPC works the bidder shall furnish EMD at 1% of the value put to tender at the time of bid submission. EMD @ 2.5% of bid amount shall be paid at the time of concluding Volume – I - 5 contract by successful bidder. EMD shall be in the form of DD / BG from any Nationalized /Scheduled bank.

The following shall be added as 4 under Note.6 of Para 154.

In case of Volume – I - 5 EPC works

  1. Entrustment of the additional items contingent to the main work and within the scope of contract will be authorized by the employer and the contractor shall be bound to execute such additional items Volume – I - 5 at no extra cost to the employer and the cost of such items shall be deemed to have been included in the contract price quoted.

  1. Entrustment of additional items of work Volume – I - 5 contingent to main work and outside the scope of the contract will be authorised by the employer with the prior approval of the Government and the contractor shall be bound Volume – I - 5 to execute such additional items and shall be compensated at the price decided by the Government.

  1. 3 Whenever additional items not contingent on the main work and outside the scope of original contract are entrusted Volume – I - 5 to the contractor, entrustment of such items and the price to be paid shall be referred to the Government for final decision

Para No. 156


In selecting the tender to be accepted, the Volume – I - 5 financial status of the tenderers, their capability, the security offered by them or the record of their execution of any works previously, should be taken into consideration. Other conditions being equal, the Volume – I - 5 lowest tender should be accepted. In cases where a tender other than the lowest is accepted, a confidential record should be kept of the reason for doing so. Specific data with reference to the Volume – I - 5 financial solvency, income tax paid, the ability of the contractor to execute the work, security offered by him, the names of atleast some works executed formally by the contractor, amount Volume – I - 5 involved therein and the conduct and performance of the contractor during the execution of the tenderer whose tender has been accepted but also of the tenderers whose tender has been rejected. The relative merits Volume – I - 5 of the various contractors concerned should be discussed and cogent reasons should be given while rejecting lower tenders, if they are to be rejected. This confidential record should be shown Volume – I - 5 to the Inspecting Officer of the Audit department, if required.


In addition, in case where it is proposed to accept a tender other than the lowest, the authority competent to accept the tender Volume – I - 5 should, immediately after accepting it, make a report to indicating the reasons for accepting a higher tender to the next higher authority, who shall scrutinize the report carefully and call for more details Volume – I - 5 if necessary. The SE or EE as the case may be, should bring to the notices of the higher authorities cases in which the rule about the acceptance of the Volume – I - 5 lowest tender has been departed from without sufficient justification.


The acceptance or rejection of tenders is, however, left entirely to the discretion of the officer to whom the duty entrusted and no tenderer Volume – I - 5 can demand the cause of rejection of his offer.


Para No.174

Ordinarily no work executed by method (ii) or method (iii) described in para 150 should be started without a formal Volume – I - 5 agreement or contract sanctioned by a competent authority. The procedure to be followed in emergent works is descrrbed in Para 178.

^ Method (iv) to be inserted after method (iii)

Para No. 197

Advance to contractors are Volume – I - 5 as a rule prohibited and every endeavour should be мейд to maintain a system under which no payments are мейд except work actually done. Exceptions are, however, permitted in the following cases Volume – I - 5: 

  1. Cases in which, in the interest of work, it is absolutely necessary to make petty advances (see para 315 APPW Accounts Code). In such cases subordinates in charge of works, sub divisional officers Volume – I - 5 and EEs are authorised to make advance upto a limit of Rs.50/- Rs. 100/- and Rs.250/-, respectively. They should, however, take the necessary precautions to secure the Government against loss.

 Note Volume – I - 5.1:- The limit referred to above apply to each work and not to each individual workman employed on a work.

 Note.2:- In the case of works in the Agency tracts, the limits upto which the Volume – I - 5 three classes of officers referred to in the above rule can make advances to petty piece workers shall be Rs.100, Rs. 200 and Rs.50/- respectively. These limits shall apply to each individual piece worker Volume – I - 5.

 b. Electrical works executed on contract:- The Electrical Engineer may sanction an advance of eighty per cent on the value as certified by him, according to the terms of clause 20 of the Volume – I - 5 general conditions of contract printed in PWD, form No.II – 20.

  1. In EPC contracts, Mobilisation advance not exceeding 5% of the contract value is payable at the prescribed stages of execution Volume – I - 5. Mobilisation advance on new machinery at the prescribed percentage of the value of new machinery not exceeding 5% of contract value is payable against production of original invoices in proof of purchase of Volume – I - 5 the machinery by the contractor/firm/joint venture.

  1. The invoices should be in the name of the contractor/firm/joint venture only and the new machinery should have been purchased only after the date Volume – I - 5 of conclusion of the agreement for the work.


C. In all other cases the State Government may, in exceptional circumstances, authorise such advance as may be deemed indispensable, but the state officers Volume – I - 5 must take the necessary precautions for securing Government against loss and for preventing the system from belonging general or continuing longer than is absolutely essential.


d. Advances to the contractors Volume – I - 5 for acquisition of new machinery required for the work upto 75% of their cost limited to 10% of contract value for works valued upto Rs.10 lakhs each, and 6% of contract value for works costing Volume – I - 5 more than Rs.10 lakhs each may be given, if asked for by the contractor. The money advanced under this clause is subject to payment of interest by the contractor at the prevailing commercial bank Volume – I - 5 rate. The machinery for which the advance is paid should be got hyopothecated to the Government and also got insured at the cost of the contractor. The advance, together with interest Volume – I - 5, may be recovered from the bills of contractor. Alternatively, the Government may procure the machinery required for works by the contractor and sell the same to the contractors on hire purchase terms Volume – I - 5, provided these conditions are stipulated in the tender documents at the time of calling of tenders.


3. No mobilisation advance is payable on machinery purchased by an individual firm in respect of joint ventures though Volume – I - 5 that individual firm is a partner in the joint venture.

4. The contractor /firm/joint venture should submit an undertaking to the effect that they have not obtained any mobilisation advance from Volume – I - 5 the government against the machinery for which they are presently claiming payment of mobilisation advance. This is to ensure that mobilisation advance is paid only once against one purchase. Any wrong Volume – I - 5 declaration, when comes to light, entails recovery of the entire amount paid with penal interest in a lump from their immediate next work bill apart from instituting other prescribed penal actions Volume – I - 5.

5. Payment of mobilisation advance is also permissible on ordered machinery with approval of Government.

6. Recovery of mobilisation advance along with interest shall be мейд as per provisions of the contract.

Para No.292

Measurement Books Volume – I - 5:


The measurement book, common Form No.298 is a most imp9rtant record since it is the basis of all accounts of quantities whether of work done by daily labour, piece work, schedule contract Volume – I - 5, deviations in a lumpsum contract, or of materials received. It is the original record of actual measurement of count. The descriptions must be lucid so as to admit of easy identification and Volume – I - 5 check. A reliable record is the object to be aimed at as it may have to be produced as evidence in a Court of Law. Rules regarding the maintenance of measurement Volume – I - 5 books and the manner of making entries therein are found in the APPW Accounts Code Para 293 and 294.


Note.1:- In the case of works, where considerable earth work has to be done, eg Volume – I - 5., excavation of a canal, the quantity of work done shall be determined with reference to the levels taken before and after excavation and the final payment to the contractor shall be based Volume – I - 5 on the lesser of the two (ie.,) quantities based on pit measurements and levels taken. The levels taken in such cases are to be recorded in Level Field Books and calculations Volume – I - 5 мейд after plotting the levels on action section sheets, and LF books, section sheets and calculation statements are to be treated as adjuncts to the measurement book. Detailed rules regarding the measurement Volume – I - 5 to be taken in the case of earth work excavation are found in specification 20(A) (h) in Section.3 of APDSS.


The following certificates shall be inserted at the time of passing bills:


Certificated that Volume – I - 5 levels recorded in the LF books, levels plotted in section sheets and the areas/quantities worked out in the calculation sheets have been checked and found correct.

Note.2:- Whenever measurement books, change Volume – I - 5 hands, even if it is only from one office to another situated in the same building, the receipt of the books should be acknowledged in writing by some responsible person of a Volume – I - 5 grade not inferior to that of a clerk.


Note.3:- In the case of job works executed by piece workers in the PW Workshops at Hyderabad, Vijayawada and Dowlaiswaram where Volume – I - 5 piece workers are given the works for the amounts of labour estimated for in the work order estimates and agreed to by the piece workers in the form of agreement printed in Volume – I - 5 the work order form (PWD IV.6) there is no need to record in a measurement book any measurement of the works done or the lumpsum is entrusted to the piece worker subject to payment to Volume – I - 5 him at a rate agreed to with reference to weight or area of our turn, it is necessary to record detailed measurements or job works in a measurement book to serve as Volume – I - 5 a basis for making payment to the piece worker.

Note.4 under para 292 of “D” Code:

  1. In case of EPC works, measurements shall be recorded by EPC agency in M.Books and L Volume – I - 5.F.Books issued by the concerned EE duly numbered and certified. The M.Books and L.F.Books have to be maintained by the EPC agency through authorized graduate engineers Volume – I - 5 as per procedure prescribed in Code and finally to be handed over to the department (Engineer-in-charge).

2. In Earth Work Excavation and embankment AE/AEEs have to verify and record

a. 1/3rd of Volume – I - 5 prelevels

taken by EPC agency

  1. 100% levels in case of

cut off and foundations

c . 25% of intermediate

work done levels

d. 100% for final levels

recorded by EPC


e. All measurements recorded by Volume – I - 5 the EPC agency in the M-Books issued by the EE shall be checked to 100% extent by AEs/AEEs

f. DEEs., EEs and SEs have to check the above levels and measurements as per standing Volume – I - 5 codal provisions and orders.

3. Wherever Quality Control agencies are in existence, such agency has to record its findings in M Books/LF Books besides furnishing certificates as prescribed separately.

The Engineer-in Volume – I - 5-charge has to approve the cut-off trench and other foundation in consultation with the authorized geologist.

Para No.416. IV Contracts:

Powers of CE, R&B - Para 415. V contracts:


To Volume – I - 5 accept tenders for execution of works, including those to be executed by the Electrical Engineer (General) by contract, upto technically sanctioned estimates plus such percentage excess as the CE is competent to sanction under Volume – I - 5 excess over estimates. When once a work is administratively sanctioned by the Government and the estimate therefore is technically sanctioned by the competent authority and a contract is concluded for the Volume – I - 5 execution of the work, no work should be stopped or slowed down (rare emergencies expected) or payments to contractors with held or delayed, even if there is need for a revised estimate to Volume – I - 5 be sanctioned by the Government. Such payments should however, be subject to the existence of adequate budget provision within the relevant head of account. When the expenditure on a work is likely to Volume – I - 5 exceed over the 10% over the contract value of the work (in the case of premium tenders), the CE should inform the Government of the approximate extra commitment involved and also Volume – I - 5 follow up with a revised estimate as early as possible. If, however, only a part of the work covered by the estimate has been entrusted on contract at premium rates, this Volume – I - 5 10% referred to above should be over the total value of the work, comprising the contract amount for the portion or portions already entrusted plus the total estimated value of the item not yet Volume – I - 5 entrusted or utilized. The CE may provisionally sanction the revised estimates and submit them to Government for regular sanction before the final payment for work is мейд.



Note.1 under Article 193

The procedure Volume – I - 5 prescribed by Government for acceptance of tenders in respect of EPC shall be followed.
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