OFFICE OF CHIEF CONTROLLER OF ACCOUNTS

MINISTRY OF SURFACE TRANSPORT

GOVERNMENT OF INDIA

ABOUT OFFICE    ABOUT US    CONTACT US      OTHER LINKS

[ Home ] [ Up ] [ Contents ] [ Accounts ] [ OTHER PUBLICATIONS ] [ Search ] [ Accounts at A Glance ]

[ Home ] [ Up ] [ SCOPE OF IA OF NH ] [ CONTENTS ] [ CHAPTER 1 ] [ CHAPTER 2 ] [ C H A P T E R 3 ] [ C H A P T E R 4 ] [ C H A P T E R 5 ]

C H A P T E R - I I I

3.1 PROCEDURE FOR DETAILED ANALYSIS OF SELECTED WORK

The accounts of the selected work should be analysed completely and examined in detail. The following points should be looked into in particular :-

1. The estimate of the work concerned should be studied together with the relevant correspondence and all charges carefully examined to see whether any of them falls beyond the scope of sanction. Quantities should be compared with the quantities of work actually done with a view to verifying that savings due to abandonment or otherwise have not been utilised for additional work or that there have been material alterations of modifications in the sanctioned designs without the sanction of the competent authority.
2. All payments for work done should be made strictly in accordance with the contract agreements. The rates provided for in the contracts should be specially scrutinised with reference to the sanctioned estimates and schedule of rates to see that they do not allow any concessions detrimental to the financial interests of the Government.
3. The quantities of materials required for the work actually done should be worked out on the basis of theoretical consumption or analysis given in the estimates and compared with the actual issues to contractors to investigate the differences if substantial.

NOTE : - The theoretical consumption need not be worked out at intermediate stages but only at the completion stage. Objections regarding penal recovery of material to be made from the contracts as a results of comparison between actual consumption and theoretical consumption at intermediate stage should not be raised.

(iv) It should be also be seen that : -

1. The accounts exhibit accurately the actual cost of work done relating to the particular object for which the particular estimate was sanctioned.
2. All recoverable charges have been made good to Government.
3. The contractors on whose behalf the recoverable charges are incurred do not get the benefit of any concessions to which they could not have been entitled if they have themselves incurred the charges.
4. Generally there has been no irregularity in the upkeep of the accounts including the initial records relating to them.

3.2 SCRUTINY OF ACCEPTED /REJECTED TENDERS WITH THE APPROVED DRAFT N.I.T.

The draft N.I.T. should be examined to see that it has been properly prepared in accordance with instruction laid down in para 6.301.315 of CPWD Manual Vol. II , it is based on the sanctioned estimate and the analysis of rates exist for the items not covered by the schedule of rates. It should be seen that the N.I. T. has been approved by the authority competent to accept tenders. Any deviation in the description of the items of work from the sanctioned estimates or from the approved designs and drawings should be looked into and the reasons ascertained. The rejected and accepted tenders should be examined with reference to the approved N.I.T. with a view to seeing that no condition provided for in the approved N.I.T. has been omitted to be included in the tenders and that no condition not incorporated in the approved N.I.T. has been subsequently added in the tender documents without the sanction of the competent authority. The comparative statement should be checked with the tenders to see that it has been properly prepared and checked by the Divisional Accountant.

3.3 SCRUTINY OF AGREEMENT

The accepted agreement should be examined to see that it is executed/properly signed by both the parties and sealed. The various clauses incorporated in the agreement should be studied and any ambiguity therein pointed out. The conditions relating to supply of materials should be seen with a view to seeing that the rates at which the materials issued to the contractors would be charged, are properly filled in, place of delivery clearly indicated etc.

3.4 CHECKING OF BILLS PAID

After the scrutiny of agreement the expenditure incurred on the work since its commencement should be checked with reference to cash vouchers for payments made to the contractors, stock accounts and transfer entries. The charge as entered in the work abstracts should be checked with the schedule dockets for the work brought from the central office. The running bills paid to the contractor since the commencement of the work should be checked with reference to the recorded measurements. It should be seen that the measurements have been properly recorded that test checking has been carried out by the superior officers at appropriate periods. It should also be seen that in the case of stock measurements for stone metal, boulders manure etc. necessary deduction for voids have been made. Arithmetical accuracy of the measurements may also be checked and the total quantities as worked out in the M.B. and abstracted for payment should be checked with the quantities actually billed for to see that there are no discrepancies. The rates allowed for payment in the bill are to be checked with the rates as entered in the contract agreement. Reasons for part rates, if any allowed in the bill should be seen and it should be checked that full rates are not paid for incomplete items of work. For this purpose careful study of the reasons given for part rates at each stage is required to be done. It should be seen that quantities actually executed do not exceed the quantities stipulated in the agreement without competent sanction.

3.5 CHECKING OF MATERIALS RECOVERY STATEMENT

The recovery statement for materials issued to the contractor should be checked to see that the up-to date issues of materials as shown therein are correct as per the actual issues and as per the unstamped acknowledgements obtained from the contractors, the rate of recovery is correct as per the actual issues stipulated in the agreement and no materials which have not been stipulated in the agreement have been issued to the contractors before obtaining the orders of competent authority and before the rate of recovery is decided. The MAS account should be checked carefully in this connection to ensure that the accounts are maintained properly in accordance with para 10.3.12 of CPWA Code.

3.6 SCRUTINY OF CONTRACTORS LEDGER

The contractors' ledger should be checked to see that the debit for the cost of materials have been correctly worked out and posted in the ledger. It should also be seen that – unless ordered otherwise all recoveries due are made from each running account bill and that the ledger balances are cleared at the time of finalizing the accounts of a contractor.

The theoretical data for consumption of materials such as cement etc. should be got worked on the basis of actual work done compared with the quantities issued to see that the materials have not been issued in excess of requirement and action has been taken by the Divisional Officer to take back, on completion of the work, any materials found to have been issued in excess of the theoretical requirements in accordance with provisions of para 10.3.9 of CPWA Code.

3. 7 CHECKING OF WORK CHARGED ESTT. PAYMENT

Charges relating to Pay of work charged establishment and other contingent expenditure debited to the work should be examined to see that they are correctly chargeable to the particular work and are as per the provision made in the sanctioned estimate.

8. SCRUTINY OF EXTRA AND SUBSTITUED ITEMS

Extra and substituted items sanctioned by the Executive Engineer, Superintending Engineer and other officers should be verified as to whether the extra/substituted items are really necessary and are not covered by the scope of the provisions in the agreement. The propriety of execution of the items should receive special attention as it happens at times that the items in the agreement are substituted merely with a view to helping the contractor to avoid incurring heavy loss due to his having quoted very low rates or due to his inability to procure certain special types of materials provided in the contract. Analysis in support of the rates sanctioned should be scrutinised with a view to ensure that the rates have been correctly worked out under clause 12 of the agreement and the contractors rendered percentage above / below allowed only in case of items covered by the schedules of rates specified in clause.

The contractors percentage should not be allowed for items based on market rates. It should be seen that normally no payment is allowed in respect of extra/substituted items before finalising the rates for such items. Where however the Executive Engineer are authorised to allow payments for such items in anticipation of approval of competent authorities [ Part 6.085 (b) of CPWD Manual Vol. II refers ] it should be seen that the rates in the running bills are allowed in such a way as not to cause any overpayment to the contractors in the first instance due to the rates having been reduced by the sanctioning authorities , and that the approval of the rates is obtained early.

3.9 TECHNICAL INSPECTION OF WORKS EX. SUPERIOR OFFICERS – REPORTS TO BE SEEN

The reports of inspection of works periodically by the Superintending Engineer and the Additional Chief Engineer should be gone through to have an idea of the progress of the work and to ensure that any defects in the execution of the work pointed out by them have been properly rectified by the contractors. Similarly, the report of the Chief Technical Examiner should be seen to ensure that any recoveries pointed out by him have been recovered from the contractors' bills. In case it is found that the Chief Technical Examiner has pointed out defective work which is attributed to lapse on the part of the departmental officials supervising the work, a suitable comment should be incorporated in inspection report for bringing the same to the notice of higher authorities for investigating the matter and fixing responsibility.

10. SCRUTINY OF SITE ORDER BOOK

The site order book should be examined to find out whether the contractor has been carrying out the work as instructed by the department and all defects noticed have been rectified by the contractors. The compliance of the contractors should be suitably recorded in the site order book and attested by a responsible officer.

3.11 PROGRESS OF WORK AS PER PROVISION OF CONTRACT

It should be seen that the contractor maintains the progress as envisaged in clause 2 of the agreement and wherever there is a breach of this clause, suitable action has been taken by the department. It should also be seen that in cases, where the work could not be completed within the period of currency of the contract action has been taken by the department as per para 6.11.07 of CPWD Manual Vol. II before the expiry of the contract period. The case for extension of time limit should be examined to see that the application for extension of time has been submitted by the contractor within the time specified in clause 5 of the agreement, extension has been justified by the sub-divisional officer on valid grounds and sanction to extension of time accorded by the officer competent to do so. Any unrealistic time limit specified in the contract should be brought to the notice of higher authorities.

3.12 PHYSICAL PERFORMANCE

In the case of Major Works selected for detailed analysis, the amount of work actually done for and upto the preceding year should be compared with the corresponding prescribed targets and important shortfalls highlighted in the inspection reports with reasons wherever available so that these are reported to the Ministry for appropriate action. Such short falls should also be critically examined in the background of the progressive expenditure incurred and comments on cases involving disproportionately very high expenditure offered.

Last modified: September 11, 2000

This page is designed and maintained by  Dy.CA(A)

O/O Chief Controller of Accounts.