OFFICE MEMORANDUM

No.DGW/MAN/143
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN,NEW DELHI DATED_5.2.2007___

Sub : Mobilization Advance : Contradictions in GCC and CPWD Works Manual

2003 regarding.

It has come to notice of the Directorate that provisions contained in CPWD

Works Manual 2003 regarding Mobilization advance are at variance from those
contained in General Conditions of Contract. In order or remove the disparities,
following amendments are made in CPWD Works Manual 2003;

Item Existing Modified

Para In respect of certain specialized and In respect of certain specialized and
31.6 capital-intensive works costing not capital-intensive works with estimated
less than Rs. 2.00 crores, cost put to tender Rs. 2.00 crores and
mobilization advance limited to a above, provision of mobilization advance
maximum of 10 % of the estimated may be kept in the tender documents.
cost put to tender or tendered value Chief Engineers should use their
or Rs. One Crore , whichever is less, discretion carefully in deciding whether
at 10 % simple interest shall be any particular work shall be considered
sanctioned to the contractors in as specialized or capital intensive.
specific request as per term of the Applicability or otherwise of relevant
agreement : clause of GCC shall be clearly indicated
in Schedule ‘F’, while finalizing NIT of a
particular work.
(i) Chief Engineers should use their (i) The Mobilization advance limited to
discretion carefully in deciding 10 % of tendered amount at 10 %
whether any particular work shall be simple interest can be sanctioned to the
considered as specialized or capital contractors on specific request as per
intensive work. term of the contract.
(ii) The mobilization advance shall (ii) The mobilization advance shall be
be against a Bank Guarantee of a against a Bank Guarantee of a Scheduled
Scheduled Bank for the full amount Bank for the full amount of advance. The
of advance. The advance should be advance should be released in not less than
 released in not less than two two installments. The interest of the
installments. The interest of the advance shall be calculated from the date
advance shall be calculated from the of payment to the date of recovery, both
date of payment to the date of days inclusive.
recovery, both days inclusive.
(iii) The recovery should be made (iii) The recovery should be made after the
after the 10 % of work is completed 10 % of work is completed and the entire
and the entire amount together with amount together with interest shall be
interest shall be recovered by the recovered by the time 80 % of the work is
time 80 % of the work is completed. completed.
(iv) Executive Engineer is authorized to
sanction upto 50 % of the advance or Rs.
20 lakh, which ever is lower. Balance
advance can be sanctioned by the
Executive Engineer with prior approval
of the Superintending Engineer.

Corresponding changes in General Conditions of Contract are being issued

separately.

Superintending Engineer(C&M)

Issued from File No. CSQ/CM/M/30(17)/2006

Copy forwarded as per mailing list.
 OFFICE MEMORANDUM
No.DGW/MAN/144
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN,NEW DELHI DATED_13.3.2007 ______

Subject : New Advertisement policy – Clarification on.

Directorate of Advertising & Visual Publicity, Ministry of

Information & Broadcasting has circulated new advertisement policy vide
their No. AE(G)/NAP/2006 dated 19.7.06, according to which all tender
notices are to be published through DAVP only.
The matter has been reviewed in the Directorate and it has been
decided that the Department will follow its laid down guidelines in sending
tender notices directly to the press depending on urgency of the work as per
provisions of CPWD Works Manual, 2003. All the Units at CE level may
write to DAVP seeking their concurrence/written commitment that for
urgent matters DAVP will print the advertisement in papers within 3 days
of receipt of request from CPWD through Fax, else the Department will
continue to go ahead with advertisement direct to press to meet the time
limits fixed by client and as per exigencies of the work.

Superintending Engineer(C&M)

Issued from file No. CSQ/SE/CM/Website for NIT/

Copy as per mailing list
 OFFICE MEMORANDUM

No.DGW/MAN/145

ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS

NIRMAN BHAVAN,NEW DELHI DATED_23.5.2007

Sub: Delegation of enhanced powers to the CEs & ADGs to accept /challenge the
arbitral award.

1. As per Circular No.TLC-34 issued vide No.SE(TLC)/CSQ/Cir-2001/269

dated 17.10.01, it was decided that the CEs and ADGs will exercise powers to
challenge the awards upto Rs.7 lakh and 20 lakh respectively (i/c
corresponding interest) in consultation with the Ministry of Law.

2. It also specified that the decision about accepting or challenging the arbitral
award in whole or part shall be taken either by the CE when the award amount
i/c interest is upto Rs.7 lakh or, by the ADG when the award amount including
interest is more than Rs. 7 lakh but not more than Rs. 20 lakh or, by the
DG(W) when the award amount i/c interest is more than Rs.20 lakh.

3. However a note was given below the ‘Time Schedule for Submission of
Cases’ on page 2 of the Circular No.TLC-34, which read as under:
“The authority competent to accept or challenge the award will have to
consult the Ministry of Law before taking a decision.”

4. In partial supersession of the above it has now been decided that the
acceptance/challenge of Arbitration award shall be regulated by the competent
authority as under:

(i) When, in the opinion of CE/ADG/DG(W) the award is just and

reasonable and there are no grounds to challenge, the case need
not be referred to the Sr. Counsel/Min. of Law for their advice.
However if considered necessary, CE can refer the matter to
Sr.Counsel, C.P.W.D./ Min. of Law (either Delhi or Local Branch)
before accepting/ recommending for acceptance of the award.
 (ii) Where, in the opinion of CE/ADG/DG(W), there are good grounds
available to challenge the award (whole or part of the award),
Min. of Law should be consulted by the competent authority
before taking a decision.

5. Since the financial powers for acceptance or challenge of the awards are to be
exercised as per the Directorate’s O.M. No.DGW/MAN/129 dated 30.12.05,
item No.10 of the Annexure attached with the above O.M. dated 30.12.05,
which mentions only the powers for “Acceptance of awards” is modified and
shall be read as under in conjunction with 4(i) & (ii) above.

Sl. No. Nature of Power Designation Power

10. Acceptance/challenge of DGW Full powers

arbitration awards ADG 30 lakh
CE 10 lakh

Foot notes (i) & (ii) under Item No.10 stand deleted.
6. Further para (4) of circular No. TLC-34, dated 17.2.2001 is partially modified
as under:

Limitaion vide section 34(3) of Arbitration Act 1996:- An application for

challenging the award may not be made after 3 months have elapsed from the
date of receipt of award or, if a request had been made under Section 33, from
the date on which such request had been disposed of by the Arbitrator.
Provided that if the Court is satisfied that the Applicant was prevented by
sufficient cause from making application within the said period of 3 months, it
may entertain the application within a further period of 30 days, but not
thereafter. In view of this specific provision of Section 34(3) of the Arbitration
Act, the following Time Schedule will be strictly followed:

Time Schedule for Submission of Cases.

Sl. Award By EE to SE By SE to CE Action by CE

No. amount i/c
interest to be
accepted or
challenged
1 Upto Rs.10 30 days from the 10 days. The SE The CE will take
lakh date of receipt of shall offer his decision about accepting
award or from the specific or challenging the award
date of disposal of comments about within 30 days after
application filed acceptance or receipt of case from SE.
u/s 33 of challenging
Arbitration Act. award against
each claim.
2 Above Rs.10 15 days from the 5 days. The SE The CE will submit the
lakh & up date of receipt of shall offer his case to his ADG within
Rs.30 lakh award or from the specific 10 days of receipt from
date of disposal of comments about SE with his specific
application filed acceptance or comments about
u/s 33 of challenging accepting/challenging
Arbitration Act. award against award against each
each claim. claim.
3 Above Rs.30 -do- -do- Within 10 days of receipt
lakhs of the case from SE, the
CE will submit the case
to the DG(W) under
intimation to his ADG
who will send his
comments to DG(W)
within 10 days.

Assuming that it takes about a month in the ADG or DG(W)’s office to take
decision, even then the EE will have at least 15 days to prepare grounds and file
application in the competent court, if the decision is to challenge the award.

This O.M. supersedes the provisions of Circular No.TLC-34 dated 17.10.2001 and
S.No. 10 of annexure to O.M. No. DGW/MAN/129 dated 30.12.05.

Superintending Engineer(C&M)
Issued from file No.CSQ/CM/M/19(1)/2005
Copy forwarded as per mailing list overleaf.
 OFFICE MEMORANDUM

No.DGW/MAN/146
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN, NEW DELHI DATED_12.7.2007

Sub : Guidelines for preparation & submission of estimates for original

works.

The issue of preparation and submission of estimates to various client

departments/organizations, where A/A & E/S is to be accorded by them has
been examined in the Directorate. It has been noticed that a large number of
estimates are sent by various units for which adequate projection of funds
etc. is not made. Further, instead of sending a comprehensive estimate
covering all the works pertaining to different disciplines, these are sent
separately for individual discipline.

After examining the issue, following guidelines are laid down in this
regard.

1. No estimate, irrespective of any value shall be sent by the Sub-Division

directly to the client.
2. Estimates solely for Civil, Elect, Horticulture works up to the value for
which E.E./S.E/C.E is competent to accord technical sanction, shall be
sent at the Divisional/Circle/Zone level respectively.
3. Estimates for works requiring input from more than one division and/or
more than one discipline and having total estimated cost upto the powers
of S.E for accord of technical sanction, shall be sent only at the Circle
level. The Superintending Engineer in charge of major discipline, of
work will send the consolidated estimate after obtaining input from all
concerned units. Copy of such estimates shall be sent to the concerned
Divisions & Superintending Engineer of the other disciplines as well.
4. For all major works beyond the limit under S.No. 3 above, only single
estimate covering all aspects of building and services will be sent through
concerned Chief Engineer (Civil) or Chief Engineer of the unified Zone,
except works which are predominantly of E&M nature for which
estimate shall be sent by CE(E) or CE of the unified zone as the case may
be.
5. While sending the estimates it shall be made clear to the client
department that execution of the works will depend upon the receipt of
the funds through authorization or through allocation well in time during
the financial year so that the funds could be utilized during the financial
year.
6. Works for which sanctions are received after the month of November
should be taken up for actual execution in the next financial year and the
client departments should be informed accordingly so that necessary
budget etc. can be arranged by them for the Financial Year in which
works are to be executed.
7. In respect of maintenance operations for buildings other than those in
general pool the concerned departments should be requested to give a
complete list of works required to be carried out and estimates given to
them latest by the month of April so that sanctions can be conveyed by
them by month of June.

While forwarding such estimates, it must be made clear to the client

department that allotment of funds under the Head of Account “ 2059 –
other buildings” and “2216 – other Building” are meant primarily for day to
day repairs and payment of labour etc.

This issues with the approval of DGW

Superintending Engineer(C&M)

Issued vide file No. CSQ/CM/M/30(11)/2007

As per mailing list attached overleaf
 OFFICE MEMORANDUM
No.DGW/MAN/147
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN, NEW DELHI
DATED_10.9.2007__

Sub : Grievances Redressal Mechanism.

Issue of setting up a mechanism for redressal of public grievances relating

to maintenance as well as original works has been examined in the Directorate.

It has been decided to create the following mechanism for handling of grievances
:-
a) Original works
1. For work costing less than Rs. 1 crore - S.E(P) of the Zone shall be
designated as the Grievance Officer.
2. For works costing more than Rs. 1 Crore – Director (Works) of the
Region shall be designated as the Grievance Officer. For works
under ADG(S&P) & ADG(TD), Director (P&WA) in the directorate
and the works of Border Region, S.E(P) BFR shall be the Grievance
Officer.
b) Maintenance Works :
1. AE(HQ) of the Circle shall be designated the grievance officer for
all maintenance related complaints.
2. Appellate authority in such cases shall be the E.E(MIS)/designated
E.E(P) of the Zone.

The telephone numbers and e-mail address of the officers so designated

shall be displayed on all concerned service centres and the CPWD SEWA web
site. Issues relating to improper service or non- adherence to laid down
parameters shall be brought to the notice of these officers who can intervene and
get issues resolved. A monthly summary of grievances shall be submitted by these
officers to the concerned S.E/CE.
 All Chief Engineers (Civil & Elect.)/DDG(Hort.) may take immediate
necessary action to put in place the grievance redressal mechanism and bring this
to the notice of all concerned.

Issued from File No. CSQ/CM/30(11)/2007

Copy forwarded as per Mailing list
 OFFICE MEMORANDUM
No.DGW/MAN/148
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN, NEW DELHI
DATED__12.10.2007

Sub : Scrutiny and authentication of structural design/drawings

prepared by consultants.

Vide DG(W) office letter No. 18/6/97-WI(DG) dated 23.4.1999,

it was enjoined upon all the field officers to ensure that structural
drawings prepared by Consultants are adopted for execution only when
these have been duly approved by the concerned SSW/SE(P&A),SE/EE
as the case may be.

However, it has been observed that for the projects, where

structural designs are done by consultants and further proof checked by
some other consultant like SPA, IIT, Delhi College of Engineering etc.
the drawings are being issued for execution without any acceptance of
competent authority thereby giving no authenticity to the structural
safety of the structures. Therefore even if when design/drawings have
been proof checked, the same needs to be accepted by SE(P&A),
PM,Se or EE as the case may be, to accord authenticity of the drawings
as ‘Good for construction’.

Superintending
Engineer(C&M)
Issued from File No. CSQ/CM/30(11)/2007
Copy forwarded as per Mailing list
 OFFICE MEMORANDUM
No.DGW/MAN/149
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN, NEW DELHI
DATED__22.10.2007

Sub : SITC of Diesel Generating Sets.

In the recent past, there had been an incidence of power failure at one of the VVIP
complexes in New Delhi. During this incidence, standby Diesel Generating Set could
not be switched on in time due to fault in AMF panel. The contractor who did the work
of installation of DG Set was not having technical infrastructure to recommission the set
immediately.
The matter was got investigated and as a result of the detailed enquiry some
important points have merged which need to be taken care of in general, for all such type
of installations in the department to ensure faults do not crop up in future by taking
necessary preventive action in time.
1. The basic requirements like approval of drawings, circuit diagrams of various
components should not be waived off. Complete DG Set including all assessories
and mounting including AMF shall be procured through OEM only. OEM should
also certify, after completion of work, that the installation has been done properly
and is in order. Suitable conditions in NIT should be incorporated to this effect.
2. The inspection and testing of DG Set (s) at the OEM’s works should invariably be
done, before dispatch to site and should be not waived off, unless there is some
emergent requirement for which written approval should normally be obtained
from Superintending Engineer(E)
3. The work of supply installation testing and commissioning of DG Set of
individual capacity more than 320 KVA and above should be got directly
executed through OEM only. The work of SITC of DG Sets of all capacities to be
installed in VVIP installation should also be got done through OEM only. The
approval of ADG of the region is to be obtained to declare any installation as
VVIP installation.
4. The routine qualification of the staff employed by contractors engaged for the
operation and maintenance of DG Set should be in accordance with requirement
of CPWD Manual Volume –III. Suitable clause in this regard must be
 incorporated in tender documents. It must also be ensured that within a month of
award of such works, the workers are trained at OEM’s works.
5. Major repairs/maintenance of the DG Set and connected equipment should be got
done through OEM/Manufacturers only.

Issued from File No. CSQ/CM/M/19(2)/2007

Copy forwarded as per Mailing list
 OFFICE MEMORANDUM
No.DGW/MAN/150
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN, NEW DELHI
DATED:_14.12.2007____

Sub: Increase in contractor’s Profit and Overheads to 15%

Presently an element of contractor’s Profit and Overheads @ 10% is being adopted over cost of
labour/material in Delhi Analysis of Rate of CPWD, This practice is being followed since long. Over the
years substantial changes have taken place in construction techniques and construction environment
resulting in substantial increase in inputs due to cost of higher technical manpower, computerization,
mechanization, Quality Assurance setup, stringent environment norms and stringent contract conditions
regarding higher EM, SD & PG etc.
Proposal for increase in the element of Contractor’s Profit and Overheads was referred to Ministry
of UD long back who in turn had sought the concurrence of Ministry of Finance. The matter was
deliberated at length by CPWD and finally Secretary (Expdr.)(MoF) after discussion with DG(W), CPWD
opined that revision of Contractor’s Profit and Overheads is the prerogative of the authority approving
Schedule of Rates and their Analysis etc.. However, similar provisions made by other engineering
organizations in this regard may also be considered while firming up the revised Contractor’s Profit and
Overheads.
Accordingly this issue was discussed in a meeting convened by DG(W), CPWD with MES, DDA
and MOSRTH. Based on the inputs received from these organizations and their recommendations it has
been decided by DG(W) to enhance the element of Contractor’s Profit and Overheads from 10% to 15%
(7.5% + 7.5%).
This increase in Contractor’s Profit and Overheads shall be followed in evaluating the cost of
work and for preparation of Analysis of Rates for DSR items with immediate effect.

Superintending Engineer (C&M)

Issued from file no.CSQ/CM/18(7)2005
Copy to:

1. Smt. Meena Agarwal, JS(P), Min. of Finance with ref. to DG(W) UO No CSQ/CM/C/18(7)2005
dated 4.12.07.
2. Director (Works), MoUD with ref. to this office UO No.CSQ/CM/C/18(7)2005 dated
4.12.2007.
3. As per mailing list:

Copy forwarded as per mailing list;

 OFFICE MEMORANDUM

No.DGW/CON/231

ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS

NIRMAN BHAVAN,NEW DELHI DATED________5.4.2007_____

Subject: Modification to O.M. No. DGW/CON/223.

In partial modification, provisions circulated under O.M. No. DGW/CON/223

dated 23.11.06 stand modified as under:-
Existing Modified
Page 32 of GCC 2005 as amended vide Page 32 of GCC 2005
O.M. No. DGW/CON/223 dt. 23.11.06
(last para, page 6)
LI - Minimum wage in rupees of an LI - Minimum wage in rupees of an
unskilled adult male mazdoor, fixed under unskilled adult male mazdoor, fixed under
any law, statutory rule or order as applicable any law, statutory rule or order as
on the last date of the quarter previous to the applicable on the last date of the quarter
one under consideration. (In respect of the previous to the one under consideration.
justified period extended under the (In respect of the justified period
provisions of clause 5 of the contract, extended under the provisions of clause
without any action under clause 2, the 5 of the contract, without any action
index prevailing on the last date of under clause 2, the minimum wage
quarter previous to the quarter prevailing on the last date of quarter
pertaining to the stipulated date of previous to the quarter pertaining to
completion or the index prevailing on the the stipulated date of completion or the
last date of the quarter previous to the minimum wage prevailing on the last
one under consideration, whichever is date of the quarter previous to the one
less, shall be considered. under consideration, whichever is less,
shall be considered.

Superintending Engineer(C&M)
Issued from file No. CSQ/CM/C/29(8 )/2005
Copy as per mailing list
 OFFICE MEMORANDUM
No.DGW/CON/232
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN,NEW DELHI DATED__17.10.2007_

Subject: Enlistment Rules 2005 – Amendment of para 11.1 of the Rules.

Provisions of para 11.1 of Enlistment Rules 2005 stand modified as under:-

Existing provision of para 11.1 Modified para 11.1

11.1 The criterion for experience, in case of 11.1 The criterion for experience, in case of
enlistment, shall be the completion of requisite enlistment, shall be the completion of requisite
number of works, as the case may be, of prescribed number of works, as the case may be, of prescribed
nature and magnitude executed on independent nature and magnitude executed on independent
contract basis or as a builder during the last five contract basis or as a builder during the last five
years. The works should have been executed in the years. The works should have been executed in the
same name and style in which enlistment is sought. same name and style in which enlistment is sought.
Enlistment of an individual in corresponding Enlistment of an individual in corresponding
category may also be done based on his technical category may also be done based on his technical
qualification in lieu of experience of completion qualification in lieu of experience of completion
of works in last 5 years but other eligibility criteria of works in last 5 years if provision exists in
remaining the same. Table I of the Rules, but other eligibility criteria
remaining the same.

Works Manual stands amended accordingly.

Superintending Engineer (C&M)

Issued from file No. CSQ/CM/C/18(5)/2007

Copy as per mailing list
 OFFICE MEMORANDUM
No.DGW/CON/233
ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS
NIRMAN BHAVAN,NEW DELHI DATED__17.12.2007____
Subject: Price preference to contractors belonging to SC/ST for award
of contracts in respect of works in Central Public Works Department -
Extension upto 31.12.2009

In continuation to this Directorate O.M. No. DGW/CON/220 dt.

2.3.06, the concessions admissible to the contractors belonging to SC/ST
have been reviewed by the Ministry of Urban Development and the same
have been revised as under:-
1. For works upto an estimated cost of Rs. 1.25 lakh, a price preference
upto 5% (with reference to the lowest valid price bid ) may be
allowed in favour of individual SC/ST contractors. In such cases,
tenders may be entertained even from non-registered contractors. No
earnest money is required in such cases.
2. For works of estimated cost ranging from Rs. 1.25 lakh to Rs. 3 lakh,
tenders may be obtained only from registered contractors. The price
preference upto 5% (with reference to the lowest valid price bid )
may be allowed in favour of individual SC/ST contractors. However,
earnest money at a reduced rate of ½% may be accepted in such
cases.
3. In all such cases, the above concessions shall be allowed only after
proper verification of the individual contractor’s claim of belonging
to SC or ST community, as the case may be.
These concessions will be admissible upto 31.12.2009. CPWD Works
Manual stands amended accordingly.
This issues with the concurrence of Finance Division of Ministry of UD.

Superintending Engineer (C&M)

File No. CSQ/CM/18/2/98
1. Copy forwarded as per mailing list.
2. Copy to File No. CSQ/CM/15(1)/2003