Roadmap For IT - WORKS

Road Map for IT Enabled Processes in DAD: Works
By:
Alok Chaturvedi, IDAS, PCDA Central Command
Puskal Upadhyay, IDAS, CGDA New Delhi
Rajesh Chandra, IDAS, Addl CDA, PCDA Central Command
Rankaj Prakash Singh, IDAS, DCDA, PCDA Central Command
Umesh Kumar, SAO, PCDA Central Command

Road map for IT enabled processes in DAD: Works

Table of contents:
Page
No.
PART 1 WORKS: ROLE OF E SECTION OF MAIN 3-22
OFFICE OF PCDA/CDA AND AO(GE) vis-a -
vis MES
PART 2 WORKS: AREAS REQUIRING 23-32
RESTRUCTURING THE ROLE OF E
SECTION OF MAIN OFFICE OF PCDA/CDA
AND AO(GE)
PART 3 RECOMMENDATIONS 33-42
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PART 1
WORKS: ROLE OF E SECTION OF MAIN OFFICE OF PCDA/CDA AND AO

(GE) vis a vis MES
INTRODUCTION
i. The Indian Defence is expending approximately ₹13000 Crores

towards construction and maintenance of buildings, airfields, dock
installations, etc. along with necessary services such as military
roads, bulk water and electricity supply, drainage, refrigeration
and furniture etc. The Military Engineering Services are responsible
for creating the strategic and the operational infrastructure other than
major roads, as also the administrative habitat for all three Services
and the associated organizations. The execution of all construction
works is through contracts, however execution of all maintenance
services are carried out through contracts as well as departmentally
employed labour (DEL) both. The organization is responsible to
provide works services support during peace time and also equipped
for dedicated support during war.
ii. The Engineer-in-Chief is the head of corps of engineers and also of the
Military Engineering Services. He is assisted by Command Chief
Engineers, Zonal Chief Engineers, Commander Works Engineers. The
Commander Works Engineers are assisted by Garrison Engineers as
per area of jurisdiction. The Garrison Engineers are responsible for
execution of works.
iii. E-in-C is the technical adviser to the chiefs of staff of the three
services of the armed forces as well as to the principal staff officers of
the three armed forces. Command Chief Engineers act as technical
advisers to General Officer Commanding-in-Chief (GOC-in-C) and
administrative officers in-charge of naval commands, Air Officer
commanding in C/AOSC as well as to director general of ordnance
factories. Similarly, zonal chief engineers acts as technical advisers to
GOC area, sub-area and other equivalent divisions in Navy, Air force
etc. A chief engineer area is again divided into a number of MES
districts, which is controlled by Cs.W.E. These districts are divided
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into divisions, which are controlled by Garrison Engineer. Garrison
Engineer who is the rank of executive engineer is responsible for
ensuring that proposals for new services are dealt with promptly,
correctly and also for ensuring constructional fitness, accuracy and
economy of all designs, for correct preparation of estimates, for proper
utilization of funds placed at his disposal through prompt and correct
execution of works etc.
iv. All civil works are executed on basic principles given at “Defence Work
Procedure” and “Regulations of Military Engineering Services”.
Contracts are concluded & operated with reference to SSR (Standard
Schedule of Rates), ED (Estimated data) and instructions issued by E-
in-C Br of AHQ and guidelines given at IAFW-1815-Z, IAFZ-2249,
“Contract Manual” & CVC (Central Vigilance Commission).
1. BASIC PRINCIPALS OF EXECUTION OF DEFENCE WORKS

The basic principles of undertaking Defence works are:-
(i) 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.
(ii) 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.
(iii) 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.
(iv) Since time is of the essence, the completion period stipulated in the
Administrative Approval will not be exceeded as far as possible.
(v) No works services (except works to be executed on urgent military

reasons) will be executed without administrative approval, formal
allocation of funds and technical sanction having first been obtained
from the Competent Authority in each case.
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(vi) No officer will, in the course of the financial year, exceed the aggregate
budget allotment made to him for any works or under any subhead of
maintenance.
(vii) No officer will exceed any specific budget allotment made to him under
any minor or detailed head, except in so far as he may within his
powers of transfer of funds, be able to meet excess expenditure on one
item by equivalent savings on another.
(viii) The final cost of any service will not exceed the amount of
Administrative Approval by more than 10%. An officer will take no
action which will commit Government to expenditure beyond 10% of
Administrative Approval amount without obtaining prior sanction of the
Competent Financial Authority in the form of a Financial Concurrence
(FC), a Corrigendum or a Revised Administrative Approval.
(ix) The CFA according Administrative Approval should be kept informed of

the progress of the works till their completion through regular
periodical reports.
(x) No project or work services will be split up to bring it within the powers
of a CFA at a lower level.
2. CLASSIFICATION OF WORKS
For purposes of budgeting and control the operations of Defence Works are
divided into two broad categories, namely:
(a) Original Works
(b) Repairs
2.1 ORIGINAL WORKS
Original Works comprise works services like construction of buildings,

workshops, storage depots, etc. including their internal fittings and fixtures
as well as roads, runways, blast pens, marine works, Electrical and
Mechanical services, water supply, drainage, other utility services,
arboriculture, ranges, furniture etc. as well as purchase and additions.
5


Reconstruction of buildings and roads, widening of roads, additions and
alterations necessitated by administrative/technical reasons, works
necessary to bring into use buildings and services newly
purchased/acquired or those previously abandoned or rendered unusable
by extraordinary causes such as storm, fire or earthquake also fall in the
category of original works.
(i) Major Capital Works i.e. original works > ₹ 15 lakh.
(ii) Low-Budgeted Capital Works i.e. original works > ₹ 2 lakh but <
₹ 15 lakh.
(iii) Revenue Works i.e., original works > ₹ 1 lakh and < ₹ 2 lakh.
(iv) Minor Works i.e. original works costing < ₹ 1 lakh.
2.2 REPAIRS
Repairs comprise all maintenance and periodical services, renewals and

replacements as well as alterations and improvements necessitated by
technical or engineering reasons. Repairs are classified into two broad
categories:-
(a) Ordinary Repairs
(b) Special Repairs
(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 ₹ 1,50,000/- for each
item.
(iv) Repairs, renewals and replacements of E/M installations and
other external utilities costing up to ₹ 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 ₹ 4.00 Lakh per annum to be allowed only in respect of
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furniture declared as condemned /beyond economic repairs by
the by the appropriate authority.
(vi) Ordinary Repairs will be carried out in accordance with MES
Standing Orders.
(vii) 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.
(b) Special Repairs consist of renewals and replacements as well as
alterations of improvements costing beyond the monetary ceiling for
ordinary repairs in each case and replacement of furniture beyond the limit
laid down at (a) (v) above. These will be carried out in accordance with MES
Regulations.
(i) The Garrison Engineer will be the competent authority for

grouping of buildings for the purpose of Special Repairs.
(ii) Special Repairs will be treated as Original Works, but irrespective
of the cost, all Special Repairs will be budgeted for under Revenue
Head.
(iii) In case where special repairs and additions and alterations to a
building become necessary at the same time, the work will be
sanctioned as one project and treated as an Original Work for all
purposes.
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3. EXECUTION STAGES
3.1 PROCESSING OF MAJOR CAPITAL WORKS
There are nine main stages in the planning, sanctioning and execution of
new Major Capital Works, viz.
1. Demand for and Planning of New Works.

2. Acceptance of Necessity
3. Preparation of Approximate Estimates
4. Administrative Approval
5. Appropriation of Funds
6. Technical Sanction
7. Tender Action
8. Contract Action
9. Execution of Works
3.2 PROCESSING OF LOW BUDGETED WORKS
In case of Low Budgeted Works, i. e., original capital works costing more
than ₹ 2 lakh, but less than ₹ 15 lakh, will be sanctioned by the CFAs after
the Annual Low Budgeted Works Programme has been approved as per para
19 of Defence Works Procedure 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 ₹ 10 lakh, if so decided by the CFA.
3.3 PROCESSING OF REVENUE AND MINOR WORKS
In case of Revenue Works and Minor Works as defined in para 5 (a) (iii) & (iv)
of Defence Works Procedure, will be sanctioned by the CFA after
consideration of a Statement of Case as per Para 22 of Defence Works
Procedure and Approximate Estimates as per Para 30 of Defence Works
Procedure against bulk allotments made in the relevant financial year. No
Board Proceedings will be necessary in these cases. In case of Minor Works
costing less than ₹ 50,000/-, no Approximate Estimates will be necessary.
8


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.
3.4 DEMAND FOR AND PLANNING OF NEW WORKS
Demands for new Major Capital works services are submitted in the form of
a Statement of Case to the CFA for consideration and approval. The SOC will
clearly indicate:-
(i) The need for and scope of the works proposed.
(ii) Whether besides construction works, the proposal project

includes procurement / manufacture / installation / storage of
new / special equipment 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.
(iii) The type of construction – authorized or special, permanent or

temporary.
(iv) The target date by which the completion of the proposed works
are desired.
(v) The desired location and availability of land, if any.
(vi) If land is not available, the time likely to be taken for obtaining
the same and for site development, environment clearance, etc.
(vii) Extent of enabling works and external services or utilities of

preparatory nature required.
(viii) 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.
(ix) A rough cost estimate.
(x) An Engineer’s appreciation.
9


After examination and approval of the Statement of Case, the CFA will
convene a Recee-cum-Siting and Costing Board. The completed Board
proceedings, as ordered by Command HQ, along with detailed engineer
appreciation and rough cost estimates are submitted for approval of
competent authority.
The approved Board Proceedings are forwarded to engineer authorities for

preparation of AEs.
4. ACCEPTANCE OF NECESSITY
It refers to approval in principle of the CFA to the proposed work or service.

After careful consideration of the new works proposal as explained in the
Statement of Case and the Board Proceedings Competent Financial
Authority accepts the necessity & orders for preparation of Approximate
Estimates. In case of new works proposals requiring administrative approval
of a CFA of the level of Service Headquarters / Government, such proposals
are submitted to the CFA along with both Board Proceedings and
Approximate Estimates for obtaining Acceptance of Necessity and
Administrative Approval at the same time.
5. APPROXIMATE ESTIMATES
The engineer authorities are responsible for preparation of Approximate

Estimates as per the lines indicated in the approved Statement of Case and
/ or Board Proceedings / DPR. 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.
(i) The Office and domestic accommodation requirements for the MES
constructional staff, consultancy charges, if any, necessary external
services, and other requirements of technical nature will be included
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in the Approximate Estimates, even if no specific recommendation of
the Board of Officers is existing.
(ii) 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.
(iii) Contingencies will be provided at 3% of the estimates. Establishment

charges, if any, may be included in the estimates after recording
reasons thereafter 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.
(iv) 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 PA rates,
but considered essential to suit peculiar local conditions due to
technical reasons will be highlighted.
(v) Permissible tolerance limit of 10% beyond Administrative Approval

amount 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.
(vi) 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.
(vii) While submitting Approximate Estimates, application will be made for

allotment of funds required for execution of the works in the relevant
financial year(s).
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6. ADMINISTRATIVE APPROVAL
Administrative Approval is accorded by the Competent Financial Authority

(CFA) after due examination of following aspects:-
(i) The works being approved are authorized or special. If, special,
reasons for approving the same will be recorded.
(ii) Approximate Estimates are updated to conform to prevailing

percentage of market variation/difference in cost of stores and
time for completion of the works.
(iii) While issuing Administrative Approval, the requirement of

formal allocation of funds as per Para 2(e) and para 45 (a) of
DWP-2007 will be complied with. Administrative Approval will
be considered as release of the works and conveyed by a letter
specifying the budgetary source from which funds will be
provided in the year the work is sanctioned. A copy of this
letter together with a copy of the Approximate Estimates will be
sent to the CDA concerned and to the engineer adviser
concerned who will issue such technical instructions as may be
required.
6.1 DELEGATION OF FINANCIAL POWERS
The CFAs in tri-services have been delegated financial powers in regard to

civil works vide following Govt. orders:-
(i) Army: Govt. of India, MoD letter No. A/89591/FP-

I/1974/2006/D(GS-I) Dated 26th July 2006.
(ii) Navy: Govt. of India, MoD letter No. PL/3221/NHQ/486-
S/2006/D(N-IV) Dated 19th July 2006 and No. WK/9701/2006-
07/NHQ/366/D(N-III) Dated 20.02.2007.
(iii) Air Force: Govt. of India, MoD letter No. Air HQ/95378/1/Fin
P/2431/US(PC)/Air II/06 Dated 14th July 2006.
The above mentioned financial powers have been revised vide DFPDS
2015 and further revised as DFPDS 2016 vide Min. of Defence (Fin) letter
no. 231(9)/2016/B-II dated 06.09.2016.
12


6.2 THE WITH CONCURRENCE POWERS OF CFA’S
GOC-in-C CORE/AREA DIV/SUB STN CDR CO/OC

2000 LAC CDR/CAT A AREA 250 LAC 50 LAC
1000 LAC 500 LAC
ADMIN APPROVAL
ADM APPROVAL
PCDA
ADM APPROVAL GE
AO
7. APPROPRIATION OF FUNDS
After passing of the Defence Service Estimates by Parliament funds are

allotted to meet the expenditure on a specified work through the annual
allocation of funds under the budgetary heads as indicated at Appendix ‘A’
to the DWP-2007. Flow of funds is from MoD to QMG Branch/Command
“Q”/E-in-C/CE/CWE/GE.
13


MOD
QMG
MES CHANNEL STAFF CHANNEL

COMMAND “Q”
CAP C/O CAP NEW
IN BULK MWP/LBW
MAINT. CE CE SPL REPAIR
EXCEPT REVENUE
SUB HEAD WORKS
“A” CWE CWE
GE
AO
7.1 MAINTENANCE FUNDS
Maintenance is essentially an engineer responsibility and staff approval to

the maintenance programme is only obtained for laying down priorities.
Breakdown of maintenance requirement is considered to be as under:-
(a) Structural requirements like repairs to roofs, floors, joinery etc. -- 40%
(b) Periodical services - 15%
(c) Employment of DEL for petty day to day jobs - 40%
(d) Special station jobs and misc. items which are normally not recurring -
5%
To avoid mounting criticism on maintenance, GEs/CsWE should inspect

requisition registers to check both the necessity for the jobs and their
satisfactory completion. (Auth: E-in-C’s Br. letter No 89311/E2A dt
10.04.1972)
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7.2 MAINTENANCE AND UPKEEP OF GOVT BUILDINGS
Maintenance and upkeep of Government buildings should be carried out as

per QMG’s Branch/ Q3(Policy) No B/32844/Q3W (Policy) dt 01 Jan 86.
(Auth : E-in-C’s Branch letter No A/00026/E2 Army/Tech Coord dated 20
Jan 86).
7.3 NORMS OF EXPENDITURE FOR MAINTENANCE OF GOVERNMENT

BUILDINGS BY MES
Norms were issued vide ministry of Defence letter No 87966/E2W

(PPC)/1103/DO-II/D(W-I) dated 30 Jul 98 circulated vide our letter No
87966/Pol/E2W (PPC) dated 30 Jul 98). These norms have been further
revised vide GOI MoD letter no. A/87966/14-15/E2W(PPC)/DO-II/D(W-
I)/1559 dated 26.12.2014 circulated vide CGDA Delhi Cantt. letter no.
18020/AT-X/XXXIII(PC) dated 10.06.2015. Funds are demanded based on
rates specified for each type of building and total plinth area in the
responsibility of a Garrison Engineer.
8. TECHNICAL SANCTION
Technical sanction is issued by the competent engineer authority as

per power delegated under Table ‘B’ of MES Regulations to guarantee that
the works proposals are structurally sound and that the estimates are
accurately calculated. The authority according technical sanction should
ensure that (i) the details of the scheme as worked out are satisfactory, (ii)
the method proposed for the execution of the work are adequate; and (iii) the
cost has been estimated from reliable data and likely to be reasonably
accurate.
Ordinarily technical sanction is accorded only after Administrative Approval,
but in case of authorized items of work based on approved scales of
accommodation and specifications, necessary documents including designs
and drawings can be prepared in advance so that the stages of technical
Sanction and Tender Action can be covered expeditiously after
Administrative Approval is accorded. The technical sanction will also include
15


the anticipated contractor’s percentage based on the Engineer Officer’s
appreciation of market trends. The competent engineer authority before
according technical sanction to project must be satisfied that the amount of
technical sanction will not likely to exceed the amount of administrative
approval including the tolerance limit of 10%.
9. TENDER ACTION
After technical sanction of the competent engineer authority, competitive

tenders are invited for the execution of the work.
(i) All works costing more than ₹ 5 lakh, except works approved
under Paras 34, 35 and 36 of DWP-2007, tenders are invited
through e-tendering process at Government Portal
www.eprocuremes.gov.in besides advertisement in news papers,
Indian Trade Journals. However as per E-in-C’s Branch IHQ MoD
New Delhi Policy No. 03/2017 issued vide letter No. A/37696/12-
158/Pol/E2W (PPC) dated 08.05.2017 all e-procurements to be
done as per provisions of Rule 160 of GFR 2017.
(ii) The works approved under Paras 34, 35 and 36 of DWP-2007, the
practice of advertisement in news papers and Indian Trade
Journal, 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 carry the proposed
work.[Ref Para 46(c) DWP 2007]
(iii) 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
16


Engineer on such alterations involves a major departure from the
existing procedure, he shall send a copy thereof to the E-in-C /
DGW and CDA / IFA for information. [Ref Para 46(e) DWP 2007].
10. ACCEPTANCE OF CONTRACTS
Powers of acceptance of contracts are laid down in MES Regulations Table

‘B’ read with Para 428 and 440 ibid. The Table “B” of RMES has been
revised vide E-in-C Branch of MoD letter No. A/97508/Rev
RMES/Pol/E2W(PPC) Dated 05 January 2015. 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. 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 of DWP-2007. In the case of projects estimated
to cost ₹ 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 that project will be reduced by the
amount exceeding 15% by the CE / CWE / GE within whose powers of
technical sanction the work falls. The details of reduction will be sent to the
CDA and all others concerned.
10.1 NO ASSOCIATION OF FINANCE IN TENDERING PROCESS
1. 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
17


Chief Engineer on such alterations involves a major departure from the
existing procedure, he shall send a copy thereof to the E-in-C / DGW and
CDA / IFA for information. [Auth: 46 (e) DWP 2007]
2. In case only a resultant single quoted tender is received, the same can
only be accepted after permission of next higher Engineer Authority and a
report to the same will be furnished to the concerned CDA / PCDA. [Auth:
46 (f) DWP 2007]
3. Scrutiny of contract documents when concluded on standard forms, prior
to acceptance is not necessary by the CDA except in the cases enumerated
in paragraph 77, but the original documents will be sent to him for post
scrutiny and custody. “CEs are empowered to alter standard contract
documents at pre-tender stage” to suit urgent requirements, particularly
with ref. to security deposits, percentage payments, speed of payments,
issue of stores deviation limits and similar matters. They will however,
consult their Controllers of Defence Accounts wherever possible, where the
opinion of CE on alteration involves a major departure from an existing
procedure, he shall send a copy thereof to the E-in-C's /Director General of
Works for information. [Auth: Para 70 UA Manual]
4. In the cease of contracts accepted by the CEs and CsWE within their
powers of acceptances, the original documents together with notices of
tender comparative statement, specifications, drawings, etc. forming part of
the contract agreement, will be forwarded direct to the CDA by the Accepting
Officer. A certified true copy of the accepted contract agreement will also be
sent to the CDA for check with the original documents and transmission to
the A.A.O. concerned duly attested. [Auth: Para 70 UA Manual]
5. 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, the amount of the administrative approval for the project.
6. The Comparative Statement of Tenders, the Notice of Tender and the

original contract documents, as also any subsequent deviation orders and
18


amendments, will be forwarded to the CDA concerned for his reference and
safe custody. The CDA will also be furnished with an additional copy of the
contract for attestation by him and despatch to the AAO(GE) concerned.
[Auth: Para 428, 429 RMES].
11. EXECUTION OF WORKS
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 and amendments of contracts, if
necessary, will be carried out as per MES Regulations and Standing Orders.
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.
12. THE ROLE OF AO GE
The Defence Accounts Department provides Accounting and audit cover

through its representative who is known as AO (GE). The objective &
function of the AO GE of a MES formation is as under:-
1. To ensure correct and up to date maintenance of accounts of MES

formation in accordance with prescribed rule and data furnished to
him.
2. To assist MES officer in prompt payment/adjustment for supplies

and services rendered after certain preliminary checks to the
accounts and vouchers.
3. To render financial advice to MES officers to enable them to

discharge managerial function properly especially matter relating
to accounts and budget estimates and operation of financial rules.
19


4. To supervise work of certain clerks attached to his section for
performance of duties connected with cash book, stock purchase
register, budget and adjustment of few transactions etc.
5. To discharge the above duties the AO is expected to keep himself

fully conversant with all sanctions and orders issued by MES
formation and other proceedings, that may affect the estimates,
accounts of anticipated receipts and charges in addition to
departmental codes and manuals, rules and regulation,
government orders, CGDA’s instruction, Army instruction etc.
6. The financial powers to AO GEs have been delegated vide HQrs

office letter no. AT/Coord/13108/PC/Upgradation AAO dated
16.09.2009.
12.1 THE WORKS DEALT WITH IN AO GE OFFICE
1. Audit of allotments and appropriations.
2. Audit of admin approval, technical sanction and deviation orders.
3. Audit and payment of RAR/Final Bills, Supply Orders, Job Orders,

Audit and payment of Pay & Allowances and other related
payments in respect of Industrial employees.
4. Check of bills/vouchers and their allocation to appropriate head of

accounts.
5. Submission of cash book along with supporting vouchers in

original which are subject to post audit by CDA together with PM.
6. Audit of priced stock list, stock purchase register, register of

securities, register of approval to works, work passing register,
road register etc.
7. Verification of annual returns of electric and water installations.
8. Check of construction accounts and preparation of abstract

thereof.
9. Reconciliation of financial accounts with construction and other

accounts and register.
20


10. Local audit of all numerical and quantitative store ledgers,
accounts etc. maintained in sub divisional office issue of objection
statement thereon and watching their final settlement through an
audit progress register.
11. Receipt of the contract documents concluded by the GE and

submission to the CDA after preliminary checks.
12. Maintenance of Register of buildings, contractors ledger, register of

sanction, suspense register, register of measurement books,
register of receipt books, register of USR books, register of
requisitions. Guard file of specimen signatures, register of losses.
Register of muster rolls, master note book, duplicate copies of
contract agreement and list of contracts, register of initials of
accountants and clerks serving in the accounts section, Register of
terminal compensation claims etc.
13. Scrutiny of sanctions and orders.
14. Custody and Maintenance of record of measurement books.
15. Maintenance of USR (unstamped acknowledged receipt) Books.
16. Maintenance of Contractors Ledger.
17. Verification of Construction Account, Monthly Expenditure

Returns.
18. Supervision of Cash Book (Public Fund and Cash Assignment

Both) and verification of transactions with reference to supporting
bills/vouchers.
19. Proper adjustment of CP Vouchers, POL vouchers, PBD Vouchers,

DIDS, TBO etc.
20. Local Audit of Store Account of all sub divisions of GE office.
21. Service Verification of Service Books in respect of Industrial

Employees.
21


13. THE ROLE OF E SECTION OF PCDA/CDA
The role of E Section of PCDA/CDA is audit and accounting of work carried

out by MES.
1. Scrutiny of Admin Approval and Technical Sanction.
2. Scrutiny and vetting of contract agreements, amendments to

contract, amendments and deviation orders above ₹ 10.00 lakh.
3. Pre audit of Final Bills the gross value of which exceed ₹ 10.00
lakh and authorization of claims arising out of MES contracts.
Audit of escalation charges.
4. Provision of cash assignment to MES offices / DEOs.
5. Safe custody of security deposits and their release.
6. Preparation of Annual review of MES expenditure.
7. Matter relating to recovery of License Fee and allied charges.
8. Receipt of Cash Book with all paid vouchers and post audit of
Paid Vouchers.
9. Scrutiny of MERs received from GE
10. Married Accommodation Projects
11. Operational Works.
12. Monitoring of Transfer Entries
13. Audit, Payment and monitoring of Arbitration Awards
14. Monitoring of Draft Paras
22


PART-2
WORKS: AREAS REQUIRING RESTRUCTURING THE OF ROLE OF E

SECTION OF MAIN OFFICE OF PCDA/CDA AND AO(GE)
1. An independent Account Office for a station to be re-engineered

where work of AO GE offices can be automated like TULIP
package already running for regional controller’s offices.
VISHWAK which was conceived to automate AO GO offices has the

requisite features. IT infrastructure at AO GE offices need to be
augmented and connectivity improved so that VISHWAK may
successfully run. Previous experience with VISHWAK did not fructify
as the VPN connectivity was compromised. A robust technical support
which the early stage of implementation requires must also be put in
place.
2. Class-1 PM to be generated for every transaction for effective

monitoring
3. All payments to be made through CMP by AO GE office, hence no
requirement of release of cash assignment
4. Maintenance of Cash Books not required as transaction
completed through Class-I PM via CMP
5. It will reduce post audit of Cash Book in E-Section
2-5 AS-IS-PROCESS OF CASH ASSIGNMENT REFERENCE

1. Cash Assignments are credits placed in MESR
treasuries by CDAs in favor of disbursing officers
holding specific appointments normally head of
offices, who are authorized to draw funds for
their disbursements by cheques on such
treasuries.
2. The Funds are allotted by E-In C Branch to their

lower formations viz CE/CWE/GEs in that order.
3. Based on these allotments GEs/CWEs

prefer/propose release of Cash Assignment to
23


CDA through AO GEs.
4. E-Section of CDA does a scrutiny of the following

before the cash assignment is released.
a. MEP has been judiciously prepared and.
b. Heads/Purpose for which funds are sought
for are clearly specified and that the
expenditure has been planned/spread
evenly over the FY.
c. Expenditure is tallied with the MER
5. If the above conditions are met, the Cash

Assignment is released else MES authorities are
queried to justify the demands.
6. On release the D-Section issues a LETTER OF

CREDIT to concerned bank with intimation to
GE.
7. Every officer having cash assignment will

maintain a Cash Book on IAFW 2246. All
transactions dealing with the receipt of cash or
cheques and all payments or disbursement will
be entered as they take place. The Cash Book is
to be maintained by the cashier under
supervision of AO GE. All entries are to be
checked and initialed by the AO GE and officer
maintaining the account.
8. Third party payments/ cash disbursements are

done as follows:
a. GE prefers a defense check to the Bank,
accompanied by a scroll containing the
details of all beneficiaries who are to be
paid and corresponding cheque.
b. Bank places said amount mentioned in the
Defense Cheque into the CURRENT
ACCOUNT which GEs maintain with the
bank,
c. and bank, based on the cheques & scroll
accompanied with the defense cheque
makes the payment to third parties
through NEFT/RTGS.
9. These transactions are recorded in Cash Book.
10. Cash Book after being checked by AO GE, is

closed every 25 th day of the month (except
March when it is closed on 31st) and sent to
CDA.
24


PROPOSED PROCESS
1. The payment gateway provided under SBI-CMP is
a robust and user friendly portal vide which
prompt and accurate transfer of funds are
facilitated. Presently this payment gateway is
being utilized for transfer of funds of the following
nature in this department.
in the Main Office:
• DAD related payments (pay and
allowances)
• Third party payments (M and S/C Sections)
• Cash requisition payments (E and S/C
Sections) DDO’s
in the PAOs: Manual
• Pay and allowances of JCOs/ORs
2. The concerned office which makes the payment is

designated as the DDO (Drawing and Disbursing
Office/r). The detailed duties and responsibilities
of the DDO is laid down in the DDO’s Manual.
Para 1.2 Chapter I of the DDO’s Manual
stipulates that the designated DDO of any office
making payments “… is responsible for all
moneys received or disbursed in his office and the
maintenance of accounts thereof…”. Thus the
responsibility of a DDO is not only limited to
disbursement of funds but also to properly
account thereof.
3. DDO is also responsible for maintaining details of

statutory levies to be recovered from the
payments so made like Income Tax, Sales Tax,
Labour Welfare Cess, Water and Electricity
charges etc. Besides this, as an extension of the
above work, the DDO is also responsible to file
necessary statutory returns to various govt
departments like the IT department, Sales Tax
Department etc. Many of these returns are filed
on line through web based utility softwares.
4. In case of the MES, the role of DDO is presently

held by the MES itself. The DAD, through its rep,
pre-audits the payments proposed by the MES
and allows the same to be made after doing
proper accounting thereof. The payments are
eventually released / disbursed by the MES,
presently through cheques/NEFT mode. Being
the DDOs, the MES also ensures that all the
levies so recovered are properly held and the all
the statutory returns are filed properly within the
25


stipulated timeframe.
5. SBI-CMP involves three stage process after which

the payment is credited into the beneficiary
account, as follows:
a. Uploading of text file
b. 1st Authorization
c. 2nd Authorization
6. Uploading of text file may be done by AO GE

office concerned. Since the text file contains all
the requisite details regarding the beneficiaries in
whose accounts the funds are to be transferred.
This file will first be checked by AO GE and
uploaded in CMP portal. Further authorization to
be done by DDO (MES authorities).
7. CMP should be integrated with Vishwak. As soon

as payment is finally authorized, the amounts
involved are automatically compiled in the
progressive PM being generated by Vishwak
Module.
8. GE to render his monthly account to AO GE in

the usual manner along with printout copy of the
authorization by the GE in the CMP duly
supported with a copy of PM as per existing
procedure.
9. Cash Book will be closed monthly and forwarded

to CDA to carry out post audit of all payments by
AO GE as per existing procedure.
10. Debit Scrolls will continue to be downloaded by

PCDAà Account Section. Payments made by GE
through CMP will continue to be linked within
the Accounts Section through Schedule-III.
11. The un-credited items will be dealt with by AO

GE on IAFW CDA-13. There will be no need of
NPC as authenticated details of the credited and
un-credited items will be available in the CMP
transactions.
12. In this way each voucher will continue to be

authenticated under the signature of GE as well
as AO GE and CMP file will be uploaded by GE
Office.
13. The process will facilitate real time compilation
26


and existing procedure of monthly compilation by
AO GE will be done away with.
EXCEPTIONS:
1. The MES works as coordinating agency for

execution of all the ground level works within a
cantonment, through the Garrison Engineer
offices. The work execution is channelized under
the direct supervision of the JEs concerned, who
prepare detailed Measurement Books in r/o each
work. Once a particular level of execution is
attained, the work is billed and the payment is
made after proper audit and accounting of the
same.
2. The payment aspect is controlled through the

mechanism of Fund Allotment and Cash
Assignment. The Fund Allotment comes from the
MES channel and the Cash Assignment comes
from the DAD channel.
3. The Fund Allotment is received by the CWEs from

the CEs, which the CWEs further disseminate to
the GEs. As per the manuals, the allotment is
provided Job wise/Code head wise and the
budget control is exercised by the MES under
direct and continuous supervision of AO GE
concerned. The Cash Assignment is received by
the concerned GEs from the DAD, viz. D-Section
of Regional Controller office. This is released after
proper audit checks by the E-Section of the
Regional Controller’s office.
Through these two tools, the payment activity
of any GE office is regulated by the AO GE
concerned.
4. The utility and importance is further underscored

in the following mentions :
a. Para 55 of OM VIII : Methodology of
evaluation of Cash Assignment proposal in E-
Section of Regional Controller’s office
b. Para 147 of UA Manual : Arrangement of
Cash Assignment by the PCDA/CDA office
c. Para 5(8) of OM VIII : lays down this activity
of the E-Section
d. Para 118 of UA Manual : Details of payments
made of Cash Assignment
e. Para 535 of MESR : Meaning, Significance
and importance of Cash Assignment.
27


Maintenance of record on IAFA-277
f. Para 543 of MESR : Maintenance of separate
Cash Book on IAFW 2246 under supervision
of AO GE for Cash Assignment
g. Para 544 of MESR : Audit of Cash Book and
post audit of vouchers
h. Para 62(a) of DWP : Provision of Cash
Assignment by CsDA to the executive.
5. Para 535 of MESR further stipulates that any

balance unpaid out of the released Cash
Assignment on the last day of the financial year
will lapse. The release of Cash Assignment is
thus, a mode to regulate the expenditure flow.
6. Government orders on regulating flow of

expenditure during any financial year clearly
stipulates that 67% of all the budgeted
expenditure in any financial year is required to
be spend upto 31st December 2017. The
remaining 33% expenditure is permitted to be
expended in the last quarter of the financial year,
with 15% expenditure permissible in the month
of March. Given the fact that Fund Allotment is
provided by the executive chain in the MES, there
is no other tool anywhere to regulate the actual
incurrence of expenditure, except the Cash
Assignment.
7. The release of Cash Assignment by the D-Section

of Regional Controller office is preempted by
meticulous scrutiny of the proposals by the E-
Section. The parameters of scrutiny are well
defined and Cash Assignment is judiciously
release on quarterly basis so that the work
execution and resultant expenditure is evenly
spread over the entire financial year and Govt.
orders on the matter are adhered to. Thus, the
importance/significance of Cash Assignment
cannot, by any means, be undermined. Any
withdrawal of this tool, without proper pre-work
may lead to prospective financial inefficiency and
impropriety.
28


6. All security Deposits to be kept in AO GE Office and can be
released/refunded via proposed automation
6 AS-IS-PROCESS REFERENCE
Refund of Standing Security Deposit (Unlimited
Class)
1. The contractor applies to the Chief Engineer,
with whom the Standing Security is lodged, for
the release of the security Deposit. The Chief
Engineer writes (under advice to the PCDA/ CDA)
to all GEs etc. to render him a "No Claim
Certificate" to the effect that:
(i) There are no claims outstanding against the
contractor.
(ii) A period of 12 months has passed since the
completion of the last contract executed by
the contractor.
(iii) Any guarantee period in any particular
contract executed by the contractor is over.
(iv) Final bills in respect of all contracts have
been paid.
2. Simultaneously the CE calls for „No claim
certificate‟ in respect of the contractor from the
CE of other Commands endorsing a copy of this
communication to the PCsDA/ CsDA of those
Commands. The PCDA/ CDA of the Command in
which the security is lodged will on receipt of
intimation from the Chief Engineer call for "No
Claim Certificates" from the other Regional
PCsDA/ CsDA and from the UAs of his own
Command. PCDA/ CDA of other Commands will
also take similar action in respect of their areas
on receipt of the first communication on the
subject from the CE / PCDA/ CDA of the
Command concerned. On receipt of (i) "No
Demand Certificate (IAFA 451)" (ii) No Claim
Certificate" from his AO/AAO and all the groups
dealing with bills in 'E' Section, Store Contract
Sections. (iii) "No Claim Certificates" from other
PCsDA/CsDA, the PCDA/ CDA of the command
where the contractor has lodged his standing
security will authorize CE of his command to
release the security to the contractor. The return
of the documents will be noted in the Security
Deposit register under the signature of the Office-
in-Charge 'E' Section.
Standing Security Deposit (other than those of

Unlimited Class)
1. For release of standing security in respect of
29


Contractors who have deposited "Standing
Security" in each command in which they were
enlisted, the procedure to be followed would be
the same as detailed in sub-Para(s) above, except
that action to write to PCDA/ CsDA of other
commands will not necessary.
2. When Standing Security is deposited with an
authority other than the Chief Engineer, the
procedure set out in Sub-Para (b) above will
mutatis mutandis be followed.
Refund of Security Deposit for Individual

Contract:
1. When security is lodged for particular contract,

the following procedure is to be followed:
(i) The contractor applies to the Accepting
Office with a "No Demand Certificate" on
IAFA 451 for release of security.
(ii) When CE is the accepting officer he writes
(under advice to the PCDA/ CDA to GE
concerned with a copy to the CWE to render
a "No Claim Certificate" to the effect that :-
(a) There are no claims outstanding
against the Contractor.
(b) The maintenance period is over.
(c) Any guarantee period specified in the
CA is over.
(d) The final bill has been paid.
(iii) PCDA/ CDA on intimation from the CE calls
for "No Claim Certificate" from AO/AAO.
(iv) The CE writes to the PCDA/ CDA with the
Contractor's "No Demand Certificate" and
GEs "No Claim Certificate" to authorize the
GEs to release the security.
(v) The PCDA/ CDA authorize the release of the
Security after receipt of certificates at (Iv)
above and also the "No Claim Certificates"
from AO/AAO.
(vi) When accepting officer is other than the CE
the procedure laid down in Sub Para (i) to (v)
will be followed with necessary
modifications.
In case individual security is pledged to the
Chief Engineer the accepting officer will
write to the PCDA/ CDA to notify the CE to
release
PROPOSED PROCESS
1. At present, the security deposits/bank guarantee Delegation of
are released by PCDA/CDA Office, after the Financial
30


approval of Addl. CDA Powers by
PCDA /CDA
2. Check over release of Security Deposits/Bank
Guarantee have been clearly defined in OM VIII
and AO GEs concerned may be authorized to
release Security Deposits/Bank Guarantee on
meeting the laid down criterion.
3. VISWAK may have a customized module for

requisite entry of the details and authorization.
EXCEPTIONS:
The Lapsed Security deposits

1. Any security deposit which the depositor has not
claimed after lapse of 3 years of the completion of
the contract shall be sent to PCDA/CDA by
concerned AO GE.
2. Security Deposits which are not claimed by the

depositor after the termination of the contract in
connection with which the security was lodged
are called lapsed Security Deposits and will be
credited to Govt. Account.
3. The following procedure will be followed in regard

to the disposal of lapsed Security Deposits:
(i) Cash Security Deposits: At the close of each
official year, all cash Security Deposits
remaining unclaimed for three years,
exclusive of the year of deposit, will be
transferred to the credit of the Government
account as lapsed deposit. While doing so
necessary entries will be made in the register
of Security Deposits and information will be
given to the executives for updating their
records. Sums so credited cannot be refunded
without the sanction of the PCDA.
(ii) Bank Fixed Deposit Receipts: If a claim for

refund is not received within a reasonable Shall be
time (say one year) of the termination of the dealt with as
contract in connection with which the per the
security was lodged, the amount will be delegation
realized on maturity and credited to Govt. done by
account under the head "Other Miscellaneous PCDA/CDA
Receipts", a note of the transfer being made
against the entry in the register of Security
Deposits. Subsequent claims for refund of
principal and the interest actually realised
31


and credited to Government account will be
dealt with in the same manner as mentioned
at (i) above.
4. Other form of Security Deposits: The procedure

in regard to the disposal of lapsed Security
Deposits in respect of other form of Security
Deposits will be dealt with as per provisions
contained Rule-218 of FR Part-I, Vol-I.
Note: - The term "PCDA” used in above Para does

not connote to the Controller in person. The officers-
in-charge concerned in the Main Office, and those in
the sub Offices, who are so authorised by the
Controller, can refund the lapsed deposits after
carrying out the requisite verification stipulated in
above Para, in terms of Note 3 under Para 214 of
Defence Account Code.
32


PART-3
RECOMMENDATIONS
(A) Modality for IT enabled processes for introduction of eMBR:
1. Measurement Book (MB) is the primary document for recording the

physical completion of work with reference to threement (CA). All
items having a financial value is entered into the MB so that a
complete record is obtained of all work performed under the
Contract. MB is the basis for payment of contract (RAR as well as
Final Payment). It is imperative that Electronic Measurement Book
(eMB) for efficient management of payment and financial progress of
the work. Existing automation (Vishwak) in the AO(GE) office may be
customised to the fetch the data base of e procurement of MES to
make full use of eMBR.
2. The stages before the construction action of a civil work are

Acceptance of Necessity (AoN) and issue of Administrative Approval
(AA), allotment of funds, and issue of Technical Sanction. Based on
Scope of Work and Bill of Quantity as contained in the Contract
Agreement, progressive execution of the work is recorded in the
Measurement Book (MB). The contractor prefers the Running
Accounts Receipts (RAR) and the Final Bills based on measurements
recorded in the MB. Payments are made by the GE from his cash
assignment. Office of the CDA/PCDA is responsible for the custody of
all original cash vouchers and contract documents.
3. At the start of the Works, a Measurement Book is drawn up. The

Measurement Book consists of running abstract sheets for each
completed item to date, of which quantities are transferred from the
Bill of Quantity and dimension sheet as contained in the Contract
Agreement. In other words, Measurement Book is a measure of work
done of contracts. The measurement book maintains the accounts of
work. It is the basis of all accounts of quantities of work done. All
33


payments against the work done are maintained in MB. The following
statements are prepared in MB:
• Abstract details of Measurement Abstract details of Cost –
Running Bill / First & Final Bill / Supplementary Bill including all
deductions and recovery.
• Material Consumption Statement
• Advance Payments Details
4. Recording of measurements:
• Entries at commencement of measurements
Each set of measurements to be recorded should commence with
entries stating:
(i) In the case of bills for works done:
(a) Full name of work as given in the agreement/estimate.
(b) Location of work.
(c) Name of contractor.
(d) Number and date of agreement.
(e) Date of written order to commence work.
(f) Date of actual completion of work.
(g) Date of recording measurements.
(h) Reference to previous measurements.
(ii) In the case of bills for supply of materials:
(a) Name of supplier.
(b) Number and date of supply order/agreement.
(c) Date of written order to commence the supply.
(d) Date of actual supply.
(e) Date of recording measurements.
Writing of abstract
(i) A suitable abstract should then be prepared which should
collect in the case of measurements for works done, the total
quantities of each distinct item of work relating to each
sanctioned sub-head. Details of quantities, rate and amount
34


of each item for every bill are entered in this Measurement
Book in a tabular form.
(ii) For recording measurements and also for preparing abstract,
the agreement item No., both in words as well as in figure,
should be given neatly along with description of the item in
full or in abbreviated form.
• The signature of the contractor or his authorised
representative should be obtained in the Measurement
Book for each set of measurements.
The above process now can be done using the electronic MB (eMB)
5. At present measurements are recorded on work diary and reproduced

on MB. Bills of Quantity (BoQ) of an accepted contract which is a
Microsoft excel file can be utilized in MB. Instead of deriving the
quantity manually, inbuilt formula can be utilized. This formula to be
provided by Software Developer. Measurements can be authenticated
through digital signature. The eMB will facilitate the following:
• Measurements can be recorded promptly.
• Calculation is very easy.
• No calculation errors.
• No cutting/overwriting possible during or after completion of work
• Regular measurements can be ensured.
6. The eMB can be given an interface for AOGE that will extend the
automation of payment of Running Account receipt (RAR) to the
contractors.
7. As of now the following documents are required for processing of

RAR:
• Measurement Book
• Abstract of quantities & prices
• Documents in support of Material lying at site.
• Store statement e.g schedule “B” stores.
• Abstract of Schedule of credit
35


• Statements of various taxes viz Income Tax, Sales Tax,

WWC/Water/Electricity etc.
• Escalation /Compensation Statements, if applicable
• Other documents viz. Various certificates, Receipt / Issue
Vouchers etc.
The following information is provided on RAR:
• Name work, CA No. and amount, Voucher No.

• MB No., Date of commencement / completion.
• Job details with their service heads
• Work done [B/R & E/M or Materials lying at site]
• Details of reserve
• Recoveries such as Schedule of credit, ISD/BGB, Roof Treatment,
outstanding demands etc.
• Amount already paid
• DOs (Deviation Orders) / EOT (Extension of time) etc.
8. Main document for preparation of RAR is Abstract of quantities and

prices. BoQ is already available at the MES e procurement portal ie,
www.eprocuremes.gov.in This BoQ can be utilized for preparation of
Abstract of quantities and prices.
9. Preparation and passing of bill for payment:

• With the introduction of eMB, the contractor shall submit
Computerised Bills for all his claims. Before the bill of a
contractor is passed, the entries in the Measurement Book
relating to the description and quantities of work/supplies
should be scrutinized by the GE The bill should then be
checked, passed and paid in the office of the AOGE from the
Measurement Book entries.
• Part rates/ Full rates, as per Contract Agreement should be
allowed only if the work or supply has been accepted as of
required quality and specification.
36


• In case of contract for completed items of work with stipulation

of supply of materials of specified description, necessary
recoveries on account of the cost of the materials supplied to
him from Government stores, and actually measured (including
wastage wherever applicable) and billed, shall be effected from
each bill at the recovery rates fixed for the purpose.
• Payment for work done or supplies made on running account
should be made periodically on submission of the bill by the
contractor/supplier.
10. In order to make the RAR payment automated, following additional

utilities are required to be added in the system:
a) A Payment Section to be created at the e-procurement portal ie,
www.eprocuremes.gov.in with reference to the CA Number and
amount that should available for each user.
b) Form IAFW-2263 (RAR Form) to be provided for entering various
information:
• Voucher No. & date, MB No.
• Allocation of Funds & Job details
• Adm Approval & T.S details
• Escalation if applicable
• Material Lying at Site
• Reserve to be kept including Sch of credit.
• Statement of issue of stores
• Payments made & Recoveries if any
11. JE/AGE/GE will take measurements in eMB and update the

Abstract of quantities & prices at Payment Section of
www.eprocuremes.gov.in and Update the information required in
RAR form (IAFW-2263). He will submit the RAR to Quantity
Surveying and Contracts(QS&C) section for technical check.
AGE(QS&C) will check the correctness of quantity taken in MB and
Abstract of quantities and prices (Form IAFW-2264) and technically
37


vet the entire RAR. The bills required to be technically checked by
CWE (e.g Final Bill, RARs having compensation etc.) will be
submitted to CWE for technical vetting. Technically checked RAR
will be submitted through GE to AO GE for payment process. After
payment AO GE will update the details of payment made to the
contractor at www.eprocuremes.gov.in.
12. Following are the potential advantages of automation of RAR with

an interface to eMB:
• Progress of work can be monitored by everyone in channel i.e E-

in-C/CE/CWE/GE and AOGEs.
• User can also check progress and payment status of their work.
• Save time in preparation of RAR by the Sub Div. RAR can be
prepared within a day.
• GE can monitor many sites at the same time.
• Variation in quantity can be monitored (e.g Freak rates)
• Calculation error in MB and RAR eliminated.
• All the documents relating to contract will be available for check
at any time.
• Brings transparency to the process
(B) Introduction of IFA system in the MES:
1. As of now there is no IFA system in the MES. The financial

powers are delegated to the Army/Air Force/Navy authorities as
per DFPDS-16 to be exercised with the concurrence of the IFA
concerned, with the exception of limited inherent power where
IFA concurrence is not required. However, the role of IFA and
rendering of financial advice is confined to the stage of
Administrative Approval of the works proposals accorded by
Army/Air Force/Navy authorities. The actual execution of works
and the expenditure incurred thereon by the MES authorities,
38


totally bypasses the IFA system i.e. the cardinal instrument in
the scheme of budgetary and financial control as envisages in
Para 24 read with Para 23 of GFR-2017. The MES has remained
an exception within MoD to be outside the IFA system. It is
imperative that the IFA system should be introduced in the MES,
inter alia, for works procurement (maintenance as well as original
work).
2. IFA’s role in work procurement cycle can be summarized as
under:
(a) AON stage:
§ Necessity angle clearance
§ Vetting of quantities
§ Competence of CFA
§ Funds’ availability
§ Mode of tendering
§ Vetting of Tender Enquiry
§ Amendments to TE / Extension of tender opening date
(b) Tendering stage:
§ Procedural aspects related to opening of tender
§ Vetting of CST
§ Member of CNC for ranking L-1, holding negotiations, etc.
§ Cost analysis of quoted rates
§ Creation and Utilization of Data-base and Market
Intelligence
(c) Expenditure sanction stage:
§ Expenditure angle concurrence
§ Decision on re-tender
§ Apportionment of quantity, if required
§ Acceptance of cost over estimates
§ Vetting of Supply order / Contract
§ Allotment of U.O. number
(d) Post contract Management:
§ Extension of delivery
§ Imposition / waiver off of Liquidated Damages
39


§ Amendment of Contract
§ Termination of contract
§ Risk and Expense purchase
§ Price variation adjustment
3. IFA may have a crucial role in vetting of Tender Enquiry of Works
procurement. IFA vetting ensures that no undue liability is
imposed on Govt due to omission of necessary clause or insertion
of unauthorized clauses or any faulty wording of any conditions
for the supply of materials or labour or other facilities to the
contractor.
4. IFA may have a crucial role in vetting of extension of delivery
period of Works Contract and any amendments to the Contract
by way of Deviation Orders. IFA vetting in this regard will ensure
that:
• The proposed deviation is within the terms of the contract and
does not have the effect of changing the scope of the contract.
• As a result of the deviation order the value of the contract is

not exceeded beyond the original value plus the maximum
deviation percentage admissible thereon under the term of the
contract, provided the deviation order shall not have the effect
of increasing the value of works beyond the powers of
accepting of the authority sanctioning the contract, in which
case sanction of the hire engineering authority in whose
powers of acceptance of contract increased value of work lies,
shall be obtained.
• Covering deviation order is not preferred as a matter of

course.
• The deviation order does not result in the value of the

contract exceeding the technical sanction/Administrative
Approval.
40


5. Duties and responsibilities of IFA in MES:
The IFA in MES at various CFAs i.e., Contract Accepting

authorities will be responsible for carrying out the following
duties:
• The IFA will be associated from the conceptual to the

completion of various works contracts.
• The IFA will carry out cost-effective analysis of proposals.
• The IFA will monitor physical and financial progress of works
contracts to avoid time & cost overrun.
• The IFA will suggest mid-course corrections.
• The IFA will examine the proposals with reference to the
availability of funds as approved in Annual Works Plan
• The IFA will verify the proposals in accordance with the
principles of Financial Propriety
(C) Doing away with system of Cash Assignment in the MES by way
of setting up Accounts Office (MES):
1. As per existing practice of budget control and audit done by E

section in the Main Office (MO).
2. Main Office of PCDA/CDA releases the Cash assignment to the

GE concerned by advise to the treasury bank. Cash assignments
are credits placed in treasuries by CsDA in favour of disbursing
officers holding specific appointments, normally heads of offices,
who are authorised to draw funds for their disbursements by
cheques on such treasuries. The GE draws against the sum
assigned to him exclusively by cheques for which purpose
separate cheque books for each treasury concerned will be
supplied by the CDA. A record is maintained on IAFA-277 of the
amount of assignment, daily transactions and the balance.
Defence cheque is drawn by the GE for payment to the contactors
41


and industrial employees against the allotment through their
public fund account subject to pre audit by the AO(GE). Code
head wise daily PM (Class V) is prepared by the AO(GE). Cash
book and vouchers are subject to post audit by the MO.
3. Contract Agreements (CAs) concluded by CsWE and above are

scrutinised by the MO. The Contracts concluded by GE’s are
scrutinised by AO, GE. Final payment of the works contract (for
value more than ₹ 10 lakh) is pre audited by the MO. Payment is
released by the GE on the basis of payment authority issued by
the MO. Security Deposits remains in the custody of MO and
released after successful completion of contract.
4. To implement IT enabled processes in Works, it is imperative that

the existing office of AO, GE may be converted into an Accounts
Office (MES) enabling them do the payment (through CMP),
accounting (by operating Class I PM), and internal audit (scrutiny
of CAs, inter alia contractors bill etc.). The proposed Accounts
Office may be suitably upgraded station wise with jurisdiction of
more than one local GEs.
A customised version of office automation may be introduced in

the Accounts Office (MES) akin to the Regional CDA MO with
features of budget control, scrutiny of CAs, payment, accounting,
areas related to post contract management i.e. custody/release of
security deposits, and internal audit and its follow up. Detailed
contract wise MIS may be generated in the system w.r.t GEs
concerned for efficient and effective control of the works
expenditure.
42

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Roadmap For IT - WORKS

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Road Map for IT Enabled Processes in DAD: Works

Puskal Upadhyay, IDAS, CGDA New Delhi

Rajesh Chandra, IDAS, Addl CDA, PCDA Central Command

Rankaj Prakash Singh, IDAS, DCDA, PCDA Central Command

Umesh Kumar, SAO, PCDA Central Command

WORKS: ROLE OF E SECTION OF MAIN OFFICE OF PCDA/CDA AND AO

i. The Indian Defence is expending approximately ₹13000 Crores

1. BASIC PRINCIPALS OF EXECUTION OF DEFENCE WORKS

(i) No new works should be sanctioned without careful attention to the

(ii) As budgetary resources are limited and granted on an annual basis,

(v) No works services (except works to be executed on urgent military

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

(a) Original Works

2.1 ORIGINAL WORKS

Original Works comprise works services like construction of buildings,

(i) Major Capital Works i.e. original works > ₹ 15 lakh.

(iv) Minor Works i.e. original works costing < ₹ 1 lakh.

Repairs comprise all maintenance and periodical services, renewals and

(a) Ordinary Repairs

(b) Special Repairs

(i) Petty Repairs

(i) The Garrison Engineer will be the competent authority for

1. Demand for and Planning of New Works.

3.2 PROCESSING OF LOW BUDGETED WORKS

3.3 PROCESSING OF REVENUE AND MINOR WORKS

3.4 DEMAND FOR AND PLANNING OF NEW WORKS

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

(ii) Whether besides construction works, the proposal project

(iii) The type of construction – authorized or special, permanent or

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

(vii) Extent of enabling works and external services or utilities of

(ix) A rough cost estimate.

(x) An Engineer’s appreciation.

The approved Board Proceedings are forwarded to engineer authorities for

It refers to approval in principle of the CFA to the proposed work or service.

The engineer authorities are responsible for preparation of Approximate

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

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

(v) Permissible tolerance limit of 10% beyond Administrative Approval

(vi) In case of works scheduled to be completed within two years, no

(vii) While submitting Approximate Estimates, application will be made for

Administrative Approval is accorded by the Competent Financial Authority

(ii) Approximate Estimates are updated to conform to prevailing

(iii) While issuing Administrative Approval, the requirement of

The CFAs in tri-services have been delegated financial powers in regard to

(i) Army: Govt. of India, MoD letter No. A/89591/FP-

GOC-in-C CORE/AREA DIV/SUB STN CDR CO/OC

After passing of the Defence Service Estimates by Parliament funds are

MES CHANNEL STAFF CHANNEL

7.1 MAINTENANCE FUNDS

Maintenance is essentially an engineer responsibility and staff approval to

(b) Periodical services - 15%

(c) Employment of DEL for petty day to day jobs - 40%

To avoid mounting criticism on maintenance, GEs/CsWE should inspect

Maintenance and upkeep of Government buildings should be carried out as

7.3 NORMS OF EXPENDITURE FOR MAINTENANCE OF GOVERNMENT

Norms were issued vide ministry of Defence letter No 87966/E2W

Technical sanction is issued by the competent engineer authority as

After technical sanction of the competent engineer authority, competitive

(iii) Scrutiny of tender documents by Audit prior to acceptance of

10. ACCEPTANCE OF CONTRACTS

Powers of acceptance of contracts are laid down in MES Regulations Table

10.1 NO ASSOCIATION OF FINANCE IN TENDERING PROCESS