CHAPTER X—

WORKS ACCOUNTS
A.—GENERAL
197. The initial records upon which the accounts of works are based are
—
a) The Muster Roll. b) The Measurement Book.
For work done by daily labour, the subordinate in charge of the
work, will prepare a muster roll which will show the work done by this
means and the amount payable on this account.
 For piece-work and for contract work generally, the measurement
book will form the basis of account.
 From the muster rolls the subordinate will prepare the labour reports and
 from the measurement book he will check the bills and accounts of
contractors and suppliers.
198. Initial accounts and vouchers connected with charges relating to works
must invariably specify—
1. the full name of the work as given in the estimate,
2. the name of the component part or " sub-head" of it, and
3. the charges (if any) which are of the nature of recoverable payments and the
names of the contractors or others from whom recoverable.
199. a) Expenditure on the construction or maintenance of a work may be
divided broadly into two classes, viz.,
(1) Cash and (2) Stock charges.
these charges are recorded in the cash and stock accounts respectively.
b) In addition to the charges falling under the main classes, there are other
transactions affecting the cost of a work.
 For example, there may be charges incurred in other divisions, departments,
materials received from them or services rendered by them, or there may be cash
receipts such as are taken in reduction of expenditure in accordance with the
rules.
c) All these transactions pass into the general accounts of the division and are
then incorporated in the general accounts of Government.
 it is necessary to maintain separate accounts in sub-divisional and
divisional offices for recording (1) the cost of individual works and (2) the
transactions of individual contractors. These are known as Works Accounts.
200. The primary object of the accounts of works is to exhibit the actual cost of
work done. There are two main reasons for this.
 In the first place to have details which will satisfy the need for statistical
information and for analysis of the comparative cost of various classes of work
etc.
 The more important reason is that in the case of the larger works, it would
not be possible for the Divisional Officer to exercise efficient financial control
over the recorded transactions of the cost of a work if only the total cost were
recorded in the accounts of the work.
 This monthly comparison is impossible unless the total cost is split up into
convenient parts in such a way that the cost of each distinct part may be
compared with the work done thereon.
201. In recording the cost of an individual work, no attempt is made to include
therein any charge on account of general services, like Establishment and Tools
and Plant, the entire cost whereof is adjusted in the general accounts.
 But if any service connected with the working estimate for a work is rendered
by another division, and the claim made by it includes an authorized charge
on account of such general services, such charge may be accepted and adjusted
in the accounts of the work.
202. Primarily the Divisional Officer is the responsible disbursing officer of the
division, the Divisional Officer may authorize a Sub- divisional Officer to make
payments.
 B.—CASH PAYMENTS
I.—Introductory
203. Cash charges on works consist of payments (1) to labourers and
members of the work-charged establishment, of their wages and (2) to contractors
and others for work done or other services rendered.
 The cost of materials procured specially for works is charged to the accounts
of works by transfer credit to the “Purchases Account”, but
 payments to suppliers are governed by the same rules as payments to
contractors for work done.
 II.—Payments to Labourers
(a) Departmental Labour
204. With the following exceptions, all persons engaged departmentally for the
execution of works are considered as day labourers and their wages should be
drawn on Muster Rolls, Form 21, and:
 charged to the estimates of works on which they are employed :—
1. Permanent and temporary employees of the division whose pay is charged to
the head “Establishment",
 Members of the work-charged establishment.
 Discrepancies between labour reports and muster rolls should be investigated
as soon as the latter are received.
205. Muster rolls should be prepared in Form 21 and dealt with in accordance
with the following rules:—
a) One or more, muster rolls should be kept for each work.
 muster rolls should never be prepared in duplicate.
 It is permissible, however, to keep one muster roll for labourers employed
upon several small works:
 in cases in which the total unpaid wages may conveniently be recorded as
relating only to the largest work in the group.
b) Labourers may be paid more than once a month and the period covered by each
payment may be determined locally; but
 separate rolls must be prepared for each period of payment.
c) The daily attendances and absences of labourers and the fines inflicted on
them should be recorded daily in Part. I of the muster roll in such a way as—
i. to facilitate the correct calculation of the net wages of each person for the period
of payment,
ii. to render it difficult to tamper with or to make unauthorized additions to, or
alterations in, entries once made, and
iii. to facilitate the correct classification of the cost of labour by works and sub-
heads of works where necessary.
d) After a muster roll has been passed by the Sub-divisional Officer, payment
thereon should be made as expeditiously as possible.
 Each payment should be made or witnessed by the official of highest
standing available, who should certify the payments individually or by groups,
at the same time specifying, both in words and in figures, at the foot of the
muster roll, the total amount paid on each date.
 If any items remain unpaid, the details thereof should be recorded in Part
II, the register of arrears.
e) Unpaid items should subsequently be carried forward from muster roll to muster
roll until they are paid.
 It is optional with Divisional Officers to adopt any other alternative method
of making payments of unpaid wages, provided that
 a systematic record of items remaining unpaid is maintained on the basis of
the original entries and that suitable precautions are taken to prevent double
payments.
f) Wages remaining unpaid for more than three months should be reported to the
Divisional Officer who will decide in each case whether the liability as an amount
available for payment should continue to be borne in the accounts of the work
concerned.
g) In Part III of the muster roll form should be recorded the progress of work
done by the labour where such work is susceptible of measurement. If the work
is not susceptible of measurement a remark to this effect should be recorded.
(b) LABOUR ENGAGED THROUGH A CONTRACTOR
206. The payment of daily labour through a contractor, instead of by
muster roll in the usual way, is objectionable in principle.
 In a case of great emergency it may sometimes be found
impossible to employ labour otherwise than through a contractor.
 Should it be possible, to determine the quantities of work done after
its completion or during its progress, it is expedient to pay the
contractor, at suitable rates, on the basis of work actually executed .
But if,
 as in the case of urgent repair of canal breaches, this method of payment is not
practicable, it is permissible to pay the contractor on the basis of the numbers of
labourers employed, day by day, his own profit or commission being either
included in; the rates allowed or paid separately in lump sum or at a percentage
rate.
 When this course is adopted, a report of the numbers of labourers of each
class employed day by day should be made by the subordinate in charge of the
work daily to the Sub-divisional Officer to enable the latter to keep a check on
the expenditure and to deal with the contractor's claim when received.
  To avoid disputes with the contractors, they should be encouraged to sign
the daily reports in token of their acceptance as correct.
(c) Traveling Expenses
207. When it is necessary to bring labourers and artificers from a
distance, they may be allowed wages for the number of days
occupied in the journey to and from the site of the work.
 At the discretion of the Divisional Officer, bonafids
traveling expenses may also be allowed to them. The above
charges must be borne by the estimate of the work.
 II.—Payments to Suppliers and Contractors
(i) Measurement Books
208. Payments for all work done, otherwise than by daily labour and for
all supplies are made on the basis of measurements recorded in Measurement
books, Form 23.
 The Measurement books should be considered as very important
account records.
 All the books belonging to a division should be numbered serially
and a register of them should be maintained in Form 92 in the
divisional office showing the:
 serial number of each book, the names of the sub-divisions to
which issued, the date of issue and the date of its return.
 (ii)Detailed Measurements
209. In recording detailed measurements, the following general
instructions should be carefully observed :—
a) detailed measurements should be recorded only by Executive, Assistant
Executive, or Assistant Engineers, or "by executive subordinates in charge of
works to whom measurement books have been supplied for the purpose.
b) All measurements should be neatly taken down in a measurement book, Form
23, issued for the purpose, and nowhere else.
c) Each set of measurements should commence with entries stating—
i. In the case of bills for work done—
a) full name of work as given in estimate,
b) situation of work,
c) name of contractor,
d) number and date of his agreement,
e) date of written order to commence work,
f) date of actual completion of work and
g) date of measurement.
d) As all payments for work or supplies are based on the quantities recorded in
the measurement book,
 it is incumbent upon the person taking the measurements to record the
quantities clearly and accurately.
 He will also work out and enter in the measurement book the figures for the
“contents or area “column.
 If the measurements are taken in connection with a running contract account
on which work has been previously measured, he is further responsible:
(I) that reference to the last set of measurements is recorded and
(2) that if the entire job or contract has been completed, date of completion is
duly noted in the prescribed place.
 If the measurements taken are the first set of measurements on a running
account or the first and final measurements, this fact should be suitably noted
against the entries in the measurement book and in the latter case, the actual
date of completion noted in the prescribed place.
e) The pages of the book should be machine numbered.
 Entries should be recorded continuously and no blank pages left or page
torn out.
 Any pages left blank inadvertently should be cancelled by diagonal lines,
the cancellation being attested and dated.
f) The entries should, if possible, be made in ink; when this is not possible and
entries have to be made in pencil, the pencil entries should not be inked over, but
should be left untouched.
 The entries in the “contents or area” column should, however, be made in ink
in the first instance.
 No entry may be erased.
 If a mistake is made, it should be corrected by crossing out the incorrect
words or figures and inserting the corrections, the correction thus made being
initialed and dated by the responsible officer.
 When any measurements are cancelled, the cancellation must be supported
by the dated initials of the officer ordering the cancellation or
 by a reference to his orders initialed by the officer who made the
measurements, the reasons for cancellation being also recorded.
 A reliable record is the object to be aimed at, as it may have to be produced as
evidence in a Court of Law.
g) Each measurement book should be provided with an index should be kept up to
date.
(iii) Standard Measurements
210. If standard measurement books of buildings are maintained in order to
facilitate the preparation of estimates for periodical repairs, they may be
utilised for the purpose of preparing contractors bills for such repairs, so that
it may not be necessary to take detailed measurements on each
occasion.
Inter alia the following precautions are necessary :—
i. The measurement books used as standard books should be numbered in an
alphabetical series, so that the numbers may be- readily distinguished from those
assigned to the ordinary books wherein detailed measurements are recorded.
ii. The entries of measurements and abstracts in the standard books .. should be
recorded legibly in ink, and certified by a responsible officer.
iii. An assurance should be obtained periodically of the Divisional Officer that:
 all the standard books of the division have been inspected by him,
that the entries therein have not been tampered with, and
 that all corrections due to additions and alterations, in the buildings have
been made in the books and the latter are reliable and up-to- date records.
iv. When a payment is based on standard measurements, the gazetted officer or
sub-ordinate preparing the bill for payment should be required to certify that the
whole of the work as per standard measurements has been done and
 that it has not previously been billed for in any shape.
(iv) Review of Measurements
211. Sub-divisional Officers should submit the measurement books in use to the
divisional office from time to time so that at least once a year the entries recorded
in each book may be subjected to a percentage check by the Divisional
Accountant under the supervision of the Divisional Officer.
(b) BILLS AND VOUCHERS
(i) Forms of Bills and Vouchers.
212. The authorized forms of bills and vouchers are the following: —
a) First and Final Bill, Form 24.
b) Running Account Bill A, Form 25.
c) Running Account Bill B, Form 26.
d) Running Account Bill C, Form 27.
e) Hand Receipts, Form 28.
The use of the forms is explained in the following paragraphs and a few
explanatory foot notes are printed on the forms.
213. First and Final Bill, Form 24.—This form should be used for making
payments both to contractors for work and to suppliers, when a single
payment is made for a job or contract, i.e., on its completion.
A single form may be used for making payments to several payees, if
they relate to the same work and are billed for at the same time.
214. Running Account Bill A, Form 25.—This form is intended for
contractors for work only. It should be used
(1) if it is proposed to make an advance payment, or
(2) if an on account payment is to be made but an advance
payment already made for the same work is outstanding.
 This form is not to be used if a secured advance is to be made or if
such an advance is already outstanding against the contractor in respect of
the same work.
215. Running Account Bill B, Form 26.—This form is also intended for
contractors for work only.
It should be used in all cases, in which secured advances are to be
made or are already outstanding. When this form is used it should also be
utilised for making on account and advance payments, if any, in respect
of the work.
216. Running Account Bill C, Form 27.—
This form is used both for contractors for work and for suppliers.
 It is intended to be used for contractors for work when only on
account payments are made.
 It is not to be used if a secured advance or an advance payment is to
be made or if such an advance or advance payment in respect of the work
is outstanding against the contractor.
217. Form 27 is the only form of Running Account bills which is suited for
transactions with suppliers.
 Form 26 is the only form which provides completely for all classes of running
account transactions with contractors for work.
 If a secured advance is not outstanding, and if it is not proposed to make
such an advance, the simpler Form 25 will serve the purpose.
 Similarly, if no advance payment is outstanding and if it is not proposed to
make such a payment the still simpler Form 27 can be used.
218. Hand Receipt, Form 28.—
This is a simple form of voucher intended to be used for all
miscellaneous payments and advances, for which none of the special
forms 24, 25, 26 and 27 is suitable.
 219. Account of Petty Contractors.—
As a general rule, payments to petty contractors should be made on the
ordinary bill forms prescribed in paragraph 212.
 In any particular case, a consolidated monthly account of all petty contractors
employed on the same work is prepared in preference to a separate bill for each
payee, the account may be drawn up in such form and according to such method
as may be prescribed.
(ii)Preparation, Examination and Payment of Bills
220. Before the bill of a contractor is prepared:
 the entries in the measurement book relating to the description and quantities of
work or supplies should be scrutinized by the Sub- divisional Officer and
 the calculations of "Contents or area" should be checked arithmetically under
his supervision.
 The bill should then be prepared from the measurement entries.
 The rates allowed should be entered by the Sub-divisional Officer, either in the
abstract of measurements or in the bill itself.
 Full rates as per agreement, catalogue, indent or other order should be allowed
only if the quality of work done or supplies made is up to the stipulated
specification.
 The rates allowed should be entered by the Sub-divisional Officer, either in the
abstract of measurements or in the bill itself.
 Full rates as per agreement, catalogue, indent or other order should be allowed
only if the quality of work done or supplies made is up to the stipulated
specification.
 When the work or supplies fall short of that standard only such a fraction of
the full rate should be allowed as is considered reasonable.
b) that no increase in an authorised rate is suggested without the prior sanction in
writing of the competent authority.
c) that when the authorised rate has not been fully earned, a suitable reduction is
made therein and the reasons thereof are recorded briefly for the consideration of
the Sub divisional Officer ; and
d) that it is made widely known to contractors that all entries of rates made by
subordinates in the abstracts of measurements and bills are subject to the approval
of the proper disbursing officer
221. Before signing the bill, the Sub-divisional Officer should compare the
quantities in the bill with those recorded in the measurement book and see that
 all the rates are correctly entered and that all calculations have been checked
arithmetically.
 When the bill is on a running account, it should be compared with the
previous bill.
 Memorandum of Payments should then be made up. Any recoveries which
should be made on account of the work or supply or on other accounts.
 If the Sub-divisional Officer is empowered to pay the bill, he should then
record a formal pay order specifying, both in words and figures, only the net
amount payable
 the payee should be required to acknowledge in his acquaintance the gross
amount payable inclusive of the recoveries made from the bill.
222. If the Sub-divisional Officer is not empowered to make the payment, the bill
should be submitted to the DO where the payment will be authorised by the DO
after the necessary scrutiny.
223. From the measurement book all quantities should be clearly traceable into
the documents on which payments are made.
 When a bill is prepared for the work or supplies measured, every page
containing the detailed measurements, must be invariably scored out by a
diagonal red ink line and
 when the payment is made, an endorsement must be made, in red ink, on the
abstract of measurements, giving a reference to the number and date of the
voucher of payment.
224. a)Payments for work done or supplies made on a running account should
ordinarily be made monthly.
 Both the "quantities" and “amount" of each distinct item of work or supply
should be shown separately in the bill, except in the case of advance payments
when quantities need not be specified.
b) Such payments should be treated as payments on account, subject to adjustment
in the final bill which should be drawn in the appropriate form but printed on
yellow paper .
 When a final payment is made on a running account, the payee, should add in
his own handwriting that the payment is “in full settlement of all demands".
(c) A separate running account is maintained in respect of each contract.
Transactions relating to two or more separate working estimates should not be
brought on to the same running account; they should, therefore, not be covered by
a single contract.
225. a) If the system of making advance payments to contractors for work has
been adopted, certificate printed on Running Account Bill A or B, must be signed
by the Sub-divisional or Divisional Officer.
 If a secured advance has been previously allowed to a contractor on the
security of any materials and such materials have been used in the construction
of an item, the amount of the advance payment for that item should not exceed a
sum equivalent to the value of work done less the proportionate amount of
secured advance ultimately recoverable on account of the materials used.
b) Actual measurements should be taken at the earliest opportunity, and
 when this has been done, the lump sum payments previously made on
account of the times of work concerned should first be adjusted in full, so that
the contractor may not be paid twice over in respect of the same quantities of
work.
 Delays in adjusting advance payments should be investigated and adjustments
made otherwise than by crediting the value of work actually measured, should
be especially looked into as being prima facie indicative of overpayment in
the first instance.
226. When secured advances are allowed by the Divisional Officer to a contractor
whose contract is for finished work, it should be seen that
 an Indenture in Form 31 has been signed by the contractor, and a detailed
account of the advances must be kept in Part II of Running Account Bill.
 There should be separate entries, in respect of each class of materials, of the
quantities brought to site by the contractor
 These advances must be recovered by deduction from the contractor's bills
for work done as the materials are used in construction and are billed for on
the basis of actual measurements.
(c) Aid to Contractors
227. It is necessary sometimes, to engage labourers or contractors or to
incur other liabilities on behalf of the contractor concerned, with a view
to complete work which he has neglected or failed to complete.
 In such a case it is permissible to spend Government funds on
behalf of the contractor in accordance with the terms of his
agreement.
 Otherwise, no advance or recoverable payment should be
made to or on behalf of, a contractor nor should financial aid be
given to him in any form, except in accordance with paragraphs 228 and
229.
(d) Advances to Contractors
228. Advances to contractors are as a rule prohibited
 Every endeavour should be made to maintain a system under which
no payments are made except for work actually done.
 Exceptions are, however, permitted in the following cases:—
a) Cases in which a contractor, whose contract if for finished work,
requires an advance on the security of materials brought to site.
 Divisional Officers may sanction advances up to an amount not exceeding 75
per cent, of the value of such materials, provided that
 they are of an imperishable nature and that a formal agreement is drawn up
with the contractor under which Government secures a lien on the materials
and
 safeguarded against losses due to the contractor postponing, the execution
of the work or to the shortage or misuse of the materials, and against the expense
entailed for their proper watch and safe custody.
 Payment of such advances should be made only on the certificate of an
officer, not below the rank of Sub- divisional Officer,
that the quantities of materials upon which the advances are made have actually
been brought to site, that
 the contractor has not previously received any advance on that security and
that
 the materials are all required by the contractor for use on items of work for
which rates for finished work have been agreed upon.
 The officer granting such a certificate will be held personally responsible for
any overpayment which may occur in consequence.
 Recoveries of advances so made should not be postponed until the whole of
the work entrusted to the contractor is completed.
 They should be made from his bills for work done as the materials are used,
the necessary deductions being made whenever the items of work in which they
are used are billed for.
b) Cases in which it is absolutely necessary to make petty advances. In such cases
advances up to Rs. 50 may be allowed by subordinates.
c) In all other cases only with the sanction of Government authorise such
advances taking the necessary precautions for securing Government against loss.
229. An advance payment for work actually executed may be made on the
certificate of a responsible officer to the effect that not less than the quantity of
work paid for has actually been done, and the officer granting such a certificate
will be held personally responsible for any overpayment. Final payments may in
no case be made without detailed measurements.
IV.— Payments to Work-charged Establishment.
(a) Conditions of Employment.
230. Subject to such general or special orders previous sanction of the D.O or
the S.E necessary which should specify in, respect of each appointment
(1) the consolidated rate of pay,
(2) the period of sanction and
(3) the full name of the work and the nature of the duties for which the man
engaged would be employed.
231. Members of the work-charged establishment are not entitled to any
pension, or to leave salary or traveling or other allowances except in the following
cases :—
a) Wound and other Extra-ordinary Pensions and Gratuities are in certain cases
admissible in accordance with the rules in Part VI of the Civil Service
Regulations.
b) Leave with full pay on Sundays and gazetted holidays may be allowed at the
discretion of the Divisional Officer.
c) Actual traveling expenses may be allowed by the DO for journeys performed
within the jurisdiction of his Government and in the interest of the work on
which the men are employed.
(b) Pay Bills
232. Wages of members of the work-charged establishment should be drawn
and paid on Form 29, " Pay Bill of Work-charged Establishment", which is a
combined pay bill and acquaintance roll form.
 A consolidated bill in this form should be prepared monthly either for the
whole sub-division or for one or more sections of it but the names and claims
of the entire establishment concerned, including absentees, should be shown in
each bill.
 Names should be grouped in the bill by works on which the men are
employed and
 the Sub divisional Officer should certify that the men were on duty during
the periods shown against their names.
233. Pay bills may be signed at any time on the last working day of the calendar
month in which the wages are earned, though they are not due for payment
before the first working day of the following month.
 When the services of an individual are dispensed with it is permissible and
advisable to settle up his account at once.
(c) Unpaid Wages
234. Wages remaining unpaid on a passed bill, on the date fixed for the closing of
the accounts of the month, may be paid subsequently when claimed, the procedure
described below being observed :—
a) Items remaining unpaid on the monthly bill should be entered in a simple
register, full particulars of the charge, including reference to the bill, being noted in
the register.
b) Subsequent payments should be made on Hand Receipts, Form 28, reference to
the bill in which the charge was originally included, and to the "particular item
thereof, being quoted in each case.
c) When making payments of arrears suitable notes of payment should be so
recorded against the original entries in the register, as to guard against second
payment.
(d) Traveling Expenses
235. No bills need be prepared in support of claims for traveling expenses.
Payments should be made on Hand Receipts, Form 28, which should set forth all
the necessary particulars of the journey performed and of the expenses claimed
and should be countersigned by the Divisional Officer prior to payment.
(e) Classification of Charge
236. Every payment made to a member of the work-charged establishment,
whether on account of his wages or in recoupment of actual traveling expenses,
should be debited to the work on which he is employed.
C.— ISSUES OF MATERIALS
I.— General
237. Issues of materials to works, whether from stock or by purchase,
transfer or manufacture, are divided into two classes :—
1. Issues to Contractors.—Issues of materials to contractors with whom
agreements in respect of completed items of works, i.e., for both labour
and materials, have been entered into.
2. Issues Direct to Works.—Issues of materials when work is done
departmentally or by contractors whose agreements are for 'labour only.
i. when it is necessary to retain in the hands of Government the supply of
imported materials,
ii. when it is desirable to retain in the hands of Government the supply of certain
other materials as well, and a condition to this effect has been inserted in the
contract.
b) In both cases the contract should specify
(1) the materials to be supplied by Government for use of the work, (2) the
place or places of delivery and
(3) the rates, including the storage rates when the materials are to
be issued from stock, to be charged to the
contractor for each description of material; and
the contractor should be held responsible for obtaining from
Government all such materials required for the work and for making
payment therefor, by deduction from his bills; at the rates specified,
regardless of fluctuations in the market rates or in the stock rates of the
division.
c) No carriage or incidental charges are borne by Government for
moving the materials beyond the place where the contractor has agreed to
take delivery thereof.
239. a) As a general rule, no other materials should be supplied to such
contractors for use on works, but this restriction may be waived by the Sub-
divisional Officer in respect of petty issues (at full Issue Rates) of
materials from existing stocks, not exceeding Rs. 50 in any month for any one
contract.
b) If at any time subsequent to the execution of a contract on a through rate
basis, the contractor desires the issue to him, for use on a work, of materials
which exist in Government stocks but
 the supply whereof by Government was not provided for in the
contract, the materials should not be issued except with the express authority
of the Divisional Officer who should specify in each case the rate to be
charged for the materials inclusive of delivery at the place where they are
stored.
 The rate charged should be the market rate prevailing at the time of
the supply or the Issue Rate, which ever may be greater, and should
include the storage charges. No carriage or incidental charges should
be borne by Government in connection with the supply.
b) If at any time subsequent to the execution of a contract on a through rate
basis, the contractor desires the issue to him, for use on a work, of materials
which exist in Government stocks but the supply whereof by
Government was not provided for in the contract, the materials should not be
issued except with the express authority of the Divisional Officer who
should specify in each case the rate to be charged for the materials inclusive of
delivery at the place where they are stored.
 The rate charged should be the market rate prevailing at the time of
the supply or the Issue Rate, which ever may be greater, and should include
the storage charges.
 No carriage or incidental charges should be borne by
Government in connection with the supply.
c) Issues of stock materials to contractors for bonafide use on works are
exempt from the usual charge of 10 per cent, on account of supervision,
storage and contingencies, which is made when stock materials are sold to
the public. (paragraph 127 of the Central Public Works Department
Code).
(b) Accounts Procedure
240. All materials required for issue to a contractor should be made over to
him as soon as they are received, whether from stock or by purchase,
manufacture or transfer, and an unstamped, but dated, acknowledgement,
detailing full particulars of the materials including the rates and values
chargeable to him should at once be taken from the contractor.
241. When the materials are obtained by purchase, full details of the
articles received should at once be entered in a measurement book, Form 23.
242. On the authority of the contractor's acknowledgment, the cost
recoverable from him should be debited at once to his personal account
by charge to the suspense head " Contractors—Other transactions" This
adjustment should be effected by affording credit to the head concerned, as
indicated below:—
 If the amount thus credited differs from the charge made to the
contractor's account, the excess should be treated as additional final outlay
on the work, a separate subhead, entitled" Additional Charges for
Materials issued to Contractors“.
243. The recovery from a contractor on account of the cost of materials
issued to him for use on a works should ordinarily be made by deduction
from the first bill.
 A lump sum recovery be undesirable in any case, the Divisional Officer may
permit the recovery to be effected gradually as the materials issued to the
contractor are actually used in construction and the items of work in which they
are used are paid for whether by an advance payment or by an on account
payment.
244. As the issue of materials to contractors under the foregoing rules is
permissible solely for the bona fide requirements of Government works, Sub
divisional Officers should make such arrangements for limiting the total issues to
a contractor in connection with a particular work, to the reasonable needs of that
work.
 This precaution is particularly necessary when the rates at which any
materials are issued are lower than the prevailing market rates, or the latter are
expected to rise appreciably.
 In such cases if the transactions are of any importance, the use of Form 35
(without values) is recommended for watching that the aggregate of the
quantities of any or all materials issued to a contractor, remains within the
estimated requirements of his contract.
(c) Return of surplus materials
245. Government does not undertake to take over from contractors, surplus
materials which were originally procured by the contractors for themselves or were
issued to them and charged to their accounts.
 Such materials are the property of the contractors and can be taken over by
Government for use on other works in progress, only by special arrangements
and at the prevailing market rates.
 If the materials were originally supplied by Government the price allowed to
the contractor on re-acquisition should not exceed the amount charged to the
contractor, excluding the storage charges, if any.
(d) Tools and Plant lent for use
246. The rules in paragraphs 238 to 245 do not apply to tools and plant. Articles
borne on the Tools and Plant account of the division may, in accordance with any
local rules on the subject be lent temporarily to contractors for use on
Government works being executed or maintained by them.
III.—Direct to Works
(a) Detailed accounts of materials issued.
247.
a) In all cases material issued direct to a work should, as soon as received, be
brought to account as indicated below :—
The full value credited to the head concerned should be debited to the work
(paragraph 248).
b) In the case of materials received direct from suppliers full details of the articles
received should at the same time be entered in a measurement book, Form 23, with
the full name of the work as entered in the estimate, vide paragraph 209 (c).
248.
a) When materials are issued direct to a work their cost is either treated as a final
charge or debited to the suspense head “Materials " in the accounts of the work, as
prescribed in paragraphs 264 and 265.
b) When the suspense head “Materials” is operated on, a detailed account of all
materials issued to, or returned from, the work should be kept in Form 35, “Detailed
Statement of Materials ", so that the total issues of each kind of materials may be
watched with reference to the estimated requirements.
c) When the cost of materials issued to a minor estimate is adjusted at once as a
final charge (paragraph 269), no detailed account in Form 35 is necessary. The Sub
divisional Officer should make his own arrangements for exercising detailed control
over transactions relating to materials, and for verifying the unused materials in the
event of the charge of the work passing from one officer or subordinate to another.
249. In the Detailed Statement of Materials, Form 35, only principal materials
need be detailed. Both quantities and values or such items should be shown except
in respect of carriage and incidental changes for which values only should be
shown. All the minor items may be lumped together under the heading “petty items
", for which only values should be shown.
250. Form 35 shows separately for each kind of materials
(1) the estimated requirements,
(2) the net issues of each month to the work and
(3) the net issues thereto to end of each month. Estimated requirements should be
duly corrected whenever a revision of the original estimate renders it necessary. The
month's transactions should be posted as follows :—
I. Issues to the work—(a) Issues from stock should be posted in lump from the
monthly Abstract of Stock Issues, Form 10, and (b) purchases from suppliers and
transfers of materials from other works, divisions, departments or Governments
should be posted in detail from the vouchers and special transfer entries (vide
paragraph 247) concerned, at the same time as the corresponding postings in the
Works Abstract (Form 33 or 34) are made.
II. Issues from the work—(a) Materials returned to stock should be posted in lump
from the monthly Abstract of Stock Receipts, Form 9, and (b) sales, writes-off and
transfers elsewhere should be posted in detail from the vouchers concerned, at the
same time as the corresponding entries in the Works Abstract (Form 33 or 34) are
made.
Issues from the work should be posted as minus entries.
(b)Disposal of Surplus Materials
251.
a) Materials issued to works in excess of requirements may be transferred to stock
provided that they are serviceable and certain to be required
b) All surplus materials at site of works which have been completed or stopped or
on which outlay has been prohibited for any considerable length of time, should, if
likely to be of use on other works within a reasonable time, be transferred to works
in progress or
brought on to the Stock account, their value being credited to the work to which
they were originally issued and debited to the work to which they are transferred or
to the Stock account, as the case may be.
c) No credit should be allowed to a work on account of surplus materials if they are
unlikely to be of any use within a reasonable tune; but a list of the materials 5&ould
be maintained in the Sub divisional and divisional offices as a supplement to the
half-yearly stock 'returns, unless the Superintending Engineer considers this
unnecessary.
d) Materials returned to store or transferred to other works should be priced within
current market rates, any resultant loss being borne by the work to which they were
originally issue.
(c) Verification of unused Balances
252. Unused balances of materials charged direct to works should be verified at
least once a year in the manner prescribed in paragraph 131 of the Central Public
Works Department Code. Whenever this verification is made, a report of
verification of the materials should be prepared by the Sub divisional Officer in
Form 37 and submitted to the divisional office. The following instructions should
be observed in preparing the report :—
a) As no continuous account is maintained of the materials actually used in
construction, it is necessary first to calculate the quantities of principal items
probably used. This should be done in the detailed statement at the top of the form,
on the basis of the “progress “of work done on each sub-head, such authorised
formulae being adopted as may be in general use locally.
b) Deducting these quantities from the total quantities of the materials issued to the
work as per Form 35, the paper balances of the unused materials should next be
arrived at and set forth against line C.
c) The actual balances should be entered against line D, and the differences
between the actual and paper balances should be set forth against line “E”. These
differences should be priced at the actual rate of cost which should be deducted
from the total value and quantity recorded in the Detailed Statement of Materials,
“Form 35."
d) The report should then be completed by recording against line “F” remarks
explaining action taken
(1) to adjust the differences as per line “E” and
(2) if the work has been completed, to dispose of the surplus balances as per line
“D”, and by signing the printed certificates applicable to the case and scoring out
the others.
e) The differences as per line “E” may be due to (i) the adoption of formulae for
determining the actual consumption, (ii) unreasonable wastage, or (iii) shortage in
some other form.
All these differences should be investigated and dealt with in accordance with
paragraph 289 (b), (c) and (d).
253. A similar verification of the unused balances of materials must invariably be
made on the completion of a work, but on or before the completion of a work, when
no more materials are required for use in construction, steps should first be taken to
dispose of all surplus materials by transfer or sale, so that
(1) the accounts of the work may promptly receive such credits as may be
admissible under paragraph 251,
(2) the balance at debit of the suspense head " Materials "may, as far as
possible, represent the net cost of the materials actually used in construction, and
(3) the surplus balances awaiting clearance may be reduced to a minimum.
The report in Form 37 should in this case set forth both quantities and values
throughout.
254. If the Gazetted officer or subordinate in direct charge of a work, the accounts
of which are kept by sub-heads, is transferred before the accounts of it are closed,
the unused materials at site of the work should be verified by the relieving officer in
company with the relieved officer and the report prescribed in paragraph 252 should
be prepared by the Sub divisional Officer and submitted to the divisional office.
255. A report is required annually of the value of materials at site of all works the
accounts of which were open on the last day of the official year. This report should
be prepared in Form 37 and submitted to the divisional office in the manner
described in paragraph 253, as on completion of work, but it is not necessary that
the balances should be verified at the close of the year if—
1. the work has been under construction for not more than three months,
2. the accounts of the works are expected to be closed within three months, or
3. the balances were verified at any time during the year.
 When the balances are not verified at the close of the year the figures against
line “C”, “Paper balances of unused materials ", of the report should be assumed to
be the value of the materials at site, and lines “D” and “E” should be left blank.
256. Reports of Verification of materials in Form 37, prepared under
paragraphs 252 to 255, should be dealt with in the divisional office in the manner
described below :—
a) A register of Clearance of Materials Account should be maintained in Form 38.
A separate folio of the register should be reserved for each work for which a
materials account is kept, and for facility of reference, the register should be
supplied with an index.
b) Each Report of Verification in Form 37 should be entered in Part I of Form 38 as
soon as received.
c) If any items of shortage or loss reported in line E of an intermediate report in
Form 37, prepared under paragraphs 252, 254 or 255, are ordered to be charged to
the sub-head Contingencies of the estimate, or to the personal ledger account of a
contractor, or to Miscellaneous P. W. Advances, for recovery from any official or
to the account of another work, the adjustment should be forthwith effected by a
transfer entry, so that the total cost of the materials to the work may at once be
corrected.
d) But if any such shortage or loss is ordered to be written of by debit to a final
sub- head of the estimate, other than Contingencies, or if there is a surplus and it is
to be credited to one or more final sub-heads of the estimate, the consequent
adjustments should merely be registered in Part III of Form 38. Such adjustments
leave the total cost of materials unaffected, and can, therefore be made only by
inclusion in the final transfer entry which is made, on the completion of a work,
under paragraph 289.
e) As every Report of Verification prepared under -paragraphs 252 to 255 deals
with the progressive figures of the cost of materials, line E brings out up to date
outstanding differences and not merely differences since last verification.
 This should be borne in mind when registering differences referred to in clause
(V) above, so that adjustments once registered in Part III of Form 38 may not be
registered again.
f) Action taken on intermediate reports, in Form 37, should be recorded on the
reports themselves, but when each such report is finally disposed of, the fact should
be recorded in Part I of Form 38 and the entry attested by the Divisional
Accountant's initials.
 Final reports in Form 37, prepared under paragraph 253, should, however, be
registered in Part I of Form 38 as disposed of as soon as orders on the closing
balances and the items of difference, as per lines “D” and “E” of the report, have
been passed by the Divisional Officer. These balances and items should then be
transferred to Parts II and III of Form 38, where their clearance will be watched in
the manner described in paragraph 289.
D.—ADJUSTMENTS
257. In addition to cash payments and issues of materials there are other
transactions relating to the accounts of works, which are of the nature of
adjustments usually recorded in the Transfer Entry Book of the divisional office.
The detailed rules governing such transactions are given in Chapter VIII. (Transfer
entries)
III.—Suspense Accounts
(a)General
270. In addition to the head " Final charges", or the final sub-heads in the case of
Major Estimates, a few suspense accounts are opened in Works Abstracts to record
transactions of a temporary character which are either not adjustable as final outlay
in the accounts of the works concerned or the correct classification of which cannot
be determined immediately. These accounts are:—
1. " Materials "—for the record of the cost of materials issued direct to work,
2." Contractors—Advance Payments "—for the record of advance payments and of
their recoveries.
3." Contractors —Secured Advances "—for the record of secured advances and of
their recoveries,
4."Contractors—Other Transactions"—for the record of all other debits or credits to
contractors awaiting settlement, and
5.“Labourers "—for the record of unpaid wages of labourers and of their subsequent
payment.
(b)" Materials” Account.
271. The suspense account “Materials " has already been referred to in paragraphs
264 and 269. This account should be opened in the Works Abstracts of Major
Estimates if materials are issued direct to works. It may also be opened in the case
of Minor Estimates if the transactions relating to the direct issues of materials are of
sufficient importance. So far as Works Abstracts are concerned this account is never
cleared. Sub- divisional Officers should regard it as a temporary sub-head for the
reception of all charges on account of direct issues of materials. The responsibility
for clearing the head by transferring the charges to the final sub-heads of work
when closing the accounts of the work in the Register of Works, rests with the
divisional office, vide paragraph 289.
(c)"Contractors" and "Labourers" Accounts
272. Advance payments made to a contractor under the provisions of paragraph
229 should not be charged of as final outlay on the work or under any sub-head of
it. A suspense head, " Contractors—Advance Payments ", should be opened in the
Works Abstract (Form 33 or 34, as the case may be) for the record of advance
payments and their subsequent adjustment.
273. Advances made to contractors and suppliers under paragraph 228, whether on
the security of materials or otherwise as well as all recoverable payments made
under proper authority to labourers and others on behalf of contractors, should be
treated as advances made on account of the work concerned. They should not be
charged to the general suspense head “Miscellaneous P. W. Advances ", but
incorporated in the Works Abstract as suspense transactions. The head " Contractors
— Secured Advances " is intended solely for advances made to contractors, on the
security of materials brought to site, under paragraph 228 (a), and the head "
Contractors —Other Transactions " should be used for all other transactions.
274. The head " Contractors—Other Transactions " is intended also for watching
the ultimate payment of the unpaid balances of contractors accounts. Similarly, the
head “Labourers " is meant for the clearance of the unpaid wages of labourers.
If a Running Account Bill or Muster Roll is only partly paid, the total amount due
thereon as value of work done or supplies made should be brought to account in the
Works Abstract as final charges or as expenditure on the sub-heads concerned, and
the amount remaining unpaid should be shown as a minus entry in the appropriate
suspense column—" Contractors—Other Transactions " or " Labourers ".
275. The forms of Works Abstracts (Forms 33 and 34) provide a column for each
of the suspense accounts enumerated in paragraph 270. The use of the head
“Materials " is explained in paragraph 264 and the foot-notes printed on the forms
of the Works Abstracts explain the mode of making both original and adjusting
entries under the other suspense heads.
276. If any wages of labourers remain unpaid after the completion of a work, the
accounts of the work may be kept open for a period of one month, which may be
extended to three months at the discretion of the Divisional Officer. Thereafter the
accounts of the work should be closed, the balance under the suspense head
“Labourers “being left unadjusted.
This amount should be shown in any Completion Report or Statement that may be
prepared under the rules in paragraph 99 of the Central Public Works Department
Code, by a special remark, as a liability against the work, and it should be excluded
from the total final expenditure on the work, so as to arrive at the amount actually
brought to account.
277. The account of a contractor should be closed as soon as his contract is
completed. If he delays to receive final payment for more than one month after the
final bill has been passed, a note to this effect should be recorded on the bill, the
account of the work as passed on the bill should be incorporated in the Works
Abstract on the authority of the bill and the balance due to him should be removed
from the accounts of the work by credit to the head " Public Works Deposits ", to be
dealt with thereafter under the rules relating thereto.
If the final account of a contractor shows that he has already been overpaid or that
the account closes with a balance due by him, the account should be settled by a
recovery in cash or otherwise; but if an immediate recovery is not practicable, the
balance should, be removed by debit to the head " Miscellaneous P. W. Advances ".
278. Disbursing officers are responsible for keeping a strict watch over the
balances under the suspense accounts “Contractors" and “Labourers ", with a view
to prompt adjustment by recovery, settlement of account or detailed measurement,
as the case may be.
For this purpose the statement headed " Detail of Contractors' closing balances " in
the Works Abstract and the record of unpaid wages maintained under paragraph 205
(e), should be examined monthly. Subject to the provisions of paragraph 276, these
accounts should be cleared before the accounts of a work can be closed on
completion.
IV.—liabilities Awaiting Incorporation
279. Liabilities are not incorporated in the accounts of works except in the
following cases :—
a) Unpaid balances of partly paid running account bills or muster rolls are
invariably incorporated, vide paragraph 274,
b) The value of materials received from sources other than stock (including
manufacture), whether for issue to contractors or for issue direct to works, is at once
brought into the accounts of works even though payments to suppliers and
adjustments crediting the transfer accounts concerned, may not be made at once,
vide paragraphs 242 and 247, and
c) Wholly unpaid muster rolls and bills of contractors and suppliers are sometimes
taken to account, vide paragraphs 276 and 277.
d) Disbursing officers are, however, responsible for keeping a strict watch over all
liabilities with a view to settle them promptly. Money indisputably payable should
never be left unpaid. It is no economy to postpone inevitable payments, and it is
very important to ascertain, liquidate and record the payment of all actual
obligations at the earliest possible date.
d) Disbursing officers are, however, responsible for keeping a strict watch over all
liabilities with a view to settle them promptly. Money indisputably payable should
never be left unpaid. It is no economy to postpone inevitable payments, and it is
very important to ascertain, liquidate and record the payment of all actual
obligations at the earliest possible date.
280. If any liabilities of works are incurred on behalf of contractors under the
provisions of paragraph 227, arrangements should be made for withholding
sufficient balances from their bills or for making necessary recoveries from them in
due Course. On the analogy of the rule in paragraph 198, all records on the
authority of which liabilities may be liquidated or incorporated in the accounts,
should invariably specify (1) the full name of the work as entered in the estimate,
(2) the name of the sub-head thereof, if any and (3) the recoverable charges, if any,
with the name of the contractor or other person from whom recoverable.
V.—Record of Progress
281. Entries of" progress” in the Works Abstracts (vide paragraph 263) should be
supported by details in the statement provided for the purpose on the reverse of the
Works Abstract form. These details should be furnished by the Engineer or
subordinate in charge of the work or by any executive officer or subordinate
detailed for the purpose, and should be based on entries already made in the
measurement book. Their compilation from measurement books, vouchers or other
records, by members of the office establishment should not be permitted. The
following points should be specially borne in mind:—
i. Only “quantities” actually measured and paid for should be reported as “progress
".
ii. The progress reported should specify the quantities executed “up to date ", sets
of earlier measurements covered or superseded by later ones being ignored.
iii. The progress of an item of work should be so reported as to describe as
approximately as possible, in terms of the unit adopted, the quantities of work
executed up to the required standard.
VI.—Preparation, Completion and Disposal of Works Abstracts
282. The Works Abstract should be prepared in the Sub divisional office in the
first instance. It should be posted day by day from the Cash Book and the connected
bills of contractors and suppliers, cash refunds and readjustment of final charges
being posted as minus entries.
At the end of the month, stock and adjustment transactions should be added and, in
the detailed statements provided for the purpose, quantities of work executed should
be posted from measurement books or other sources and the closing balances of
contractors' accounts should be detailed so as to prove the correctness of the up to
date totals under the suspense heads (1) Contractors—Advance Payment, (2)
Contractors—Secured Advances and (3) Contractors—Other Transactions. The
closing balances arrived at under the suspense head "Labourers" in-each case,
should be agreed with the connected record of unpaid wages and its correctness
should be certified over the dated initials of the Sub divisional Officer.
The Works Abstract should then be forwarded in original to the divisional office,
were all necessary completing entries will be made in respect of the direct charges
and adjustments made by the Divisional Officer and the Abstract checked and
closed under the supervision of the Divisional Accountant, who should record a
certificate in the following form :—
“This Abstract has been checked under my supervision. I have personally compared
all the items in the ' Details of contractors' closing balances' with the Contractors'
Ledger and found them correct."
283. When finally completed in all respect, all the Works Abstracts of a month
should be examined by the Divisional Officer and any explanations necessary called
for from the Sub divisional Officer. The monthly examination of the Works
Abstracts is an important part of the duty of the Divisional Officer and must not be
omitted. He must initial (and date) them in token of the performance of this duty.
F.—REGISTER OF WORKS
I.—Forms of Registers of Works and their Preparation
284.
a) The permanent and collective record of the expenditure incurred in the division,
during a year, on each work estimated to cost more that Rs. 2,000 is the Register of
Works. This record is maintained in the divisional office.
b) There are two forms of Registers of Works corresponding respectively to the two
forms of Works Abstracts (Forms 33 and 34) for Major and Minor Estimates. The
detailed form 40, should be used for Major Estimates and the simpler form, .41, for
Minor Estimates. In respect of petty works no record is necessary beyond the Petty
Works Requisition and Account, Form 32, which is self-explanatory but, if desired,
expenditure on these works may be recorded in the Register of Works for Minor
Estimates, Form 41.
285. The Registers of Works are posted monthly from Works Abstracts. A separate
folio or set of folios of Form 40 should he assigned to each Major Estimate, but
entries relating to two Minor Estimates can be made on a single page of Form 41.
When separate Works Abstracts are prepared, under paragraphs 259 and 262, for the
sub-works or parts of a Major Estimate, the transactions relating to each Works
Abstract should be posted separately and an abstract for the entire work should be
prepared on a separate folio or set of folios for comparing the cost of the work and
its sub-works with the provision in the estimate. The following instructions should
receive special attention :—
a) The Register of Works is not a classified account of works; for facility of
reference it should be supplied with an index which should be subdivided under the
prescribed heads of account classification.
b) The sanctioned amount of estimate should be entered in respect of each work.
When supplementary estimates are sanctioned, the additional amounts sanctioned
should be entered below the corresponding amounts of the original estimate and
both totaled. But when a revised estimate is sanctioned, the account of the original
estimate should be closed and the revised estimate should be entered on a fresh
folio, prominently marked “Revised Estimate " in red ink, and a reference to the
folio on which the original estimate is to be found should be entered thereon.
c) In the case of works for which specific appropriations are sanctioned
individually, vide rule 35 of Appendix 6 to this Code, the amount of appropriation
for the year should be noted in the register at the top of the page, any additions or
deductions made during the year being noted in the same place.
d) The blank vertical columns in Form 40 should be utilized for the final sub-heads
of the estimate and for as many of the suspense heads as may be operated upon, but
the sub-columns for " quantity " and the horizontal columns for " rate of cost"
should be left blank in respect of sub-heads for which there are no quantities in
Works Abstracts, vide paragraph 263.
e) In Form 41 the final charges on works should be posted in the column “Total
value of work done” and the single column “Suspense Accounts" should embrace
the transactions under all the suspense accounts.
II.—Examination by Divisional Officer
286. Before the date of submission of the monthly account to the Accountant
General, the posting of the Registers of Works should be completed and the
registers should then be "laid before the Divisional Officer for review.
The monthly account of each work on which there has been expenditure during the
month should be initialled (and dated) by the Divisional Officer in the column set
apart for the purpose, in token of his having examined the entries and found them
correct. Actual as well as probable excesses, whether in the total cost of a work or
sub- head or in the rate of cost of a sub-head, should receive special attention, and
Works Slips in Form 39 should be prepared and submitted to the Superintending
Engineer when necessary, vide paragraphs 34 and 44 of the Central Public Works
Department Code.
III.—Closing the Accounts on Completion of Work
(A) SETTLEMENT OF LIABILITIES AND ASSETS AND CLEARANCE
OF SUSPENSE ACCOUNTS
287. It is an object of great importance to close the accounts of works as soon
as possible after the actual work of construction is completed, vide paragraph 46 of
the Central Public Works Department Code. If there is necessarily any delay in
closing' the accounts, it should be seen in particular that further charges are not
incurred without the permission of the Divisional Officer.
288. Before the accounts of a work can be closed on its completion, it should be
seen that any adjustments of cost necessary under the rules, e.g., paragraph 52 of the
Central Public Works Department Code, and paragraph 7 (c) of Statement A in
Appendix 2 to this Code, have been duly made in the accounts, that all liabilities not
originally brought to account have .either been liquidated or since brought to
account and that the balances under the suspense accounts " Contractors " and "
Labourers " have been cleared, vide paragraphs 275 to 278. If the whole or any part
of the expenditure on the work is-recoverable from another department,
Government, local body or individual, action should be taken to effect or complete
the necessary recovery before the accounts of the work are closed.
289. The suspense account “Materials" should be cleared and the total cost of
materials should be distributed over the final sub-heads or other accounts concerned
before the accounts of a work can be closed so that, for statistical purposes! the full
cost, inclusive of the value of materials of each class of work, may be worked out
and placed on record. This is effected in the divisional office in the following
manner:—
a) After orders have been passed by the Divisional Officer on the final report of the
value and verification of materials at site (vide paragraph 253), the action taken
from time to time as to the disposal of surplus balances and to the adjustment of
discrepancies and losses should be recorded in Form 38.
b) Petty deficiencies and surpluses held to be due to the adoption of formulae for
determining the quantities used in construction may be adjusted under the orders of
the Divisional Officer by debit or credit to the sub-heads concerned, action being
taken separately, if necessary, to make suitable revision of the formulae in use.
c) Shortages and losses for which any contractors are held responsible should be
adjusted by prompt recovery either in cash or by debit to their personal ledger
accounts. If they are recoverable from other persons the debits should be transferred
to the “Miscellaneous P. W. Advances " account for recovery in cash or by
deduction from pay bills,
d) Other actual losses which are irrecoverable should be written off under the
orders of competent authority, the charge being transferred to the sub-head
Contingencies, or to the sub-heads concerned, or even to a new sub-head opened for
the purpose*-as may be considered suitable with due regard to the statistical value
of the recorded cost of final sub-heads of work.
e) The cost of surplus materials which cannot be sold or transferred elsewhere and
losses on account of the sale or transfer of surplus stores at a reduced valuation
should be adjusted by charge to the sub-heads concerned.
f) In making notes of these adjustments in Form 38, adjustments to be effected by
debit or credit to the final sub-heads of the work should be kept distinct from those
affecting other heads of account or the accounts of other works. Only transactions
of the former class should be posted in the columns headed “If debited to sub- heads
of this work “and marked G and H in Parts II and III respectively. See also
paragraph 256.
g) When Parts II and III of Form 38 are completely registered as above and there
are no more adjustments to make, Part IV of the form should be filled up as
follows :—
i. Against line 1 should be entered, by sub-heads, the total calculated cost of
materials used in construction, as per line B .of the final report in Form 37 referred
to in paragraph 253.
ii. Against lines 2 and 3 should be entered, item by item, the adjustments registered
in Parts II and III, respectively, of Form 38 in the columns marked G and H, vide
clause (f) above.
iii. Entries against lines 1, 2 and 3 should then be totaled up, so as to arrive at the
total debits to be raised against the-filial sub-heads, by minus debit to the suspense
head "Materials ", on account of the cost of materials relating to each.
On the basis of the totals of Part iv a closing entry should then be made in the
Register of Works with the approval of the-Divisional Officer, and the inclusive
rates of cost of all the sub-heads concerned should be struck, entries being made as
shown below :—
290. The sub-head "Additional Charges for Materials issued to Contractors "
(paragraph 267) should receive the special attention of the Divisional Officer who
should, if necessary, investigate large closing balances under this head before
permitting the accounts of the work to be closed. It is not necessary to clear this
head by transferring the charges booked under it to other final sub-heads, but profits
or losses which are not clearly traceable to known differences between the rates
chargeable to contractors and the actual cost to Government, should not be accepted
as correct without closer examination.
291. The accounts of annual maintenance estimates must be closed in the month
fixed by the local Administration, under paragraph 103 of the Central Public Works
Department Code, as the last month of the working year for the purpose.
Ordinarily, it should be possible to complete all the repair work and to settle the
accounts of contractors and other suspense accounts, before the expiry of the
working year. If, in any exceptional case, any work remains to be done and, in
accordance with paragraph 104 of the Central Public Works Department Code, it is
proposed to carry it on to Completion, action should be taken as under :—
1. The expenditure incurred in the next working year should be treated as
expenditure against the annual maintenance estimate for that year.
2. The suspense accounts of the work should be closed in the 1ST month of the
working year, by transferring the balances of all those accounts to the general
suspense accounts " Public Works Deposits" or
"Miscellaneous P. W. Advances", as the case may be, which should be relieved in
the following month by re transferring the balances to the suspense account
concerned in the accounts of the maintenance estimate for the next working year.
All unsettled liabilities and assets should then be treated as those pertaining to the
next working year's estimate.
(b) CLOSING ENTRIES AND REVIEW OF EXPENDITURE
292.
a) When the work is completed and the accounts of it have been settled and written up as
indicated in paragraphs 288 and 289 a double red ink line should be ruled below the final entries
and a note made in red ink “Work completed in.................... 19....". This note should be signed by
the Divisional Officer in token of his satisfying himself that all action has been taken under those
paragraphs.
It will be the authority for treating the accounts of the work as closed, and a work should not be
reported as completed in the divisional accounts unless this authority has been placed on record.
b) If it is a Deposit Work, steps should be taken promptly to surrender the
unexpected balance, if any, of the deposit with the approval of the Divisional
Officer.
(c) EXCESSES OVLR ESTIMATES
(i) Excesses passed by Divisional Officer
293. If the total expenditure on the work is in excess of the sanctioned estimate
and the excess is passed by the Divisional Officer under his powers; the words
“Excess passed by me " should be added to the completion note recorded under
paragraph 292.
(ii)Completion Reports and Statements
294. If, however, the excess is not within the Divisional Officer's powers to deal
with, a Detailed Completion Report in Form 44 should be prepared or the item
should be included in a consolidated Completion Statement of Works and Repairs in
Form 45, as may be required under the rule in paragraph 99 of the Central Public
Works Department Code.
The completion note in the Register of Works should then be amplified thus, "Work
completed in............ 19... Completion Report statement submitted with this office
letter No. ............... dated19. "
The orders passed subsequently by higher authority on the excess reported in the
Completion Report Statement should also be noted in the Register of Works to
complete the records.
IV.—Correction of errors after closing Accounts
295. Should an error or omission in the recorded expenditure of a work come to
light after its accounts have been closed (.ice paragraph 46 of the Central Public
Works Department Code), the accounts may be reopened in order to rectify the error
or omission unless the amount involved is not more than ten rupees in which case it
will be sufficient to make a note of the error or omission MI the relevant documents
concerned.
V. Schedule of Rates
296. To facilitate the preparation of estimates, as also to serve as a guide in settling
rates in connection with contact agreements, a schedule of rates for each kind of
work commonly executed should be maintained in the division and kept up to date.
It should be prepared on the basis of the rates prevailing in each locality and
necessary analysis of the rates for each description of work and for the varying
conditions thereof should, so far as may be practicable, be recorded.
The rates entered in estimates should generally agree with the scheduled' rates but
where, from any cause, the latter are not considered sufficient, the deviation should
be explained in detail in the report on the estimate.
SUNDRY RULINGS
I.—Carriage and Incidental Charges
306. a) The cost of carriage of stock materials to site of work, and of all carriage
charges, in connection with the movement, from place to place, of other Materials
issued to or provided specially for a work, should be debited direct to the account of
the work, the exact classification of charge being as indicated below :—
b) When surplus materials are returned from a work to stock, the cost of carriage
should be born by the work, but if they are transferred to another work, the charge
may be debited to either work as may be equitable.
c) Incidental charges connected with the movement of materials issued to or
provided specially for a work or returned there from, should be adjusted in the same
way as the cost of carriage.
d) In all cases the places from and to which materials are conveyed, the distance,
the quantity and the approximate weight must be stated clearly in the payment
vouchers.
II.—Charges for Examination of Soil
307. The expense attendant upon the necessary examination of the soil for the
foundations of works ordered by competent authority should be treated as outlay on
works and not as a contingent charge, provision for it being made under the service
head concerned in a requisition or estimate according to the sum involved.
III.—Expenditure on Inauguration Ceremonies
308. The expenditure incurred with the sanction of competent authority on
ceremonies connected with the inauguration of important public works, should be
debited—
a) in the case of Irrigation projects for which separate capital accounts are
maintained, to the revenue account of the project.
b) in the case of other works, to the contingencies of the sanctioned estimate.
IV.—Rates and Taxes of Buildings
309. Municipal or other rates and taxes on public buildings, residential or non-
residential, when debit-able to the Public Works Department as the Department in
administrative control of the building should be treated as expenditure on repairs
and debited to the maintenance estimates of the buildings concerned.
V.—Execution of Works by other Departments
310. Whenever the maintenance of any works under the administrative control of
the Public Works Department is entrusted to the agency of another Civil Department
with the sanction of Government, the rules of procedure applicable to expenditure
connected with the works will be such as-may be laid down by the local
Administration in consultation with the Accountant General subject to following
reservations :—
1. The Civil Department should be responsible to the Public Works Department to
account for appropriation placed at its disposal.
2. The Public Works Department should retain budgetary and financial control.
3. The Public Works Department should retain technical control through
inspection.
VI.—Execution of Government Works by Local Bodies
311. When the Public Works Department entrusts to the agency of a District
Board, or other local body, the maintenance of Government buildings or roads,
without transferring the property to the local body, the payment made to it on this
account should be treated as a payment for work done by a contractor.
If lump sum payments have been agreed upon, the procedure for settling the
account periodically, and for recording the -cost of the works, may be simplified,
with the concurrence of the Accountant-General, provided—
a) that a certificate that the work has been done in accordance with the conditions
agreed upon is placed on record by a responsible official,
b) that if the payment is made for a number of works, expenditure on all of which
cannot be classified in the accounts under a single head of account, the necessary
detailed classification of the charge is set forth, and
c) that, as far as possible, the liability of a year is settled within^ that year (see also
paragraph 291).See also paragraph 201.
VII.—Scope of Sanction
312. The authority granted by a sanction to an estimate is strictly limited by the
precise objects .for which the estimate was intended to provide. Accordingly it is
not permissible to apply, without the sanction of the competent authority, any
anticipated or actual savings whether due to the abandonment of a part of work or to
any other cause, on a sanctioned estimate of a definite project, to carry out
additional work not contemplated in the original project or fairly contingent on its
actual execution.