Deduction of Excess Securities in PWD Cheques dt 04.10.2024

Deduction of Excess Securities in PWD Cheques dt 04.10.2024

OFFICE MEMORANDUM

Subject: Excess Securities

I am directed to refer to the subject cited above and to say that during the Inspections of District Accounts Offices, it has come to notice that for the sake of avoiding lapse of funds, the Executive Engineers deduct securities in excess of prescribed limit!

2. I am, therefore, to say that the Rules. 2.63 & 2.66 of the Buildings and Roads Code may be observed in letter & spirit while deducting securities of the Development schemes on cheques submitted by PWD Officers.

1. When awarding contracts, tenders, which should always be sealed, must be invited through the most open and public manner possible. This can be done by advertisement in the Government Gazette or local newspapers, or by notice in both English and the vernacular, posted in public places. This process should occur after the estimate has been technically sanctioned and the contract documents have been approved by an authority not lower than that empowered to accept the tender. Tenderers should have unrestricted access to the contract documents. The notice must include the following details:
   • 1st — The location and time at which the contract documents can be viewed and the blank tender forms obtained; also, the fee, if any, for such forms of tender.
   • 2nd — The location, date, and time for submitting tenders. The notice period after the first advertisement should be: (a) for works costing more than Bs. 50,000, a one-month notice; (b) for works costing between Bs. 20,000 and Bs. 50,000, a 15-day notice; and (c) a 10-day notice for all other works. If urgency requires a shorter notice, approval from the Superintending Engineer should be obtained to reduce the notice period.
   • 3rd — The amount of earnest money to accompany the tender and the security deposit required for the accepted tender.
   • 4th — The person or authority with whom the acceptance of the tender will rest.
2. The authority should reserve the right to reject any or all tenders received without providing a reason, and this should be clearly stated in the advertisement.

2.62

1. At the advertised time and place, all tenders received for the same contract should be opened by the Divisional Officer or another authorized officer in person, in the presence of the contractors or their agents who may choose to attend. The Divisional Head Clerk and Divisional Accountant should also be present when tenders are opened. No tender should be accepted from any person directly or indirectly connected with public service. A declaration must be obtained from the tenderers before opening the tenders. This rule does not apply to Government pensioners, as referenced in paragraph 1.148.
2. A wooden or padlocked box should be kept in Divisional Offices for receiving tenders. The key should remain with the officer responsible for opening the tenders, and the box should be opened in his office, not at his residence.

2.63

No tender for the execution of works of any kind should be accepted without a treasury challan for the deposit of earnest money to the extent specified by the officer inviting the tenders.

IV—Security for performance of contracts

2.66 Security should in all cases be taken for the due fulfilment of a contract. This security may be:—

a) The earnest money deposited under paragraph 2.63.

b) A deduction of 10 per cent from the monthly payments to be made on account of work done.

V—Provision in contract for imported stores.

2.67 In framing contracts of any description, care should be taken to retain in the hands of Government the supply of imported materials, if required to any considerable extent, and to arrange the terms accordingly. Such stores should either be supplied from the existing Government stock or be obtained in the ordinary course as per rules of store purchasing office of West Pakistan Government.

VI — Enforcement of terms of contract

2.68

1. Engineers and their subordinates are responsible that the terms of contracts are strictly enforced, and that no act is done tending to nullify or vitiate a contract. All contract deeds must be executed on one or other ^of the standard forms, but they may be modified to suit local requirements after consultation with the legal advisers of the West Pakistan Government, All agreements or security bonds entered into with the Buildings and Roads Department by contractors for the execution of work or for securing the due performance of contracts are exempt from stamp duty. Registration fees on all contracts for manufacture and supply of wicks must be paid by the contractor as he is required to register the tender.
2. When according to the terms of the contract, a Superintending Engineer acts as an arbitrator, he should, in giving an award, keep in view the instructions contained in Appendix VI.

VII— Officers Empowered to Execute Contracts.

2.69 No authority lower than an officer in charge of a .Division can accept any tender or make a- contract for public works. The different classes of deeds, contracts and other instruments which may be executed by this Department and the authorities empowered to execute them are detailed in Appendix I, while the financial limits up to which the authorities are authorised to determine the terms of deeds, are set-forth in Annexure B of this chapter.

2.70 It is not the intention to prevent the officers empowered in this respect from giving out to different contractors a number of contracts relating to one work, even though such work may be estimated to cost more than the amount up to which they are empowered to accept tenders.