Power plant PRESENTATION - AUDIT OF WORKS.pptx

Power plant

1. AUDIT OF WORKS – A CASE STUDY

2. ASCERTAINING THE NECESSITY OF WORK Whenever necessity for execution of any work is felt, a Board of Officers will be convened by the staff authorities to assess the requirement of the same. The Board of Officers will personally visit the site where the work is proposed to be got executed and ascertain the actual requirement of work with cost implication thereof. After taking all the aspects into consideration, the Board of Officers will recommend (or state otherwise) regarding execution of work at the stated cost. It will also state whether the work is “authorized” or “special” and also deliberate on the necessity of providing “special items of work”.

3. The proceedings of Board of Officers will contain the following documents:- a) Statement of case justifying necessity for execution of the work b) Approximate Estimates Part-I & II c) Engineer Appreciation d) Electrical load, water availability certificate e) Correctness certificate from Garrison Engineer f) Layout plan g) Non-encumbrance certificate h) Land availability certificate i ) Land status certificate j) Scope of Work

4. Proceedings of the Board of Officers will be put up to the Commanding Officer of the Unit and will be concurred by him. After this, the work will be processed with the Competent Financial Authority for according sanction. The work will be sanctioned by the CFA. The sanction letter will contain the job number, the time required for physical completion of the work under normal circumstances and also indicate the head of account to which the expenditure will be debitable .

5. TYPES OF SANCTIONS Administrative Approval (Sanction) is the communication of formal acceptance of the proposals by the competent financial authority of the Administrative Department requiring the work. Expenditure sanction is to be accorded by the Administrative Department to indicate that funds for the project/work have been provided, and liability can be incurred. Technical Sanction amounts to a guarantee that the proposals are technically sound, and that the estimates are accurately prepared and are based on adequate data.

6. BASIC PRINCIPLES (a) No work can commence without obtaining administrative approval of the competent financial authority and sanction to incur the expenditure proposed. (b) The rules also require that preparation of preliminary estimates should precede sanction of work by the administrative authority. (c )Issue of sanctions and preparation of cost estimates has a direct bearing on the total project cost, quality of works executed and timeliness of completion of road works.

7. (d) 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. (e) 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. (f) If an approved work is not commenced within one year of the date of Administrative Approval, Revised Administrative Approval from the CFA should be taken.

8. (g) No work services will be executed without administrative approval, formal allocation of funds and technical sanction from the Competent Authority in each case. (h) However, works initiated for urgent military reasons are laid down in Paras 34 to 36 of Defence Works Procedure. ( i ) No project or work service will be split up to bring it within the powers of a CFA at a lower level.

9. ORIGINAL WORKS All new works are original Works which may comprise works services like construction of buildings, workshops, storage depots, etc. including their internal fittings and fixtures as well as roads, E/M services, water supply, drainage, other utility services, arboriculture, ranges, furniture etc.

10. Original Works are further sub-divided as :- (a) Authorised Works. Works Services for which scales are laid down by the Government of India are referred as authorized works. (b) Special Works. Items of works services not falling within para (a) above are referred to as “Special Works”. These may be approved only when exceptional local conditions justify the necessity, or as an important experimental measure. Special Works are not to be approved if the effect would be to introduce a new practice or change of scales.

11. SCALES OF ACCOMMODATION ( SoA ). The SoA approved and issued by the Government are intended to serve as a close guide . Minor variations in individual cases can be made at the discretion of the CFA at the time of according AA with reasons recorded in each case, provided such variations do not create any precedence. Where no scales have been laid down and there are no orders prohibiting the undertaking of those works, the CFA may sanction “ Special Works” if it is customary or technically essential to provide the same. SUPERIOR SPECIFICATIONS to those mentioned in Scales of Accommodation or approved/ sanctioned by the Government from time to time will be termed “Special”. Their incorporation in works at any stage during planning or execution without prior approval of the CFA is not permitted.

12. REPAIRS Repairs are classified into two broad categories (a) Ordinary Repairs; and (b) Special Repairs ORDINARY REPAIRS Replacements and renewals costing up to Rs.4,50,000/- for each item. Repairs, renewals and replacements of E/M installations and other external utilities costing up to Rs.6,00,000/- in each case. Replacements of furniture of value up to 50% of annual maintenance grant for furniture on station basis in respect of furniture declared as condemned /beyond economic repairs by the appropriate authority.

13. SPECIAL REPAIRS Consist of renewals and replacements costing beyond the monetary ceiling for ordinary repairs Special Repairs will be treated as Original Works irrespective of the cost. In case where special repairs and additions & 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. Special Repairs will not be permitted in a building/ portion of building/ asset within five years of completion of the original work. Also Special Repairs will not be permitted to be repeated within five years in the same portion of building/ asset.

14. SPECIFICATIONS All works catering to short-term requirement, not more than five years, will be in temporary construction and built to specifications of the lowest possible type having regard to availability of material and the purpose of the facility or service. Specifications for temporary buildings/assets will be laid down by Zonal CEs. Specifications of all permanent buildings (required for more than five years) shall be framed as per the approved zonal specifications. No special items of works or superior specifications will be included without specific approval of the CFA.

15. APPROXIMATE ESTIMATES The competent engineer authority will prepare the Approximate Estimates (and RIC) in the prescribed Proforma . No special items of works or superior specifications will be included without specific approval of the Competent Financial Authority.

16. ADMINISTRATIVE APPROVAL Administrative Approval will be accorded by the Competent Financial Authority (CFA) to the execution of the works after due examination of the Approximate Estimates. It will be ensured that AEs are updated to conform to prevailing percentage of market variation. It will state clearly whether the works being approved are authorized or special. Time for completion of the works will be clearly indicated in the AA. Extension of time will be accorded by the CFA. While issuing AA, the requirement of formal allocation of funds will be complied with. AA will be considered as release of the works.

17. REVISED ADMINISTRATIVE APPROVAL In case it becomes necessary to obtain a revised administrative approval, a revised estimate will be prepared, the original and revised figures being shown in parallel columns of a comparative statement. Revised Administrative Approval will be essential before tender action if there is any change in scope of work due to any reason, irrespective of whether the cost is within the tolerance limit or not. No change in site is permissible. However, in exceptional circumstances, approval of CFA one level higher will be obtained

18. If upward revision of cost estimates beyond the tolerance limit is anticipated without any change in scope of work, then the preparation and submission of Revised AEs will be initiated. Tendering and contract planning may, however, continue; but acceptance of tender/ conclusion of contract be made only after obtaining RAA/ FC . If additions become necessary due to revision of scales or establishments or for other specific administrative reasons, a revised estimate will be prepared and RAA obtained from the CFA for the entire work (Supplementary Works).

19. URGENT WORKS If for urgent military reasons, unforeseen operational necessity or urgent medical grounds or out of natural disasters or imminent danger to buildings, roads etc., or of a breakdown of supply from an E/M or water supply installation, when reference to the appropriate CFA would entail dangerous delays, any Commander may order the commencement of required work by furnishing an order in writing to the engineer officer concerned. This procedure, however, does not dispense with the necessity for the issue of Administrative Approval by the CFA based on subsequently prepared Approximate Estimate at the earliest opportunity not exceeding six months after commencement of works.

20. TECHNICAL CONTROL Technical Sanction to detailed cost estimates , issued by the CEA, amounts to a guarantee that the works proposals are structurally sound and that the estimates are accurately calculated and based on adequate data and related ground factors. Ordinarily TS is accorded only after AA. Powers for accord of TS are laid down in RMES Table ‘B’. Schedules of works will be prepared along with requisite designs and drawings, costed and technically sanctioned by the CEA before tender documents are issued. Costed schedule of works will be in strict accordance with the AA so far as scope of work and scales are concerned. The CEA before according TS to a sub-project must be satisfied that the amount of TS for the whole project is not likely to exceed the amount of AA including the tolerance.