Railway Accounts Department Examinations

Tuesday, October 26, 2021

Completion Reports

 Completion Reports

  •  Source: 17th Chapter of Engineering Code   

  • At the time of closing of Construction works, any items which were in progress should be completed and the accounts of the Project should be closed as soon as possible.  

  • The Project Engineer should therefore take prompt action as follows:

  1. To bring into account all charges and credits pertaining to the Project. 

  2. Take steps to liquidate all outstanding liabilities.

  3. Clear Suspense balances.

  4. Pay up outstanding Contractor’s claims

  5. Dispose of all surplus stores and tools and plants returned from work. 

  6. After all charges and credits relating to the Project have been booked in the accounts of the Project, a CR - Completion report of the Project should be prepared. 



  1. To compare the cost of work actually constructed with those provided in the last sanctioned estimate . 

  2.  To close the accounts of the work. 

  3.  To serve as a lesson to prepare the estimates for similar future works more realistically.

  4.  To regularise the excess over sanctioned estimate

  5.  To transfer the expenditure reported in CR to Open Line through TWFA

  • Details: It should state the expenditure in the same details as the abstract estimate sanctioned by the Railway Board and should indicate any material modifications thereto. 

  • Verification: By Accounts Officer

  • Submitted to:  Railway Board

  • Target: Within 18 months from the end of financial year in which the completed estimate is submitted. 

  • Example:  Suppose the Completion estimate is sanctioned in June, 2018.  The end of the Financial year is March, 2019. Hence the due date for submission of Completion Report is 18 Months from March, 2019 i.e., September, 2020. 


  •  Addl information in CR:  Any other information as would in the opinion of the Railway administration be of interest to the Railway Board. 


  • Form E. 1706


Particular Heads of Account and Description of works

Amount of Estimate with reference to authority for sanction

Actual Expenditure


Remarks & Explanations



  • Explanations: 

  1. Excesses:  Not less than 10 % or Rs. 25000 whichever is less over the Estimate  - Sub work wise. 


  1. Savings: Not less than 20 % or Rs. one Lakh whichever is less over the Estimate  - Sub work wise. 

  • If variations are within 5 % of the Sanctioned Estimate, the respective Engineer is authorised to approve CR behalf of GM.  


  • CR of New Railway Lines:   Accompanied by a Comparative statement showing the literal prospects of the line as anticipated and updated with ref to the Completion Cost. While working out, the changes happened for the estimate of Earnings up to the date should have been taken into account while working out the financial prospects. 


  • CR of Works costing less than Rs. One Crore

  1.  Should be considered as completed when it funds the purpose for which it when sanctioned, was intended,

  2. and when there has been no expenditure thereon for 3 months thereafter. 

  3. All outstanding debits and credits - as a rule adjusted in the account of work within 3 months of the date of completion. 

  4. The account of a completed - should be closed 6 months after the date of completion and CR should be drawn.

  5. CR should be prepared in the same work as that for works costing over Rs. One Crore. 

  6. Explanations:  Excesses and Savings - 5% or Rs.10000 whichever is less.  

  7. Should be submitted within 6 months of the Completion of the Work.  

  8. No expenditure is recorded for 3 consecutive months - Accounts officers should call for the CR. 

  9. Uncompleted Works - The executive officer should advise the Accounts Officer of the probable dates of completion and submission of the completion reports.

  10. Abnormal delay in the submission of reports by the executive officers should be brought to the notice of the Head of the Railway Administration by the accounts Officer.

  • Sanctioning of CR: 

  1. The authority who accorded the Administrative approval to the work for information or regularisation. 


  1. Structural & Track Renewal works or Works costing over Rs.2.5 Crores included in the Budget with prior approval of Railway Board or Out of Turn works sanctioned with the administrative approval of Railway Board being beyond the GM’s powers         -   GMs  


  1. Where Material modification involved or beyond the GMs powers  - Railway Board.  

Accounts verification: 

  1. Check that the CRS have been prepared in the proper form

  2. Check the entries with the particulars of sanction and  booked outlay. 

  3.  Correctness of postings of all final bills in the CR

  4. Test checking the correctness of a percentage of other items. 

  5. Satisfactory explanations for excesses and savings. 

  6. Unused materials are returned to Stores or  transferred elsewhere and the account of work credited with their value. 

  7. CRRM - Credits for the Railway Released Materials provided in the estimate - adjusted against the work or not

  8. Verification Certificate should state the authority competent to sanction the outlay in the Report. 

Completion Statements: 

  • In case of works - Expenditure on such works is within the competence of the Head of Railway to sanction.  Formal CR on the prescribed form need not be prepared. 

  • All information required in CR, the Accounts officer certificate and the sanction of the competent executive authority may be recorded in the Works Registers under the relevant columns. 

  • E1744 - Completion Statement

  1. Reference to estimate.

  2. Amount of sanctioned estimate.

  3. Actual expenditure as finally booked.

  4. Brief explanation of excess or saving. 

Problems facing drawal of CRs

  1. Works Registers not being up to date

  2. Old works –no Records

  3. Final Bills yet to be passed

  4. Adjustments pending

  5. No Funds

  6. Arbitrations and Disputes

  7.  Lethargy and Slackness

  8.  No adequate  monitoring at higher levels

  9.  Frequent changes in staff/Jurisdictions 

  10.  Lack of interest & guidance

  11.  Large variations in Cost and Sanctions

  12.  Non-realisation of Credits 

  13.  Vigilance Cases/Audit Objections

  14.   Mobilisation Advance remaining unrecovered 

  15.  Compensation for land acquisition not finalised in courts


  1. Reconciliation of Works Registers with the records available in the Accounts Office. 

  2.  Draw up provisional CR in case any Arbitration case is pending or balances lying under MAS or MAC (Risk & Cost) 

  3. Submission of Part CRs to the coordinating Dept for inclusion in the General CR. 

  4. Finally, after the sanction of Competent Authority is obtained, action is to be taken to write to Sr.EDPM to close the work code, for stopping further printing of Works Register.

  • accounting and financial principles envisage that the accounts of the completed works should be closed as expeditiously as possible so that the housekeeping in both the Accounts and Executive Departments will be in order.


Thursday, October 21, 2021

Tuesday, October 19, 2021

Arbitration & Conciliation


Arbitration & Conciliation

  • Settlement of Disputes - 3 Stages

  1. Conciliation.  If it fails, then


  1. Arbitration. If this one too fails, then

  1. Judicial proceedings


●     Authority: Click for Indian Arbitration & Conciliation Act, 1996. New Act is “Indian Arbitration & Conciliation Act, 1996 - Simple, straight and easy in its understanding & implementation. It repeals the Arbitration Act, 1929. 

●     Source: Clauses 63 & 64  Click for GCC for Works, 2020 July  

  • 90 days - If the Contractor does not prefer his claims in writing within a period of 90 days of receiving the intimation from the Railways that the final bill is ready for payment, he will be deemed to have waived hi claim and the Railways shall be discharged and released all liabilities and under the contract in respect of these claims. 

What is Conciliation ?

  1.    The action of mediating between two disputing people.

2.    An alternative out of court dispute resolution instrument.

3.    An alternative to Arbitration too.

4.    The parties seek to reach an amicable dispute settlement.

5.    The Conciliator, a neutral third party assists the conciliation process.

6.    Voluntary proceedings. Both parties are free to agree to it.

7.    The process is flexible, allowing parties to define the time, structure and content of the conciliation proceedings.

8.     The ultimate decision to agree on the settlement remains with the parties. 



  1. Notice of Dispute:   By Contractor to Railways  - Within 30 days from the date of issue of Completion Certificate by Chief Engineer.

  2. Notify the name(s) of Conciliator(s) to the Contractor  - Within 30 days from the date of receipt of “Notice of Dispute”

  3. Conciliator(s) shall assist the parties to reach an amicable settlement in an independent and impartial manner within the terms of contract.

  4. During Conciliation proceedings - Parties shall not initiate any arbitral or judicial proceedings.  

  5. If parties reach an agreement due to the above efforts of Conciliator - Draw up and Sign a Written Settlement Agreement by all parties and Conciliator and it is final and binding for all.  

  6. Termination of Conciliation proceedings (Section 76 of ‘The Arbitration and Conciliation Act, 1996)   

  • By the signing of the settlement agreement by the parties, or

  • By a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, or

  • By a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated,  or

  • By a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated.

 ● What is Arbitration?


1.    Use of an Arbitrator to settle a dispute between parties arising out of contract.

2.    An inbuilt mechanism in Contracts.

3.    Without going through the judiciary.


Who is an Arbitrator ?

 An Independent person or body officially appointed to settle a dispute.


Reasons for Arbitration cases


1.     Site not handed over in time due to delayed land acquisition.

2.    Non removal of Powerline crossings

3.    Non availability of P.Way materials

4.    Delay in obtaining clearances from Forest Dept, Environment ministry etc

5.    Not preparing plans/drawings/designs in advance.

6.    Inadequate delay in issuing instructions.

7.    Frequent changes in Scope, Design, Plans of work during the tenure of contract.

8.    Non finalization of variation statements

9.    Delay in making measurements and arranging passing of bills

10.  Inadequate funds availability leads to delay in payments

11.  Non attending grievances of contractor promptly

12.  Improper fixation of completion of time leading to number of extensions.

●     Excepted matters are not arbitrable. Clauses 8, 18, 22(5), 39, 43(2), 45(a), 55, 55-A(5), 57, 57A,61(1), 61(2) and 62(1) of Standard General Conditions of Contract or in any Clause (stated as excepted matter) of the Special Conditions of the Contract)  -  Decision of the Railway authority shall be final and binding on the Contractor.


  1. Clause 7(j) - Assignment or Subletting of Contract: Further, in case Engineer is of the view that subcontractor’s performance is not satisfactory, he may instruct the Contractor to remove the subcontractor from the work and Contractor has to comply with the above instructions with due promptness. Contractor shall intimate the actual date of discontinuation of subcontract to Engineer. No claim of Contractor whatsoever on this account shall be entertained by the Railway and this shall be deemed as ‘excepted matter’ (matter not arbitrable). 

  2. Clause 8 - Assistance by Railway for the Stores to be obtained by the Contractor:

  3. Clause 18 -Illegal Gratification, bribe, commission, gift or advantage provided by Contractor to the Railway Official.

  4. Clause 22(5) - Specifications and Drawings

  5. Clause 39 - Rates for extra items of work

  6. Clause 43(2) - After signing “No Claim Certificate” by Contractor

  7. Clause 45 (i)(a) - Measurement of Works by Railway:

  8. Clause 55 A (5) - Provisions of Contract Labour (Regulation and Abolition) Act, 1970

  9. Clause 57 - Provision of Workmen Compensation Act

  10. Clause 57 (A)- Provision of Mines Act:

  11. Clause 61(1) - Right of Railway to Determine the Contract

  12. Clause 61(2) - Payment on Determination of Contract

  13. Clause 62(1) -  Determination of Contract owing to Default of Contractor


Demand for Arbitration:

  • 120 to 180 days - If Railway fails to take a decision on Contractor’s claim within 120 days, Contractor shall make demand for Arbitration after 120 days but before 180 days from the date of Contractor’s claim


  •  In Writing

  • Specify the matters and claims

  • Within 30 days from the date of appointing Arbitral tribunal  - Claimant shall submit his/her claims with supportive documents.

  • Railway’s counterclaim  - 60 days from the date of appointing Arbitral tribunal.

  • Place of Arbitration:  Within Division or Hqrs or any other place with the written consent of both the parties. 


  • No new claim during the proceedings by either party. However either of the parties can amend or supplement the original claim or defense subject to the acceptance by the Tribunal. 


Cost of Arbitration  - borne by both parties equally.   

  • A party may apply for corrections of any computational errors, any typographical or clerical errors or any other error of similar nature occurring in the award of Tribunal and interpretation of specific point of award to Tribunal within 60 days of receipt of the award. 

  • Appointment of Arbitrators - Where applicability of Section 12(5) of Arbitration & Conciliation Act, 2015 (Arbitrator’s relationship with the parties or counsel ) has been waived off 

  • The serving Officer can continue as Arbitrator  in the Tribunal even after Retirement.

  • In case of Tribunal, comprising 3 members - Award shall be made by the majority of members of Tribunal.  In the absence of such a majority, the views of the presiding arbitrator shall prevail. 


Amount of Claim

No of Arbitrators



Up to Rs. one Crore


JAG and above

Above Rs. One Crore


3 JAG Officers & above


2 JAG Officers & above & 1 Retd SAG & above

  •  Appointment of Arbitrators - Where applicability of Section 12(5) of Arbitration & Conciliation Act, 2015 (Arbitrator’s relationship with the parties or counsel ) has not been waived off

Amount of Claim

No of Arbitrators



Up to Rs. 50 Lakhs


Retired SAG & above

Above Rs. 50 Lakhs


Retired 3 JAG Officers & above

Qualifications of Arbitrators: 

  1. Serving Gazetted officers of JAG & above 

  2. Retired Railway Officers of SAG & above , one year after his date of retirement

  3. Below 70 Years.