Completion Reports - Works Contracts

 

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. 

 

Objects:  

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 the financial year in which the completion 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

COMPLETION REPORT FOR THE WORK................

Particular Heads of Account and Description of works	Amount of Estimate with reference to authority for sanction	Actual Expenditure	Difference		Remarks & Explanations
			Excess	Saving

• Explanations: 

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

 

2. 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 that 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. 

 

2. 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  

 

3. 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

Suggestions: 

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.

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Works Tenders - Types of

 

Tenders in Works  – Types

1. Open Tenders or Advertised tenders.

2. Limited

3. Special Limited tenders.

4. Single Tender.

1. Open/Advertised tenders:

ü  Open tendering system is the widely used one as it ensures fair competition by which reasonable rates can be obtained.  The system of invitation to tender by public advertisement in the most open and transparent  manner possible should be used as a general rule and must be adopted.  Powers to invite Open tenders Vide item No.6 of part-A of MSOP.

ü    Powers have been delegated to officers at different levels to call open tenders. 

ü  Generally before calling tenders, vetted sanctioned estimate for the work proposed to be tendered for, should be available and also other requirements such as funds availability, approved drawings, site availability, materials to be issued by Deptt etc., .   In the absence of sanction of detailed estimate, pre-vetting of tender schedule is to be taken.

2. Limited tenders: 

ü  Where for reasons which should be in the public interest, it is considered not practical or advantageous to call for open tenders, Limited tenders may be invited with the concurrence of FA&CAO and approval of competent authority

ü   Limited tenders are to be invited from contractors borne on approved list. 

ü  In S.C.Rly, PHOD/CHOD is having powers to call Limited tenders up to Rs.5 crores in each case, HOD/DRM/ADRM/CSM is having powers up to Rs.1 crore. JAG officers have powers to call LT up to Rs.25 lakhs.  At least 10 names should be on the approved list of contractors.

3. Special Limited tenders:

     

ü  This type of tendering system is adopted for works of specialized nature, works of urgent nature and consultancy works.  Finance concurrence is necessary. 

ü Special LT will be invited from the specialized and reputed contractors/organizations/agencies.

ü   Tenders from whom Special LT are to be invited should preferably be more than six but not less than four. 

ü  Tenderers need not be borne on the approved list.

4. Single tender: 

ü  Single tender is invited in case of emergencies, accidents, breaches involving dislocation to traffic. 

ü  The powers to be exercised in times of cyclone, floods, accidents, sabotage, enemy action, explosions, cases of extreme urgency such as works or supplies necessary to safeguard life or property or repair damage to track caused by flood breaches,  washaways, accidents or other unforeseen contingency so as to maintain through communication.

ü   For restoration of traffic within shortest possible time, single tender is invited from the experienced and reputed contractor who has the previous experience of having executed such emergency works. 

ü   CAO/Con is having full powers to call single tender in case of works of specialized nature only.

ü   Finance concurrence is necessary. Estimate provision should be available to meet the expenditure incurred through quotation route. 

ü  To dispense with calling of tenders for works which are urgent in nature and to accept offers received in response to quotations. Finance concurrence is necessary. Powers have been delegated in Item No.5 – F of part – A of MSOP- works matters. 

ü  The powers shall be exercised by the officers with their administrative approval.  The powers should be exercised sparingly. The circumstances under which quotations have to be called should be spelt out. Quotations should not be for items which can be executed through the existing contracts including zonal contracts. Quotations should not be for fancy items. After finalization of the quotations, work order will be placed on the selected bidder. 

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