Chapter 4 Accounts in PWD

The various forms used in PWD:

1. Form 24: First and final bill.

2. Form 25: White – Running Account Bill A.

3. Form 26: White – Running Account Bill B.

4. Form 26: Yellow – Final Bill B.

5. Form 27: White – Running Account Bill C.

6. Form 27: Yellow – Final Bill C.

7. Form 27 A: Running Account Bill D.

8. Form 27 B: Final Bill.

9. Measurement Book – Form No. 23.

10. Nominal Muster Roll – Form No. 21.

11. Imprest Cash – Form No. 2.

12. Cash Book – Form No. 7.

1. Form 24: First and Final Bill: For a single payment, form 24 is used for making payment to the
contractor both for works and supplies.

2. Form 25: White-Running Account Bill A: For advance payment without any measurement,
this form is used for the works only but not for supply.

3. Form 26 : White-Running Account Bill B: This type of form is used so as to secure the
advance payment for works only and it can also be used for running payment partly for secured
advance, partly for measured works and partly for to advance.

4. Form 26: Yellow – Final Bill B: In case if the recovery of secured advance payment is done
already, then form 26-Yellow is used for payment of final bill for adjustment. If the advance is
already recovered then in such case final bill is prepared on final bill C (i.e. Form 27 Yellow).

5. Form 27: White – Running Account Bill C: This type of form is used for the payment of
measured works or supplies. Note that if there is an advance outstanding against the contractor, then
this type of form is not used.

6. Form 27: Yellow – Final Bill C: When there is no advance outstanding against the contractor
and intermediate payment is to be made, then in such case, this type of form is used.
7. Form 27 A: Running Account Bill D: When the account payment is to be made to the
contractors on lump-sum basis or lump-sum contract, then in such case, this type of form is used.

8. Form 27 B: Final Bill: This type of form is used for making the final payment to the contractors
on lump-sum basis.

Above mentioned forms are the standard forms of bills used for making the account payment to the
contractors or supplier in various cases like secured advanced payment, part payment, lump-sum
contract etc.

Various account forms:

1) Measurement Book.

*Format of Measurement Book

* Importance of Measurement Book:

1. It is very important account record. It is the book in which measurement of all works and
supplies are recorded.

2. All the payment of all works is done based on entries done in measurement record.

*Following precautions to be taken while making entries in Measurement Book:

1. Entries are made by J.E. and certified by S.D.O or A.E. Officer should certify with a remark as
“measured by me” at the end of each task work or set of measurements and with his full signature
with date

2. All entries are recorded in ink directly in M.B.

3. No entry is allowed to be erased.

4. If any correction is required, it must be initialed by the officer who made the measurement.

5. Measurements are taken in the presence of contractor, and his signature is taken in M.B.

6. Entries should be recorded continuously and no blank space or pages left or torn off. Any pages
left blank should be cancelled by diagonal lines and signed by authority.

7. The M.B. contains name of work, name of contractor, date of measurement, location, date of
work order, and number of measurements.

* E- Measurement Book: e - MB is the solution for many problems like

• Measurements are repetitive and every time specification has to be written spending huge man
hours. This can be avoided by picking up Specifications from the database.

• Greater precision in computations and reduction in human errors can be achieved

• Increased productivity and efficiency can be achieved. Engineers can utilize this saved time and
concentrate on quality.

• Monitoring by higher officials is possible and fraud, if any, can be detected at the early stage.
Measurements recording mechanism is transparent. Officers can view, review and monitor
execution. Higher authorities can keep watch on works progress, specifications, quantities executed
against the estimated quantity since the same is available online.

• Save space in storage and tampering and loss of records is avoided.

• Monitor taxes and other deductions.

• Abstract can easily be prepared.

• Bill can be generated quickly.

• If connected to payment gateway transfer of funds is online and quicker.

2)Nominal Muster Roll (NMR): The muster roll which is maintained to keep the record of works
being done by a labour employed on each day and to mark the attendance of the labour employed on
daily wage basis, employed departmentally is called as Nominal Muster Roll.

NMR has two parts.

Part I: Nominal roll used to mark daily attendance of labour with his name, designation, date of
attendance, rates, total amount due ,signature of person taking attendance and signature of officer
making payment.

Part II: The details of measurement of the work done are recorded in measurement book and item
wise abstract is prepared and this abstract is recorded in this part.
*Uses of NMR:

i) It is used to mark the attendance of labour employed departmentally.

ii) It can be used to make the payment of departmental labour.

iii) To keep record of paid & unpaid wages.

*Precautions for writing in NMR:

i. The sectional officer / S.A.E. in charge of the works should record the attendance of muster roll
in part I daily at the time of roll call and check once during the day.

ii. The Assistant Engineer or the Executive Engineer should conduct surprise checks frequently to
ensure the entries of workers.

iii. During marking attendance in the Muster Roll, father’s / husband’s name of the labours and
workmen along with their permanent address should invariably be mentioned.

iv. If any wages remain unpaid, details thereof should be recorded in the muster roll.
v. In part II of the Muster Roll work done by the labour and workmen employed on the muster roll
should be recorded.

vi. The worker who has no permanent residences, the village or locality where they normally reside
should be mentioned.

3)Imprest Cash: A standing advance or advance amount of a fixed sum of money given to Sub-
Divisional officer and sub- Assistance Engineer so as to make day to day petty payments is called as
an imprest cash.

*Uses- i) In P.W.D individual officer are given a permanent advance of Rs. 1000/- for the petty
expenses & to make payment in connection with government work. ii) From this amount they can
pay transport charges, miscellaneous payment of materials. Accounting of these works is known as
imprest cash account.

4) Indent: Materials from the stock are issued on demand in a proper form no.7 is termed as Indent
which is prepared by Sub Divisional Officer or Assistant Engineer. Indent form is in triplicate
consist of counter foil, indent and invoice; and is kept in a book serially numbered.

*Use of Indent: 1. Procurement of material from store.

2. Materials from the stock are issued on demand.

Format of Indent-
5) Invoice: The acknowledgement of the receipts of goods is called as invoice.

*Use of Invoice- 1. It is used as a token of acknowledgement of the receipt of goods. 2. The issuing
officer issues the material available in stores and then fills the invoice as actual goods issued. (The
counter foil and indent are filled by intending officer and along with invoice, it is sent to issuing
officer. The issuing officer issues the material available in stores and then fills the invoice as actual
goods issued. He then returns the invoice to intending officer who signs and returns the same to
issuing officer as a token of acknowledgement of the receipt of goods.)

6) Bill: Bill is the account of work done or supply of materials made, and included the particulars
and quantities of work done or material supplied their rates and amount.

7) Voucher: A legal receipt prepared for the purpose of proof against payment made is called as
vouchers. It is a written document with details which is kept in record as a proof of payment.

8) Cash Book: The form in which all cash transactions taking place day to day are strictly entered in
order of occurrence is called as cash book.
*Following are the modes of payment to the contractor or Following are the various types of
advances which are granted to contractor by site-in charge:

1. Interim payment. 2. Advance payment. 3. Secured advance. 4. On account payment. 5. First and
final payment. 6. Retention money. 7. Reduced rate payment. 8. Final payment. 9. Mobilization
advance.

1) Interim Payment: A partial payment given to the contractor monthly for works in progress or
supply in progress under the terms of contract is called as interim payment. Note that interim
payment is not being considered as final acceptance of the work up to that level. Powers are given to
the engineer to hold the interim payment under special circumstances. The interim payment is
necessary due to following reasons:

1. In case of large project, the contractor has to invest the large amount for a longer duration and
this is not suitable or possible to the contractor. Progress of project work may affect due to lack of
funds with the contractor. In such case, the interim payment is made to the contractor so as to
continue the progress of project without any break.

2. The interim payments also indicate the approximate value of work done by contractor.

3. If the bills are paid to the contractor at interval, there will be the check over the progress of the
project work. Hence the progress of the work must be in proportion to the duration of the project.

4. Amount of money is required by contractor against the material purchased by him.

5. The engineer in charge measured all the work done by him and payment is made after the
necessary deductions like recovery of dues, security deposits and advance if any. Interim payment
is an amount or money disbursed to contractor on running account payment, advance payment,
secured Advance payment, mobilization advance etc. PWD form no 47 is used for making interim
payment the work done or supplies are duly recorded in MB and contractor is paid from time to time
in such way that during progress of work he receives an amount which compounds to the extent of
work done by him.

2) Advance payment: The payment made on a running account to a contractor for work done but
not measured is called as advance payment.

3) Secured Advance: An advance payment made to the contractor on the basis of the security of
materials brought by the contractor to the site of work under construction is called as secured
advance. Authority to make the secured advance is in the hand of Divisional Engineer up to the
amount not exceeding 75% of the value of the materials brought to the site by contractor. Amount of
secured advance is adjusted in the next running account bill within proportion to that of actual
consumption of the materials.

4) On Account Payment: The payment made on running account to the contractor for the works
done by him or supplies by him which is measured and recorded in measurement book (M.B) is
called as on account payment. This type of payment is made when only a part of the complete work
or supply has been done and the work or supply is in progress. 10% amount is kept as deposit, out of
which 5% amount is to be refunded at the end of the maintenance period. Note that percentage of
amount may vary or change.

5) Petty Advance: A small amount given in advance to the engineer in charge in case of emergency
needs is called as “Petty Advance”. The engineer in charge can utilize the petty advance for
purchasing the material in small quantity and which is not very costly. In such case, there is no need
of any quotation and approval by the competent authority.

6) Temporary Advance: The amount which is advanced by disbursing officer to a subordinate

officer so as to make the specific payment is called as temporary advance.

7) Mobilization Advance: Before starting any Civil Engineering project, certain establishments like
approach roads, labour huts, place for storage of materials, site office, water supply and electrical
facilities etc are required to be established. These establishments ensure the proper use of the
resources and efficient and smooth working with safety on the project, this is called mobilization.
The amount of money given for above establishment by the department to the Contractor is called
Mobilization advance. This advance is given to the contractor when he asks to the department in
writing. It is paid only after payment of security deposit by contractor to the department.

8) Retention Money: Some amount to be hold from the security deposit of contractor by the
Engineer-in-charge, when there is any claim for the payment arises out of or under the contract
against the contactor is called as “Retention Money”. It is amount of money or sum retained with
the owner or department from the running account bills to have additional hold on the contractor so
that he will not be encouraged to abandon the work when nearing completion. The amount retained
from monthly payment may be 10 to 15 % .If the contractor fails to rectify the defects during defect
liability period then this amount maybe used to rectify defect. Suitability: i) To rectify defects ii)
Left out work can be executed by this money. iii) To meet the damages if any.

9) Reduced Rate Payment: The payment which may grant by the engineer with the reduced rate
when contractor completes an item or work not as per the specifications, drawings given in contracts
terms and conditions is called as “Reduced Rate Payment”.

*Points to be confirmed before making final bill:

1. The junior engineer should certify the satisfactory completion of work.

2. All measurement should be taken accurately.

3. All entries in the measurement book with regards to measurement and quantities of work are
checked.

4. The description of item is according to the contract schedule.

5. The quantities executed are according to the sanctioned plans and estimate.

6. Arithmetical calculations of measurement of quantities of item are verified.

7. When the bill is running account, then it is compared with the quantities etc. with the previous
bills.

*Types of payments made to a contractor.

Types of payment made to contractor are as below:

1. First and Final Payment: A single payment made for a small job or small work on its
completion is called as “first and final payment”. This type of payment is usually made or
applicable for small work only. For example, construction of sanitary block for school building,
component wall construction, septic tank construction, ornamental grill work, demolishing existing
structure etc. are the examples of small work for which the first and final payment are made to the
contractor. Form number 24 is used for it.

2. Running or interim ‘on account’ payment: This means payment made on a running account to
a contractor for works done or supplies made by him, duly measured and entered in measurement
book.

3. Final Payment: This is the last payment made to a contractor on a running account, on
completion of this contract and the full settlement of the account.

4. Advance Payment: This means the payment made on a running account to a contractor for work
done by him but not measured.

5. Secured Advance Payment: This payment is made on the security of materials brought by the
contractor to the site of work, when the contract is for the completed items of work. This type of
payment may be allowed by the Executive Engineer in the interest of work up to an amount not
exceeding 75% of imperishable materials.