VEGA COACHING INSTITUTE

PWD CODE

GLOSSARY OF TERMS NIQ : Notice Inviting Quotations

NIT: Notice Inviting Tender
A/A & E/S : Administrative Approval & NITI Aayog : National Institute for Transforming
Expenditure Sanction India Aayog
ADG : Additional Director General OM : Office Memorandum
AEE : Assistant Executive Engineer PAC : Public Accounts Committee
AE : Assistant Engineer PAO : Pay and Account Officer
CA : Chief Architect PE : Preliminary Estimate
CCA : Chief Controller of Account PG : Performance Guarantee
CE : Chief Engineer PFMS : Public Financial Management
CPWD : Central Public Works Department System
CSSA : Cash Settlement Suspense Account PM : Project Manager
CTE : Chief Technical Examiner PMS : Project Monitoring System
DC : Departmental Charges PWD : Public Works Department
DDO : Drawing & Disbursing Officer QA : Quality Assurance
DE : Detailed Estimate SE : Superintending Engineer
DG : Director General SI : Sanitary Installation
DOE : Directorate of Estate SOP : Standard Operating Procedure
DPR : Detailed Project Report SOR : Schedule of Rates
E&M : Electrical & Mechanical TPQA : Third Party Quality Assurance
EE : Executive Engineer T/S : Technical Sanction
EI : Electrical Installation
EIA : Environmental Impact Assessment
EOT : Extension of Time
EPC : Engineering Procurement and
Construction
EMD : Earnest Money Deposit
GCC : General Condition of Contract
GeM : Govt. e- Market Place
GFR : General Financial Rule
GST :Goods & Service Tax
HVAC:Heating Ventilation and Air
Conditioning
IEM : Independent External Monitor.
JE : Junior Engineer
LOC : Letter of Credit
LOI : Letter of Intent
MAS : Material at Site
MB : Measurement Book
MoU : Memorandum of Understanding
MoHUA : Ministry of Housing and Urban
Affairs
MoUD : Ministry of Urban Development

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 DEFINITIONS
Accounts Officer – means the Head of an office of Accounts or the Head of a Pay and Accounts Office
set up under the scheme of departmentalization of accounts.

Audit Officer – means the Head of an office of Audit.

Administrative Approval – This terms denotes the formal acceptance, by the administrative department
concerned of the proposals for incurring expenditure in the Public Works Department on a work initiated
by, or connected with, the requirements of such administrative department. It is, in effect, an order to the
Public Works Department to execute certain specified works at a stated sum to meet the administrative
needs of the department requiring the work.

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

Appropriation – means the assignment of funds to meet specified expenditure included in a primary unit
of appropriation.

Assets – In the accounts of works, this term indicates all outstanding or anticipated credits, which have to
be taken in reduction of final charges.

Bank – means accredited bank acting as the agent of the Reserve Bank of India in accordance with the
provisions of the Reserve Bank of India Act, 1934

Book Transfer – This term is applied to the process whereby financial transactions which do not involve
the giving or receiving of Cash, or of stock materials, are brought to account. They usually represent
liabilities and assets of Government brought to account either by way of settlement or otherwise, but they
may also represent corrections and amendments made in Cash, Stock, or Book Transfer transactions
previously taken to account.

Charged – means expenditure which under the provisions of the Constitution of India is not subject to
vote by Parliament as enshrined in Article 112 (3) of the Constitution of India.

Chief Accounting Authority – means Secretary of the Ministry.

Competent Authority – The term “Competent Authority” means the Government or any other authority
to whom the relevant power may be delegated by Government.

Completion and Completed – The expression “completion of work” should be understood to include
“abandonment of a work”, and “completed work” to include “abandoned work”.

Contingencies (Works) – When used in respect of the account of works, the term “Contingencies”
indicates the incidental expenses of a miscellaneous character which cannot appropriately be classified
under any distinct sub head or sub-work, yet pertain to work as a whole.

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Contract and Contractor – The term “Contract” means any kind of undertaking, written or verbal,
express or implied, by a person, not being a Government servant, or by a syndicate or firm for the
construction, maintenance or repairs of one or more works, for the supply of materials, or for the
performance of any service in connection with the execution of works or the supply of materials. The term
“Contractor” means a person, syndicate or firm that has made such an undertaking, but often its use is
restricted to contractors for the execution of works or for service in connection therewith.

Deposit Works – This term is applied to works of construction or repair, the cost of which is met, not out
of Government Funds, but out of funds from non-Government sources, which may either be deposited in
cash or otherwise placed at the disposal of the Divisional Officer. Works executed for municipalities and
other public bodies fall under this category when the cost is chargeable to cash deposits made for the
purpose.

Direct and Indirect Charges – “Direct Charges” are those charges pertaining to a work, project, or job,
which are incurred directly for its execution and are included in the regular accounts of it. “Indirect
Charges” are those charges which pertain, or are incidental to a work, project, workshop job or
manufacture job, but which are not incurred directly or solely in connection therewith and thus cannot be
taken directly into such detailed accounts of its as are incorporated in the regular accounts of the
expenditure of the Department.

Division and Divisional Office – These terms are used to denote respectively the executive charge held
by a Divisional Officer and the head office of such a charge.

Composite Tenders: Tenders comprising of components of more than one discipline viz Civil,
Horticulture, Internal Electric Installations and other Internal &External Electrical Works including
Services.

Detailed Estimate: Complete and comprehensive estimate of a work, based on the rates given in the SOR
for those items covered by it and on market rates for the remaining items, supported by detailed drawings
and specifications.

Detailed Project Report (DPR): A detailed appraisal report of a project containing documents as
described in the Works Manual.

Earnest Money: Amount paid by a bidder in required form as a security for not backing out from his/her
tender before its acceptance or refusing to execute the work after it has been awarded to him/her.

Item Rate Tender: Tenders in which the contractors are required to quote rates for individual items of
work as given in the schedule of quantities.

Enabling Estimate: Estimate that is prepared for carrying out pre-construction activities of
a work.

Percentage Rate Tender: Tenders in which the contractors are required to quote rates on percentage
basis i.e. above or below the estimated cost put to tender.

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Restricted Tenders: Tenders of Secret/ Special nature requiring specialized equipment or maintenance
of VIP residences/important buildings invited from limited prequalified contractors.

Open Call of Tenders: Tendering process in which tenders are not invited on a restrictive call basis.

Final Payment means the last payment on a running account made to a contractor on the completion or
determination of his contract and in full settlement of the account.

Major Estimate is a term applied to the estimate for a work when the sanctioned amount of the works
expenditure exceeds Rs. 50,00,000/-. This term is also applied for the sake of convenience, to the work
itself. (Figures based on CPWD Manual 2019)

Minor Estimate is a term applied to the estimate for a work, when the sanctioned amount of the works
expenditure does not exceed Rs. 50,00,000/-. This term is also applied, for the sake of convenience, to the
work itself. (Figures based on CPWD Manual 2019)

Re-appropriation means the transfer of funds from one primary unit of appropriation to another such
unit.

Secured Advance is a term applied specifically to an advance made on the security of materials brought
to site of work, to a contractor whose contract is for the completed item of work.

Technical Sanction – This name is given to the order of competent authority sanctioning a properly
detailed estimate of the cost of a work of construction or repair proposed to be carried out in the Public
Works Department. Ordinarily, such sanction can only be accorded by Government in the Public Works
Department or by such authorities of the Department to whom the power has been delegated by
Government.

Voted – means expenditure flowing from Consolidated Fund of India duly voted by Parliament.

Work – The term “work” when by itself, is used in a comprehensive sense and applies not only to works
of construction or repair, but also to other individual objects of expenditure connected with the supply,
repair and carriage of tools and plant, the supply or manufacture of other stores, or the operation of a
workshop.

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1.0.ORGANISATION OF ENGINEERING DEPARTMENT:

The engineering department of the government deal with the construction and maintenance of
public works as buildings , roads , bridges and culverts , canals and connecting works etc..The Chief
Engineer is the head and is directly responsible to the Government
When there are large number of works , there may be Regional Chief Engineer , Additional Chief
Engineer , and Deputy Chief Engineers to assist the main Chief Engineer or the Engineer –in – Chief.
The functions are briefly explained below
1.1.Chief Engineer:
The Chief Engineer is the professional head of the department and is responsible to Government
for efficient working.
The Chief Engineer exercises control over the performance of the officers who maintain the
Accounts. He monitors the budget allocations in general and advises the Superintending Engineers to
avoid excess or lapses of grants. If in exercising his control, any financial irregularity is discovered and if
he considers it to be serious as to require disciplinary action, he takes further necessary action.

1.2.Superintending Engineer:
The Superintending Engineer is the Administrative Head of the Circle and is responsible to the
Chief Engineer and he looks after the administration and general professional control of the in-charge
officers of the department within his circle. It is the duty of the Superintending Engineer to inspect the
state of the various works within his circle and satisfy himself that the system of management prevailing
is efficient and economical.
The Superintending Engineer is required to ascertain the efficiency of the subordinate offices and
outdoor establishment and see and report whether the staff employed in each division is actually necessary
and adequate for its management.

1.3.Executive Engineer :
The Executive Unit of the Department is the Division in charge of an Executive Engineer who is
responsible to the Superintending Engineer for the execution and management of all works within his
division.
The Executive Engineer is responsible to see that proper measures are taken to preserve all the
buildings and roads in his division and to prevent encroachment on Government lands in his charge. He
keeps accurate plans of all Government lands.
Every Executive Engineer is required to report immediately to the Superintending Engineer about
any serious accident or unusual occurrence connected with his division and to state how he has acted in
consequence. The Executive Engineer, in addition to his other duties, acts as ex-officio professional
adviser to all the departments of the administration within the limits of his charge.
For the technical matters in Division Office, Dy. Engineer /SDO/AE , assist the Executive
Engineer. Moreover three to four Junior Engineers., Draftsman, Tracer etc. assist in handling the technical
matters. For administrative matter in Division Office, First Clerk assist the Executive Engineer. Accounts
matter are dealt with by the Divisional accountant in Division and for purchase of material etc. storekeeper
is appointed in Division office. These three Branch heads viz Dy. Engineer, First Clerk & Divisional
Accountant assist the Executive Engineer.

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1.4.Deputy Engineer:
A division is divided into sub divisions in charge of an Assistant Executive Engineer Class-
I/Assistant Engineer /Sub Divisional Engineer/Sub Divisional Officer/Deputy Engineer. These officers
are responsible to the Executive Engineer in-charge of the division for the management and execution of
works within their sub divisions. The Deputy Engineer/Assistant Engineer ensure proper and timely
execution of work, ensure quality and quantity of work through testing of material & work done at
specified intervals/frequencies. The Deputy Engineer prepares estimate/revised estimate/completion
reports timely & exercises control on account pertaining to his Sub Division & submits the same timely
to the executive engineer. To handle the technical matters in Sub Divisional office, 5 to 6 Jr. Engineers
are appointed to assist Dy. Engineer. Preparation of works estimate, supervision of work, recording
measurement of the works are the important duties of the Junior Engineer. For dealing administrative
matter, account and store matter, Sr.Clerk is appointed to assist Dy. Engineer of the sub division.

1.5.Regular Establishment :- Both permanent and temporary employees of the department are included
in the regular establishment. Their salaries and allowances are drawn monthly on regular pay bills from
the treasury in prescribed form - “Detailed Pay Bill of Permanent Establishment”. The payment to each
is made after taking receipt (stamped signature) on the pay bill. The salary is met from the budget grant
under the head Establishment. The permanent establishments are not liable for retrenchment and they
are entitled for leave, pensions and other amenities as per service rules. The temporary establishments
are employed when the work is increased and their services can be terminated at any time with proper
notice as per rules.
1.6.Acquittance Roll :- The payment of salary to persons of regular establishment outstation is drawn
on the regular pay-bill, but the payment is made on a separate receipt form known as Acquittance Roll,
after taking duly stamped signature of the person. The Acquittance Roll is a receipt in evidence of
payment in a prescribed form having five columns as Item No., Name, Designation, Net amount
payable, and Dated signature. The Acquittance Roll is prepared for the total amount as per
Establishment Bill are passed by the Drawing Officer. After the payment has been made the paying
officer returns it after certifying that proper receipt (signature) has been taken from the person entitled to
receive payment, which is then attached to the original Establishment Bill as a record of payment.
1.7.Workcharged Establishment :- The workcharged establishment are the employees who are
employed direct on the work for the actual execution of a specific work or for the supervision of the
departmental labour, stores machineries, etc. Usually, work-supervisors, chaukidars, mates, mistries,
etc., are employed as workcharged establishment. Their pay is charged direct to the work for which
provision is made in the estimate of the work by adding 2% to 3% over the estimated amount of the
work. The appointment of workcharged employees is done by taking previous sanction of the competent
authority, usually of the Executive Engineer, in prescribed form. The sanction specifies the name and
designation of the employee, rate of pay, the period of sanction and the name of the work and estimate
to which chargeable.
The service of the workcharged establishment may be terminated at any time without giving any
notice, but usually, one month's notice is given. If the services are terminated earlier than the period of
sanction , they are not entitled for any leave , travelling and other allowance but casual leave and other

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leave may be allowed by the executive engineer. Actual expense may be allowed by the Executive
engineer for the journey performed in the interest of the work.

2.0.TYPES OF ESTIMATE
The following are the different types of estimate
(1) Preliminary Estimate or Approximate or Abstract Estimate or Rough Cost Estimate.
(2) Plinth Area Estimate.
(3) Cube Rate Estimate or Cubical Content Estimate.
(4) Approximate Quantity Method Estimate.
(5) Detailed Estimate or Item Rate Estimate.
(6) Revised Estimate.
(7) Supplementary Estimate.
(8) Supplementary and Revised Estimate
(9) Annual Repair or Maintenance Estimate (A.R. or A.M. Estimate).
(1) Preliminary or Approximate Estimate or Abstract Estimate :
Preliminary or Approximate or Abstract Estimate is required for preliminary studies of various aspects
of a work or project, to decide the financial position and policy for administrative sanction by the
competent administrative authority. In case of commercial projects as Irrigation projects, Residential
building project and similar projects which earn revenue income, the probable income may be worked
out, and from the preliminary estimate the approximate cost may be known and then it may be seen
whether the investment, on the project is Justified or not. For non- commercial projects or for projects
giving no direct return, their necessity, utility, availability of money, etc., may be considered before final
decision is taken. The approximate estimate is prepared from the practical knowledge and cost of the
similar works. This estimate is prepared showing separately the approximate cost of all important items
of work as cost of land, cost of each building , cost of roads, water supply sanitary works, electrification,
etc. The estimate is accompanied by a brief report explaining the necessity and utility of the project and
showing how the cost of separate items have been arrived at. This is also accompanied with a site plan
or layout plan. A percentage of about 5% to 10% is added as contingencies.
The preliminary estimate may be prepared by various ways for different structures and works
(a) Buildings
(i)Per unit basis - Per student for schools and hostels, per class room for Schools, per bed for
hospitals, per seat for cinema and theatre halls, per bay for lactories, barracks and dormitories,
per tenement for residential buildings.
(ii) Plinth area basis
(iii) Cubic content basis.
(iv) Approximate quantity method

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(b) Roads and High ways - Per kilometre (per mile) basis depending on the nature of road, width and
thickness of metalling, etc.
(c) Irrigation Channels-
(i) Per kilometre (per mile) basis depending on the capacity of the channel.
(ii) Area of land commanded i.e., per hectare basis (per acre basis).
(d) Bridges and Culverts.- Per running metre (running feet) of span depending on the roadway, nature
and depth of foundation, type of structure, etc. For small culverts approximate cost may also be per
number of culverts of different spans.
Approximate cost of bridges may also be worked out separately for sub-structure and
superstructure.
(e) Sewerage Project and water supply project
(i) On the basis of per head of population served.
(ii) On the basis of area covered i.e., per hectare basis (per acre basis).
(f) Over head water tank.-On the basis of capacity, per litre (per gallon) of tank depending on the type of
structure height of tank etc.
(2) Plinth Area Estimate for Building (P.A. Estimate) :
This is prepared on the basis of plinth area of building, the rate being deducted from the cost of similar
building having similar specification, heights and construction, in the locality. Plinth area estimate is
calculated by finding the plinth area of the building and multiplying by the Plinth area Rate. The plinth
area should be calculated for the covered area by taking external dimension of the building at the floor
level. Courtyard and other open area should not be included in the plinth area. Plinth area Estimate is
only approximate, and is a preliminary estimate, to know the approximate cost before hand.
(3) Cube Rate Estimate for Building :
Cube Rate Estimate is a preliminary estimate or an approximate estimate, and is prepared on the basis of
the cubical contents of the building the cube rate being deducted from the cost of the similar building
having similar specifications and construction, in the locality. This is calculated by finding the cubical
content of the building, (length x breadth x height) and multiplied it by the cube rate. The length and
breadth should be taken as the external dimension of the buildings at the floor level and the height
should be taken from the floor level to top of roof . For storeyed building the height should be taken
between the floor level of one storey to top of next-higher floor. The foundation and plinth, and the
parapet above floor are not taken into account in finding the cubical content. ( Based on Indian
Standards )
Cube rate estimate is most accurate as compared to the Plinth Area Estimate as the height of the building
is also compared.

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(4) Approximate Quantity Method Estimate :
In this method approximate total length of walls is found in running metre and this total length
multiplied by the rate per running metre of wall gives a fairly accurate cost. For this method the
structure may be divided into two parts viz. (i) foundation including plinth and (ii) superstructure. The
running metre cost for foundation and superstructure should be calculated first and these running metre
rate should be multiplied by the total length of walls.
To find the running metre rate for foundation, the approximate quantities of items such as excavation,
foundation, brickwork upto plinth, and damp proof course are calculated per running metre and by
multiplying by the rates of these items the price or rate per running metre is determined.
Similarly for superstructure the price or rate per running metre is determined from the approximate
quantities of brickwork, wood works, roof, floor finishing, etc. For this method the plan or line plan of
the structure should be available.
(5) Detailed Estimate or Item Rate Estimate :
Detailed estimate is an accurate estimate and consists of working out the quantities of each item of
works, and working the cost. The dimensions, length, breadth and height of each item are taken out
correctly from drawing and quantities of each item are calculated, and abstracting and billing are done.
(6) Revised Estimate :
Revised Estımate is a detailed estimate and is required to be prepared under any one of the following
circumstances :-
(i) When the original sanctioned estimate is exceeded or likely to exceed by more than 5%.
(ii) When the expenditure on a work exceeds or likely to exceed the amount of administrative sanction
by more than 10%.
(iii) When there are material deviation from the original proposal, even though the cost may be met from
the sanctioned amount.
The revised estimate should be accompanied by a comparative statement showing the variations
of each item of works, its quantity, rate and cost under original and revised, side by side, the excess or
saving and reason for variation.
(7) Supplementary Estimate :
Supplementary Estimate is a detailed estimate and is prepared when additional works are required to
supplement the original works, or when further development is required during the progress of work.
This is a fresh detailed estimate of the additional works in addition to the original estimate.
The Abstract should show the amount of the original estimate and the total amount including the
Supplementary amount for which sanction is required.

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(8) Supplementary and Revised Estimate :
When a work is partially abandoned and the estimated cost of the remaining work is less than 95 per
cent of the original work, that is less than 95 per cent of the original sanctioned estimate, or when there
are material deviations and changes in the design which may cause substantial saving in The estimate,
then the amount of the original estimate is revised by the competent authority. A Supplementary and
Revised Estimate is then prepared and fresh Technical sanction of the competent authority is obtained.
lf at any time either before or during the execution of original work, it is found that the original estimate
is excessive, then Divisional officer may sanction a revised estimate of reduced amount. While giving
such sanction the Accountant General and other higher authorities are informed.
(9) Annual Repair or Maintenance Estimate (A.R. or A.M. Estimate) :
Annual Repair or Annual Maintenance Estimate is a detailed estimate and is prepared to maintain the
structure or work in proper order and safe condition. For building; this includes white Washing, colour
washing, painting, minor repairs etc. For road works the A.R. estimate provides for patch repairing,
renewals, repairs of bridges and culverts, etc.
Further, there may be special repair estimate, Monsoon damage repair estimate, etc.
3.0. CLASSIFICATION OF WORKS ACCORDING TO THEIR NATURE :
The works according to their nature are classified under the two main classes as original work
and repair or maintenance work
3.1. Original work.-
The original work may be of different types
(i) Entirely new construction as construction of new building, bridge, road, damp, project, etc.
(ii) Additions and alterations to the existing works will increase the value of the property as Addition of
room or rooms, conversion of verandah into room, dividing a big room into two rooms, etc.
(iii) Special repairs for renovation or for thorough repairs of the damaged work-as changing of roof,
changing of floor, changing of doors and windows, etc.
3.2. Repair work. –
The repair works may be of the following types
(i) The repairs required to maintain the work in proper condition as annual repairs to buildings, roads,
etc., as-Annual repairs, white washing, colour washing, etc.
(ii) Minor additions and alterations, within certain monetary limit , which will not increase the value of
the property as-opening a door, providing sunshades, providing shelves, etc.
(iii) Special repair, Monsoon Damage repair, etc.

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4.0. CLASSIFICATION OF WORKS ACCORDING TO THEIR COST. –
With respect to the cost, the original work is classified as Major work, Minor work and Petty
work.
Major work.-The work costing more than Rs. 50 lakhs is termed as Major work, and the estimate for
such work is known as Major Estimate. (Based on CPWD Manual 2019).
Minor work.-The work not exceeding Rs. 50 lakhs is known as Minor work and the estimate for such
work is known as Minor Estimate. (Based on CPWD Manual 2019).
5.0. DIFFERENT TYPES OF REPAIRS WORK :
5.1. Annual repair or maintenance work (A.R. work):-
All works and structures are repaired and maintained in proper condition. The normal repair works done
annually, come under A.R. work.
All buildings are white washed, colour washed and repaired for minor repairs once in every Year. For
annual repair of building 1 to 1.5 per cent of the original constructional cost of the whole building is
provided. A.R. Work is usually done by contract by inviting tenders or quotations.
5.2.Quadrennial repair:-
Besides annual repair work of white washing and colour washing, every fourth year special repair works
are done for thorough repair as repainting of doors and windows, patch repair of plastering, etc. Special
repair work every fourth year is known as Quadrennial Repair.
5.3.Special repair (S.R.) :-
Special repair work consists of renovations or renewals of structures or damaged works. It generally
consists of renewal of floor, roofs and other items of work involving replacements occurring at long
intervals. Special repairs also comprise minor improvements in the building, etc. Repair of monsoon or
flood damage works also come under special repair work.
Repair works are usually carried out by inviting tenders or quotations through P.W.A. or Works Order
or Contract Agreement.
6.0. MISCELINIOUS
6.1. Contract.
Contract is an undertaking by a person or firm to do any work under certain terms and conditions. The
work may be for the construction or maintenance and repairs, for the supply of materials, for the supply
of labour, for the transport of materials, etc.
6.2. Contractor.-
The term contractor means a person or firm who undertakes any type of contract. Usually, this term is
confined to the contractors engaged for the construction or execution of works of repairs.

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6.3. Tender.-
Tender is an offer in writing to execute some specified work or to supply some specified articles at
certain rates, within a fixed time under certain conditions of contract and agreement, between the
contractor and the department or owner or party. The construction of work is usually done by contract.
Sealed tenders are invited and the work is usually entrusted to the lowest tender. While inviting tenders
the bill of quantities, detailed specifications, conditions of Contract and plans and drawings are supplied
on payment of the requisite cost to the contractors who tender or quote their rates.
6.4. Earnest money. While submitting a tender the contractor is to deposit a certain amount, about 2 %
of the estimated cost, with the department, as earnest money as guarantee of the tender. This amount is
for a check so that the contractor may not refuse to accept the work or run away when his tender is
accepted. In case the contractor refuses to take up the work his earnest money is forfeited. Earnest
money of the tenderer whose tender has not been accepted is refundable.
Earnest money may be in the form of deposit in Treasury or State Bank or other approved Bank or
Government security, Or Saving Certificate or Post Office, Savings Pass-Book or cash Certificate,
pledged to the Executive Engineer.
6.5. Security money. On acceptance of the tender, the contractor has to deposit 10 % of the tendered
amount as security money with the department which is inclusive of the earnest money already
deposited. This amount is kept as a check so that the contractor fulfills all the terms and conditions of
the contract and carries out the work satisfactorily according to the specification and maintain progress
and completes the work in time. If the contractor fails to fulfil the terms of contract his whole or part of
the security money is forfeited by the department. The security money is refunded to the contractor after
the satisfactory completion of the whole work after a specific time, usually after one rainy season or six
months of the completion of the work.
Instead of collecting the whole of security money in one instalment before starting the work this can be
collected gradually by deducting from the running account bill of the contractor. Usually the earnest
money is taken as part of the security money and the balance amount of the security money is collected
by deduction from the running account bill of the contractor at 10% of every running bill, up to the
extent of 10 per cent of the total cost of whole work.
6.6. Arranging contractor. - Contract for a work is arranged by inviting sealed tenders, by issuing
tender notice, specifying earnest money, security money, estimated cost, date and time for the
submission of tenders, etc.
7.0. DIFFERENT METHODS OF CARRYING OUT WORK :
The following are the different methods of carrying out work :
(i) Employment of daily labour on Muster Roll.
(ii) Piece Work Agreement.
(iii) Work Order.
(iv) Lump sum contract.
(v) Lump sum and Schedule contract.

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 (vi) Scheduled Contract item rate contract.
(vii) Labour contract.
(viii) Cost plus percentage contract.
7.1. Daily Labour-Muster Roll System :-Work may be executed departmentally by employing daily
labour, as masons, coolies, bhisties, carpenters, etc. The attendance of the labourers is kept in Muster
Roll (Form 21) by the overseer or by his authorised agent as work-supervisor, mistry, mate, etc. The
attendance of labour is checked intialled by Assistant Engineer or Sub-Divisional or Divisional Engineer
frequently during their inspections. The labourers are paid weekly, fortnightly, monthly or at the
completion of Work according to the requirement.
7.2. Piece Work Agreement (P.W.A.) : P.W. Agreement is that where only rates are agreed upon
without reference to the total quantity of work or time, and that involves payment of work done at the
stipulated rate.
7.3. Work Order. Small work may be carried out by Work Order. This is a contract and specifies the
approximate quantities of different items of work, detailed specifications of each item of work, time for
completion of the whole work, penalty that will be imposed for not fulfilling terms and conditions, etc.
Payment is made on the measurement of the work done and 10 per cent of the bill amount is deducted
from the running account bill of the contractor as security money which amount is refunded in the final
payment on the satisfactory completion of the work. Contractors are usually selected by taking
quotations.
8.0. CONTRACT SYSTEM :
In contract system the work is got done through contractors who arrange all material required and
employ the workers required for the completion of the work in time.
8.1. Lump Sum Contract : In Lump-Sum Contract the contractor undertakes the execution or
construction of a specific work with all its contingencies, to complete it in all respects within a specific
time for a fixed amount. The detailed specification of all items of work pertaining to the whole work,
plans and detailed drawings, and deposit of 10% security money, penalty, progress and other conditions
of contract are included in the contract agreement.
8.2. Lump Sum and Schedule Contract. This is similar to lump sum contract but the schedule of rates
is also provided in the Contract agreement. In this system the contractor undertakes the execution or
construction of a particular work at a fixed sum within a specified time as per plans and the detailed
specification and conditions and the schedule of rates for various items of work are also provided which
regulates the extra amount to be paid or deducted for any additions and alteration.
8.3. Schedule Contract or Item Rate Contract. In schedule contract, the contractor undertakes the
execution or construction of a work on the item rate basis. The amount the contractor is to receive
depends upon the quantities of various items of work actually done. The contract agreement includes
quantities, rates and amounts for various items of work and the total amount of contract (Bill of
quantities with rate, amount and total amount), plans and detailed drawings, detailed specifications and
deposit of 10% security money; penalty, progress, date of completion and other conditions of contract.

13
The payment to the contractor is made by detailed measurement of different items of works actually don
by the contractor. The system is used for all works,
8.4. Labour Contract:- In labour contract the contractor undertakes contract for the labour portion. All
materials for the construction are arranged and supplied at the site of work by the department or owner,
the labour contractor engages labour and gets the work done according to specification. The contract is
on item rate basis for labour portion only and contractor is paid for the quantities oi Work done on
measurement of the different items of work at the stipulated rate in the contract agreement.
8.5. Cost plus percentage contract. In this system contractor is given certain percentage over the actual
cost of the construction as his profit. Contractor arranges materials and labour at his cost and keeps
proper account and he is paid by the department or owner the whole cost together with certain
percentage, say 10% as his profit as agreed upon beforehand. An agreement is prepared with all
conditions of contract in advance.
8.6. Labour engaged through contractors. - Normally, labourer should not be engaged and paid
through contractor. In the case of emergency when labourers are not available directly and the work is
required very urgently, labourers may be employed through contractor. In such case if possible, the
quantities of work done should be determined by measurement at the completion of the work and the
contractor paid at suitable rates on the measured quantities. But if this method is not practicable, it is
permissible to pay the contractor on the basis of number of labourers employed day-to-day at current
rates a profit or commission being included in the rate or paid separately on lump sum or percentage
basis. When payment on measured work is not possible a record of the number of labourers employed
day-to-day should be kept by the overseer in- charge and a report Submitted to the Assistant Engineer or
Executive Engineer to enable him to keep a check on the Work and expenditure and to deal with the
contractor's claim.
8.7. Penalty.-Penalty is a sort of fine for non-fulfilment of terms of contract. The penalty may be a
fixed sum per day, or a certain percentage of the estimated cost up to 10%, etc.
8.8. Compensation for delay in completion. Contractor is liable to pay as compensation or penalty an
amount equal to 1% of the estimated cost of the work (contracted amount) or such smaller amounts as
the Executive Engineer or the competent authority may decide for every day that the work remains un-
commenced or unfinished after the due date. The maximum limit of penalty is 10% of the total contract
amount.
8.9. Liquidated Damages. It is a fixed stipulated sum of penalty by the contractor or having no
relationship with real damage. It is usually exorbitant and fixed per day for the excess period taken for
the completion of the work than that specified in the contract.
8.10. Unliquidated Damages. This is known as ordinary damages having relation with the actual
damage done .It will increase or decrease according to increase or decrease in the damage for the non-
completion of the work within due date of completion, or for not maintaining progress as per condition
of contract.
8.11. Extension of Time: The Executive Engineer or competent authority may grant the necessary
extension of time for valid reasons if the contractor applies for extension of time within the time. Reason

14
may be the materials, labour, etc., not being available, bad weather, condition of land not available in
due time, etc.
8.12. Termination of Contract. : The contract can be terminated by the Executive Engineer or by
competent authority in default or bankruptcy of the contractor and penalty may be imposed as per the
terms of the contract agreement. If the contractor does not fulfil the terms and conditions of contract as-
if he leaves the work, if he does not maintain progress, if he does not observe the rules, instruction, etc.,
the contract agreement may be rescinded and all of his security money be confiscated or penalty up to
the extent of 10% of the estimated cost may be imposed on the contractor. For termination of contract
due notice shall have to be served on the contractor,
8.13. Measurement Book (M.B.).
The measurements of all works and supplies are recorded in the Measurement Book Form No. 23 and
payment of all works and supplies are made on the basis of measurement recorded. The measurement
books are very important account records.
Form 23-Measurement Book
Particulars Details of Measurement Contents of
No L B D area

8.14. Standard Measurement Book. A measurement book where the detailed measurement of certain
items of works of building is recorded correctly in ink on the completion of the construction and the
accuracy of which is certified by the Assistant Engineer is known as the standard Measurement Book.
9.0. STOREs
The stores are procured by inviting tenders for the supply of the stores or materials on the same principle
as for works. The contractor shall have to deposit about 2% of the estimated cost as earnest money with
tender and 10% as security money inclusive of the earnest money on acceptance of the tender. The
contract agreement should contain the descriptions and specifications of the materials to be supplied
total quantities of each article to be supplied, places where to be supplied, and the quantities to be
delivered at each place, progress to be maintained and date and time by which the delivery should be
completed, and rates of the various materials inclusive of every demand as transport, loading, unloading,
stacking, taxes, etc. Penalty up to the extent of 10% of the work may be imposed on the contractor if he
fails to observe the condition of contract to complete the work of supply in time or to maintain the
specified progress. Materials should be according to the specifications, if not to the specifications, they
shall be rejected and the contractor have to remove the rejected materials at his own cost.
9.1. Classes of Stores. - The stores are divided into the following classes
(i) Stock of General Store,
(ii) Materials charged direct to the works
(iii) Road Metal, and

15
 (iv) Tools and plants.
The four classes of stores fall into two categories with respect to accounts, as given below
I. Store charged to suspense - (i) Stock
II. Store finally charged of - (ii) Materials charged direct to works.
(iii) Road Metal.
(iv) Tools and plants.
9.2. Reserve Limit of Stock : The financial limit up to which the stock material can be kept in a
Division is known as the "Reserve Limit of Stock “
9.3. Issue Rate :This term denotes the cost per unit fixed on the articles of stock for the purpose
calculating the amount creditable to the sub-head concerned of stock account when issued from as stock.
9.4. Storage Charges : This means expenditure incurred on store materials after the acquisition of
stores , on work- charged establishment employed on handling and keeping initial accounts, the custody
of stocks and the maintenance of store godown or yards etc.. and added on a percentage basis of the cost,
so as to form part of the issue rate.
9.5. Supervision Charges. This term is ordinarily applied to the charges which are levied in addition to
book value and storage charge (issue rates), in respect of stock materials sold or transferred and are
intended to cover such items of expenditure incurred on the stores as do not enter in their book value and
are not included in storage charges.
9.6. Market Rate. This term indicates the cost per unit at which an article can be procured at a given
time, at the store godown, from the public markets. The cost should be inclusive of carriage and
incidental charges, and may include a reasonable provision for wastage and depreciation.
9.7. Indent-Issue of Materials. -Materials from stock are issued on demand in proper form (Indent
Form) prepared by S.D.O. or A.E. incharge of different works as and when required Indent form is in
triplicate consisting of counter foil, indent and invoice, and is kept in book form serially numbered.
9.8.Stock Account-
(i) All transactions of receipt and issues of materials are recorded day-to- day in the "Register of
Stock Receipts and Issues" in Form 8 in the order of their occurrence as soon as they take place. The
account is maintained separately for every month and closed once in a month, usually 25th of every
month, except in the month of March when it is closed on, the 31st March. For a big stock when there are
large number of transactions of receipt and issues, separate Register of Stock Receipts Issues may be
maintained, one for receipts and one for issues, instead of making entries in the same register in
continuation.
(ii) On closing of the monthly account "Abstract of Stock Receipts" is prepared in Form 9 an a
single "Abstract of Stock Issues" is prepared in Form 10 and submitted by S.D.O. or A.E incharge of
store to the Divisional Officer for inclusion in the monthly Divisional account. The monthly returns

16
(Abstract) of stock receipt and issues are then posted in the division in the "Half-Yearly Register of
Stock" in Form 12.
(iii) Half-yearly balance returns of stock for every six months for the periods ending 30
September and 31st March are also prepared in Form 11 by the S.D.O. or A.E. incharge of store from
the monthly accounts, Forms 9 and 10 showing total receipt and issues month wise and grand total for
six months and the closing balances at the end of six months. The half-yearly returns are submitted to
the Divisional Office where these are checked and compared with the “Half Yearly Register of stock
“,Form 12 already posted in the division,
9.9. Bin Card.:- A record of receipts, issues and running balance of certain articles of stock kept in Bin
Card, which is kept where the materials are stored. The entries of receipt are posted in Bin Card from the
“Register of stock Receipts and lssues" Form 8, immediately after the transactions. The entries of issues
are made immediately after issues on indent, and the balances are worked out and entered in Bin Card.
The Bin Card is usually maintained for fittings.
10.0. MATERIALS AT SITE ACCOUNT (M.A.S. ACCOUNT) :
When materials are issued direct to work or purchased directly, their cost are either charged Direct to the
work or debited to the suspense head "materials" in the account of the work. When the cost is debited to
suspense head “material “ account known as “Materials at site account” is maintained. M.A.S. Account
is maintained only for the major work where large quantity of materials are likely to be used.
M A.S. Account is maintained month-wise in Form 35-Detailed Statement of Materials Compared with
Estimated Requirements, showing all issues of materials against the total estimated requirements.
11.0. TOOLS AND PLANTS (T. and P.) :
11.1.Classification of Tools and Plants
The tools and plants of a Division are of two kinds:
(1) General or ordinary tools and plants, i.e., those required for the general use of the Division.
(2) Special tools and plants, i.e., those required not for general purposes, but for a specific Work.
The cost of supply, repairs and carriage of tools and plants of class (1) General or ordinary tool and
plant is charged on the main head of account " Tools and Plants" Whereas the cost of class (2) Special
tools and plant charged direct to the work concerned. Numerical accounts of both classes of tools and
plants are kept in each sub-division.
12.0. MODE OF PAYMENT :
The payment to the contractors for works or for supply of materials, road metal, tools and plants, etc.,
are made on the basis of measurements recorded in the Measurement Book (M.B.)
When the work or supply is completed or sufficiently progressed the detailed measurements are taken,
usually by the overseer and recorded in M.B. and an abstract of quantities is prepared And the cost is
calculated at the rate of the contract agreement.

17
12.1. Bill - Bill is the account of work done or of supply of materials made and includes the particulars
and quantities of work done or material supplied their rates and amount due . It contains full and clear
particulars of the claim and amount due.
12.2. Voucher-Voucher is a written document with details which is kept in record as a proof of
payment. For any payment first, a bill is prepared and payment is made on the bill duly checked and
acknowledged by the payee, by signature on revenue stamp as required, and after the payment is made
bill becomes voucher document which is kept in record.
12.3. First and final payment: The term indicates a single payment, made for a job or contract on its
completion. In this case the payment is finished by one payment after the completion of the work. This
is usually applicable for small work.
12.4. On account or running or interim 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 M.B. when only a
part of the whole work or supply has been done and the work or supply is in progress. During the
progress of work the contractor is paid time to time and when the contractor has done some progress he
is paid up to the extent of work done by him.
12.5. Final payment.-This means the payment made on running account, made to a contractor on the
completion or determination of his contract and in full settlement of the account. The bill on which final
payment is made is known as "Final Bill'.
12.6. Advance payment.-This means payment made on a running account to a contractor for work done
by him but not measured. Advance payment is not generally made to the contractor, but may be made
under special cases when the work is sufficiently progressed but measurement cannot be taken for
certain valid reasons, on the certificate of the Assistant Engineer in charge of work that the value of
work done is in no case less than the advance payment made or proposed to be made and detailed
measurement will be taken as soon as possible.
12.7. Secured advance payment.-It means an advance payment 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.
Secured advance may be allowed by the Divisional Engineer in the interest of work up to the amount not
exceeding 75% of the value of the materials brought to the site of work provided that they are of
imperishable nature. An indenture or an agreement in Form 31 shall have to be signed by contractor
under which the department possesses right on the materials.
12.8. Bill Forms.-The various standard form of bills and vouchers used for payment according to the
nature of the works are given below. Usually white forms-are used for running bills and yellow forms
are used for final bills.
12.8.1. First and final bill Form 24. - This form is used for making payment to the contractor both for
works and supplies, when a single payment is to be made on the completion of the whole work or
supply, as final payment.
12.8.2. Running account bill C, Form 27 white :- This form is used for making on account of payment
or running payment for measured works or supplies, i.e., both for works and supplies which are

18
measured. Payment of Ist running, 2nd running, etc., of measured works or supplies are measured in this
form. It is not to be used if an advance or a secured advance payment is to be made or of such an
advance is outstanding against the contractor.
12.8.3. Final bill C, Form 27 yellow.-The final payment when no advance is outstanding and when
intermediate payments have been made, is made on this form.
12.8.4. Running account bill A, Form 25 white.- This form is used for advance payment without any
measurement, for works only (not for supply). It may be used for running bill payment for advance for
unmeasured work only or a combination of unmeasured work and measured work, or if an on account
payment is to be made but an advance payment already made for the same work is outstanding.
12.8.5. Running account bill B, Form 26 white.-This form is used for secured advance payment for
works only. This form is also used for running payment partly for secured advance,partly for advance
and partly for measured works, that is a combination of secured advance together with other payment.
12.8.6. Final bill B, Form 26 yellow.-This form is used for payment of final bill if recovery of secured
advance payment previously made, is to be made or adjusted. If the advances are recovered previously
then the final bill will be prepared on Final Bill C, For 27 yellow.
12.8.7. Running account bill D, Form 27-A.-This form is used for making on-account or Intermediate
payment to contractors on lump sum contract.
12.8.8.Final bill Form 27.B-This form is used for making final payment to contractors on lump sum
contracts.
12.8.9. Hand Receipts Form 28 (H.R.)-This form is a simple form of voucher intended to be used for
all miscellaneous payments advances for which no other form is suitable. Usually, petty payments for
purchases or for any other purposes are made on the Hand Receipt-Form 28.
12.9. Refund of security money.--Usually 10% security money of the contractor is refunded after six
months from the date of satisfactory completion of the work or on the expiry of one rainy season, and
this payment is made on Form 28 (H.R.). During this period of six months the contractor is responsible
for any defects or mishaps in the work, and he shall have to make good all such defects and damages.
13.0. PUBLIC WORKS ACCOUNTS
The Public Works Department have to execute works of all classes required for all Civil Department of
Government as civil works (civil buildings and roads), irrigation works, drainage works, etc. The annual
cost of such works all over India amounts to thousands of crores of rupees.
The accounts of all these works should be maintained systematically and correctly.
The general principles to be followed for P.W.D. systems of account are:-
(1) All the transactions, whether income or expenditure, have to pass through certain specified heads of
accounts.

19
(2) A certain specified rules, regulations and procedure are to be followed in the entire accounting which
lays down the responsibility on the Divisional Officer for receipt, drawing and depositing money,
spending of money and maintaining accounts according to rules.
13.1. Main Feature of P.W.D. System of Accounts. -The main feature of the system of Public Works
Accounts are:
1. The Divisional Officer is the primary 'disbursing officer of the division, who is permitted to obtain by
cheques on the Civil Treasuries or the Reserve Bank, the funds required for all disbursements in
connection with execution of work. He also collects some of the departmental receipts of the division
and pays them to Treasuries or the Bank.
2. The accounts of these receipts and disbursements, including the transactions of subordinate official
acting on his behalf are compiled under his supervision by the accountant posted to his office by the
Accountant General and are submitted monthly to the Accountant General who audits them against
sanctions and appropriation of funds and then incorporates them in the account of the Government.
3. The Divisional Officer is further required to maintain clear accounts of all stores received by him or
by his subordinate officials, and to make these accounts available for audit by the Accountant General.
4. Under each major head of expenditure, the charges of each project, work or sub-work are recorded
separately in the accounts of Divisional Officers.
5. Personal payments (salaries, travelling allowances, etc.) of all regular Government servants of the
departments are made on bills, prescribed at the treasury in accordançe with the general provisions of
treasury rules, and brought to the account by the Accountant General directly from the data furnished to
him direct by the Treasury Officer.
6. In the case of Central Public Works Department in exceptional cases, where civil treasuries are not
conveniently situated, Public Works Officers are placed in acçount with Military Treasure Chest.
The accounts should be correct in all respect and to satisfaction of Audit Department. Each
payment should be supported with a valid voucher. The records of payment measurements and
transactions in general must be clear, explicit and self-contained so that they may be satisfactorily
produced in a court of law if required, to provide, convincing evidence of facts. All transaction
involving the giving or taking of cash, stores, other properties, rights privileges and concessions which
have money values, should be brought to account immediately under the correct head which it pertains.
If the exact head is not known immediately, then the transaction is temporarily shown under the head
“Deposit “ in receipt or under the head ‘Miscellaneous PW Advances “ in expenditure.

The budget estimates show all the anticipated income of the Government under the head
‘Revenue' and the expenditure on works of different categories as 'Grants'. The entire revenue, which
realised, has to be credited under the head ‘Revenue' while the expenditure can be incurred only against
a 'Grant’ provided in the budget estimates. Thus the income derived from the sale of canal water cannot
be diverted towards maintenance of canals. The income has to be deposited under the head Revenue and
the expenditure on maintenance of the canal has to be met out of the ‘grant' provided in the budget.

20
Similarly the entire income from a road ferry has to be deposited under the head 'Revenue’ but the
expenditure on the running of the ferry is met out of the budget grant for the purpose. Similarly, the
income from road side trees has to be deposited under the head revenue.
The transaction of Public Work Offices are grouped under the following four heads :-
I. Expenditure heads :- Expenditure heads are for charges adjustable finally in the account of
Divisional Offices.
II. Revenue heads :- Revenue heads are for revenue receipts creditable finally to the Government
in the account of Divisional Offices.
III. Remittance heads :- Remittance heads are for receipts as well as for payments for cash, stores
of other values received from, or paid to, or on behalf of other departments or Governments.
IV. Debit or deposit heads :- Debit or deposit heads are for certain receipts and payments held in
suspense till such time as they are cleared by payment or recovery, as the case may be, in cash or
Otherwise.
The transaction under each of these groups of heads are further sub-divided for the purpose of
accounts. In the case of Expenditure and Revenue heads, the main unit of classification is known as the
Major head. A major head is divided into Minor heads, and each of minor head is further Sub-divided
ınto Detailed heads. In some cases the minor heads are divided into Sub-heads which is again divided
into detailed head.

14.CASH ACCOUNT :
Account of expenditure are maintained by the Sub-Divisional head clerk in the Sub – Division and the
Divisional Accountant with the help of accounts clerk in the Division. All payments and receipts are
entered in Cash book in P.W form No.1 day to day specifying the number of voucher , name of works ,
etc. Accounts are closed every month and Divisional Accountant submits monthly accounts to the
Accountant General for audit. Sub – Divisional cash book is closed on 25th of every month and copies of
cash book are submitted to the Divisional Office.
14.1. Cash :- The term cash includes legal tender coins notes, cheques payable on demand, remittance
transfer receipts and demand drafts. A small supply of revenue stamps (required for acknowledgement
of receipts) may be kept as part of the cash balance.
Government securities, deposit receipts of banks, debentures, and bonds are accepted as security
deposits but not treated as cash.
14.2. Debit and Credit :- Debit means expenditure and credit means receipts. When an amount is to be
debited to a work means that the amount is to be shown as expenditure on the work. Similarly when an
amount is to be credited to a work it means that the amount is to be shown as receipt under the work.
14.3. Cash Book:- The transactions relating to the actual receipt and payment of cash are recorded in a
register, made of P. W.A. Form No. 1 known as Cash Book. The cash book is one of the most important

21
record and posted and maintained correctly day-to-day in the Divisional Office and Sub-Divisional
Office.
The pages of the Cash Books are machine numbered, and each page is divided into receipt side (left
hand) and payment side (right hand). The receipt has five columns and the payment side has seven
columns.
14.4. Cash found Surplus or Deficient :- If the cash in the chest is found to differ from the book
balance, the cash is recorded, and the cash book is thoroughly checked for any mistake in totals and for
any wrong entry.If any mistake is deducted, it is corrected. If no error is detected the actual balance as
per cash account is made to agree with cash book balance by making entries in the cash book as follows
:
(1) If the cash is found surplus, a receipt entry is made for the surplus amount in the cash book as "To
cash found surplus in chest”, under the head “P.W.D. Deposits” and credited to Government revenue.
(2) If the cash is found deficient a payment entry is made for deficient amount in the cash book as "By
cash found deficient in chest" under the head “Miscellaneous Advances' which is cleared subsequently
by way of recovery or sanction write off .
14.5. Subsidiary cash book :- The pay and allowances of the regular establishment of the division are
drawn by the Divisional Officer from the treasury by presentation of bills. The account of these amounts
and payments are kept in a separate cash book known as the 'Subsidiary Cash Book’
14.6. Imprest :- An lmprest also known as Parmanent Imprest is a standing advance of a fixed sum of
money to an individual to enable him to make certain classes of disbursements which may be entrusted
to his charge by the Divisional or Sub-Divisional Officer. The amount of an imprest is fixed as low as
possible to meet current expenses within the month.
14.7. Temporary Advance or Temporary Imprest :- Temporary Advance also known as Temporary
lmprest is the amount which is advanced by a Disbursing Officer to a Sub-ordinate Officer to enable him
to make a number of specific payment out of a muster roll or any other voucher which has already been
passed for payment. The amount of temporary advance should be closed as soon as possible.
The Temporary Advanced amount is advanced for payment of passed bills, while the Permanent
Imprest amount is advanced for payment of unpassed bills as and when required.
14.8. Cheques :- Cheque is an order payment of money on Bank or Treasury in a prescribed printed
form containing the name of the Bank or Treasury, name of payee amount to pay, the name of account
with account number, the date of order of payment and signature of the payer. Cheques are obtained by
the disbursing officers in the form of Cheque books from the Treasury Officer by sending a printed
requisition form duly signed.
14.9. Remittance Transfer Receipts (R.T.R.) :- Remittance Transfer Receipt is a draft on Government
issued by a Government treasury or Reserve bank or state bank of India for payment on Government
account for certain specified purpose.

22
14.10. Advice of Transfer Debit/ Credit (A.T.D.). -The payment between two divisions are made by
book transfer through Advice of Transfer Debit or Credit, For transfer of transaction between public
works division within the state , the originating division sends an advice of transfer for (Debit or credit )
in prescribed form.
14.11. Receipt of Money : When money is rëceived by a Government official on behalf of the
Government, it is at once entered in the account of cash book and a receipt in proper form (Form 3) is
granted to the payer under the dated signature of S.D.O. or Divisional Officer. The officer satisfies
himself at the time of signing the receipt that the amount has been entered in the cash book and in token
of his check he also initials in the cash book against the entry.
14.12. Treasury Challan :- Treasury Challan is a memorandum which is necessary when money is paid
to the treasury. When paying money into a treasury the payment is presented with a printed form known
as Treasury Challan in duplicate.
14.13. Treasury Remittance Book : - When a disbursing officer is to send or deposit money to the
treasury, this is done by entering in a Treasury Remittance Book (Form 4). The cash is sent together
with the Treasury Remittance Book and acknowledgement of the Treasury Officer is taken in the Book.
14.14. Work Abstract :- Work Abstract is a monthly account of all transactions relating to a work in
respect of cash, stock and other charges. Separate Work Abstracts are prepared for each work. Work
Abstracts are prepared monthly in prescribed forms in the sub-divisional office and submitted to the
divisionał office every month.
14.15. Register of Works : - Register of works is an yearly account and record of expenditure incurred
during a year on a work and maintained in the divisional office. The Register of Works is prepared
separately for each work in prescribed forms and posted monthly from the Work Abstract.
14.15. Contractor's Ledger :- Contractor's Ledger is a personal account of a contractor where all
transactions regarding the particulars of contractor are entered. It is maintained in the divisional office in
prescribed form (Form 43). All payments, recoveries, adjustments, etc., are kept in ledger . For every
contractor separate ledger is maintained and each contractors ledger is closed and balanced monthly.
14.16. Completion Report:- When a work is completed and the accounts have been settled a note
below the final entries is made in red ink. Work completed on……………and this note is signed by the
Divisional Officer.
14.17. Completion Certificate :- After completion of the work of construction or repairs of a building
of other department a certificate for satisfactory completion should be prepared in a prescribed form and
get signed by the local head of Department.
14.18. Transfer Entries : They are those entries which are made to transfer of an item or accept or
charge from the account of the a work in progress or of a regular head of account to the account of
another work or head. For transfer entry all particulars regarding the transfer are filled in a printed “
Transfer Entry order “ and signed by the S.D.O or AE and countersigned by the Divisional Officer as a
token of his approval.

23
14.19. Appropriation : It means an allotment of a particular sum of money to meet the expenditure on a
specific object.
14.20. Re-appropriation : It means the transfer of funds from one unit of appropriation to another such
unit.
14.21. Contribution Works.-Contribution works are those for which the outlay is provided wholly or
partly from the following, with the sanction of the Government or other competent authority
(1) Funds of a public nature, but not included in the public estimate and accounts of the Government.
(2) Contribution from the public or private individual.
14.22. Deposit Works :- This term is used for the works of construction or repair, the cost of which is
met out of funds from non-Government sources, which may be deposited in cash or otherwise placed at
the disposal of the Divisional Officer. Works executed for municipalities or other public bodies fall
under this category, when the cost is chargeable either to cash deposits made for the purpose or their
balances at treasuries.

24
NPSC PREVIOUS YEAR QUESTION PAPER (3) Schedule rate contract
(4) Item rate Contract
NPSC - 2015
1. Head of the division of public works department
7. The measurement books are required to be
is
reviewed by
(1) Executive engineer
(1) Executive engineer
(2) Chief engineer
(2) Assistant engineer
(3) Divisional engineer
(3) Divisional Accountant
(4) Superintending engineer
(4) Superintendent engineer
2. Annual financial statement of the anticipated
expenditures is called ANSWER KEY
(1) Balance sheet Q A Q A Q A Q A
(2) Financial statement Q.1 1 Q.3 1 Q.5 2 Q.7 3
(3) Budget Q.2 3 Q.4 2 Q.6 1 xx xx
(4) Expenditure statement

NPSC – 2016
3. In which of the following PWD form no. 10
piecework cannot be used 1. The amount which is debited to the work is known
(1) For a work costing less than ₹1,00,000 as
(2) For a work costing less than ₹ 60,000 (1) Credit (2) Expenditure
(3) For running contracts eg: laying of sewerage (3) Imprest (4) Contingency
(4) In case where work has to be started in
anticipation of formal acceptance of contract 2. The amount received under the work is known as
(1) Imprest (2) Debit
4. Work order is normally used for works costing (3) Credit (4) Cash
₹_______ and below
(1) 60,000 (2) 6,00.000 3. The supervision charges for work is
(3) 1,00,000 (4) 10,000 (1) 5% (2) 3%
(3) 10% (4) 8%
5. A fixed stipulated sum of money payable by the of the estimated cost of the project.
contractor which has no connection with actual
damages is called 4. For issue of T & P form to be filled as
(1) Penalty (1) Form No. 8A (2) Form No. 13
(2) Liquidated damages (3) Form No. 14 (4) Form No. 15
(3) Compensation
(4) Damage control 5. For the settlement of permanent imprest which
form has to be filled up
6. A contract in which contractor is paid a certain (1) Form No. 8 (2) Form No. 2
percentage of his profit over the actual cost of (3) Form No. 16 (4) Form No. 15
construction is termed as
(1) Cost plus percentage contract 6. The money deposit in government treasure can
(2) Lumpsum contract be done with

25
(1) Form No. 8
(2) Treasury challan 15. The over all in charge of an organisation at the
(3) Deposit of bank form site responsible for the execution of the work is
(4) The form of postal saving account (1) Executive Engineer
(2) Engineer
7. The cash book remains in the custody of (3) Junior Engineer
(1) Accountant (2) E.E (4) Superintending Engineer
(3) Cashier (4) Auditor
16. Pre-tender stage activities are
8. Cash will be called (1) Acquisition of land
(1) Currency note (2) Selection of site
(2) Valid coins (3) Finalisation of alignment of work
(3) Remittance transfer slip (4) Acquisition of land, selection of site,
(4) All above Finalisation of alignment of work

9. The measurement book fill is maintained by 17. The security money to be deposited by the
(1) EE (2) A.E contractor after award of the work is
(3) J.E. (4)C.E (1) 2% (2) 5%
(3) 10% (4)15%
10. Who is responsible to audit the activities of store of the awarded value.
minimum two times in a year?
(1) E.E. (2) A.E. 18. Earnest money to be deposited by the
(3) S.E. (4) J.E contractor at the time of tender is
(1) 5% (2)2%
11. For the receipt of t & p which form has to be (3) 10% (4) 8%
filled: as the estimated cost.
(1) Form No. 14 (2) Form No. 13
(3) Form No. 15 (4) Form No. 8A 19. The running payment for the work under
execution is being part upon
12. Which document is considered as proof of (1) Quality of work
Payment? (2) Bill submit by the contractor
(1) Voucher (3) Based on instruction issued by the engineer in
(2) Challan slip charged
(3) Treasury challan (4) As per the progress the work based on
(4) Challan slip and Treasury challan measurement book

13. Final technical authority of a project lies with 20. The technical approval for types of estimate is
(1) A.E. (2) E.E. accorded by
(3) S.E. (4) C.E. (1) A.E (2) E.E
(3) S.E (4) None of these
14. Work costing less than 20,000 are treated as
(1) Project (2) Major project 21. One of the responsibility of AE is
(3) Minor project (4) Medium project (1) Design of project and estimation
26
(2) Management and execution of project 4. Work charge establishment is approximately
(3) Inspection, arrangement and progress of work _______ % become of total estimate
(4) Management and execution of project and (1) 1.0% (2) 1.5%
inspection arrangement and progress of work (3) 2.5% (4) 3.0%

22. Percentage rate contract is also known as 5. Which of the following is known as M.B.
(1) Lump sum contract (1) Measurement Books
(2) Item rate contract (2) Check measurement Book
(3) Covered area contract (3) Standard measurement Book
(4) Lump sum & item rate contract (4) All of the above

23. The amount recovered as compensation against 6. For the execution of a project, contractor is
delay in the work is known as (1) A person (2) A firm
(1) Earnest money (3) An agency (4) All of the above
(2) Liquidated damage money
(3) Security money 7. Who is the head of Accounts and auditor at State?
(4) None of these (1) Accountant General
(2) Comptroller and auditor General
ANSWER KEY
(3) Chief Engineer
Q A Q A Q A Q A
Q.1 2 Q.7 1 Q.13 4 Q.19 4 (4) None of these
Q.2 3 Q.8 4 Q.14 3 Q.20 3
Q.3 3 Q.9 3 Q.15 2 Q.21 4 8. Head of Circle
Q.4 3 Q.10 2 Q.16 4 Q.22 2 (1) Chief Engineer
Q.5 2 Q.11 2 Q.17 3 Q.23 2 (2) Superintending Engineer
Q.6 2 Q.12 1 Q.18 2 XX XX (3) Executive Engineer
(4) Assistant Engineer
NPSC – 2017
9. After payment of Bill, this paper is called
1. Account contract is made by (1) Voucher (2) Cash-memo
(1) Engineer (2) Contractor (3) Check (4) None of these
(3) Owner (4) Other
10. A record of import, event in the management
2. A work costing Rs. 20,000 is termed as operation and navigation of T and P is called
(1) Petty work (2) Minor work (1) Log-Book (2) M.B.
(3) Major work (4) None of these (3) Both (4) N.O.T

3. Administrative head of P.W.D. Who is directly 11. At a site work, statistical quality control of
responsible to government is concrete means
(1) Executive Engineer (1) Measurement of risks to eliminate failures
(2) Assistant Engineer (2) Applying the theory of probability to sample
(3) Chief Engineer testing or inspection
(4) Superintending Engineer (3) Reduction in wastage of inspection costs
(4) Reduction in costs for the removal of is defects
27
 ANSWER KEY
Q A Q A Q A
Q.1 2 Q.7 1 Q.13 4
12. Form 21 is
Q.2 1 Q.8 2 Q.14 4
(1) Acquaintance Roll (2) Voucher Q.3 3 Q.9 1 Q.15 3
(3) Muster Roll (4) M.B Q.4 2 Q.10 1 Q.16 4
Q.5 1 Q.11 2 Q.17 2
13. Who has the authority of payment to contractor Q.6 4 Q.12 3 Q.18 XX
and supplier?
(1) E.E.
NPSC - 2019
(2) J.E.
(3) Accountant General 1. In P.W.D who is the primary disbursing officer
(4) CE who is supplied with cheque books on district
treasuries of India?
14. Which of the following is a type of labour (1) S.D. O's (2) Divisional officer
payment method (3) Chief Minister (4) Manager of bank
(1) Time rate (2) Piecework rate
(3) Bonus system (4) All of the above 2. Which is not a transaction type of Public work
office grouped under?
15. Payment of wages Act revised (1) Expenditure heads
(1) 1974 (2) 1975 (2) Revenue heads
(3) 1976 (4) None of those (3) Remittance heads
(4) Credit heads
16. Security deposit deducted at 5% from
contractor's bills is
(1) Refunded when the contractor has completed 3. Which among these is not considered as
the work classification of works according to their cost?
(2) Refunded even before the completion of the (1) Major work (2) Minor work
work provided good progress has been established (3) Petty work (4) Grand work
(3) Retained till the expected life of the structure of
say 100 years and spent for maintenance 4. What are the employees know as, who are
(4) Refunded when the defect liability period of six employed directly on the work for the actual
months or one monsoon whichever is later is over execution of a specific work?
(1) Co-workers
17. Document used for recording instructions given (2) Assistant
by the executive engineer at site is known as (3) Work charged Establishment
(1) Measurement Book (4) Work in-charge
(2) Site order book
(3) Log-Book 5. In P.W.D, name the person who submits the
(4) N.O.T budget
(1) Superintending Engineer
(2) Executive Engineer
(3) Secretary of P.W.D
(4) Chief Minister

28
 (1) Irrigation branch
ANSWER KEY (2) Public health engineering branch
(3) Electricity department
Q A Q A Q A
(4) Buildings and road branch
Q.1 1 Q.3 4 Q.5 3
Q.2 4 Q.4 3 XX XX 7. A Superintending Engineer may have power up to
(1), 2,00,000 (2) 20,000
(3) 1,00,000 (4) 10,000
NPSC - 2021
8. _______is the administrative as well as
1. Final technical authority of a project lies with
professional head of the concerned Department and
(1) Assistant Engineer
is directly responsible to the secretary of
(2) Executive Engineer
Government
(3) Superintending Engineer
(1) Assistant Engineer
(4) Chief Engineer
(2) Executive Engineer
(3) Superintending Engineer
2. An executive Engineer may have power up to
(4) Chief Engineer
(1) 25,000 (2) 2,00,000
(3)750,000 (4) 75,00,000
9. ______of the department is in- charge of a
division.
3. The overall in-charge of an organization at the site
(1) Assistant Engineer
responsible for the execution of the Works, is
(2) Chief Engineer
(1) Executive Engineer
(3) Superintending Engineer
(2) Engineer
(4) Executive Engineer
(3) Superintending Engineer
(4) Chief Engineer
10. _______is the head of accounts section
(1) Account officer
4. Site order book is used for recording
(2) Divisional accountant
(1) Instruction by the Executive Engineer
(3) Charted accountant
(2) Construction measurements
(4) Sub- divisional accountant
(3) Issue of store equipment
(4) Names of the casual labour
11. C.S.R. stand for
(1) Civil service rules
5. _________of P.W.D. manage work of
(2) Civil survey rules
construction of dams, head works, Canals, cross
(3) Code service rules
drainage work
(4) Cement storage rules
(1) Irrigation branch
(2) Public health engineering branch
12. The probable cost of a work and is calculated
(3) Electricity department
before the commencement of a work is known as
(4) Buildings and road branch
(1) Rough cost estimate
(2) Revised estimate
6. _____of P.W.D. manage work of installation of
(3) Estimate
water supply works &sanitary works
(4) Technical sanction
29
 (4) Payment on account
13. ______is a security deposited by contractors
with their tenders as a guarantee, ensure that they 18. In a running account with a contractor, this term
do not back out after their tender accepted denotes all payments made to him the final
(1) Contingencies (2) Cost payment
(3) Earnest money (4) Technical sanction (1) Final payment
(2) First payment
14. If the amount of sanctioned estimate of a work (3) Intermediate payment
exceeds Rs 1,00,000 or any other limit fixed by the (4) Account payment
competent authority, it is called
(1) Major estimate of work 19. The most reliable estimate is:
(2) Minor estimate of work (1) Detailed estimate
(3) Petty work (2) Preliminary estimate
(4) Repair work (3) Plinth area estimate
(4) Cube rate estimate
15. ______is used for keeping a complete record of
attendance, payment made, unpaid wages and work 20. _________shows the net quantity to be
done by daily labour engaged on the execution of executed in each item of work
Works (1) Agreement
(1) Nominal roll (2) Drawings
(2) Measurement book (3) Tender documents
(3) Muster roll (4) Bill of quantities (BOQ)
(4) Casual labor roll
21. ______drawings are the means through which
16. _______is the original records of all kinds of the physical, quantitative and visual descriptions of
works which are susceptible of measurement the projects are conveyed to the contractor
(1) Ordinary measurement book (1) Structural (2) Site
(2) Measurement book (3) Architectural (4) Contractual
(3) Standard measurement book
(4) Check measurement book ANSWER KEY
Q A Q A Q A
Q.1 4 Q.8 4 Q.15 3
17. ______is the account with a Contractor when
Q.2 1 Q.9 4 Q.16 2
payments are made to him at convenient interval
Q.3 2 Q.10 2 Q.17 1
subject to final settlement of the account on the Q.4 1 Q.11 1 Q.18 3
completion or determination of his contract Q.5 1 Q.12 3 Q.19 1
(1) Running account Q.6 2 Q.13 3 Q.20 4
(2) Saving account Q.7 3 Q.14 1 Q.21 4
(3) Current account

30
 MCQ based questions c) Work charged Establishment
d) Work in-charge
1. In P.W.D who is the primary disbursing
officer who is supplied with cheque books on 7. In P.W.D, name the person who submits the
district treasuries of India. budget.
a) S.D.O’s a) Superintending Engineer
b) Divisional officer b) Executive Engineer
c) Chief Minister c) Secretary of P.W.D
d) Manager of bank d) Chief Minister

2. Which is not a transaction type of Public 8. In government the construction, activities

work office grouped under? carried out by
a) Expenditure heads a) Contractor
b) Revenue heads b) PWD
c) Remittance heads c) Site engineer
d) Credit heads d) None
3. A voluntary arrangement between two or
9. .............is the administrative head of the
more parties that is enforceable by law as a
binding legal agreement is known as department
__________ a) Site engineer
a) job b) Junior engineer
b) loan c) Chief engineer
c) contract d) Superintending engineer
d) mutual fund
10.Which of the following is the function of the
4. Which tender allows anyone to submit a chief engineer
tender to supply the goods or services that are a) To give administrative approval
required? b) Acceptance of tender
a) Framework tendering c) Sanction to deposit work
b) Selective tendering
d) all of the above
c) Open tendering
d) Close tendering
11.Who of the following is responsible for the
5. Which among these is not considered as execution of work in his circle?
classification of works according to their cost? a) Junior engineer
a) Major work b) Chief engineer
b) Minor work c) Superintending engineer
c) Petty work d) None
d) Grand work
12.Function of executive engineer
6. What are the employees know as, who are a) Inspect sub-divisional office once in a year
employed directly on the work for the actual b) Maintenance of an account
execution of a specific work?
c) Keep a close watch on expenditure
a) Co-workers
d) All of these
b) Assistant

31
 c) Full power
13.Function of executive engineer d) None
a) Inspect sub-divisional office once in a year
b) Maintenance of an account 20. Methods used in PWD for carrying out works
c) Keep a close watch on expenditure is
d) All of these a) Contract method
b) Departmental method
14. Function of an assistant engineer is c) Both a & b
a) Execution of work d) None
b) Carry out a field survey
c) Submit the monthly report to progress of work 21. Which of the following is the contract
d) None method?
a) Rate list method
15.Functions of junior engineer are b) Day’s work method
a) Carry out the field survey c) Item rate method
b) Taking the measurement of all work d) Piece work method
c) Maintain attendance of daily worker
d) All of these 22.item plus fixed percentage method is
........method
16. For any execution of work which of the a) Contract method
following acceptance is necessary to take? b) Departmental method
a) Technical sanction c) Both a and b
b) Administrative approval d) None
c) Both a & b
d) None 23. Which of the following is the departmental
method?
17…........means the sanction of detailed a) Days’ work method
estimate, design, rates, and cost of work b) Employing labours on daily wages
a) Administrative approval c) Unit price method
b) Technical sanction d) Both a & b
c) Formal acceptance
d) None 24. Advantages of the item rate method are
a) Quality of work is assured
18. Technical sanction is valid for b) It allows extra work
a) 3 years c) Economical as the contractor
b) 4 years d) All of these
c) 5 years
d) 10 years 25. Which method is suitable for government
work like building, road, etc
19. The government gives the power of sanction a) Item rate method
to chief engineer up to b) Percentage rate method
a) 25 lack c) Rate list method
b) 30 lack d) None

32
 b) Contractor
26. classification of percentage rate method is c) Manager
a) Cost plus percentage rate d) None
b) Cost plus fixed fee
c) Cost plus variable fee 33. Objects of contract
d) All of these a) To execute work by experienced person
b) To do work as per specification
27. Rate list method is suitable for ..... work c) To use latest machinery and equipment
a) Government d) All of these
b) Private
c) Petty 34. What is requirement for valid contract
d) None a) Attested by witness
b) Subject matter
28. List of petty workers are kept in office of …. c) Contract in writing
a) Superintending Engineer d) All of these
b) Junior Engineer
c) Executive Engineer 35. Lump sum contractor suitable for?
d) None a) Work executed by government
b) When number of items are limited
29. Piece work method is suitable for c) Emergency work
a) Government work d) None
b) Private work
c) Petty work 36. Advantages of lump sum contract is
d) Maintenance and repair of work a) Progress of work is fast
b) Detailed measurement of work is not required
30. The attendance of total number of labour c) Owner need not require to appoint staff to
employed is maintained in Muster roll form No. maintain accounts
a) 20 d) All of these
b) 21
c) 30 37. Which of the following method is suitable for
d) 15 small work?
a) Target contract
31. In which method the basis of payment will be b) Lump sum contract
the actual quantity of work? c) Percentage rate contract
a) Rate list method d) All of these
b) Piece work method
c) Days’ work method 38. Item rate contract is also called as
d) None a) Percentage rate contract
b) Labour contract
32._____means a person which makes an c) Unit price contract
agreement for execution of work , supply of the d) None
material
a) Site engineer 39. Item rate contract is suitable for

33
a) Small work b) Quality of work is not assured
b) Work executed by government c) Material stored by department
c) Building, road, bridge d) All of these
d) Both b & c
46. Target contract is combination of
40. Percentage rate method is suitable for a) Fee contract ad demolition contract
a) Government work b) Cost plus percentage and cost plus variable fee
b) Private work contract
c) Both c) Negotiated and lump sum contract
d) None d) None

41. Advantages of percentage rate contract is 47. Target contract is suitable for
a) It allows extra items a) Private work
b) Scrutiny of tender is simple b) Government work
c) No scope for contractor to submit unbalanced c) Small work
tender d) None
d) All of these
48. Negotiated contract is suitable for work
42. which of the following method having final a) Where time is important
cost of work is not known before completion of b) Has to complete at short notice
work? c) PWD work
a) Lump sum contract d) Both a & b
b) Percentage rate contract
c) Cost plus percentage rate contract 49. Advantages of negotiated contract is
d) Both b & c a) Reliable contractor is suitable for work
b) Efficient contractor is suitable for work
43. Cost plus percentage rate contract is suitable c) No dispute between parties
for d) All of these
a) Difficult foundation condition
b) Construction of expensive structure 50. In Cost plus Fee contract profit is depend
c) Small work upon ________
d) Both b & c a) Material
b) Labour
44. In which type of contract owner agrees to pay c) Competition of work
contractor the actual cost of work plus certain d) All of these
fixed amount as his fee
a) Lump sum contract 51.In which of the following contract open
b) Labour contract competition is exist?
c) Cost Plus fixed fee contract a) Negotiated
d) None b) Target
c) Percentage rate
45. Advantages of labour contract d) None
a) Economical

34
52. Financial status of Class I contractor is d) All of above
a) Upto 25 lack
b) Upto 1 crore 59. Validity period of Earnest money ranges
c) No limit from.....days
d) None a) 30 to 60
b) 30 to 50
53. For registration of contractor which c) 30 to 90
document should be submit? d) None
a) Proof of financial status
b) Solvency certificate 60. Validity periods depend upon
c) Registration fee a) Importance of work
d) All of the above b) Amount involved
c) Time of completion
54. BOT means d) All of above
a) Built Operate Technique
b) Building Operation Technique 61. Additional performance security is charge
c) Built Operate Transfer only if the accepted bid value is ....of the estimate
d) None value of tender
a) 50%
55. objectives of BOT are b) 80%
a) To release burden on public budget c) 90%
b) To encourage private investment d) 30%
c) To promote foreign investment
d) All of these 62. Security deposit varies from.....
a) 3 to 10 %
56. In BOT what is the role of government? b) 5 to 15%
a) Release funds c) 2 to 5%
b) Prepare drawing d) 5 to 10%
c) Prepare estimate
d) Both b & c 63. The amount of earnest money depends upon
______
57. which of the following is BOT? a) Time period
a) Mumbai-Pune-ex-press highway b) Security deposit
b) Pune-Nashik highway c) Estimated cost
c) Nagpur express highway d) All of above
d) All of these
64. Earnest money is ......of estimated cost is
58. What are the reason to reject the lowest a) 1 to 2%
tender? b) 2 to 3%
a) Earnest money is not enclosed along with c) 1 to 4%
tender d) None
b) If any page is removed from document
c) Tender is not signed by contractor 65. In PWD which authority invite tender?

35
a) Junior engineer
b) Executive engineer 72. Measurement book is responsible for
c) Chief engineer measurement of
d) None a) Construction work done
b) Work done by labour
66. Tender notice includes c) Amount claim for work
a) Name of work d) None
b) Estimated cost
c) Time limit 73. When there is no advance outstanding against
d) All of above the contractor and intermediate payment is to be
made then which form is to be used?
67. ......tender is not suitable for specialized job a) Yellow final bill C
a) Global b) While running account bill C
b) Local c) Final bill
c) Open d) None
d) Limited
74. White running account bill B is used for
68. Which tender is invited for construction of a) Single payment
Airport, underwater construction, express b) Advance payment
highway c) Secure advance payment
a) Open tender d) None
b) Local tender
c) Limited tender 75. White running account bill A is used for
d) Global tender a) Single payment
b) Secure advance payment
69. The various types of tender are: c) Advance payment
a) Open tender d) None
b) Local tender
c) Limited tender 76. First and final bill is used for
d) all a) Single payment
b) Advance payment
70. ......is defined as an offer in writing for c) Secure advance payment
execution of certain specified work d) None
a) Contract
b) Tender 77. Yellow forms are used for
c) Tender document a) First and final bill
d) None b) Final bill
c) Running bill
71. Form no 23 known as d) None
a) Indent
b) Invoice 78. White forms are used for
c) Measurement book a) First and final bill
d) Bills b) Final bill

36
c) Running bill 85. Presence of the labours in the muster roll are
d) None marked by suitable and proper officer
a) True
79. A detailed account of claim for works done b) False
or supply is called
a) Indent 86. The muster roll is maintained to keep record
b) Bills of
c) Invoice a) Work done by labour employed on each day
d) None b) Advanced payment
c) Receipt of good
80. The acknowledgement of the receipt of good d) None
is called
a) Indent 87. NMR stands for ____
b) Bills a) Nominal Measure Roll
c) Invoice b) Nominal Muster Roll
d) None c) Number Muster Roll
d) Nominal Muster Rule
81. In imprest cash receipt are recorded
a) Red ink 88. When a measurement book is used by number
b) Blue ink of officers, then the name of officers must be
c) Black ink written at the _______ of measurement book
d) None a) End
b) Beginning
82. In imprest cash expenditure items are entered c) Both a & b
by...... d) None
a) Red ink
b) Blue ink 89. Officer should certify MB with remark as
c) Black ink ______ at the end of each task work
d) None a) His remark
b) His sign
83. Advance amount of fixed sum of money c) Measured by me
given to sub divisional officer is called d) None
a) Invoice
b) Payment 90. Measurement book includes
c) Imprest cash a) Contents of area
d) Indent b) Detail of actual measurement of work
c) Instruction for writing the columns
84. Which of the following is form no 2? d) All of above
a) Invoice
b) Payment 91. Specifications indicates
c) Imprest cash a) Quantity of material
d) Indent b) Workmanship of item
c) Both a & b

37
d) None a) For fixation of insurance premium
b) To determine the rent of the property
92. The cost of a unit quantity of work is known c) To obtain loans against security of property
by d) All of these
a) Contractor
b) Owner 99. The cost of commodity plus profit of
c) Specification contractor is called as
d) None a) Cost
b) Price
93. Specification is helpful to c) Value
a) Prepare rate analysis of various items d) None
b) Prepare Tender
c) Pricing the tender 100. Scrap value is about.....of its total cost of
d) All of these construction
a) 10%
94. Specification depends upon b) 20%
a) Site condition c) 30%
b) Nature of work d) None
c) Purpose for which work is carried
d) All of these 101. The value at the end of the utility period
without being dismantled
95. Measurement of excavation taken in a) Scrap value
a) cu.m b) Salvage value
b) Sq.m c) Market value
c) M d) Book value
d) mm
102. The loss in the value of property caused by
96. which of the following is the branch of its use life, wear, tear and decay is called as.....
surveying which deals with the art of assessing a) Monopoly
the present fair value of property b) Damage
a) Taxation c) Depreciation
b) Valuation d) None
c) Insurance
d) None 103. when the value of the property becomes less
due to elegance is called as
97. Necessity of valuation a) Monopoly
a) Taxation b) Depreciation
b) Rent fixation c) Obsolescence
c) Partition d) Sinking
d) All of these
104.The term administrative approval denotes:-
(i) The formal acceptance by the administrative
98. why valuation is required? department concerned of the proposals for

38
incurring expenditure on a work connected with 108.Sub scheme is represented by :-
the requirements of such administrative (a) Major Head
department. (b) Sub Major Head
(ii) It is an order to the Public Works Department (c) Minor Head
to execute certain specified works at a stated sum (d) Detailed Head.
to meet the administrative needs of the
department requiring the work. 109.The charges which cannot be incorporated
(iii) It is an order of competent authority directly in the regular accounts of the expenditure
sanctioning a properly detailed estimate of the of the Public Works Department is called :-
cost of a work of construction or repair. (a) Direct charges.
(iv) Administrative approval is given by the (b) Indirect Charges
work requisitioning authority on the basis of (c) Work Contingencies.
preliminary estimate prepared by the PWD. (d) Office contingencies.
(a) (i) & (iv) are correct.
(b) (i), (ii) & (iv) are correct. 110.Charges pertaining to a work, project, or job,
(c) (i), (ii) & (iii) are correct. which are incurred directly for its execution and
(d) (i), (iii) & (iv) are correct. are included in the regular accounts of it is named
:-
105. Asset does not include :- (a) Direct Charges.
(a)All outstanding or anticipated credits, which (b) Direct Receipts.
have to be taken in reduction of final charges. (c) Incidental Charges.
(b)Recoveries of advances or recoverable (d) Work Contingencies.
payment.
(c)Sale proceeds or transfer value of surplus 111.Storage charges are reviewed and fixed :-
materials. (a) At the end of a financial year.
(d)None of these. (b) On the occurrence of stock taking.
(c) At the beginning of a year.
106.“Contingencies” indicates the incidental (d) At the discretion of Divisional Officer.
expenses of a miscellaneous character which
cannot appropriately be classified under any 112.The following will not be covered under the
distinct ------head but pertains to the work as a definition of ‘Liability’.
whole. (a) Anticipated charges which are adjustable as
(a) Major Head final charges, but yet to be paid.
(b) Sub Major Head (b) Anticipated charges which are adjustable as
(c) Minor Head final charges, but not yet due for payment.
(d) Sub Head. (c) Anticipated charges which are adjustable as
final charges, having fallen due but have not been
107.Works executed for municipalities and other placed to the credit of the persons concerned.
public bodies, when the cost of which is met not (d) None of these.
out of government funds but from non-
government sources are called :- 113.The works executed by the Public Works
(a) Municipal Works. Department on behalf of a Municipality, Port
(b) Civil Works. Trust or other corporation, when the cost of the
(c) Deposit works. works is met neither from Government funds nor
(d) Non-govt works. Deposits, then it should be.
(a) Municipal works.

39
(b) Miscellaneous works. (c) Made on the security of materials in transit
(c) Local Loan works. which would be ultimately brought to site for
(d) Grant-in-aid. bonafide use on the work.
(d) Made to a contractor for collecting materials
114.Payment on Account means which is very urgent for the contracted work.
(a) Payments to contractor’s bank account,
instead of direct to contractors. 118. Storage charges does not include the
(b) A running account payment to a contractor in expenditure incurred on :-
respect of work done or supplies made by him (a) Work-charged establishment employed on
and duly measured. handling and keeping initial accounts.
(c) A running account payment to a contractor in (b) The custody of stock and the maintenance of
respect of work done and measurement the store godown.
awaited. (c) The maintenance of railway yard laid for the
(d) A final payment made to the contractor on the acquisition and supply of stores.
completion of the contract for the (d) The acquisition of stores from the suppliers.
work or supplies.
119.The charges which are ordinarily levied in
115.The term ‘Outturn’ denotes :- addition to book value in respect of stock
(a) Value of the Raw materials used in a materials sold or transferred and are intended to
manufacture operation. cover such items of the expenditure incurred on
(b) Value of the surplus material sold or disposed the store as do not enter their book value is :-
of during a manufacture operation. (a) Handling charges.
(c) Value of the finished products of manufacture (b) Supervision Charges.
operation. (c) Storage Charges.
(d) Turn over of a manufacturing unit of Public (d) Maintenance Charges.
Works Department during a financial year.
120.The comprehensive meaning of the term
116.“Rate of Cost” means “Works” exclude which of the following :
(a) The total upto date cost of a work divided by (i) Works of construction or repair.
the cost of labour and materials. (ii) Supply, repair and carriage of tools
(b) The total quantity of a work divided by the and plant,
total cost of it. (iii) Manufacture and supply of the stores.
(c) The total cost of a work divided by its (iv) Operation of a workshop.
quantity. (a) (i) only
(d) None of these. (b) (iv) & (iii) only.
(c) (iv) & (ii) only.
117.Secured Advance is a term applied (d) None of these.
specifically to an advance :-
(a) Made on the security of materials brought to 121.Voted expenditure is referred to :-
site of work, to a contractor whose contract is for (a) Expenditure flowing from Consolidated Fund
the labour rate only. of India duly voted by Parliament.
(b) Made on the security of materials brought to (b) Expenditure incurred from Public Fund of
site of work, to a contractor whose contract is for India duly voted by the Parliament.
the completed item of work. (c) Expenditure incurred from Public Account of
India duly voted by the Parliament.

40
(d) Expenditure met from Consolidated Fund and (a) President of India.
Public Account duly voted by the Parliament. (b) Parliament.
(c) Constitution of India.
122. The general principles to be followed in the (d) Union Finance Ministry.
classification of Public Works expenditure are
laid down in :- 128. An arbitral tribunal awarded a compensation
(a) Government Accounting Rules, 1990. of Rs 3,00,000 to the contractor during the course
(b) General Financial Rules, 2005. of a work. The sum required to satisfy the award
(c) Works Manual. is to be charged on the :
(d) Public Works Account Code. (a) Public Fund of India
(b) Consolidated Fund of India
123. Outlay on non-Government works is (c) Public Account of India
charged against :- (d) Contingency fund of India.
(a) The budget Grant.
(b) Grant-in-aid. 129. The primary disbursing officer of the
(c) Loans and Advances. Division is :-
(d) Deposit received. (a) The Superintending Engineer.
(b) Chief Engineer.
124. When a Division undertakes a service on (c) Sub Divisional Officer.
behalf of another Division, the accounts (d) None of the above.
settlement is resorted through :-
(a) Advance Payment. 130. Who is responsible for the maintenance of
(b) Cash Settlement Suspense Account. accounts of the transactions correctly and in
(c) Cash Payment. accordance with the rules in force?
(d) Cash Assignment Account.. (a) Divisional Accountant.
(b) Divisional Officer.
125. The transactions of Public works (c) Head Clerk.
Department may be grouped under the heads (d) Senior Accountant and Cashier.
other than the one indicated below :-
(a) Expenditure and Revenue Heads. 131. Maintaining financial regularity of the
(b) Major and Minor Heads. transactions of the Division is the responsibility
(b) Suspense and Deposit Heads. of :-
(c) Remittance Head. (a) Divisional Accountant
(b) Senior Accountant 10
126. When the Public Works Department (c) Sub Divisional Officer.
undertakes works of other departments as a (d) Divisional Officer
standing arrangement and the cost is debitable to
those departments, the classification of the 132. On periodical inspection, the Divisional
transactions is intimated by :- Accountant noticed some defects in the accounts
(a) The concerned Head of the Department. records of a Sub-Divisional Office. In such an
(b) Pay and Accounts Officer. event, who is responsible for imparting necessary
(c) Comptroller and Accountant General. instructions thereon to the Sub-Divisional
(d) Central Government. Officer ?
(a) Divisional Officer.
127. The incidence of expenditure between voted (b) Divisional Accountant.
and charged is determined by the :- (c) Internal Audit Wing.

41
(d) Statutory Audit Wing. (b) The objection should be held in force unless
a formal intimation of its withdrawal is received
133. The results of audit/inspection are from the Audit Officer.
communicated to the Divisional Officer in the (c) The objection once raised is final and it cannot
form of :- be revoked by way of a protest of the Auditee
(i) Audit Notes institution as it being incorrect.
(ii) Inspection Reports (d) The objection should be held in force unless
(iii) Letters it is rectified through obtaining the requisite
(iv) Memoranda sanction or by making the necessary recovery.
(a) (ii) only.
(b) (i) & (ii) only. 137. The allotment of a particular sum of money
(c) (i), (ii) & (iv) only. to meet expenditure on a specified job as
(d) Any of these. enunciated in the Detailed Demands for Grants is
called :-
134. Part I of the Audit Note and the Inspection (a) Appropriation.
Report should be returned to the Audit Officer (b) Re-appropriation.
through the :- (c) Either of these.
(a) Superintending Engineer. (d) None of these.
(b) Chief Engineer.
(c) Divisional Officer. 138. As per the Constitution of India,
(d) Any Superior Officer. government accounts shall be kept in the
following three parts:-
135. What are the common practices adopted by (a) Consolidated Fund, Contingency Fund &
the Divisional Offices for removal of an audit Public Fund.
objection :- (b) Consolidated Fund, Contingency Fund &
(i) Obtaining the requisite sanction or by Public Fund including Union Territories.
(ii) Making the necessary recovery. (c) Consolidated Fund, Contingency Fund &
(iii) Correcting or completing the relevant Public Account.
account or voucher by furnishing the (d) Any of these.
necessary documents or information. 14
(iv) Securing compliance with the 139. Which of the following relates to the term
provisions of a specified rule. “Capital Expenditure” ?
(a) (i) & (ii) (a) Expenditure usually met from taxation and
(b) (i), (ii) & (iii) other receipts with the object of increasing
(c) (ii) & (iii) concrete assets of a material and permanent
(d) Any of these. character.
(b) Expenditure met with from borrowed funds
136. An audit officer placed a transaction under with the object of making assets of any nature.
objection. The Divisional Officer made a protest (c) Expenditure met usually from borrowed funds
against the objection as being incorrect. Which of with the object of increasing concrete assets of a
the following is most suitable to the context ? material and permanent character.
(a) The objection should not be held in force (d) None of these.
unless a formal intimation of its withdrawal is
received from the Audit Officer. 140. Transactions pertaining to the Public
Accounts of Union Territories are booked under
Public account of :-

42
(a) Respective Union Territories.
(b) Nearest State Government. 146. Nature of expenditure such as “Salaries” is
(c) Central Government. an example of :
(d) Government of Goa. (a) Minor Head
(b) Object Head
141. Which of the following does not include in (c) Sub Major Head
the factors of the Consolidated fund of India :- (d) Detailed Head
(a) Revenue Receipt & Revenue Expenditure.
(b) Public Deposit. 147. Find that does not include under the
(c) Loans & Advances. definition of ‘Cash’.
(d) Capital Receipt. (a) Draft payable on demand.
(b) Deposits-at-Call receipts of Scheduled Banks.
142. The six tier arrangement of the classification (c) A small supply of one Rupee Revenue
structure of government accounts are:- Stamps.
(a) Major Head, Sub Major Head, Minor Head, (d) Deposit receipts.
Sub Head, Detailed Head & Object Head.
(b) Sectors, Major Head, Sub Major Head, Minor 148. Name the financial means by which the
Head, Sub Head & Detailed Head. Divisional Officers are assigned, against which
(c) Sectors, Sub Sectors, Major Head, Minor they are authorised to draw cheques for payment
Head, Sub Head & Detailed Head. of all bills passed by them.
(d) Sectors, Major Head, Minor Head, Sub Head, (a) Promisory Notes.
Detailed Head & Object Head. (b) Any financial instrument authorised by the
Reserve Bank of India.
143. Find the correct combination. (c) Letter of Credit.
(a) Major Head, Sub Major Head, Minor Head, (d) Letter of Debit.
Sub Head, Detailed Heads & Object Heads.
(b) Major Head, Sub Major Head, Sub Head, 149. Cheques shall be payable :-
Minor Head, Detailed Heads & Object Heads. (a) Within three months from the month of issue.
(c) Major Head, Sub Major Head, Sub Head, (b) Within three months from the date of issue.
Minor Head, Object Head & Detailed Heads. (c) Within three months after the month of issue.
(d) Major Head, Sub Major Head, Minor Head, (d) Within three months after the date of issue.
Sub Head, Object Heads & Detailed Heads.
150. Which of the following is incorrect in
144. Name the head that sometimes find omitted respect of drawal of cheques ?
while classifying government accounts. (a) A cheque can be drawn for Rs 5/-
(a) Sub Major Head. (b) All cheques in Divisional Office drawn for Rs
(b) Sub Head. 10 lakh and above shall bear two signatures.
(c) Detailed Head. (c) The Divisional Accountant is not authorised
(d) Object Head. to sign any cheques.
(d) It is permissible to draw money from the
145. Nature of expenditure such as “Salaries” is accredited bank by cheque to replenish the cash
an example of : chest.
(a) Minor Head
(b) Object Head 151. At the close of the financial year, a
(c) Sub Major Head Divisional Officer drawn cheques and deposit
(d) Detailed Head

43
them in cash chest to prevent the lapse of the (a) as soon as possible after the date of their
grant :- occurrence.
(a) The action is in order because the grant would (b) at the end of the month.
have been lapsed otherwise. (c) once in a week.
(b) The action is a serious irregularity. (d) the first working day of the next month after
(c) The Divisional Officer is the sole Cheque closing the previous month‟s account.
Drawing and Disbursing Officer of a division
hence his action in this regard is beyond 156. The cash book should be signed by a
objections. Divisional Officer :-
(d) Divisional Officer has to ensure the fully (a) at the end of the month.
utilization of the grant. Hence the action is (b) after the last entry of each day.
correct. (c) at the end of a week.
(d) after the each entry made in the cash book.
152. Government Officers entrusted with
imprests or temporary advance should maintain 157. The actual cash balance in each chest should
and render accounts in Imprest Cash Account in be counted :-
Form No :- (a) at the end of each day.
(a) CPWA-7 (b) at the end of the month.
(b) CPWA-2 (c) last working day of each month
(c) CPWA-4 (d) first day of next month.
(d) CPWA-1A
158. If the actual cash balance could not be
153. Market rate is :- counted on the last working day of each month,
(a) The rate per unit at which the article borne on then the cash balance may be counted :-
the stock of a division sold to the general public (a) on the first day of next month.
or a person. (b) on the first working day of next month.
(b) The rate per unit at which the article borne on (c) on the first working day of next month before
the stock of a division sold at the market for any disbursement is made on that date.
public use. (d) None of the above
(c) The cost per unit at which the article can be
procured at a given time from the public market. 159. The actual cash balance should be counted
(d) None of these. on the last working day of each month. The actual
cash balance means, it :-
154. An entry once made in the cash book of a (a) inclusive of imprest
Public Work Division :- (b) inclusive of temporary advance
(a)Can be erased in very exceptional (c) Both (a) & (b)
circumstances. (d) exclusive of imprest and temporary advance
(b)Can be erased with prior approval of
Divisional Accountant & Divisional Officer. 160. A standing advance of a fixed sum of money
(c)Should be erased to make corrections if given to an individual to enable him to make
necessary. certain classes of disbursements which may be
(d) Should in no circumstances be erased. entrusted to his charge by the Divisional Officer
is called :
155. The disbursing officer of a Public Works (a) Temporary advance
Division should check all the entries in his cash (b) Advance payment
book:- (c) Imprest

44
(d) Temporary withdrawal (b) once in a week.
(c) everyday after the closing of the transactions.
161. A disbursing officer makes remittance to a (d) at least once a month
subordinate officer to enable him to make a .
number of specific petty payments on a muster 166. The general administration regarding the
roll or other voucher which had already been acquisition, custody, distribution and disposal of
passed for payment. Such remittances should be stores are vested with :-
treated as :- (a) Store Keeper
(a) imprest (b) Sub Divisional Officer
(b) temporary withdrawal (c) Divisional Officer
(c) advance remittance (d) Stores Superintendent.
(d) temporary advance
167. Procedures for all transactions of receipts
162. The account of temporary advance should and issues of stores are prescribed in :-
be closed :- (a) Government Accounting Rules 1990.
(a) at the last working day of the month (b) Central Government Accounts (Receipts &
(b) at the last day of the month Payments) Rules 1983.
(c) everyday (c) General Financial Rules, 2005.
(d) as soon as possible (d) Delegation of Financial Powers Rules 1978.

163. What is incorrect in respect of appointment 168. Any serious irregularity noticed in the
and duties of a cashier in Public Works transaction of receipts and issues of stores should
Department:- be brought to the notice of appropriate authority
(a) A cashier can make the cash payment of two by :-
or more Divisions. (a) Divisional Officer
(b) The keys of one of the locks of the treasure (b) Divisional Accountant
chest will be in the possession of the cashier. (c) Store Keeper
(c) Cashier is not an essential part of a Divisional (d) Sub Divisional Officer
Establishment.
(d) If the amount received is less than Rs 500/-, 169. The value accounts of the stores should be
the cashier is authorised to issue receipts on maintained in the :-
behalf of Divisional Officer. (a) Sub Divisional Office
(b) Divisional Office
164. The account of imprest cash should be kept (c) respective Circles
in :- (d) None of the above.
(a) original only.
(b) duplicate. 170. The quantity accounts of all stores should be
(c) triplicate. maintained in the :
(d) None of the above. (a) Sub Divisional Office
(b) Divisional Office
165. The Divisional Officer should count the (c) respective Circles
cash in the hands of cashier :- (d) None of the above.
(a) once in a month.

45
 ANSWER KEY

1.b 43.d 84.c 125.b 166.c

2.d 44.c 85.a 126.b 167.c
3.c 45.d 86.a 127.c 168.b
4.c 46.b 87.a 128.c 169.b
5.d 47.a 88.b 129.d 170.a
6.c 48.d 89.c 130.b
7.c 49.d 90.d 131.d
8.a 50.c 91.c 132.b
9.c 51.b 92.c 133.d
10.d 52.c 93.d 134.a
11.c 53.d 94.d 135.d
12.d 54.c 95.a 136.b
13.d 55.d 96.b 137.c
14.c 56.d 97.d 138.c
15.d 57.d 98.d 139.c
16.c 58.d 99.b 140.c
17.b 59.c 100.a 141.b
18.c 60.d 101.b 142.d
19.c 61.b 102.c 143.a
20.c 62.d 103.c 144.a
21.c 63.c 104.b 145.b
22.a 64.a 105. d 146.b
23.d 65.b 106.d 147.d
24.d 66.d 107. c 148.c
25.a 67.c 108.d 149.c
26.d 68.d 109.b 150.c
27.c 69.d 110.b 151.b
28.c 70.b 111.c 152.b
29.d 71.c 112.d 153.c
30.b 72.a 113.c 154.d
31.b 73.a 114.b 155.a
32.b 74.c 115.c 156.a
33.d 75.c 116.c 157.c
34.d 76.a 117.b 158.c
35.b 77.b 118.d 159.d
36.d 78.c 119.b 160.c
37.b 79.b 120.d 161.d
38.c 80.c 121.a 162.d
39.d 81.a 122.a 163.d
40.b 82.b 123.d 164.b
41.d 83.c 124.a 165.d
42.d
46
47