Академический Документы
Профессиональный Документы
Культура Документы
Analysis of rates is a component-wise break up of the rate indicated for each item
of work in the schedule of rates or in the estimate of work or a non-scheduled item in a
contractors bill. It is a detailed working sheet showing the quantity and value of each
input required to completely do an item of work. If some inputs are to be replaced by
superior or inferior input, then Analysis of Rates is handy to work out the rate for the
modified item of work. It, thus, supplements or supports the Schedule of Rates.
Market rate indicates the cot per unit at which the article (or an article of similar
description) can be procured, at a given time from the public market suitable to the
Division to obtain it supply. This cost should include the expenses likely to be incurred
on carriage and incidental charges also. In determining the market rate, reasonable
provision may be made for wastage and depreciation where these are inevitable.
Issue Rate is fixed on the principle that the cost to be charged to works on which
the materials are to be used should approximately equal the actual cost of the stores and
that there may be no ultimate profit or loss on stock account. Thus, the issue rate
provides for the element of (i) purchase price, (ii) cost of carriage to stores and (iii) Cost
of storage (ie., expenses on work charged establishment employed on handling, custody
and keeping initial accounts of stores besides expenditure of maintenance of stores
godown). The issue rate of an article of stock is fixed at the beginning of each year. But,
as purchases during the year are made variation of cost should be watched. If there is
material variation in the purchase price, the issue rate can be revised at the discretion of
the divisional officer.
If, the issue rate is appreciably lower than the market rate, the following
precautions are observed.
Out turn is also a term used in manufacture accounts and work shop accounts.
But it represents the value of the finished products derived from the manufacture or work
shop.
Imprest is a standing advance of a fixed sum for making payments left to the
charge of a subordinate which the latter is an advance made temporarily to a subordinate
to make a number of specific petty payments on muster rolls and vouchers which have
already been passed for payment.
The term sub-head is the sub-division into which the cost of the work or its sub-
works, if it is large work is divided for purpose of financial control and statistical
convenience e.g., excavation, brick work, concrete wood work, etc., on the other hand the
term sub-work is applied to a distinct unit of a work, when it is sufficiently important to
be kept distinct for the purpose of accounts. For example, the solitary cells, the cook
houses and the jailors quarters are sub works in the case of a large Central Jail whereas
the excavation, brick work, etc of these sub-works are sub-heads.
Earnest money is the amount of money that a tender has to deposit along with his
tender to assure the government that he is earnest in executing the work at the rates
tendered. Incase his tender is accepted, and he fails to proceed with the work in
accordance with the rates and terms of his tender, his earnest money can be forfeited.
Deposit works is applied to work executed in PWD but the cost of which is met,
not out of government funds, but from funds provided by non-government sources. The
property of the work will also vest in the body funding it. Works executed for
Municipalities, Corporations, Panchayats, Non-government organizations and private
parties fall in this category. Funds for the work may be deposited by these bodies either
in cash or otherwise placed at the disposal of PWD Division. Normally, no expenditure
shall be incurred by PWD on Deposit works unless there are sufficient funds at its
disposal to meet their cost (including departmental charges). Any expenditure incurred in
excess of deposits received must be removed form the account of deposits and taken
under Miscellaneous Public Works Advances till more funds are made available.
The account of all completed works should be closed as soon as possible. Takavi
works relating to ordinary maintenance and repair should be treated as closed on 31 st
October each year (or any other date prescribed by the government as the end of Takavi
year). Expenditure incurred on them subsequently should be treated as pertaining to new
work of the following year.
Tools and plant which are kept in a Public Works Division for general use in the
Division, e.g., Hammers, spades, Kassis, Measuring Tapes, RCC mixers, vibrators, Road-
rollers etc., are examples of ordinary tools and plant. These are purchased from the
budget under the minor head Machinery and equipment of the major head of the
Division.
Special Tools and Plant acquired by the Division for a particular work mainly
because these are specially needed for it and are not ordinarily stocked in the Division.
These are almost invariably required for major irrigation projects, say bulldozers for a
canal.
Direct Charges mean charges that pertain exclusively to any job under suspense
head Work shop Suspense. These represent direct inputs in the execution of a job, such
as direct material and direct labour. Materials purchased or issued for a job and wages to
labour doing that job are examples of direct charges.
Indirect Charges are those which are not direct input on the job but have
necessarily to be incurred for the work shop as a whole. For example machinery, cost of
supervisory staff, watch and ward, interest on capital invested, water, rent of work shop,
etc are not directly incurred for carrying out a single job. But each job must par take of a
portion of these costs when we work out its manufacturing cost. Thus, supervision
charges, depreciation charges, interest charges, rents are all indirect charges relating to a
job undertaken.
A contract may run over a long period. In that cases, the work done by the
contractor is measured at intermediate stages and payment made for it on a running
account basis. This is called Payment On Account. Such payments are based on actual
measurement of work done.
Rate of cost generally means the total cost of a work or supply divided by its
quantity, it means cost per unit. Rate of cost of a sub-head of work can similarly be
derived by dividing the up-to-date final charges of that sub-head by the up-to-date
quantity of work executed under that sub-head. If materials are posted under a sub-head
separately, then the rate of cost will naturally not include the element of cost of materials
used on that sub-head.
Inclusive rate of cost means the rate of cost of a sub-head of work including the
cost of materials used on that sub-head of materials issued to the work are recorded
separately in a sub-head Materials in the works abstract.
A contract may run over a long period. In that case, the work done by the
contractor is measured at intermediate stages and payment made for it on a running
account basis. This is called payment on account. Such payments are based on actual
measurement of work done.
Deposit work is applied to work executed in PWD but the cost of which is met,
not out of government funds, but from funds provided by non-government sources. The
property of the work will also vest in the body funding it. Works executed for
Municipalities, Corporations, Panchayats, Non-government organizations, private parties
fall in this category. Funds for the work may be deposited by these bodies either in cash
or otherwise placed at the disposal of PWD Division. Normally, no expenditure shall be
incurred by PWD on Deposit Works unless there are sufficient funds at its disposal to
meet their cost (including departmental charges). Any expenditure incurred in excess of
Deposits received must be removed from the account of Deposits and taken under
Miscellaneous Public Works Advances till more funds are made available.
Local Loan Works In this case, works expenditure incurred by PWD on the
works is treated as loan to the party on whose behalf the work is done. Thus Local Loan
woks are works undertaken on behalf of a local body, Municipality, Municipal
Corporation or a Port Trust, etc., when the cost of the work is to form a part of the loan
given to it by the Government for the purpose.
Expenditure on a local loan work is accounted for under the Loan head concerned
and shown in the Schedule of Debit of Miscellaneous heads of account Form 76,
supported by a schedule of works expenditure. All charges relating to a loan work should
be brought to account immediately as they occur so that interest charges may be correctly
calculated and adjusted by the Accounts Officer.
1) The amount of advance does not exceed 75% of the value of materials brought to
site by him.
3) Expenses for the watch and ward of the materials shall be born by the contractor.
7) The Secured Advance paid is posted both in the Works Abstract and contractors
ledger in the column Contractors secured advance to watch recovery.
1) The amount of advance does not exceed 75% of the value of materials
brought to site by him.
3) Expenses for the watch and ward of the materials shall be born by the
contractor.
Bin Cards are kept in stores godown in Form8. They record chronologically all
receipts, issues and the running balances of each article of stock. These cards are kept
right at the place where the article is placed so that entries may be easily and quickly
made. It is kept only in terms of quantities.
Storage charges are levied on issue of stores from Divisional stock to contractors
or to work executed departmentally. By levying this charge, it intended that PWD should
be able to recover the expenditure incurred by it on the stores after they were received,
such as expenditure on work-charged staff employed for their custody (like watch and
ward, maintenance of stores godown and yard, rent of store-shed, etc, handling or
stocking of articles, etc., and on maintenance of their records).
The storage charges are levied on percentage basis on the rate at which stores are
issued. The percentage rate is fixed for each division on the principle that the total
estimated annual expenditure of this nature is, as far as possible, recovered from the
issues likely to be made during the year.
Supervision charges are the charges levied in addition to book value in respect of
stock materials sold or transferred and are intended to cover such items of expenditure
incurred on supervision of stores like salaries of regular staff employed such as store-
keeper and his assistants, share of cost of regular staff employed on purchase, inspection,
accounting, etc. It is levied as a percentage of issue rate plus storage charges.
Direct Receipts signify those Revenue Receipts which are realized in connection
with the supplies of water etc., made from the canal or project. These are brought to
account as directly pertaining to the project. The examples are sale of water for irrigation
purposes, sale of water to towns, other canal produce, etc.
Indirect Receipts are those receipts which are only incidental to a work or project.
These do not arise directly from the canal or project and can not be taken as arising from
it directly. For example, Land Revenue may increase due to better irrigation facilities,
and a portion of such increased Land Revenue may be credited to the account of the
project. But this portion of Land Revenue due to Irrigation Projects would be indirect
receipts.
In this case materials are issued to contractors whose contract is for completed
items of works but materials are required to be issued to him at a price in accordance with
the contract (either in the interest of the quality of work or for other considerations like
short supply in the market). The custody of such materials lying at site is that of the
contractor and he is responsible for its safety. But the contractor is not at liberty to take
away the un-used material without the consent of the Divisional Officer. If there is no
such stipulation in the contract, materials should not be issued to the contractor except in
exceptional circumstances.
Material is treated as issued to work when the work is executed (i) departmentally,
or (ii) by contractor whose contract is for labour rates only. A register of material at site
is kept for such materials issued and watch is kept against actual consumption and
wastages and losses etc. Such material at site is in the custody of PWD.