MODE OF OBTAINING CASH BY PWD & FOREST DEPARTMENTS.

I. INTRODUCTION TO INDIAN GOVERNMENT ACCOUNTS AND AUDIT:

Relation with Treasury Rule 24.57
II. CENTRAL GOVERNMENT ACCOUNT (RECEIPTS AND PAYMRNTS RULES, 1983.):
Withdrawal of money from Government Account- Note under Rule 11(2).
III. CENTRAL PUBLIC WORKS ACCOUNT CODE:
Delegation of Cheque Drawing Powers to Drawing and Disbursing Officers-Chapter 3.1-
3.1.4
IV. CIVIL ACCOUNTS MANUAL:
Mode of obtaining Cash- Chapter 6.2
V. DISPOSAL OF RECEIPT.
Para 6.3.6 of CPWD ACCOUNT CODE: Moneys realized by officers of the department
should be paid, as soon as possible, into the accredited Bank, for credit as miscellaneous
receipts of the department. should a Divisional Officer, however, require to make use of
cash receipts temporarily for current expenditure, he may do so instead of obtaining
fresh cash by cheques, but before the end of the month, he must send to the Bank a
cheque for the amount tus utilized, drawn in his own designation and endorsed by
himself with the words,” Received payment by transfer credit to the Public Works
Department”.
Note: This rule does not apply to receipts realized by short payment on bills or other
vouchers.
VI. DEPOSIT:
Para 15.1.1 of CPWD ACCOUNT CODE: Deposit transaction of the PWD are of the two
kinds:-
1. Public Works Deposits, which pass through the regular accounts of the Division.
2. Interest Bearing Securities.
Deposit of the first kind comprise transactions of the following classes, which are
passed through the head Public Works Deposits.
I. Cash Deposits of Subordinate as Security.
II. Cash deposits of Contractors as Security.
III. Deposit for Work other than Takavi Works to be done.
IV. Sums due to Contractors on closed accounts.
V. Miscellaneous deposits.

The interest-bearing securities referred to in class 2 above are deposited by

subordinates and contractors. These do not pass through the regular accounts of
division.

VII. RECOVERIES:
VIII. EARNEST MONEY DEPOSIT: Rates of Earnest Money (as CPWD WORKS MANUAL, 2003)
19.2 The amount of the earnest money which a contractor should deposit with the
tender is regulated by the following scales.
1. In case of petty works costing Rs. 5,000/- or less the Executive Engineer may, at his
discretion, dispense with the conditions for calling for earnest money.
2. For works estimated to cost up to Rs. Twenty-five crores -2% of the estimated cost.
 3. For works estimated to cost more than Rs. twenty-five crores- Rs. 50 (fifty lakhs) plus
1% of the excess of estimated cost over Rs. twenty-five crores.
Mode of Deposit: The earnest money may be accepted only in the following forms:
1. Cash up to Rs. 10,000/-.
2. Treasury Challan.
3. Deposit at Call receipt of a Scheduled Bank guaranteed by the Reserve Bank of
India.
4. Banker's Cheque.
5. Demand Draft.
6. FDR.

IX. PERFORMANCE GUARANTEE 21.1: Successful tenderer (Contractor) shall deposit 5% of

tendered amount, in the form of:
1. Cash (in case guarantee amount is less than Rs 10,000/-)
2. Deposit at Call Receipt/Banker Cheque/Demand Draft/Pay Order of a Scheduled
Bank (in case guarantee amount is less than Rs 1,00,000/-)
3. Government Securities
4. Fixed Deposit Receipt (FDR) of a Scheduled Bank.
5. Time allowed for submission shall be decided in Notice Inviting Tender (NIT) for a
period ranging from 4 to 15 days of the issue of acceptance.

X. SECURITY DEPOSIT 21.2: Shall be deducted from running bill of contractor at the rate
below:
1. 2.5% of the gross amount of the running bill as well as final bill.
2. The security deposit will be collected by deductions from the running bills of the
contractors at the rate mentioned below and the earnest money, if deposited in
cash at the time of tender, will be treated as part of security deposit. The security
deposit will also be accepted in cash or in the form of Government Securities, Fixed
Deposit Receipts. Performance security may be accepted as Bank Guarantee of
Scheduled Banks and State Bank of India:
3. A sum @ 10% of the gross amount of the bill shall be deducted from each running
bill of the contractor till the sum along with the sum already deposited as earnest
money, will amount to Security Deposit of 5% of the tendered value of the work. In
addition, the contractor shall be required to deposit an amount equal to 5% of the
tendered value of the contract as Performance Security within the period prescribed
for commencement of work in the letter of award issued to him. (20.1 of CPWD
WORKS MANUAL 2003
XI. CESS:
XII. ADVANCES: Advance payment for work done and measures 32.1: Advance payment
against Bills received in Divisional Office may be done on receipt of an application from
Contractor on lump-sum advance payment on Hand Receipt Form 28 subject to the
following condition:
1. Bill should be under check
2. Should not exceed 80% of net amount of bill
3. Grant of 2nd Advance before first one has been recovered not permitted.
4. Advance payment for work done and but not measures 32.2:
5. Secured Advance 32.4: Not exceeding 90% of material brought to site.
6. Mobilization Advance 32.5:
7. Estimated cost put to tender Rs 2 Crores and above.
8. Provision of mobilization advance may be kept in the tender documents.
9. CE will decide.
10. Limited to 10% of tendered amount.
11. 10% simple interest
12. Shall be released only after obtaining Bank Guarantee bond from a Scheduled bank
for the amount of advance to be released and valid for the contract period.
13. Recovery should commence after 10% of work is completed. Entire amount together
with interest shall be recovered by the time 80% of the work is completed.
14. Advance for Plant & machinery and for shuttering materials brought to site.32.6:
15. 5% of tendered value or 90% of the price of such new plant & machinery paid by the
contractor whichever is lower.
16. For second-hand and used 5% of tendered value or 50% of the price of such new
plant & machinery paid by the contractor whichever is lower.
17. 75% amount of such advance shall be paid after the plant & machinery is brought to
site and balance 25% on their successful commissioning.
18. Recovery should commence after 10% of work is completed. Entire amount together
with interest shall be recovered by the time 80% of the work is completed.