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G.O.Ms.No. 589, PR & RD, at. 29-9-1989

TENDERS FOR CONTRACTS
Invitation and acceptance of tenders for contracts in respect of works of Mandal Praja Parishads and Zilla Praja Parishads

Panchayat Raj and Rural Development Department
G.O.Ms.No. 589
Dated. 29-9-1989


ORDER
Rules

1.Execution of works:-
    1. All works of construction of buildings, roads, bridges or any other development works, except Minor Irrigation Works, which are Sanctioned on contribution of more than 35 percent of the estimated cost by Mandal Praja Parishad or a Zilla Praja Parishad or by the Government, shall be entrusted to the local Gram Panchayat, if the Gram Panchayat itself undertakes the responsibility of collecting the specified contribution and undertakes the work by itself.
    2. All other works (except Minor Irrigation Works) for which the contribution is 35 percent and less of the estimated cost and all full grant works shall be entrusted only after calling for tenders.

    3. In case, a local Panchayat is entrusted with a work under Clause (a) the Work shall be undertaken by the Panchayat itself, the Sarpanch/ Executive Officer acting on behalf of the Gram Panchayat being responsible for the execution of the work in accordance with the terms of the agreement. The Gram Panchayat shall not nominate any other person as its nominee for undertaking the work on behalf of the Gram Panchayat. All the penal clauses of the agreement will also be made applicable and enforceable to such of these Sarpançhes / Executive Officers who undertake the execution of the works representing the Gram Panchayats concerned.

    The execution of work shall be entrusted to the Gram Panchayat in the name of the executive authority and not to the Sarpanch/ Executive Officer (in his personal capacity). As no advances are allowed to be drawn against the works to be executed by Gram Panchayats. The work shall be entrusted to the Gram Panchayat depending upon its financial capacity. The District Panchayat Officers have to assess the financial position of each Gram Panchayats in the district and fix up the financial limits up to which each Gram Panchayat can take up the works. In fixing this figure, normal revenue demand under all items and normal expenditure under all items should be taken into account and with reference to the surplus and that may be available the limit shall be fixed. It is not the intention of the Government that the Gram Panchayats should undertake execution of works to the detriment of the Panchayat administration.

  1. Where a Local Panchayat does not fulfil the conditions specified in clause (a) of sub-rule (1) the work shall be entrusted to the sponsors on the specific conditions that—
    1. the sponsors undertake the responsibility of collecting and paying the people's share in full before commencement of the work and that they shall also enter into an agreement in such form of agreement as is prescribed for contractors holding themselves responsible for the proper execution of works;
    2. the sponsors are prepared to undertake the work and agree to utilize the profits, if any for the benefit of the village;
    3. the word Sponsor (whenever used in these rules) means agencies a school building committee, village development committee, a group of group of beneficiaries who come forward to take up the constructional work for the benefit of the community. Such a sponsor who comes forward to execute particular work, shall not give it to any nominee, other than one of the members of the committee, group, etc., on behalf of the entire group who shall execute the work him self;
    4. that such work shall be started Within 15 days from the date of entrustment of the same. In case the work is not taken up the Executive Engineer or the Mandal Development Officer may get the work executed through other agencies.
  2. In case of Minor Irrigation works, the priority in entrustment of works shall be as under
  3. (1) Major ayacutdar
    (2) Single or a group of big auacutdars.
    (3) Single or a group of other auacutdars who are willing to take up the works.
    (4) Gram Panchayats represented by Sarpanch
    (5) Contractor.

    Explanatory Instruction for entrustment of Minor Irrigation Work:—

    1. An ayacutdar shall be given priority provided he has the financial capacity to execute the
    2. A group of other Ayacutdars who are willing to take up the works:— Same procedure as indicated in para (i) above shall be followed. However, ifmore than one Ayacutdar comes forward to execute the works 'and if all of them are financially sound, preference shall be given to ayacutdar quoting the lowest rates
    3. The contractor should be a registered contractor and where works are minor in nature, there should be no objection to grouping ofsuch minor-works conveniently for calling for tenders.
  4. Departmental Execution:— ln exceptional cases, where departmental execution is considered desirable in the interest of the work either on account of its urgency or of its special nature, the authority competent to call for the tenders to the work may order for taking up departmental execution of the work, with the approval of next higher authority (Technical).
  5. The authority competent to call for tenders in respect of tender work shall also be the authority competent to entrust the works sanctioned on contribution of more than 35 percent of the estimated costs to the Gram Panchayat or sponsor.
Contd Page. 2
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