The Kerala Municipality (Execution of Public Works and Purchase of Materials) Rules, 1997

S.R.O. No. 901/97.— In exercise of the powers conferred by section 217 of the Kerala Municipality Act, 1994 (20 of 1994) read with clause (e), of sub- section (2) of section 565 there of and in supersession of the Kerala Municipality (Public Works and Supplies) Rules, 1996 issued under No. G.O. (Ms) 268/96/LAD dated 19th December, 1996 and published as S.R.O. No. 891/96 .in the Kerala Gazette Extraordinary NO. 1461 dated 19th December, 1996, the Government of Kerala hereby make the following rules, namely:—

RULES

1. Short title and commencement.—(1) These rules may be called the Kerala Municipality (Execution of. Public Works and Purchase of Materials) Rules, 1997.

(2) They shall come into force at once,

2. Definitions.— (1) In these rules unless the context otherwise requires,-

(a) 'Act' means the Kerala Municipality Act, 1994 (20 of 1994);

(b) 'Municipal Engineer means an Engineer appointed under section 222 or lent to a Municipality by Government under section 227 or authorised by the Government for this purpose by general or special order to execute or supervise the Public Works of a Municipality;

Explanation.—If more than one Engineer is appointed or lent to a Municipality, then the senior most Engineer among them shall perform the duties of the Municipal Engineer;

(c) 'Municipality' means a Town Panchayat, a Municipal Council or a Municipal Corporation;

(d) 'Panchayat' means a Village Panchayat, a Block Panchayat or a District Panchayat:

(e) 'Public Work' means a Public Work which the Municipality is bound to Execute under the Act;

(f) 'Section' means a section of the Act.

(2) Words and expressions used, but not defined in these rules, but defined in the Act shall have the meanings respectively assigned to them in the Act.

3. Procedure for and execution of Public Works.— (1) A Municipality shall prepare in the beginning of every financial year a priority list of public works intended to be executed in the Municipality by including in a scheme and otherwise.

(2) The rough cost estimate of each such public work intended to be so executed shall be prepared

* Published in K.G. Ex. No. 682 dt. 7-5-2001, as G.O.(P) No. 75/01/LSGD dt. 21-3-2001

(3) Subject to sub-rule (1) of rule 6, the council shall decide whether a public work is to be executed on contract basis, or directly by the Municipality or through the beneficiary committee and shall make it clear while giving administrative sanction.

(4) The Council may decide that such public work which is highly technical requiring use of machinery and supervision of experts be executed through contractors, such public work which can be carried on by Municipality with locally available materials profitably and urgently be executed directly by the Municipality and such public work which can be carried on with the participation of beneficaries be executed through the beneficiary committee:

Provided, that while deciding the mode of execution of public works the possibility of executing the work through the beneficiary committee has to be explored and priority shall be given to such mode and if such priority cannot be given the reason for the same shall be specified in the council decision:

Provided further that the execution of public works under the schemes formulated by the Central or State shall be subject to the guidelines issued by the Central Government or the State Government in this regard.

(5) If the Municipality is convinced that a contract that may be fixed for any public work might be of excess rate or that the contract period might be too long and that such work can be executed directly by the Municipality or through beneficiary committee at a lower cost, the council may decide accordingly.

(6) Whatever the mode in which a public work is decided to be executed, the reasons for such a decision shall be specified in the Council decision.

Explanation.— If there is a Patasekhara Committee or a Parent-Teacher Association or any other similar committee functioning in a Municipality, then such a committee may be considered as beneficiary committee for public works related to them.

4. Power of various authorities to give administrative sanction.- The subject to the availability of resources and budgetary provisions, a Municipality shall obtain administrative sanction from the respective competent authorities as specified in section 217 for the estimates of the public works intended to be executed by it,

5. Fixing of rates in District levels for preparation of estimates.-(I) The Government shall constitute a Technical Committee in each District consisting of District Collector as Chairman and a Superintending Engineer appointed by Government, an officer not below the rank of Deputy Secretary in Finance Department, District Statistical Officer, District Labour Officer, an expert having a degree in Civil Engineering from a technical institution owned or recognized by the Government as members, for fixing the rates at District lever as a basis for preparing estimate to the public works of Municipalities and such Committee shall fix and publish in advance such district level annual work" rates so as to come into force in that district from the 1st day of April each year.

(2) The Technical Committee shall after considering the market rates and local ates prevailing in the various part of the District, fix the annual work rates to be in force in a District:

Provided, that the Technical Committee may if it considers just and proper fix and publish a different annual work rate applicable only to a particular area in the District by specifying the reasons therefore and while so fixing the rates the limits laid down by the Government from time to time shall be complied with.

(3) The Technical Committee shall fix the annual work rates subject to the general directions issued by the Government from time to time.

6. Preparation of plan and estimate. — (1) No Municipality shall commence any work unless provision for sufficient funds therefor has been made in the budget and administrative sanction obtained from the competent authority under section 217 and a detailed plan and estimate are prepared and technical sanction obtained lor it under rule 7.

(2) Detailed plan and estimate shall be prepared under the responsibility and supervision of the Municipal Engineer or the Engineer authorised by him:

Provided that if the circumstances so require, the preparation of detailed plan and estimate may be entrusted to a person from the panel of Private Engineers or Architects or other technical experts prepared and approved by the Municipality in accordance with the norms and conditions as may be fixed by the Government and while so doing the remuneration paid to him shall not exceed the rate fixed by he Government from time to time.

(3) The estimate prepared on the basis of sub-rule (2) shall be in the form prescribed in the public works code as followed by the Public Works. Department of the Government and it shall contain the project report, specification statement, detailed measurements and quantities, abstract showing the total estimated cost of each item and total cost of the works and wherever necessary the plan and level sheets.

(4) The estimate shall be prepared on the basis of the annual work rates fixed and published by the technical committee under rule 5:

Provided that if the rate is not so fixed it shall be fixed in the manner as may be decided by the Government and if no such rate is fixed by the Government, it shall be based on the scheduled rate in force in the Public Works Department.

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(6) A note containing the quantity, quality and price of the materials included in the estimate, number of man days computed, wages, therefore and estimated cost shall be prepared in the regional language so as to be understood by the public and it shall be appended as part of the estimate.

7. Technical sanction.— (1) For every plan and estimate relating to any public work Technical sanction shall be obtained from an Assistant Engineer or Assistant Executive Engineer or Executive Engineer or Superintending Engineer, as the case may be, who is in charge of the public work of the Municipality, subject to financial powers specified for each such grade of Engineer by the Government by notification from time to time.

(2) In the absence of an Engineer having charge of the Municipality in the grade mentioned in sub-rule (1), technical sanction shall be obtained from an Engineer not below such grade in the Government Department or in any nearby Municipality or Panchayat:

Provided that if the Government have so authorised by a special or general order technical sanction may be obtained from authorised technical experts or group of technical experts or from a technical institution owned or recognised by the Government.

1. Substituted for the word by S.R.O. No. 277/99 dt. 26-3-1999

(3) If any Municipality obtains technical sanction from an Engineer of any other Municipality or Panchayat under sub-rule (2), an amount equal to 0.75% of the approved estimate shall be given as centage charge to the Municipality or Panchayat in which such Engineer is employed.

(4) An Engineer mentioned under sub-rule (I) may if he is of opinion that it is necessary to obtain the advice and approval of the Chief Engineer of the Public Works Department of the Government for any plan and estimate exceeding rupees 20 lakhs (Twenty lakhs) he may do accordingly:

Provided that in the case of estimate of electrical works exceeding Rs. 6.5 lakhs (Six and a half lakhs), technical sanction shall be obtained from the competent Engineer of the Electrical Wing of the Public Works Department of the Government.

(5) An estimate for which administrative and technical sanction have been obtained shall' be a public document and it shall be given for perusal on requisition and a copy thereof shall be issued on requisition after realising the fees fixed by the Municipality.

8. Invitation of Tenders.— Where the Council has decided to execute any public work through a contractor, the Secretary or any other officer authorised by the Council shall invite tenders according to the orders of the Chairperson:

Provided that for public works the estimated cost of which does not exceed rupees five thousand and for public works of emergent nature to be executed under sub-section 15 tendering is not compulsory and such works may be executed through short notice quotation or by the Municipality directly.

(2) Notwithstanding anything contained in sub-rule (1) for every work the estimated cost of which comes to Rupees Seventy (70) lakhs or more invitation of pre qualification tender shall be compulsory and for this purpose the Municipality shall prepare a panel of contractors with the approval of the technical committee specified under sub-rules (1) of rule 5 and tender shall be required only from the contractors included in that panel.

(3) The contractor himself shall purchase and utilise construction materials like steel and cement for every work entrusted to him through tender and no provision shall be made to supply them by Municipality and the Engineer concerned shall satisfy the quality of the materials to be used by testing them:

Provided that if the construction materials are supplied by the Municipality to the contractor on any reason that may be recorded in writing then the cost of such materials shall be realised from the contractor as per the rules in force in the Public Works Department.

(4) The liability to pay taxes and contribution towards the Construction Workers Welfare Fund shall be on the Contractor.

9. Publication of tender notice.— (1) Every tender notice shall be published in the office notice board of the Municipality, Offices of the Public Works Department of the Government in the Municipal area and in other Offices as they may deem fit.

(2) The following particulars shall be included in the tender notice published under sub-rule (1), namely:-

(i) The name and details of works;

(ii) The time within which the work shall be completed;

(iii) Rough estimate amounts;

(iv) Place from where tender form can be obtained;

(v) Last date and time of acceptance of tender; (vi) To whom tender shall be submitted;

(vii) The times at which and place from where scrutiny of plan, estimate and conditions of contract can be made;

(viii) Details as to whether actual cost of the work shall be recorded fixed percentage below or over the estimated rate shall be recorded or separate rates for each item of work included in the estimate shall be stated in the tender;

(ix) The time at which and place where tenders shall be opened;

(x) The amount of earnest money deposit to be submitted along with the tender and the amount of security deposit to be remitted if the tender is accepted;

(xi) That the Municipality reserves the right to reject any tender or all tenders without assigning and reason.

(3) The precise form of the tender notice shall be published in the newspaper in the following manner, namely:-

(a) In the case of public works of estimated cost coming between rupees one lakh and rupees ten lakhs, in a newspaper having wide circulation in the Municipal area compulsorily and in other newspapers if necessary, by giving not less than ten days time;

(b) In the case of public works of estimated cost coming between rupees ten lakhs and rupees fifty lakhs, in two Malayalam newspapers having circulation all over the state compulsorily and in other newspapers if necessary, by giving not less than twenty days time;

(c) In the case of public works of estimated cost exceeding rupees fifty lakhs, in two Malayalam dailies having circulation all over the State and in an English daily having circulation in national level compulsorily and in other dailies if necessary, by giving not less than twenty days time.

10. Acceptance of tenders.— (1) Sealed tenders shall be submitted before the officer who has issued the tender notice postal tenders can also be sent in the manner specified by the Government.

(2) Along with the tender, there shall be submitted the earnest money specified in the tender notice, which may be in cash or in the form of National Savings Certificate or in the form of any bond specified by the Government.

(3) A preliminary agreement in the pro forma specified by the Government shall be enclosed along with the tender for public works, the estimated cost of which exceeds rupees fifty thousand.

(4) In the tender, tender rates shall be recorded both in figures and in words.

(5) The Officer receiving the tender shall keep the list of cash received as earnest money and other documents.

(6) The Officer who has received the tender shall keep the sealed covers containing tenders in sealed box until they are opened in his direct safe custody and shall

open the tenders at the time appointed for it in the presence of the contractors who have submitted the tenders or their agents present there.

(7) The Officer opening the tender shall number serially every correction made and attested by the tenderer in each tender and shall record in the tender corrections, if any which has not been attested.

(8) The officer opening the tender shall record in the tender, in his own handwriting, the percentage of tender rate recorded by the contractor both in words and figures and affix his signature.

(9) Details offenders received shall be entered in the tender register and the signature of the contractors present at the time of opening of the tender shall be obtained in the tender register.

(10) The authorised officer shall as soon as possible, tabulate the opened tenders and shall submit the same with the remarks of the Municipal Engineer to the competent authority to decide which tender shall be accepted.

(11) The authority who has accorded administrative sanction for the estimate under rule 4 shall be the authority competent to decide which tender shall be accepted. Decision there shall be taken within ten days from the date of opening of the tender.

(12) Subject to sub-rule (14), the lowest tender shall be accepted for every public work. Provided that where the competent authority concerned is satisfied on the report of the Secretary endorsed on the basis of the remarks of the Municipal Engineer that it will not be desirable to accept such lowest tender, he may accept the next higher tender by rejecting the lowest tender, after recording the reasons relevant therefore.

(13) For accepting any tender in excess of the estimated cost of a work an endorsement by the Municipal Engineer and the Secretary to the effect that the non receipt of a tender within the estimated cost is not due to want of publicity for the tender notice and that no benefit is likely to be secured in inviting fresh tenders, shall be necessary.

(14) Notwithstanding anything contained in sub-rule (11) for accepting tenders in excess of five per cent of the estimated amount the previous approval of the technical committee specified in sub-rule (1) of rule 5 shall be obtained.

(15) The person whose tender has been accepted shall deposit 5% of the amount of agreement as security deposit (including earnest money) and shall sign the agreement deed.

11. Entrustment of works by negotiation.— (1) The work shall be retendered of the rates in the tenders received on the basis of publication of notice under rule 9 does not seem acceptable or if reasonable number of tenders are not received.

(2) If the rate in the tenders received on re-tender does not seem acceptable, negotiation may be made with the contractor who has submitted the lowest rate of tender with the consent of the Council and such offer may be accepted subject to the proviso to sub-rule (14) of rule 10.

(3) The Council may, if it considers so fit, entrust any work to a voluntary organisation or institution recognised by Government and having financial stability and experience and may allow them such rates as may be decided by the Council on negotiation. (Subject to the provisions of sub-rule (14) or rule 10).

12. Execution of work directly by the Municipality.— Total expenditure for any work, if executed by the Municipality directly, shall not exceed the total amount of estimate prepared under rule 6:

Provided that if the council is satisfied that the total cost has exceeded the estimated cost amount due to the fact that the local price of construction materials and labour charges are more than the estimated rate, excess expenditure not exceeding 5% of the estimated cost amount may be sanctioned by the Council:

Provided further that such excess expenditure exceeding 5% of the estimated cost amount may be sanctioned by the Council with the previous approval of the technical committee mentioned under sub-rule (1) of rule 5.

(2) When any work is to be done on daily wage basis, daily wages shall be paid on rates not exceeding the estimate rates as decided by the Council on the basis of nominal muster roll and separate muster roll shall be kept for each category of workers and the wages may be paid conveniently, as the case may be, on daily, weekly, fortnightly or monthly basis:

Provided that no worker shall be mustered for a period exceeding 179 (one hundred and seventy-nine) days continuously.

(3) Municipality may, if the works are executed by it directly expend the amount to be paid to the Construction Workers Welfare Fund in addition to the estimate amount and such amount may be included in the total cost of work.

(4) Bills and accounts regarding the works executed by the Municipality directly shall be kept separately and they shall be given for scrutiny to any citizen on requisition.

13. Execution of work through Beneficiary Committee,— (1) Where a work is executed through a committee of its beneficiaries, then the procedures under rules 8, 9 and 10 shall not be followed by the procedures under sub-rules (2) to (6) of this rule shall be followed.

(2) The Chairperson or the Chairman of the Standing Committee for public works or the Councillor of the area where the work is to be executed, shall as may be authorised by the council convene a meeting of the people of the locality to be benefited by the implementation of such work and shall elect a beneficiary committee which shall have an Executive Committee consisting of not more than fifteen and not less than seven members of which one-third shall be women and the Executive Committee shall have a Convener:

Provided that a Councillor shall neither act as the Convener of nor be a member of the Executive Committee of the beneficiary committee.

(3) The total Expenditure of a work to be executed by the beneficiary committee shall not exceed the total estimate amount prepared under rule 6:

Provided that the council shall have power to pay the beneficiary committee such excess amount not exceeding five per cent of the estimate amount if the council is satisfied that the total expenditure will exceed the estimate amount on account of the expenditure that may be incurred for execution contribution to the Construction Workers' Welfare Fund, other items of taxes and that local price of construction materials and labour charges are higher than the estimate rates:

Provided further that, for paying amounts in excess of five per cent of the estimate amount the Municipality shall obtain the previous approval of the technical committee mentioned in sub-rule (I) of rule 5.

(4) The Convener of Executive Committee shall executive an agreement with the Municipality in the manner as may be specified by Government for the satisfactory execution and completion of work undertaken by the beneficiary committee. The members of the Executive Committee shall give a signed undertaking to the Municipality by empowering the convener to enter into such an agreement and accepting the right of the Municipality to complete the work directly or through contractor and agreeing the recovery of loss that may be suffered by the Municipality jointly and severally from the members of the Executive committee including the convener in case the work is not executed or completed satisfactorily.

(5) There shall be no binami transaction in the case of work executed by the Municipality through the beneficiary committee and if binami transaction is revealed, the contract entered into by the Convener of the Executive Committee of the beneficiary with the Municipality and sub- rule (4) shall be cancelled and such work shall be completed at the risk of the beneficiary committee either by the Municipality directly or through contractor and the persons responsible for the binami transaction shall be deemed to be liable for the misappropriation of the Municipality Fund,

(6) Convener of the Executive Committee of the beneficiary committee shall keep in writing the details of quality, quantity and price of materials used for the work, number of labourers, wages and other connected details of the work and shall entrust it to the Municipal Secretary as and when the work is completed.

(7) With the approval of the council twenty per cent of the estimate amount or 2[Rs. 1,00,000 (Rupees One Lakh)] whichever is less may be given in advance to be convener of the Executive Committee of the beneficiary committee before the commencement of the work and while the work is going on interim payment may be sanctioned in proportion to the work executed or proportionate portion may be deducted from advance amount and the interim payment and the remaining portion of advance amount shall be deducted from the final bill.

14. Control and supervision of public works.— (1) Every public work undertaken by the Municipality shall be executed under the direct control and supervision of the Municipal Engineer or other technical officers authorised by him and they shall be satisfied of the progress and quality of the work by direct inspection and test checking and they shall be responsible jointly and severally for the qualitative completion of every work so executed.

(2) Municipal Engineer shall inspect and ensure the quality of goods and materials used for the execution of work.

(3) Where the technical sanction to a work has been accorded by an Engineer of a Government Department or another Panchayat or Municipality the Engineer who has accorded such technical sanction shall inspect the progress and quality of that work and such Engineer shall be given eligible travelling allowance from the Municipality.

2. Substituted for "Rs. Fifty Thousand" by S.R.O. No. 277/99 dt. 26-3-1999.

(4) Every Councillor, the Social Audit Committee appointed by the council, sub-committee appointed by the ward committee of the area, beneficiary committee connected with the work and the inspecting officers deputed by the Government for the purpose shall have the power to inspect the execution of a public work at any time.

(5) Where an item of work which has not been included in the estimate for unforseen reasons or an item of additional work has to be executed while the execution of a public work in accordance with the estimate is being carried on, an estimate for such excess work shall be prepared and prior sanction, both administrative and technical shall be obtained from the authorities who had given administrative and technical sanction to the original estimate. Before giving technical sanction to such revised estimate, the concerned Engineer shall satisfy himself that the excess work is inevitable and he shall certify accordingly.

15. Check measurement.— (1) Measurement Book in the form as specified in Public Works Manual and if necessary Level Field Book shall be kept for every public work.

(2) Measurement of works of estimate not exceeding rupees fifty thousand shall be done by an Overseer and measurement of works of estimate exceeding rupees fifty thousand shall be done by an Assistant Engineer.

(3) Check measurement of measurements done by an overseer shall be done by an Assistant Engineer and Check measurement of measurements done by an Assistant Engineer shall be done by an Executive Engineer.

(4) Five per cent of the works of estimate exceeding rupee six lakhs shall be test checked, as far as possible by an Executive Engineer.

(5) If the Engineer responsible for recording measurement under sub-rule (2) or for taking check measurement under sub-rule (3) or for test checking under sub-rule (4) is not available, an Engineer empowered by the Government by general or special order for the purpose may discharge these duties.

(6) No partial or final payment in respect of any Public work shall be allowed as the case may be to a contractor or a beneficiary committee other than on the basis of measurement recorded in the measurement book and without ensuring the quality of work carried out.

(7) When a public work is completed the contractor or convener of the beneficiary committee, as the case may be shall inform the same in writing to the Municipal Secretary and the Municipal Engineer and they shall complete the measurement and check measurement of the work within one week of the receipt of such information and thereafter final payment of the work shall be made within two weeks.

!6. Procedure for purchasing materials and goods for public works.-(1) No Municipality shall purchase any materials and goods unless administrative sanction has been obtained from the competent authority under rule 4 and sufficient funds has been allotted.

(2) Municipality shall strictly comply with the provisions in rules 8,9, and 10 for purchasing of any materials and goods:

Provided that.—(a) for purchasing of materials and goods from the institutions owned or controlled by the Central or State Government.

(b) Where Government have fixed the price under any rules or orders enforce;

(c) For purchasing materials and goods from firms which has a subsisting rate contract with State Government or the Director General of Supplies and Disposals under the Central Government for the supply of such materials and goods; or

(d) For purchasing materials and goods from any established firm manufacturing or selling materials and goods of fixed standards and specification the procedure laid down in those rules may not be necessary.

17. Summary of the Public Work to be placed in the ward committee and exhibited

in the work site.— (I) The details of public work as specified in sub-rule (3) shall be published in the notice board of the Municipality and shall also be placed in the ward committee of the area wherein the work is being carried out or in the next meeting for information.

(2) A notice containing the summary of the details of public work executed by the Municipality shall be exhibited in a conspicuous place in a visible manner in the work site and the notice shall contain essentially the following details, namely:-

(i) Name of work;

(ii) As to whether the work is executed by contract or by the Municipality directly or by the beneficiary committee.

(iii) Name and address of the contractor or convener and numbers of the Executive Committee of the Beneficiary Committee;

(iv) Estimate amount and period;

(v) Date of commencement of work and the date of which work is to be completed;

(vi) Description, quality, quantity and price of materials and goods specified in the estimate and from where and the method, by which they are brought to the work site;

(viij Tender rate allowed to the contractor;

(viii) In case execution of work is done directly by the Municipality or by the beneficiary committee, market rate sanctioned, number of labourers employed for work, wages, rate etc;

(ix) Details of the advance amount and other benefits given for work.

(3) All documents relating to public works such as approved tender estimate, rate approved by the Municipality, measurement quality, bills or materials and goods purchased shall be a public document and the Municipality shall be bound to issue copy of such documents to any person on requisition, after realising the fees fixed by it.

18. Compliance of procedure following in the Government Department.— Save as otherwise expressly provided in these rules, the procedure followed with regard to public works in the Public Works Department of Government for the time being in force for preparation of estimates and plans of public works, invitation of tender, execution of works, payments and accounting shall be complied with.

Interpretation of rules.—Where any doubt or dispute arises as to be interpretation of these rules, such doubt or disputes shall be referred to the Government and decision of the Government thereon shall be final.