The Kerala Panchayat Raj (Contract) Rules, 1996

1. Short title and commencement.-

  1. (l] These rules may be called the Kerala Panchayat Raj (Contract) Rules, 1996.
  2. (2) They shall come into force at once.

2. Definitions.-ln these rules, unless the context otherwise requires.—

  • (a) 'Act means the Kerala Panchayat Raj Act,. 1994 (13 of 1994);
  • (b) Words and expressions used and not defined in these rules, but defined in the Act shall have the meanings respectively assigned to them in the Act.

3. General conditions in respect of Contracts.—

(1) A Panchayat may enter into and perform all contracts ,that it deems necessary or proper for implementing the provisions of the Act.

(2) The Panchayat shall follow the following conditions for- (he execution of the public works and other works which have been entrusted with, and arc carried out b)- the Panchayat as per the provisions of the Act.—

(i) The Panchayat Committee shall discuss^ as to whether a work may be executed on contract or not and as regards the works proposed to br executed on contract and the President shall take further action on the basis of the majority decision of the Committee.

(ii) The Secretary shall, under the written orders of he President. invite tenders for the Panchayat and take follow up action thereto.

(iii) The Committee shall take decision in respect of entrusting a work in the name of a person or an institution.

(iv) The President may, in accordance with the decision of the Committee, authorise the Secretary in writing for signing a contract on behalf of the Panchayat.


(v) The deed of contract shall be in stamp paper as mentioned in the relevant section of the Kerala Stamp Act, 1959.

(vi) The Secretary shall; if the Contractor fails to complete the work within the stipulated period or if the Secretary is convinced that the work done is not in the compliance with the terms of the contract, inform the fact to the President who shall place the matter before the committee for discussion and shall take further action thereon in accordance with the decision of the Committee.

4. Power of Panchayat to cancel Contracts.-—The Panchayat shall be vested with the power to cancel a contract after issuing notice to the Contractor if the Contractor acts in contravention to the terms of the contract and the President shall take steps to recover from the Contractor, the loss that the Panchayat may sustain on this account and the President shall have the sole responsibility in this respect.

5. Supplementary agreement (n be executed in the event of increase in contra dual expense.—A supplementary agreement shall be executed for making any modification in the contract which involves an increase in the expense over and above ten per cent that in :he original contract and in the case of such supple- mentary agreement, the provisions contained in rule 3 and rule 4 mentioned above shall be followed.


6. Method of executing Contracts.- -

  1. (I) Any contract entered into by the Secretary on behalf of the Panchayat shall be made in the same manner and method applicable to him had it been done for himself.
  2. (2) Every contract shall be affixed with the common seal of the Panchayat,
  3. (3) If the expenditure involves more than one thousand rupees .in the case of execution of a work or procuring of goods or of rendering a service, the Contract there for shall be in writing and the details in respect of the work that shall be executed; the particulars of the goods (hat shall be supplied, the standard of quality thereof, the details as to the manner in which and the period up to which the service shall be rendered, the date on which the work shall be completed, the last date for supply of the goods etc-, as the case may be, shall be clearly stated therein.

(4) The common seal of the Panchayat shall be kept by the Secretary and it shall not be affixed in any contract or other document otherwise than in his presence.

(5) No Contract entered in to otherwise than in accordance with the provisions of this rule shall be binding on the Panchayat.

7, Exempting from some defects- If the units cannot be ascertained precisely In the case of a contract for the execution of work at unit rate, it shall not be treated as having contravened the aforesaid rules only for the reason that the work had eventually exceeded the financial limit.

8. Going security for contracts..—After accepting tenders hut before supplying goods or before rendering services, as the case may be, the Secretary shall, with the approval of the President in writing, get from the Contractor sufficient security in accordance with the terms of the contract for the full compliance of the terms and conditions of the contract to be executed. If this provision is not complied with and consequently the Panchayat sustains any loss such loss shall, he realised equally from the President and the Secretary.

By order of the Governor,


Secretary to Government.

Explanatory Note

(This does not form part of the Notification but is intended .to indicate its general purport.)

Clause (is) of section 254 of the Kerala Panchayat Raj Act, 1994 (13 of 1994) empowers the Government to make rules in respect of the contract for works that are executed by the Panchayat.

This Notification is intended co achieve- the above object.