(6 Dec 2020 List 'A' and '13' DEFENCE WORKS PROCEDURE 2020 ...

Tele: 23019638

A/95533/DWP/Pol/E2W (PPC)

E2 Works (PPC) Sub Dte Dte of Works, E-in-C's Branch Integrated HQ of MoD (Army) Kashmir House, Rajaji Marg, New Delhi — 110011.

(6 Dec 2020

List 'A' and '13' (Through MES Website)

DEFENCE WORKS PROCEDURE 2020 (DWP 2020) — HIGHLIGHTS

1. Defence Works Procedure deals with mechanism for planning, programming, budgeting, approval and execution of defence works. DWP 2020 was sanctioned vide MoD letter No 1(6)/2015/D (W-I) dated 25 Nov 2020 and circulated vide this HQ letter of even No dated 27 Nov 2020.

2. A number of provisions have been included in DWP 2020 in order to simplify procedures, adopt contemporary practices and empower stakeholders to meet challenges of increased infrastructure development for the defence forces. Some of the existing provisions are made stringent as well as safeguards included to ensure that delays and cost overruns are minimised.

3. The salient features which are likely to have a major impact are listed at Appendix.

4. Provisions in DWP 2020 envisage faster processing of works, concurrent planning activities and adoption of contemporary practices and targets quality and timely delivery of defence projects/ works. All stakeholders are requested to utilise the provisions for a concerted effort towards timely commissioning of quality infrastr cture.

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Appendix (Refer Para 3 of E-in-C's Branch letter No AJ95533/DWP/Pol/E2W (PPC) dated /6 Dec 2020)

HIGHLIGHTS/ IMPORTANT CHANGES : DWP 2020

1. Section II — Basic Principles.

(a) Para 2 (b). Outstanding liability on account of all works and committed liability during the year to be included in AMWP proposal.

(b) Para 2 (c) (i). If an approved work is not commenced within one year of the date of AA, RAA from the CFA (with or without IFA concurrence as the case may be, as per delegation of financial powers) should be taken.

(c) Para 2 (c) (ii). Work shall deemed to be commenced once expenditure is incurred or liability created on account of preliminary works related to the project ie soil investigation, site survey, shifting of utilities, enabling works and consultancy for design & architecture etc.

(d) Para 2 (h). For projects costing 100 crore or above, the Works Review Committee (as prescribed at Para 55 (b) below) shall have the powers to accept variation/ tolerance within 10% of the approved estimates.

2. Section IV — Original Works.

(a) Para 4 (b). Original works of petty nature costing upto one lakh may, at the discretion of CWE/ GE (I) be treated as "Repairs".

(b) Para 4 (e). Pre-investment/ preliminary activities (like site survey, soil investigation, site preparation, consultancy for preparation of CPRs, DPRs, design and drawings etc) will be categorised as original works and included in the AMWP/ LBW list as separate Job as per requirement.

(c) Para 5 (a). Original Works are divided into the following categories: -

(i) Major Capital Works. Original works costing 45 lakh or more.

(ii) Low Budgeted Capital Works. Original works costing more than 10 lakh but less than 45 lakh.

(iii) Revenue Works. Original works costing more than five lakh and not exceeding 10 lakh.

(iv) Minor Works. Original works costing not more than five lakh.

(v) Pre-Investment/ preliminary activities.

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3. Section V — Repairs.

(a) Para 9 (a). Ordinary Repairs are further subdivided into the following categories: -

(i) Petty Repairs.

(ii) Periodical Services as per RMES Table 'G'.

(iii) Replacements and renewals costing upto 4.5 lakh for each item.

(iv) Repairs, renewals and replacements of E/M installations and other external utilities costing upto six lakh in each item.

(v) Replacements of furniture of value upto 50% of annual allotment for maintenance of furniture on station basis, to be allowed only in respect of furniture declared as condemned/ beyond economic repairs by the appropriate authority.

(b) Para 10 (a). Special repairs will not be permitted in a building/ portion of building/ asset within five years of completion of the original work. Also special repairs will not be permitted to be repeated within five years in the same portion of building/ asset.

4. Section VI — Scales and Specifications.

(a) Para 13 (e). Specifications of all permanent buildings shall be framed in such a way as to ensure life of structures in accordance to latest NBC 2016.

5. Section VII — Annual Works Programme and Budgeting.

(a) Para 18 (a). The Annual Works Programme for Major Capital Works (excluding special projects) should be prepared and submitted by 31st August and approved by the Government before 31st October of the previous FY so that pre administrative planning can be completed and AAs can be issued from 01 Apr of the FY. Works included in AMWP list but not sanctioned in a year, will automatically be carried over and included in list of subsequent financial year and AAs for such carry over works can be issued at the earliest without waiting for promulgation of AMWP list for the year.

(b) Para 18 (b). Approval of AMWP by Government will be considered as Approval-in-Principle for the implementation of the work programme and Acceptance of Necessity (AoN) for incurring expenditure towards preliminary activities. AoN and AA for each work will be obtained as described. This approval will however be subject to adequate allocation of funds. RIC to be submitted along with AMWP proposals shall also include the proposal for Go-ahead sanction for undertaking consultancy for prep of project reports, preparation of Architectural/ Structural Drawings/ Tender Documents/ Estimation and other preparatory works,

tt hifting of utilities etc. A Bulk Go-ahead sanction upto 2% o the AMWP ceiling

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amount will be sanctioned along with approval of AMWP list. This will facilitate advance/ concurrent planning and execution of preparatory/ pre-investment works.

(c) Para 19. Low budgeted works to be completed within 18 months of their sanction.

(d) Para 20. Major Revenue and Minor Works should be completed within one year of their sanction.

6. Section IX — Demand for Planning of New Works.

(a) Para 22 (b). No Work proposal should be initiated till Al Defence Land is available. AA/ Go-Ahead sanction shall be accorded only after all statutory clearances have been obtained.

(b) Para 22(d). The details of budgetary requirements/ projections based on annual cash outflow as per format (to be issued by E-in-C's Branch) will be included in the Engineer Appreciation.

(c) Para 22(f). Requirement of adopting specialised construction methodology/ technology/ equipment to ensure efficient completion of work duly justified by the CEA or as specified by E-in-C's Branch will be included in the SoC.

7 Section XI — Acceptance of Necessity.

(a) Para 26. The powers of CFA for sanction of works have been enhanced. Delegations under DWP should be revised/ relooked, whenever DFPDS is revised and shall be carried out by the same committee.

8. Section XII — Approximate Estimates.

(a) Para 29 (c) (iii) - Supervisory Charges. When services for supervision of work are to be hired/ outsourced, an additional 2% of the estimates will be added as supervisory charges. The requirement should however be fully justified in the Engineer Appreciation which forms part of the BPs.

(b) Para 29 (c) (iv). An amount of 3% may be added towards consultancy for drawings and design wherever Design and Build/ EPC methodology/ Turnkey projects are adopted. No other charges towards consultancy will be added in such cases.

(c) Para 29 (q). No escalation will be included in AEs for works to be completed within two years. For works beyond two years, escalation will be included in contracts and not in AEs.

9. Section XIII — Administrative Approval (AA).

(a) Para 31 (c). Time for completion of the works will be clearly indicated in the AA. Extension of time given in AA will be accorded by the CFA. In case of

orks where CFA is beyond MoD, extension will be gr ted by MoD.

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(b) Para 31 (f). While sanctioning the work, the cost of AA amount may exceed the listed cost of the particular work in AMWP, provided overall ceiling allocated for the service is not exceeded.

10. Section XV — Urgent Works.

(a) Para 37 (c) - (Urgent works sanctioned under Paras 34, 35 & 36). Issue of covering AA shall be prioritised and issued within six months from the date of submission. If delayed beyond six months the AA will be issued by the next higher CFA.

(b) Para 37 (d). Even if issue of AA is delayed, payment to contractor shall not be withheld for want of AA.

11. Section XVI — Special Powers for Engineers.

(a) Para 38 (c). Dispensation mentioned in Para 38 (c) (ie Selective tendering) would be clearly spelt out in the go-ahead sanction/ AA accorded by the CFA. The reasons for dispensing with competition will be placed on record in writing.

(b) Para 38 (f). Engaging specialised construction methods/ technology/ equipment.

(c) Para 39 (b). Outsourcing of works through consultants, Government institutions/ bodies etc. In case of Government/ Semi Government agencies, the consultancy services may be entered into through limited/ selective tendering. Limited tendering amongst private consultants may also be adopted in cases where the cost of consultancy services is upto 25 lakh.

(d) Para 39 (e). For short term consultancy upto a period of one year, contract or negotiated fees arrangements can be made by the CE with Government technical institutions, Government departments or Public Sector consultancy firms to provide services for defined work packages like preparation of reports, design review etc. The expenditure on a single work package will not exceed 20 lakh.

12. Section XXIII — Tender Action.

(a) Para 47(q) (i). When any work involving specialised items of work/ E&M equipment/ Plant & machinery is to be executed requiring fabrication, installation, testing and commissioning, CEA will entrust the work preferably to OEM. Such items of work, E&M equipment, Plant & Machinery will have suitable guarantee & warranty from the OEM. For other firms/ vendors/ contractors PQC to be laid down by the E-in-C.

(b) Para 47(q) (iii). The CEA will be final authority to decide whether the system is to be got maintained by OEM/ authorised agents for maintenance works or by specialised firms to be selected on basis of PQC.

(c) Para 47 (h). In case of natural calamities/ disasters or breakdown of --essential services, any Commander within his financial power mentioned in

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Appendix 'D' of DWP may order the CEA in writing to undertake spot tendering/ spot quotation of works services/ procurement to restore essential services for providing immediate relief to the affected areas.

(d) Para 48. The mobilisation advance would be operated through an Escrow account.

13. Section XXIV — Acceptance of Contracts.

(a) Para 49 (c). CE may conclude Job Work Order upto 25 lakh for preparatory and emergent works.

14. Section XXV — Reduction in Scope of Works.

(a) Para 52 (b) (i). When a sanctioned work is no longer required for the purpose for which it was sanctioned, the work may be foreclosed by next higher CFA, not below the level of General Officer Commanding-in-Chief or equivalent. However, for Government power works foreclosure will be issued by MoD.

(b) Para 52 (b) (iv). Due to foreclosure of a work/ project, the partially created assets if any, may be utilised for authorised purposes. The original CFA to explore the possibility and prepare a road map in consultation with MES authorities by sanctioning of necessary additions/ alterations, if required.

15. Section XXVII — Monitoring and Review.

(a) Para 55 (c) (i). In case of all projects/ works costing more than 1.50 crore, a representative of the User will be nominated as Project Officer to

coordinate planning and functional aspects of the User's requirement with the engineers from the commencement to the completion of such works.

(b) Para 55 (c) (ii). PMG to be detailed for projects exceeding five crore by the Stn Cdr and works above 10 crore by the Command HQ.

(c) Para 55 (c) (iii). During the execution of the works, as far as possible, any demand for change in scope of work or retrofitting of designs and/ or specifications will be discouraged as it leads to interference with works programmes and delay in completion of the projects.

(d) Para 55 (c) (iv). Guidelines to be formulated and issued by respective Service HQ with the approval of MoD regarding the Role, Responsibility and Accountability of PMG in monitoring/ review of projects. There shall be no cross-interference in functions and responsibilities of Engineer Authorities and Administrative Authorities.

16. Section XXVII — Procedure for Special Projects.

(a) Para 56. Inclusion of works of Functional/ National Importance in Special Projects and streamlining and simplification of existin• procedure.

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17. Section XXXII — Re-appropriation of Buildings.

(a) Para 61 (d). Buildings/ assets constructed as special works will not be re-appropriated for any other use without approval of the CFA who had originally sanctioned the work.

18. Section XXXIV — Execution of Projects on Turnkey/ EPC Methodology.

(a) Para 63. Works may be awarded on turnkey basis/ Design and Build/ EPC methodology. Contractors to be selected on the basis of PQC issued by E-in-C's Branch with requisite expertise in handling such project. Construction methodology/ technology for such projects would be approved by E-in-C's Branch.