(1) Works valuing less than rupees one lakh on each occasion may be procured, subject to a limit of rupees five lakh during a financial year, by work order system.
Explanation: Work order system means method of procurement by giving order directly to a registered bidder, to execute a work on scheduled rates in specified time.
(2) The procedure for procurement through work order system shall be as under:- 11
(a) in work order the quantity, rate and time of completion are invariably mentioned.
Penalty for failure to complete the work within the stipulated time is also specified. Maximum work that can be allotted on a work order shall be less than rupees one lakh;
(b) work order shall be given to a registered bidder only;
(c) work order can be given only on the approved Schedule of Rates applicable to the Division / Sub-Division concerned. The Superintending Engineer / Executive Engineer shall ensure that the rates being allowed on work order are not in excess of open bid rates prevalent in the area;
(d) work order can be given by officers as per delegation of financial powers; and
(e) work order agreement shall be executed, after obtaining performance security, in the form specified for the purpose. A Register of Work Orders shall be maintained in the form specified for the purpose.
(3) Works valuing below rupees one lakh on each occasion may be procured, subject to a limit of rupees five lakh during a financial year, by piece work system.
Explanation: Piece work system means method of procurement at the rates sanctioned by the Competent Authority without reference to the total quantity of work to be done within a given period.
(4) The procedure for procurement through Piece Work System shall be as under:-
(a) Execution of work on Piece Work System should normally be avoided. Piece Work System may be resorted to only in a uniform type of work in large quantities, like earth work of canals, desilting, repair and maintenance of roads, etc.
(b) For determination of rates, open bids shall be invited by Additional Chief Engineer concerned for each division under its control. The intention of the department in inviting such bids for determination of Annual Rate Contract for entering into Piece Work Agreement should be made clear at the time of invitation of bids. Registered bidders of all categories shall be entitled to participate in such bids. After observing all required formalities of bids, the Additional Chief Engineer shall sanction unit rates for the specified items of work, which shall remain in force normally for one year or until the rates are revised but shall in no case remain in force more than three months after completion of one year.\
(c) Once such unit rates have been sanctioned, Divisional Officers shall be competent to enter into Piece Work Agreement below rupees one lakh at a time with a single registered bidder of any category. Second Piece Work Agreement shall be entered into only after successful completion of the earlier work. Piece Work Agreement shall be entered into with the registered bidders allowed to operate in the said Division.
(d) In the Piece Work System, the Department is free to ask the bidders to cease the work, and payments are made for the work actually executed as per designs, drawings, specifications, after due measurements and checking of measurement as specified. The maximum period of completion of each piece work is twenty one days which shall not be extended in any case.
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(e) In every Divisional office, a Register of Piece Work Agreements shall be maintained in the form specified for the purpose. In the first week of every month, the Divisional Officer shall submit copies of all Piece Work Agreements accepted by him during the previous month to the Superintending Engineer, giving justification for the award of work on Piece Work Agreement explaining the necessity / emergency instead of on regular contracts. The Superintending Engineer, during his inspection and otherwise, shall ensure that the Divisional Officers do not execute work on Piece Work Agreement in a routine manner and rates allowed are not in excess of the running rates approved by the Additional Chief Engineer for the relevant Division, and check with open bid rates of similar works on regular contract basis in the Sub- Division / Division /Circle and that the system of record measurements of work done and check measurements thereof is followed properly.
(f) The contract awarded on Piece Work System is exempted from depositing performance security.