Rule 130 of The General Financial Rules 2017 Works Definitions
Original Rule Text
Visual Summary
New constructions, site prep, additions, major repairs.
Add capital value to existing assets, no new creation.
Maintenance of buildings and fixtures, related services.
Executive Summary
Rule 130 of The General Financial Rules, 2017, defines three categories of works: Original works, Minor works, and Repair works. Original works encompass new constructions, site preparation, additions, alterations, and significant repairs to existing structures. Minor works are those that enhance the capital value of existing assets without creating entirely new ones. Repair works are focused on maintaining buildings and fixtures, including any incidental or consequential services or goods required for these original or repair works.
In-Depth Analysis of the Rule
Rule 130 provides foundational definitions for different types of “works” within the context of government financial management. These distinctions are crucial for proper budgeting, sanctioning, and accounting of expenditures related to construction, maintenance, and asset enhancement. Understanding these definitions ensures that projects are correctly categorized and managed according to the specific financial rules applicable to each type of work.
Breakdown of the Rule
- Original Works: This category is broad, covering not just entirely new constructions and site preparations but also significant modifications to existing structures. This includes additions, alterations, remodeling, replacement, and even special repairs to recently acquired or previously abandoned buildings. The key aspect is the creation of something new or a substantial change/restoration that goes beyond routine upkeep.
- Minor Works: These are distinct from original works in that they do not create new assets. Instead, their purpose is to add capital value to existing assets. This implies improvements or enhancements that increase the longevity, efficiency, or overall worth of an asset without being a complete overhaul or new build.
- Repair Works: This category focuses on the maintenance aspect. It includes all activities undertaken to keep buildings and fixtures in good working order. Importantly, the rule clarifies that “works” in this context also encompass incidental or consequential services or goods required for these original or repair works, ensuring a comprehensive definition.
Practical Example
Consider a government department managing an office building. If they decide to construct a new annex building, that falls under Original Works. If they install a new, more efficient air conditioning system in the existing building, which adds significant value and extends the building’s utility, that would be a Minor Work. Routine painting, fixing leaky pipes, or replacing broken windows in the existing building would be classified as Repair Works. The procurement of paint, pipes, or glass for these tasks would be considered incidental goods under “works”.
Related Provisions
Understanding Rule 130 is enhanced by reviewing other related rules:
- Rule 131 of The General Financial Rules, 2017 Administrative Control of Works: This rule outlines the responsibilities for construction, maintenance, and utilization of buildings and allied works.
- Rule 132 of The General Financial Rules, 2017 Powers to Sanction Works: Details the delegated powers for administrative approval, expenditure sanction, and re-appropriation of funds for works.
- Rule 139 of The General Financial Rules, 2017 Procedure for Execution of Works: Lays down the broad procedure for Ministries or Departments to execute works under their own arrangements.
Learning Aids
Mnemonics
- OMR: Original, Minor, Repair. Remember the three types of works by their first letters. Original for new/major changes, Minor for adding capital value, Repair for maintenance.
Process Flowchart
Multiple Choice Questions
1. What does “Original works” primarily refer to under Rule 130 of The General Financial Rules, 2017?
- A) Routine maintenance of existing structures.
- B) Works that add capital value without creating new assets.
- C) New constructions, additions, alterations, and special repairs to buildings.
- D) Services incidental to minor repairs.
Show Answer
Correct Answer: C) New constructions, additions, alterations, and special repairs to buildings.
2. According to Rule 130 of The General Financial Rules, 2017, which of the following best describes “Minor works”?
- A) Projects that create entirely new government assets.
- B) Works that increase the capital value of existing assets but do not create new ones.
- C) Emergency repairs to damaged infrastructure.
- D) Remodeling or replacement of abandoned buildings.
Show Answer
Correct Answer: B) Works that increase the capital value of existing assets but do not create new ones.
3. Under Rule 130 of The General Financial Rules, 2017, “Repair works” are defined as works undertaken for what purpose?
- A) To construct entirely new facilities.
- B) To add significant capital value to assets.
- C) To maintain buildings and fixtures.
- D) To replace major structural components.
Show Answer
Correct Answer: C) To maintain buildings and fixtures.
4. Rule 130 of The General Financial Rules, 2017 states that “Works” also include what, in addition to original or repair works?
- A) Land acquisition costs.
- B) Services or goods incidental or consequential to the original or repair works.
- C) Staff salaries for administrative oversight.
- D) Financial audits of project expenditures.
Show Answer
Correct Answer: B) Services or goods incidental or consequential to the original or repair works.
5. Which of these activities would NOT be classified as “Original works” under Rule 130 of The General Financial Rules, 2017?
- A) Site preparation for a new government office.
- B) Adding a new wing to an existing hospital.
- C) Routine painting of an office building.
- D) Remodeling a previously abandoned government guesthouse.
Show Answer
Correct Answer: C) Routine painting of an office building.
Frequently Asked Questions
What is the primary distinction between “Original works” and “Minor works” under Rule 130 of The General Financial Rules, 2017?
The primary distinction is that “Original works” involve new constructions or substantial changes/restorations, potentially creating new assets or significantly altering existing ones. “Minor works,” on the other hand, add capital value to existing assets without creating entirely new assets.
Does “Works” under Rule 130 of The General Financial Rules, 2017, only refer to physical construction?
No, Rule 130 clarifies that “Works” also include services or goods that are incidental or consequential to the original or repair works, such as the procurement of materials or specialized services required for the construction or maintenance activities.
Are “special repairs” considered “Original works” under Rule 130 of The General Financial Rules, 2017?
Yes, Rule 130 explicitly includes “special repairs to newly purchased or previously abandoned buildings or structures, including remodeling or replacement” within the definition of “Original works.”
Key Takeaways
- Rule 130 categorizes works into Original, Minor, and Repair for clear financial management.
- Original works involve new construction, significant additions, or major restoration.
- Minor works enhance existing assets’ capital value without creating new ones.
- Repair works focus on maintenance and include related incidental services/goods.
Conclusion
Rule 130 is fundamental for any government entity involved in infrastructure or property management. By clearly defining different types of works, it provides the necessary framework for accurate planning, budgeting, and execution of projects, ensuring accountability and adherence to financial propriety in all construction, enhancement, and maintenance activities.