Rule 136 of The General Financial Rules 2017 Conditions for Commencement of Works
Original Rule Text
Visual Summary
Essential before starting any work.
Funds must be approved by competent authority.
Detailed plans and cost estimates are mandatory.
Executive Summary
Rule 136 of The General Financial Rules, 2017, establishes the foundational requirements for commencing any government work or incurring related liabilities. It mandates administrative approval, expenditure sanction, detailed design, sanctioned estimates, fund provision, tender processing, and a formal work order. In urgent situations where these conditions cannot be fully met, an executive officer may proceed on their own judgment but must immediately seek competent authority approval and inform the Accounts Officer. Any project development not part of the original sanction requires a supplementary estimate.
In-Depth Analysis of the Rule
Rule 136 serves as a critical control mechanism within government financial management, ensuring that public works are initiated only after thorough planning, approval, and resource allocation. This rule aims to prevent arbitrary expenditure, promote financial discipline, and ensure accountability in project execution.
Breakdown of the Rule
- Administrative Approval (136(1)(i)): This is the initial green light, confirming the necessity and desirability of the work from an administrative perspective.
- Expenditure Sanction (136(1)(ii)): A separate sanction is required to incur the actual financial outlay, ensuring funds are available and approved for the specific purpose.
- Detailed Design & Life Cycle Cost (136(1)(iii)): Emphasizes meticulous planning, including detailed designs and consideration of the project’s total cost over its entire lifespan, not just initial construction.
- Sanctioned Estimates (136(1)(iv)): Requires precise cost estimates based on standard rates, ensuring financial realism and preventing cost overruns.
- Fund Provision (136(1)(v)): Confirms that adequate funds are allocated in the budget for the current year’s charges, linking project initiation directly to budgetary availability.
- Tender Process (136(1)(vi)): Mandates competitive tendering, ensuring transparency, fairness, and value for money in selecting contractors.
- Work Order (136(1)(vii)): The final formal instruction to commence work, issued after all preceding conditions are met.
- Urgency Clause (136(2)): Provides flexibility for urgent situations, allowing executive officers to proceed on their own judgment, but with an immediate obligation to seek retrospective approval and inform the Accounts Officer.
- Supplementary Estimates (136(3)): Ensures financial control over project modifications, requiring additional estimates for any developments not part of the original sanctioned work.
Practical Example
Imagine a Ministry needs to construct a new research facility. Before breaking ground, Rule 136 dictates a series of steps. First, the Ministry must obtain administrative approval for the project. Next, a separate sanction for the expenditure must be secured. Engineers then prepare detailed designs, considering the facility’s life cycle costs. Based on these designs, precise estimates are drawn up and sanctioned. Funds for the current year’s construction must be explicitly provided in the budget. Tenders are then invited from qualified contractors, and a formal work order is issued to the selected firm. If, during construction, an urgent, unforeseen structural modification becomes necessary (e.g., due to a newly discovered geological fault), the executive officer can authorize it immediately under Rule 136(2) but must promptly seek formal approval and notify the Accounts Officer. Any significant addition to the facility not in the original plan would require a supplementary estimate under Rule 136(3).
Related Provisions
Understanding Rule 136 is enhanced by considering its connections to other financial regulations:
- Rule 139 of The General Financial Rules, 2017 Procedure for Execution of Works: Details the broad procedure for executing works once sanctioned.
- Rule 132 of The General Financial Rules, 2017 Powers to Sanction Works: Outlines the delegated powers for administrative approval and expenditure sanction for works.
- Rule 63 of The General Financial Rules, 2017 Expenditure on New Service: Governs expenditure on new services not contemplated in the annual budget, which might relate to new projects.
Learning Aids
Mnemonics
- Administrative Approval, Expenditure Sanction, Detailed Design, Estimates Sanctioned, Funds Provided, Tenders Invited, Work Order. (AAESDESTIWO – “Always Approve Every Single Detailed Estimate, Sanction Funds, Tender Invitations, Work Orders”)
Process Flowchart
Multiple Choice Questions
1. What is the first mandatory step before commencing any work under Rule 136 of the General Financial Rules, 2017?
- A) Tenders invited and processed.
- B) Administrative approval obtained.
- C) Funds to cover charges provided.
- D) A Work Order issued.
Show Answer
Correct Answer: B) Administrative approval obtained.
2. According to Rule 136 (1) of the General Financial Rules, 2017, which of the following is not a prerequisite for commencing work?
- A) Sanction to incur expenditure.
- B) Detailed design sanctioned.
- C) Post-completion audit report.
- D) Funds to cover charges provided.
Show Answer
Correct Answer: C) Post-completion audit report.
3. Under Rule 136 (2) of the General Financial Rules, 2017, if an urgent work must be carried out without fulfilling all prerequisites, what must the executive officer do simultaneously?
- A) Halt all other ongoing projects.
- B) Obtain approval from the competent authority and intimate the Accounts Officer.
- C) Immediately secure supplementary funding.
- D) Redesign the entire project.
Show Answer
Correct Answer: B) Obtain approval from the competent authority and intimate the Accounts Officer.
4. Rule 136 (3) of the General Financial Rules, 2017, states that any development of a project considered necessary while a work is in progress, and not contingent on the first sanctioned execution, requires what?
- A) A new administrative approval.
- B) A supplementary estimate.
- C) A revised work order.
- D) Direct approval from the Ministry of Finance.
Show Answer
Correct Answer: B) A supplementary estimate.
5. When designing projects, Rule 136 (1) (iii) of the General Financial Rules, 2017, suggests considering the principles of:
- A) Short-term profitability.
- B) Immediate cost recovery.
- C) Life Cycle cost.
- D) Minimal resource allocation.
Show Answer
Correct Answer: C) Life Cycle cost.
Frequently Asked Questions
What is the primary purpose of Rule 136 of The General Financial Rules, 2017?
The primary purpose is to establish a robust framework of prerequisites—including administrative approval, expenditure sanction, detailed design, and fund provision—that must be met before any government work can commence or related liabilities incurred, ensuring financial propriety and accountability.
Can a government work be started without all the conditions of Rule 136 (1) of The General Financial Rules, 2017, being met?
Yes, Rule 136 (2) allows an executive officer to proceed with urgent work on their own judgment if the conditions cannot be complied with, but they must simultaneously initiate action to obtain approval from the competent authority and inform the Accounts Officer.
What happens if a project needs additional work not covered by the original sanction under Rule 136 of The General Financial Rules, 2017?
Rule 136 (3) specifies that any such development, if not contingent on the execution of the work as first sanctioned, must be covered by a supplementary estimate.
Key Takeaways
- Rule 136 mandates a multi-stage approval process for all government works, emphasizing administrative, financial, and technical clearances.
- It requires detailed planning, including design and cost estimates, and ensures budgetary allocation before work commences.
- The rule provides an exception for urgent situations, allowing work to start with immediate retrospective approval and notification to the Accounts Officer.
- Any significant changes or additions to a project during its progress necessitate a supplementary estimate to maintain financial control.
Conclusion
Rule 136 of The General Financial Rules, 2017, is a cornerstone of prudent financial management in government works. By establishing clear prerequisites and a mechanism for urgent action with accountability, it ensures that public funds are utilized efficiently, transparently, and in accordance with approved plans, thereby safeguarding public interest and promoting sound project governance.