Rule 139 of The General Financial Rules 2017 Procedure for Execution of Works
Original Rule Text
Visual Summary
Works governed by specific departmental regulations.
Detailed design, estimates, and administrative approval required.
Open/limited tenders, contract agreement, and officer’s certificate for final payment.
Executive Summary
Rule 139 of The General Financial Rules, 2017, outlines the essential procedures for Ministries or Departments to execute works under their own arrangements. It mandates adherence to departmental regulations, prior administrative and expenditure approvals based on detailed designs and estimates, and specific tendering processes (open tenders for works costing between Rs. 10 lakh and Rs. 60 lakh, limited tenders for works less than Rs. 10 lakh). Crucially, a contract agreement must be in place before work commences, and final payment requires a personal certificate from the officer-in-charge confirming adherence to specifications and industry standards.
In-Depth Analysis of the Rule
Rule 139 establishes a structured framework for government entities undertaking construction or repair works internally, ensuring financial prudence, accountability, and quality. This rule aims to standardize practices across various departments, drawing parallels with the Central Public Works Department (CPWD) procedures.
Breakdown of the Rule:
- Departmental Regulations: Ministries/Departments must establish detailed procedures for works expenditure, consulting with Accounts Officers and aligning with CPWD financial and accounting rules.
- Pre-Sanction Requirements: Before any work sanction, detailed designs and cost estimates must be prepared.
- Administrative and Expenditure Approval: No work can begin without obtaining both Administrative Approval and Expenditure Sanction by the competent authority, based on the approved estimates.
- Tendering Process:
- For works costing between Rs. 10 lakh and Rs. 60 lakh, open tenders are mandatory.
- For works costing less than Rs. 10 lakh, limited tenders are to be called.
- Contract Agreement: A formal contract agreement or award of work must be executed prior to the commencement of any work.
- Final Payment Certification: The officer-in-charge must provide a personal certificate confirming that the work was executed according to contract specifications and industry standards before final payment is released.
Practical Example:
Imagine a Ministry needs to construct a new office annex estimated to cost Rs. 45 lakh. According to Rule 139, the Ministry must first prepare detailed designs and estimates. Once these are ready, they must obtain Administrative Approval and Expenditure Sanction from the competent authority. Given the cost, open tenders would be invited from eligible contractors. After selecting a contractor, a formal contract agreement would be signed before construction begins. Upon completion, the officer overseeing the construction would issue a personal certificate confirming the work meets all specifications, enabling the final payment.
Related Provisions
Understanding Rule 139 is enhanced by reviewing related sections:
- Rule 133 of The General Financial Rules, 2017 Powers to sanction works: Details the discretionary powers of Ministries/Departments to execute repair works or assign them to Public Works Organisations.
- Rule 136 of The General Financial Rules, 2017 General Rules for Works: Outlines prerequisites for commencing works, including administrative approval, sanctioned design, and fund provision.
- Rule 140 of The General Financial Rules, 2017 Original Minor Works and Repair Works Entrusted: Describes the process for works entrusted to Public Works Organisations or PSUs, including administrative approval and MoU requirements.
Learning Aids
Mnemonics:
- To remember the key steps of Rule 139, think of DAPTEC: Departmental rules, Approvals (design & estimates), Prior sanction, Tendering, Execution of contract, Certification for payment.
Process Flowchart:
Multiple Choice Questions
1. What is the primary requirement before any work is undertaken as per Rule 139 of The General Financial Rules, 2017?
- A) Only a detailed design.
- B) Only an expenditure sanction.
- C) Both administrative approval and expenditure sanction.
- D) A contract agreement.
Show Answer
Correct Answer: C) Both administrative approval and expenditure sanction.
2. For works costing between Rs. 10 lakh and Rs. 60 lakh, what type of tendering is mandated by Rule 139 of The General Financial Rules, 2017?
- A) Limited tenders.
- B) Single tenders.
- C) Open tenders.
- D) Negotiated tenders.
Show Answer
Correct Answer: C) Open tenders.
3. According to Rule 139 of The General Financial Rules, 2017, what is required for final payment for work?
- A) An audit report.
- B) A personal certificate from the officer-in-charge.
- C) Approval from the Accounts Officer.
- D) A joint declaration by the contractor and the department.
Show Answer
Correct Answer: B) A personal certificate from the officer-in-charge.
4. When are limited tenders to be called for works, as per Rule 139 of The General Financial Rules, 2017?
- A) For works costing above Rs. 60 lakh.
- B) For works costing less than Rs. 10 lakh.
- C) For all works, regardless of cost.
- D) Only for specialized works.
Show Answer
Correct Answer: B) For works costing less than Rs. 10 lakh.
5. Rule 139 of The General Financial Rules, 2017 states that departmental regulations for works expenditure should generally be based on procedures and principles underlying which department’s rules?
- A) Ministry of Finance.
- B) Central Public Works Department (CPWD).
- C) Ministry of Rural Development.
- D) State Public Works Department.
Show Answer
Correct Answer: B) Central Public Works Department (CPWD).
Frequently Asked Questions
What is the purpose of Rule 139 of The General Financial Rules, 2017?
Rule 139 outlines the broad procedure for Ministries or Departments to execute works under their own arrangements, ensuring proper financial management, approvals, tendering, and quality control.
Are there different tendering procedures based on the cost of the work under Rule 139?
Yes, Rule 139 specifies open tenders for works costing between Rs. 10 lakh and Rs. 60 lakh, and limited tenders for works costing less than Rs. 10 lakh.
What is the significance of the “Personal Certificate” mentioned in Rule 139?
The personal certificate from the officer-in-charge is a crucial requirement for final payment, confirming that the work has been executed as per contract specifications and industry standards, thereby ensuring accountability and quality.
Key Takeaways
- Rule 139 mandates structured procedures for internal execution of works by government departments.
- It requires detailed designs, estimates, and dual approvals (Administrative & Expenditure Sanction) before work commencement.
- Tendering methods are cost-dependent: open tenders for higher value works (Rs. 10-60 lakh) and limited tenders for lower value works (less than Rs. 10 lakh).
- A personal certificate from the officer-in-charge is essential for final payment, ensuring quality and adherence to specifications.
Conclusion
Rule 139 of The General Financial Rules, 2017, serves as a cornerstone for transparent, accountable, and efficient execution of works within government Ministries and Departments. By establishing clear guidelines from initial planning and approval to tendering and final certification, it aims to safeguard public funds and ensure the delivery of quality infrastructure and services.