CONTENTS - Central Public Works Department

SECTION 22
(3) There is no need to wait for the contractor to apply for refund of his security deposit. The Hand
Receipt for this purpose should be prepared by the Junior Engineer/Assistant Engineer as soon
as it is due, and sent to the Divisional Office for payment.
22.3 Effecting of recoveries
Once the recoveries become due from a contractor, the same should be effected from the money due
to the contractor either from the same work or from any other work or from the security deposit. Action to
recover the overpaid amount should not be kept pending or kept in abeyance on account of the case
being before the arbitrator. Action in terms of the award can be taken after the award is received and
accepted by the competent authority. The recovery of overpaid amounts should be effected as early as
possible and the recovery should not be kept in abeyance during the pendency of arbitration proceedings.
22.4 Time limit on claims for refund of security deposit
The claim for refund of security deposit is governed by the Limitation Act. The period of limitation is 3
years, commencing from the date that the right to the due accrues. In the case of security deposit paid
along with the individual contract, the right to the due would accrue under Clause 17 after the maintenance
period, or the date of payment of final bill, whichever is later.
22.5 Refund of security deposit regarding specialized items of work
(1) For some of the specialized items of work such as anti-termite treatment, waterproofing work, kiln
seasoned and chemically treated wooden shutters etc. that are entrusted to specialized firms or
registered contractors who associate specialized agencies as per para 16.3.(1) of this Manual,
the contractor/firm executing the work should be asked to give a specific guarantee that they shall
be responsible for removal of any defects cropping up in these works executed by them during the
guarantee period. The form of the guarantee to be executed by the contractors is given vide
Appendix - 25.
(2) It has further been decided that 10% of the security deducted from the bills of the contractors shall
be refunded to him after expiry of maintenance period in accordance with the terms of the contract
in this behalf.
(3) The Divisional Officer shall, however, maintain a register in which all these works carried out in
the Division shall be entered and which shall be periodically reviewed by the Executive Engineer.
The Register will contain the following heads:
(i) Name of the work:
(ii) Date of completion:
(iii) Specification in brief:
(iv) Rate paid.
(v) Name of the firm/contractor
(vi) History* of all defects, with date(s) of occurrence, noticed during the guarantee period.
(vii) Action taken by the firm/contractor.
*The history will help as a ready reference about the efficiency and the quality of the work done by the
firm/contractor.
22.6 Divisional Accountant’s responsibility for prompt refund of security deposit
In order to avoid delay in the refund of security deposit to the contractor, the Divisional Accountant
should put up to the Divisional Officer every month a list of all the cases where the security deposit
becomes due for refund so that the requisite certificate is immediately obtained by the Divisional Officer
from the Sub-Divisional Officer concerned and the security deposit is refunded without waiting for any
application from the contractor.
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