CONTENTS - Central Public Works Department

SECTION 26
SECTION 26
ISSUE OF MATERIALS TO CONTRACTORS
26.1 Issue of materials
(1) Issue of materials to works, whether from stock or by purchase, transfer or manufacture, are
divided into two classes:
(i) Issue to contractor:
Issue of materials to contractors with whom agreements in respect of completed items of
works, i.e. for both labour and materials, have been entered into.
(ii) Issue direct to works:
Issue of materials when work is done departmentally or through a contractor whose agreement
is for labour only.
(2) In view of likely liability of Sales tax, it has been decided not to stipulate materials in the contract
for issue to contractors (These Instruction shall not be applicable for works falling in the North
Eastern States). However for other areas of the country, ADG of concerned region is empowered
to take a decision on a case to case basis, based on merit. (Modified as per OM/MAN/152)
Wherever such approval is obtained following shall be followed.
The issue of materials to contractors is to be stipulated in contracts, which are for completed
items of work, only in the following circumstances:
(i) When it is necessary to retain in the hands of Government the supply of imported materials.
(ii) When, in the interest of work, or with the object of utilizing existing stocks or materials, it is
desirable to retain in the hands of Government the supply of certain other materials as well,
and a condition to this effect has been inserted in the contract.
(3) Stipulation of materials to be issued by the Department
(i) Stipulated materials shall be issued for use at site on works, for all the items where such
materials are required. For factory made products like pre-cast cement tiles, pre-cast hollow
concrete blocks, pre-cast foam concrete blocks, pre-cast RCC pipes etc., stipulated materials
shall not be issued.
(ii) It should also be ensured that description of the materials to be issued should be adequately
specified in order to obviate chances of any dispute. For example, if cement is specified for
issue, its grade and colour, i.e. whether it is grey cement or white cement, should be stated
and also whether it will be in bags or otherwise.
(iii) The contract should specify:
(a) the materials to be supplied by Government for use on the work,
(b) the place or places of delivery, and
(c) the rates to be charged to the contractor for each description of materials.
(iv) The rates to be charged to the contractors for materials to be supplied should be definitely
specified (vague provisions e.g. at stock rates should be avoided) and if intending contractors
had been told that the materials would be supplied at certain rates and asked to tender on that
assumption, then that rate should be adhered to in the contract.
(v) No carriage or incidental charges are borne by Government for moving the materials beyond
the place where the contractor has agreed to take delivery thereof.
(vi) The contractor should be held responsible for obtaining from Government all such materials
required for the work, and for making payment for them by deduction from his bills at the rates
specified, regardless of fluctuation in the market rates or in the stock rates of the Division.
(vii) Conditions for supply of departmental materials should be so explicit that no doubt or ambiguity
is left which may encourage the contractor to derive undue financial benefit subsequently.
The tender documents should include the specific items of work for which materials are
intended to be issued by the department with detailed description of materials.
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