CONTENTS - Central Public Works Department

188 SECTION 30
SECTION 30
PAYMENTS TO CONTRACTORS
30.1 Requirement of clause 7
(1) Clause 7 of the conditions of contract in Forms no. CPWD 7, 8 & 9 provides that no payment shall
be made for works or supplies estimated to cost less than Rs. 50,000 till after the whole of the
work or supply shall have been completed and a certificate of completion given. In the case of
works or supplies estimated to cost more than Rs.50,000, the contractor shall, on submitting the
bill thereof, be entitled to receive a monthly payment as passed by the Engineer-in-charge. Para
7.12 of this Manual may be seen for submission of computerized bills by the contractor.
(2) On account payments are also permissible under the conditions of contract in Forms no. CPWD 12,
piece work agreement in Form no. CPWD 10 and work order Form no. CPWD 11-A. The contractors
should be required by the Engineer-in-charge to submit their bills by a fixed date in accordance with
the terms of the contract, e.g. clause 7 of Forms no. CPWD 7 and 8. The Assistant Engineer should
supply to the contractor a copy of the measurements and a statement of part rates to be paid, at least
3 clear days in advance of such date fixed by the Executive Engineer. The payment to the contractor
shall be made only on submission of the bill by him.
30.1.A - Stage Payments for Running & Final Bill (Added vide OM/MAN/233)
Initially the system of stage payments may be implemented in each zone for suitable projects/
works as a test case. This system is suitable for works of repetitive nature. Under clause 7 of
CPWD 7/8, GCC 2010 Running Account and Final payments to be made after completion of a
particular stage needs to be defined keeping in view the following guidelines:-
(i) Payment for foundation work can also be defined in stages if all the foundations of one
block/segment considered for each stage are of similar design. If not the payment for
foundation works to be made as per actual measurements.
(ii) System of stage payments may be followed for residential and non-residential buildings
where floor plans are identical.
(iii) Each stage should be well defined. Floor levels or any other level such as Lintel level/Sill
level of each block/each segment may be the basis to allow stage payment.
(iv) The measurements of one complete unit for each defined stage shall be recorded and test
checked by JE/AE/EE. Hidden measurements shall be test checked 100% by JE/AE & at
least 10% of the hidden measurements are to be test checked by EE.
(v) After completion of each stage a certificate will be recorded by JE & AE that work has
been executed strictly as per the measurements of standard unit as recorded earlier.
Completion of each stage is also to be certified by EE. For outer stations test check of EE
may be exercised in alternate running account bills.
(vi) Payment Schedule defining each stage of payment subject to minimum amount of Running
Account Bill is to be mentioned under clause 7 of Schedule F of CPWD-7/8
(vii) No part payment shall be allowed for incomplete stage.
30.1.1 Register of Bills and its review
(1) The Divisional Officer should maintain a register to keep a record of the monthly running
payments made to the contractors in respect of contracts costing above Rs.50,000 in the
proforma prescribed in Appendix 12. As and when a bill is submitted, the same shall be entered
in this register.
(2) The register should be reviewed by the Executive Engineer regularly to ensure that payments
are being made to the contractors in time.
(3) The register should be posted at the time of making monthly running payment to the contractor.