CONTENTS - Central Public Works Department

212 SECTION 33
(2) Certain Administrative instructions as regards this clause are given as under:-
(i) Engineer(s) and/or Overseer(s) deployed as per stipulation in the contract shall look after
only the work under contract and no other work and shall be available fully during execution
of work.
(ii) Even if contractor (or partner in case of firm/company) is himself an Engineer/Overseer, it is
necessary on part of contractor to employ Engineer(s) and/or/Overseer for the supervision of
the work(s) as per stipulation.
(iii) The Retired Engineer/Asstt. Engineer who are holding Diploma may be treated at par with
Graduate Engineers for the operation of the Clause.
(3) Requirement of technical staff for a work shall be decided and stipulated in Schedule F as per
guidelines given at Appendix 18.
33.15 Clause 42 of Forms no. CPWD 7 and 8
This clause imposes an obligation on the contractor to manage an effective inventory control of the
expensive and essential stipulated materials, and the resultant consequences in case of non-observance
of diligence in their usage by the contractor. Clause 42 (ii) and (iii) of Forms no. CPWD 7 and 8 lays down
that recovery at a specified rate (higher than the normal issue rates) is to be made from the contractor for
use of cement and steel in excess over the quantity arrived at by theoretical calculation. The intention
behind the clause is that the contractor shall take only the required quantity of materials, and if any such
materials remain unused at the time of completion or determination of the contract, it has to be returned to
the Engineer-in-charge. The clause specifically provides that the material not so returned shall be
recoverable at the rates as specified. The rates so specified forms the reasonable compensation for the
breach of the provisions therein. Thus this particular clause is not in the nature of penalty, but provides a
reasonable compensation. The aggrieved party for the breach of the contract can receive reasonable
compensation, not exceeding the amount so named relating to the excess issue of materials not returned
by the contractor.
33.15.1 Theoretical consumption statement with every bill
(1) In order to operate the provision of this clause effectively, it is necessary that with every running
account bill a statement showing the theoretical requirements of materials for the items of work
done and measured should be prepared and got signed from the contractor at the time of obtaining
his signature on the running account bill, so that he is aware of the basis on which the theoretical
calculations are worked out. It will also enable the Department to exercise a broad check over the
consumption of these materials during execution of the work. As already mentioned above, the
recovery at the rates so specified in the clause is for the materials issued in excess over the
quantity which is expected to be used in the work if the material is used with prudence and economy,
and is arrived at through theoretical calculations of the quantity that is required and the quantity
that is not returned by the contractor. The recovery is not for excess consumption. It is therefore
absolutely necessary that a notice in writing should be issued by the Engineer-in-charge to the
contractor to return the materials issued in excess of the theoretical quantity as provided in clauses
42 and 10 of the contract. Only thereafter action for recovery under clause 42 should be taken.
(2) Once the distinction that recovery is for excess over theoretical consumption and not for
consumption in the work becomes clear, it will be inappropriate for the Engineer-in-charge to admit
that the entire quantity of materials issued has actually been consumed in the work. In the counterstatement
of facts in arbitration also, statement such as, “Excess materials have actually been
used in the work”, should never be made.
(3) For non-scheduled items, the decision of the Superintending Engineer regarding theoretical quantities
of materials that should have been actually used shall be final and binding on the contractor.