CONTENTS - Central Public Works Department

SECTION 37
(2) The indenting officer should, however, make provision for the funds required in the budget of the
next financial year depending upon the delivery period of the stores as per the contract and
subsequent amendment, if any.
(3) As an exception to the above provision, the DGS&D accepts indents from the Executive Engineers
of the CPWD in emergent cases in anticipation of sanction. Indents for such works should be
accompanied by a certificate in the following form:
“I certify that sanction of the competent financial authority has been applied for the expenditure
involved which is being incurred in anticipation of sanction under para 118 of CPWD Code.”
(4) The DGS&D can (within certain monetary limits) place contracts at price higher than those intimated
in the indents without reference to the indentor.
(5) Whenever the cost of stores indented for exceeds the prescribed limit, the DGS&D will obtain the
indentor’s concurrence for the extra expenditure involved before the actual placement of the order.
The indenting officer should, when giving concurrence, certify the availability of funds as under:
“I certify that the extra expenditure involved has received the sanction of the competent financial
authority and that the funds are available under appropriate head in the sanctioned budget allotment
of the indenting department for the year”.
37.10 Careful filling of the indent form
Apart from the availability of funds, other columns of the indent/order forms should be carefully filled in,
indicating clearly:
(i) Head of Account to which the cost of the stores in question is debitable.
(ii) Name of the Pay & Accounts Officer through whom the debit is to be passed.
(iii) Detailed specifications and standards of the stores required.
(iv) Date by which the stores are required to be supplied.
(v) Detailed consignment instructions, giving clearly the postal and telegraphic address of the
consignee and indentor.
(vi) The manner in which the consignment is to be despatched, viz. “Owner’s Risk” or “Railway
Risk”, “Goods train” or “Passenger Train” or “QTS’’ (Quick Transport Service) where it operates.
(vii) The rate and amount should be clearly mentioned specifying in clear terms if it is F.O.R./F.O.B./
C.I.F. station of despatch/destination/port of despatch/port of disembarkation.
37.11 Cancellations and change in the indent
(1) The officers of CPWD should carefully note the following procedure prescribed for observance by
the DGS&D on receipt of reduction/cancellation of demands intimated to them by the indentors:
(i) The terms of a contract are binding on both the parties and a contract during its currency can
be cancelled or modified only by mutual consent. The DGS&D will not, therefore, proceed to
cancel a contract in whole or in part straightway on receipt of the indentor’s request. On receipt
of request for cancellation/reduction, each case will be examined by the DGS&D immediately
with reference to the terms and conditions of contract by the Purchase Officer within whose
powers of purchase the contract falls, and after obtaining legal opinion where necessary. If the
legal opinion confirms that the purchaser is within his rights with reference to the terms and
conditions of the contract to cancel the contract, as for example, where the delivery period has
expired, action will be taken to give effect to cancellation/reductions straightway.
(ii) Where, however, it is clear that the terms and conditions of the contract do not permit
cancellation/reduction without the contractor’s consent, the firm will be approached and
persuaded to agree to cancellation/reduction without any financial repercussion. If the firm
agrees, the formal amendment of cancellation will be issued by the Purchase Officer concerned,
making it clear that the reduction/cancellation is by mutual consent.
(iii) Where the firm does not agree to cancellation/reduction without financial repercussion, the
firm will be asked not to make further supply and not to incur further expenditure pending
decision as to whether the contract should be terminated pursuant to the Termination of Contract
239