Property_Manu - Final - The New India Assurance Co. Ltd.

The New India Assurance Co.Ltd.(12) CM/DGM/GM/or any Officer nominated by G.M. of the Department are the competentauthorities for releasing the payment of the contractor.(13) For releasing payment for the works, the Officers shall exercise their authority as perFinancial Standing Order 2005, amended from time to time unless specific approval fromCMD/G.M. is obtained.(14) Release of running payments to the contractors is normally based on recording ofmeasurement based on joint measurements and effecting percentage check by the seniorexecutives. However, it would be appropriate if the CM inspects the work to get satisfiedwith the standard of execution vis-à-vis quantum of execution of work for releasing runningaccount bills based on the recommendations of the architect.(15) Atleast once the DGM should inspect the work costing more than Rs.5 lacs to Rs.50 lacs.(16) GM should inspect atleast once where the work involved is more than Rs50 lacs.(17) If the contractor is bound to provide Performance Guarantee for certain items likewaterproofing, the quantum of such items should be identified for retaining 10% of the costwhile releasing the final bill.(18) The number of installments for releasing the Performance Guarantee Deposit would bethe same number of years the contractor has guaranteed the performance, i.e. if the work isguaranteed for 10 years, each year installment of 1% would be released.(19) Based on the items executed, the defect liability period should be decided in advance. Itcould be 3/6/9/12 months or it could be one monsoon.(20) Normally, the work is supposed to be executed as designed and tendered. However, incase there are certain items requiring to be executed, such items can be executed as extraitems.(21) Extra items means items which will have to be executed by the same contractor for theexecution of main work, and without execution of such items it will not be possible to executethe items in the accepted tender.(22) The quantum of such extra items should not exceed 15% of the estimated cost.(23) The rate agreed for execution of extra items will be based on material cost, labor cost andsame quantum of overhead cost, which was adopted by the contractor while quoting forthe main work.(24) Extra items up to Rs.10,000/- can be approved by the CM.MANUAL ON ESTATE & ESTABLISHMENT127