Tele: 23019638 E2 Works (PPC) Sub Dte

Dte of Works, E-in-C's Branch

Integrated HQ of MoD (Army)
Kashmir House, Rajaji Marg,
New Delhi — 110011.

A/95533/DWP/Pol/E2W (PPC) (6 Dec 2020

List 'A' and '13'

(Through MES Website)

DEFENCE WORKS PROCEDURE 2020 (DWP 2020) — HIGHLIGHTS

1. Defence Works Procedure deals with mechanism for planning, programming,

budgeting, approval and execution of defence works. DWP 2020 was sanctioned vide
MoD letter No 1(6)/2015/D (W-I) dated 25 Nov 2020 and circulated vide this HQ letter of
even No dated 27 Nov 2020.

2. A number of provisions have been included in DWP 2020 in order to simplify

procedures, adopt contemporary practices and empower stakeholders to meet
challenges of increased infrastructure development for the defence forces. Some of the
existing provisions are made stringent as well as safeguards included to ensure that
delays and cost overruns are minimised.

3. The salient features which are likely to have a major impact are listed at Appendix.

4. Provisions in DWP 2020 envisage faster processing of works, concurrent planning

activities and adoption of contemporary practices and targets quality and timely delivery
of defence projects/ works. All stakeholders are requested to utilise the provisions for a
concerted effort towards timely commissioning of quality infrastr cture.

5. For information and necessary action please.

1# 1 01

ajnisih Bhandari)
ol
Dir (PPC)
For E-in-C

Enclosure As above.

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QMG's Branch / DG LW&E

IHQ of MoD (Navy) / Dte of Works

Air HQ/ Dte of AF Works

HQ IDS / Works Dte

HQ SFC

Coast Guard HQ

HQ CME Pune

Faculty of Construction Management, CME Pune

Internal

All Sub Dtes of Works Dte

tomation Cell - For uploading on MES website under restricted access.



Appendix
(Refer Para 3 of E-in-C's Branch letter No
AJ95533/DWP/Pol/E2W (PPC) dated /6 Dec 2020)

HIGHLIGHTS/ IMPORTANT CHANGES : DWP 2020

1. Section II — Basic Principles.

(a) Para 2 (b). Outstanding liability on account of all works and committed
liability during the year to be included in AMWP proposal.

(b) Para 2 (c) (i). If an approved work is not commenced within one year of
the date of AA, RAA from the CFA (with or without IFA concurrence as the case
may be, as per delegation of financial powers) should be taken.

(c) Para 2 (c) (ii). Work shall deemed to be commenced once expenditure is
incurred or liability created on account of preliminary works related to the project
ie soil investigation, site survey, shifting of utilities, enabling works and consultancy
for design & architecture etc.

(d) Para 2 (h). For projects costing 100 crore or above, the Works Review
Committee (as prescribed at Para 55 (b) below) shall have the powers to accept
variation/ tolerance within 10% of the approved estimates.

2. Section IV — Original Works.

(a) Para 4 (b). Original works of petty nature costing upto one lakh may, at
the discretion of CWE/ GE (I) be treated as "Repairs".

(b) Para 4 (e). Pre-investment/ preliminary activities (like site survey, soil
investigation, site preparation, consultancy for preparation of CPRs, DPRs, design
and drawings etc) will be categorised as original works and included in the AMWP/
LBW list as separate Job as per requirement.

(c) Para 5 (a). Original Works are divided into the following categories: -

(i) Major Capital Works. Original works costing 45 lakh or more.

(ii) Low Budgeted Capital Works. Original works costing more than
10 lakh but less than 45 lakh.

(iii) Revenue Works. Original works costing more than five lakh and
not exceeding 10 lakh.

(iv) Minor Works. Original works costing not more than five lakh.

(v) Pre-Investment/ preliminary activities.

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3. Section V — Repairs.

(a) Para 9 (a). Ordinary Repairs are further subdivided into the following
categories: -

(i) Petty Repairs.

(ii) Periodical Services as per RMES Table 'G'.

(iii) Replacements and renewals costing upto 4.5 lakh for each item.

(iv) Repairs, renewals and replacements of E/M installations and other

external utilities costing upto six lakh in each item.

(v) Replacements of furniture of value upto 50% of annual allotment for

maintenance of furniture on station basis, to be allowed only in respect of
furniture declared as condemned/ beyond economic repairs by the
appropriate authority.

(b) Para 10 (a). Special repairs will not be permitted in a building/ portion of
building/ asset within five years of completion of the original work. Also special
repairs will not be permitted to be repeated within five years in the same portion of
building/ asset.

4. Section VI — Scales and Specifications.

(a) Para 13 (e). Specifications of all permanent buildings shall be framed in

such a way as to ensure life of structures in accordance to latest NBC 2016.

5. Section VII — Annual Works Programme and Budgeting.

(a) Para 18 (a). The Annual Works Programme for Major Capital Works
(excluding special projects) should be prepared and submitted by 31st August and
approved by the Government before 31st October of the previous FY so that pre
administrative planning can be completed and AAs can be issued from 01 Apr of
the FY. Works included in AMWP list but not sanctioned in a year, will automatically
be carried over and included in list of subsequent financial year and AAs for such
carry over works can be issued at the earliest without waiting for promulgation of
AMWP list for the year.

(b) Para 18 (b). Approval of AMWP by Government will be considered as

Approval-in-Principle for the implementation of the work programme and
Acceptance of Necessity (AoN) for incurring expenditure towards preliminary
activities. AoN and AA for each work will be obtained as described. This approval
will however be subject to adequate allocation of funds. RIC to be submitted along
with AMWP proposals shall also include the proposal for Go-ahead sanction for
undertaking consultancy for prep of project reports, preparation of Architectural/
Structural Drawings/ Tender Documents/ Estimation and other preparatory works,
hifting of utilities etc. A Bulk Go-ahead sanction upto 2% o the AMWP ceiling
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amount will be sanctioned along with approval of AMWP list. This will facilitate
advance/ concurrent planning and execution of preparatory/ pre-investment works.

(c) Para 19. Low budgeted works to be completed within 18 months of their
sanction.

(d) Para 20. Major Revenue and Minor Works should be completed within
one year of their sanction.

6. Section IX — Demand for Planning of New Works.

(a) Para 22 (b). No Work proposal should be initiated till Al Defence Land
is available. AA/ Go-Ahead sanction shall be accorded only after all statutory
clearances have been obtained.

(b) Para 22(d). The details of budgetary requirements/ projections based on

annual cash outflow as per format (to be issued by E-in-C's Branch) will be
included in the Engineer Appreciation.

(c) Para 22(f). Requirement of adopting specialised construction

methodology/ technology/ equipment to ensure efficient completion of work duly
justified by the CEA or as specified by E-in-C's Branch will be included in the SoC.

7 Section XI — Acceptance of Necessity.

(a) Para 26. The powers of CFA for sanction of works have been
enhanced. Delegations under DWP should be revised/ relooked, whenever
DFPDS is revised and shall be carried out by the same committee.

8. Section XII — Approximate Estimates.

(a) Para 29 (c) (iii) - Supervisory Charges. When services for supervision
of work are to be hired/ outsourced, an additional 2% of the estimates will be added
as supervisory charges. The requirement should however be fully justified in the
Engineer Appreciation which forms part of the BPs.

(b) Para 29 (c) (iv). An amount of 3% may be added towards consultancy

for drawings and design wherever Design and Build/ EPC methodology/ Turnkey
projects are adopted. No other charges towards consultancy will be added in such
cases.

(c) Para 29 (q). No escalation will be included in AEs for works to be

completed within two years. For works beyond two years, escalation will be
included in contracts and not in AEs.

9. Section XIII — Administrative Approval (AA).

(a) Para 31 (c). Time for completion of the works will be clearly indicated in
the AA. Extension of time given in AA will be accorded by the CFA. In case of
orks where CFA is beyond MoD, extension will be gr ted by MoD.

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(b) Para 31 (f). While sanctioning the work, the cost of AA amount may
exceed the listed cost of the particular work in AMWP, provided overall ceiling
allocated for the service is not exceeded.

10. Section XV — Urgent Works.

(a) Para 37 (c) - (Urgent works sanctioned under Paras 34, 35 & 36). Issue
of covering AA shall be prioritised and issued within six months from the date of
submission. If delayed beyond six months the AA will be issued by the next higher
CFA.

(b) Para 37 (d). Even if issue of AA is delayed, payment to contractor shall

not be withheld for want of AA.

11. Section XVI — Special Powers for Engineers.

(a) Para 38 (c). Dispensation mentioned in Para 38 (c) (ie Selective tendering)
would be clearly spelt out in the go-ahead sanction/ AA accorded by the CFA. The
reasons for dispensing with competition will be placed on record in writing.

(b) Para 38 (f). Engaging specialised construction methods/ technology/

equipment.

(c) Para 39 (b). Outsourcing of works through consultants, Government

institutions/ bodies etc. In case of Government/ Semi Government agencies, the
consultancy services may be entered into through limited/ selective tendering.
Limited tendering amongst private consultants may also be adopted in cases
where the cost of consultancy services is upto 25 lakh.

(d) Para 39 (e). For short term consultancy upto a period of one year, contract
or negotiated fees arrangements can be made by the CE with Government
technical institutions, Government departments or Public Sector consultancy firms
to provide services for defined work packages like preparation of reports, design
review etc. The expenditure on a single work package will not exceed 20 lakh.

12. Section XXIII — Tender Action.

(a) Para 47(q) (i). When any work involving specialised items of work/
E&M equipment/ Plant & machinery is to be executed requiring fabrication,
installation, testing and commissioning, CEA will entrust the work preferably to
OEM. Such items of work, E&M equipment, Plant & Machinery will have suitable
guarantee & warranty from the OEM. For other firms/ vendors/ contractors PQC to
be laid down by the E-in-C.

(b) Para 47(q) (iii). The CEA will be final authority to decide whether the
system is to be got maintained by OEM/ authorised agents for maintenance works
or by specialised firms to be selected on basis of PQC.

(c) Para 47 (h). In case of natural calamities/ disasters or breakdown of

-- essential services, any Commander within his financial power mentioned in

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Appendix 'D' of DWP may order the CEA in writing to undertake spot tendering/
spot quotation of works services/ procurement to restore essential services for
providing immediate relief to the affected areas.

(d) Para 48. The mobilisation advance would be operated through an

Escrow account.

13. Section XXIV — Acceptance of Contracts.

(a) Para 49 (c). CE may conclude Job Work Order upto 25 lakh for
preparatory and emergent works.

14. Section XXV — Reduction in Scope of Works.

(a) Para 52 (b) (i). When a sanctioned work is no longer required for the
purpose for which it was sanctioned, the work may be foreclosed by next higher
CFA, not below the level of General Officer Commanding-in-Chief or equivalent.
However, for Government power works foreclosure will be issued by MoD.

(b) Para 52 (b) (iv). Due to foreclosure of a work/ project, the partially
created assets if any, may be utilised for authorised purposes. The original CFA to
explore the possibility and prepare a road map in consultation with MES authorities
by sanctioning of necessary additions/ alterations, if required.

15. Section XXVII — Monitoring and Review.

(a) Para 55 (c) (i). In case of all projects/ works costing more than
1.50 crore, a representative of the User will be nominated as Project Officer to
coordinate planning and functional aspects of the User's requirement with the
engineers from the commencement to the completion of such works.

(b) Para 55 (c) (ii). PMG to be detailed for projects exceeding five crore
by the Stn Cdr and works above 10 crore by the Command HQ.

(c) Para 55 (c) (iii). During the execution of the works, as far as possible,
any demand for change in scope of work or retrofitting of designs and/ or
specifications will be discouraged as it leads to interference with works
programmes and delay in completion of the projects.

(d) Para 55 (c) (iv). Guidelines to be formulated and issued by respective

Service HQ with the approval of MoD regarding the Role, Responsibility and
Accountability of PMG in monitoring/ review of projects. There shall be no cross-
interference in functions and responsibilities of Engineer Authorities and
Administrative Authorities.

16. Section XXVII — Procedure for Special Projects.

(a) Para 56. Inclusion of works of Functional/ National Importance in

Special Projects and streamlining and simplification of existin• procedure.
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17. Section XXXII — Re-appropriation of Buildings.

(a) Para 61 (d). Buildings/ assets constructed as special works will not be
re-appropriated for any other use without approval of the CFA who had originally
sanctioned the work.

18. Section XXXIV — Execution of Projects on Turnkey/ EPC Methodology.

(a) Para 63. Works may be awarded on turnkey basis/ Design and Build/
EPC methodology. Contractors to be selected on the basis of PQC issued by
E-in-C's Branch with requisite expertise in handling such project. Construction
methodology/ technology for such projects would be approved by E-in-C's Branch.

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