Labour contract

In labour contract the contractor undertakes contract for the labour portion only.
All materials for the construction or arranged and supplied at the site of the work by the department or
owner.

Cost plus percentage contract

In this system contractor is given certain percentage over the actual cost of the construction as his profit.

Liquidated damages
it is a fixed sum of penalty by contractor or having no relationship with real damage.it is usually fixed
pade wearing from 50 to 100 rs. per day.

Unliquidated damages
this is known as an ordinary damages having relation with the actual damage done. It will increase or
decrease according to increase or decrease in the damage.

Extension of time
The executive Engineer make ground the necessary extension of time for valid reason if contractor
applies for extension of time within the time.

Penalty
Penalty is a shot of fine for non fulfillment of terms of contract.
penalty may be fixed sum per day or a certain percentage of the estimated cost up to 10% .

Termination of contract
the contract can be terminated by executive Engineer in default or Bank of contractor and penalty may
be imposed as per term of contract agreement.

Storage charges
this means expenditure incurred on the store material after the storage of material in store.

Supervision charges
about 10% is charged over issue rate as supervision charges.

Market rate
this term indicates the cost per unit at which an article can be prepared at a given time at the store
godown from the public markets.
Indent form
Materials from stock are issued on demand in proper form prepared by SDO or assistant engineer in
charge of different works as and when required is called indent form.

Tools and plants

Tools and plants of division are of two kind
1. General or ordinary tools and plants
2. Special tools and plants

Return of surplus materials

in case of excess materials issued to the contractor then actually required the surplus materials of work if
the contractor desire to return the material and the department require the material for other works the
material can be taken back to stock.

Bill
delete the account of the work done or of supply of material made and include the particulars and
quantities of work done or material supplied their rates and amount due.

Voucher
Voucher is a written document which deals which is kept in record as a proof of payment.

Advance payment
this means payment made on a running account to account tractor for work done by him but not
measured advance payment is not generally made to contractor but may be made under special cases
when the work is sufficiently progressed but measurement cannot be taken for certain valid reason.

Final payment
this means the payment made on Bunny account made to a contractor on the completion of
determination of his contract and in full settlement of the account.

Refund of security money

usually 10% security money of the contractor is refunded after 6 month from the date of satisfactory
completion of the work or on the expiry of one rainy season.
during this period of six month the contractor is responsible for any defects in the work.
 Accounts
Civil accounting system
In civil system of account all the government receives are limited into the government treasuries as and
when received all money required for the payment are obtained from the terrace Shri as and when
required through presentation of the bills.

PWD accounting system

The public work department system of account is comprehensive and maintained in divisional office in
prescribed forms.

Public work accounts

General principles to be followed for PWD system of accounts are

1. All the transactions have to pass through certain specified head of accounts.
2. A certain specified rules, regulation and procedure are to be followed in the entire accounting.

Transaction of public work officers are grouped under four heads:-

Expenditure heads
Revenue heads
Remittance head
Debit or deposit head

Cash account
Account of expenditure are maintained by sub-divisional head clerk in sub division and by the divisional
accountant with the help of accounts clerk in division.

Cash
The term cash include legal tender coin notes cheque payable at demand remittance transfer receipt and
demand drafts.
Government securities deposit recipes of bags and bones are accepted as security deposits but not
treated as cash.

Debit and credit

Debit means expenditure and credit means receipts.
Cash book
The transaction relating to actual receipt and payment of cash are recorded in a registered made of p w a
form known as cash book.
The cash book is one of the most important record and maintained correctly day today in divisional
office and sub divisional office.
The pages of cash book or machine number each page is divided into receipt side and payment side. The
receptor side has 5 column and payment side has seven columns.

Subsidiary cash book

the pay and allowance of regular establishment of the division are drawn by divisional officer from
treasury by presentation of Bill .the account of these amounts and payments are kept in separate cash
book known as subsidiary cash book.

Receipt of money
when money is received by a government official on behalf of the government it is entered in the
account of cash book and receipt in the proper form is granted to payer under the detail signature of
SDO.