Engineer-in-Chief 's Branch

Tele: 23019220 Military Engineer Services

Dte of Contract management
Kashmir House, Rajaji Marg
New Delhi-110011

2:4_ Jun 2018

No. 33445/Adm-01/ /E8

List A and B
ADGs
SETTLEMENT OF OUTSTANDING STE OBSNS

Reference this HQ letter No.41000/ADGTE/STE/ /E8 dated 22/ 23 May 2018.

1.
23.1.9.1 of Manual on
2. Timelines for settlement of STE obsns are given at Para CsWE and Command
contracts, 2007 (Reprint 2012). Periodic meetings of STE with
CEs are also mentioned in the Manual to liquidate outstanding obsns. A policy letter
was issued by ADGTE HQ vide their letter No 98148/Policy/87/Q/ADGTE dated 22 Dec
2014 (copy enclosed) wherein it was suggested that interaction with Comd CEs shall be
positively utilised for settlement of outstanding observations more than one year and the
procedure has also been laid down.
ix obsns,
Despite all these instrs and modified mechanism evolved to liquidate months are
3.
the outstanding obsns are large in numbers. Details of obsns beyond
given below and status of pending obsns Comd wise & Zone wise as per latest quarterly
report of ADGTE for QE Jan - Mar 2018 is enclosed :-
> 3 Years Total
1'/z —2 2-3 Years
As on 6-12 Months — 1 1/2
Years Years Reply IRNI
eplied IRNR eplied IRNR
eplied IRNR eplied eplied recd
DNA 17840 DM,
DNA 2573 DNA 2130
1 Mar 16 8287 DNA 2698 322 17313 409
979 2541' 372 2454
TMar 17 2985 2145 3137
525 2807 696 3214 402 19009 504
3387 924 1636
Mar 18 2922 2496

IRNR- Initial Reply Not Received

DNA - Data Not Available
nsiderable
obsn, there are co ic
As could be seen from the status of pendin t
4. hrees years old wh h is not
numbers of pending obsns with IRNR more than
acceptable. As per existing instrs all obsns must be replied within three months, hence
any CE Zone having IRNR obsns more than three months shall brief the CE Comd
about such obsns with reasons for delay in reply.
ADGTE Br has suggested the following procedure for
5. As a one time measure,
liquidating the old obsns:-.
(a) Obsns pertaining to wks which have been foreclosed or cancelled as on
date will be reviewed by STEs and obsns whichare found to e not very work ors
action to devalue the
the same will be 'Not pressed further' and further
settle the obsns will be taken by Accepting Officer.
 2

All outstanding obsns pertaining to wks where the wk is over incl DLP and
(b)
obsns which do not have serious implications, the same shall be identified by a
BOO convened at each Comd CE/ADG level with Presiding Officer from
Comd/ADG and members from both STE and concerned CE Zone. The obsns
will be settled as Not Pressed Further/Settled with/without recovery to clear the
backlog of fait accompli cases by BOO and necessary settlement memo will be
issued by STE. STEs will give a feedback on all such cases as on 31 Mar 2018
to respective CE Comd/ADG by 31 Jul 2018.
In respect of obsns for which IRNR even after one year of raising and those
(c)
obsns which are unsettled even after a lapse of one year after completion of
DLP, STE will deliberately study all outstanding obsns project-wise, discuss the
same with concerned OE/AO and seek their comments for one final time. Based
on the CE/AO reply, the STEs will then fwd project-wise cases where the defects/
obsns are found to be fit to be declared as 'Serious Case'. Based on the merit of
the case, the same will be declared as 'Serious Case'. In the balance cases,
recovery if applicable will be intimated by the STEs.

You are requested to do the needful to get a Board of Officers ordered in

6.
consultation with STE(s) concerned as brought out at Para 5(b) here-in-before. CEs
Zone be directed to promptly reply the STEs obsns after discussion with STE as
brought out at Para 5 (c) above.
In this connection you are requested to also refer this HQ letter No.
7.
41000/ADGTE/STE/ /E8 dated 22/ 23 May 2018 wherein you have already been asked
to fix quarterly targets to liquidate the obsns in a systematic manner. CEs Zone under
your AOR be directed to take full advantage of this one time opportunity offered by
ADGTE and get maximum obsns settled.
Please ensure that the first Quarterly Report for QE Sep 18 for the progress
8.
achieved shall be submitted by 30 Oct 18.

(Reji Ashok)
Dir (Contracts)
for Engineer-in-Chief

Encls : As above

Copy to :-
You are requested to direct all STEs to follow the action plan as
ADGTE
above. Settlement drives at regular intervals be also carried out
for timely resolution of pending obsns.

Internal

E2W (PPC)

,/ Nodal Officer: Please upload this letters on MES website.

 TO BE HANDED OVER ON RELIEF

Tele 23018995 Addl Dte Gen Tech Examination

Quartermaster General's Branch
Integrated HQ of MoD (Army)
Kashmir House
Rajaji Marg, New Delhi — 110011

98148/Policy/87/Q/ADGTE Dec 2014

STE Southern Comd(Chennai)

STE Southern Comd (Pune)
STE Eastern Comd
STE Western Comd
STE Central Comd
STE Northern Comd
STE South West Comd

SETTLEMENT OF STE OBSNS

1. Ref this HQ letter No. 98148/Policy/72/Q/ADGTE dt 22 Oct 2014.

2 Despite a well enunciated mechanism for settlement of obsns, settlement rate of

obsn. DPs & serious cases is extremely low (Ref Appx 'A'). The reasons could be
inadequate response by execs, delayed action by STEs on replies, obsns linked with
verification at site or non-agreement on the cost of recovery/rectification e,o.

3. In the recent interactions with QMG's Branch, E-in-C's Branch, & Comd CEs this
point has been deliberated with concern and there is a felt need to give a re-look to the
existing policy of settlement of obsns & to evolve a healthy & proactive mechanism with
greater involvement at all levels incl CE Comd.

4. The existing policy for formulation & settlement of STE obsns is exhaustively laid
down in ADGTE Policy Compendium-2012. The requisite actions as per existing policy &
further actions to bring about a perceptible improvement in this process are brought out
hereinunder-

(a) Factual Notes: Due care has to be taken while preparing factual notes &
defects to be duly quantified. At this stage itself obsns with financial effect less than
Rs 10000/- to be incl in Minor obsns for which action for settlement rests with
GE/CWE/CE Zones as per their financial limits. All maj obsns should be supported
by site photographs, auth of IS/contract/RMES etc. Repeated maj obsns in same stn
must be termed as serious cases.

(b) Suggestions/Advisory: While formulating the AIR & detailed obsns. those
with suggestive/advisory nature, such as suggestions for improvement in plg aspects
and/or specifications etc to be incl as 'Suggestions and not as 'obsns' & these shall
be left to the Comd CE/CE Zone for further action. These obsns shall not be
indicated as pending STE obsn. However these will be summarized as advisory in
Qtrly news letter of ADGTE.
Contd...2/-
 -2-

c . Initial Replies: Those obsns where initial replies are received within
:-,-z)hths STE shat convey his decision within 15 days of receipt In case initial
• mai::-/ cosns is no, recc from GE within three months STE shall info CE
list of such Ot)SnS If the replies are still not received within next two
months thereafter the obsns shall be referred to Comd CE with a copy to HQ
ADGTE

• Discussion/Settlement of Outstanding Obsns During Site Visit: - As

Per Para 4 7 of Compendium 2012 STEs are required to discuss outstanding obsns
with GE/C.-,'WEiCE during each tour with a view to expedite their
finakzationJ•settlement. Henceforth one day shall be dedicated to such discussion
urinc.:. each tour and the day/date for this discussion shall be notified in the tour
•tself The prog on settlement achieved shall be incl in the insp report as a
separate sheet and also reported to ADGTE as and when he visits the site

Monitoring at Comd CE level - As per Para 8.2 of Compendium 2012 STE

s 'ecurred to interact with Comd CE & evolve a suitable monitoring system
B.--,ortn:‘y ,Ouarterly meetings to be held with ACE(c)iwks,,,Jt DG ,Contracts) to
mor for obsns & otner .ssues Henceforth this interaction will be positively utilized
sttien-ient of outstanding cbsns >1 yr old) and the following process shall be
-

Qtrly Mtq with ACE(C) (Wks): - Every quarter STE shall prepare &
submit a discussion sheet incl obsns. initial replies & further corresp and
views of STE to Comd CE Thereafter a meeting with ACE(C) Wks shall be
held Directions given by ACE(C) Wks shall be recorded & STE shall take
settlement/further action accordingly

;ii ; Half Yrly Mtq with CE Comd:- Meeting with Comd CE shall be held
every six months & STE shall apprise about the progress achieved in qtrly
meetings with ACE(C) wks and also discuss the cases considered of serious
nature Directions of Comd CE shall be recorded & STE shall issue
settlement/draft serious cases accordingly All those obsns which are
classified as advisory/suggestive by Comd CE shall not be explored further &
these snail be left to the appropriate MES authority for further course of
action

ADGTE discussion with CE Comd: - Whenever ADGTE visits the

Comd Ha there will be a review of pending STE obsns with Comd CE The
issue thereafter will be brought to the notice of COS/MGOL of respective
Comds.

f Disposal of obsns > 36 m old: - Present state of obsns more than 36 m old
s at Appx A. To liquidate these large No of obsns by 31 Mar 15 following
r.-Irnedate measures shall be takerv-

Obsns with financial effect less than Rs 10000/- to be declared as

minor & sent to concerned CE Zone for further necessary action

Obsns on Pig/Advisory with low financial impact t6 be settled with into

al' concerned ince CE Comds
 -3-

(lir) Obsns which have large financial implications or are considered

serious in nature to be converted into DP/SC as per policy

it is expected that with the above measures al: the existing outstanding obsns > 1 yr
'eaon icoical conclusion & ultimate goal of having no obsns pending for > 1 yr
ce acneyed by 30 June 15 It is emphasized that settlement of obsns is an
nteract!ve and terative process All STEs are expected to take a proactive approach
mus: be Kept in mind that the main obiective of TE insps a tc bring about a
marked .mprovernent in quality of wks and bring in transparency in the sys and settling of
obsn is a means towards that objective.

5 This has the approval of ADGTE and will be followed with immediate effect

(Balpt Singh)
CDOS&C)
Jt DG TE
For ADGTE
Ends: As abc Je

Copy to:-

SO to CIMG For info pl.

TS to E-in-C PI ref discussion of ADGTE with the E-in-C dt 05 Dec 14

TS to DGW - For info pl.

E-in-C Br (E8) - With a request to issue directions to all Comd CEs accordingly

All Comd For necessary action alongwith encls A zone wise list of pending
obsns of concerned comd is also encl as Appx B- to • BT
(as applicable to the Comd).
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5

Position of Outstanding Observations.

STE-WISE OBSNS

4499
._11,.,4 -----

2 1 II 1 ii
3511 3090 2768 2521
a ill
2
STE STE STE STE STE
STE Pune STE MAP STE Jaipur
Ch garh LucKnow Kolkata Jam mu Chennai
Outstanding As on 31 Mar 2017 7305 4499 4158 3923 3511 3090 2768 2521
Cleared during the Qtr 1120 1043 423 1094 68 605 839 735
Added during the Qtr 1008 1023 517 718 352 549 421 516
Outstanding As on 01 Jan 2018 7417 4519 4064 4299 3227 3146 3186 2740

Table 2.1: STE wise outstanding obsns

- Status of Obsns IRNR (Initial Reply Not Recd). There has been a
:onsiderable delay in submission of initial reply by the executives to certain observations
- wised by STEs. The status of these obsns is given below which needs to be monitored by
- gher headquarters:-

Comd DG
WC CC SC NC SC SWC MAP EC
AP
Raised Total
STE STE STE STE STE STE STE STE
STE C'garh Lucknow Pune Jammu Chennai Jaipur MAP Kolkata
IRNR 4819 1741 1676 1530 1398 1146 1015 997 14322

STE Kolkata 997

7%
STE MAP 1015 7%

Table 2.2: STE-wise status of IRNR

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6
5. Observations Summary : CEs Zone Wise. The aata visualization in the form of heat
chart represents outstanding observations summary on a color gradient increasing in gravity
from 3 3 4 column wise depending upon No of observations
for each Zone.

1 - 1Y2 1Y: - 2 2 -3
< 6 Months < 1 Year > 3 Years
Years Years Years G/Ttl Total New
STE Comd Formation obsns (IRNR) obsns Obsn
IRNR R I IRNR R IRNR R IRNR R IRNR R IRNR
Settled

lc%.eit Value l-iIhest V aILe

.,-,.
SQP1 CE Pune Zone 9 205 179 85 45 0 101 3 11 ),:- r 28 1182 332 192 26
SC(P) CE Bhopal Zone 135 424 84 72 140. 18 68 6 65 8 109 3 1132 531 114 115
SWC CE Jodhpur Zone 4 334 1 0 73 2 3 4'' •-•• 50 17 106 - • 590 353 38 63
SC;P. CE (Navy) Mumbai 14 234 128 112 19 5 82 25 125 16 243 23 1026 415 0 16
SC
5: , .1.•:■:. CE (NW) Kochi 11 111 37 34 59 11 0 5 27 3 33 3 334 167 7 92
„. ._.
CE A&N Zone 45 237 19 62 0 1 2 43 34 1 444 240 t; •1 31
CO2
1 ,,,...
CE (AF) Bangalore 72 330 98 19 88 0 78 10 15 1 30 2 743 362 7 121
P i ..% C, CC CE(,t1/4F) Nagpur Zone 11 510 89 --. 0 8 6 47 14 38 11 103 27 864 568 4 25

Total 301 2385 635 322 494 42 380 65 544 67 993 87 6315 2968 362 489
F.: CE Kolkata Zone 437 39 13 14 5 6 7 7 0 0 7 3 538 69 318 51
=- CE Shillong Zone 53 94 79 69 103 3 68 22 92 5 65 2 655 195 0 70
CE Shiliguri Zone 292 8 85 25 8 1 14 0 32 2 24 1 492 37 15 251
EC
E.:, .:, CE (Navy) Vizag 69 389 171 22 127 25 29 8 85 9 67 38 1039 491 0 174
Admiral
Superintendent Naval 0 0 3 0 0 0 0 0 5 0 7 0 15 0 0 0
Dockyard (ASD) Vizag
Total 851 530 351 130 243 35 118 37 214 16 170 44 2739 792 333 546
CE Delhi Zone 163 549 473 471 69 63 116 43 58 56 56 0 2117 1182 142 62
' CE Chandigarh 129 892 178 193 38 58 20 0 20 5 0 0 1533 1148 138 174
WC CE Pathankot Zone 47 254 26 21 131 107 29 85 45 64 44 10 863 541 128 86
CE Jalandhar Zone 13 843 50 136 97 274 51 0 45 47 45 4 1605 1304 95 79
.-;: S.VC I CE (AF) Palam 418 396 144 188 106 53 102 10 102 56 89 16 1680 719 239 238
tl
Total 770 2934 871 1009 441 555 318 138 270 228 234 30 7798 4894 742 639
__ CE Lucknow Zone 117 241 132 0 167 25 104 20 34 0 39 0 879 286 0 97
CC CE Barielly Zone 459 424 92 0 136 0 58 0 27 0 42 0 424 0 19
CC
CC i I CE Jabalpur Zone 253 299 13 4 92 0 23 0 49 0 194 0 303 147 111
CC !CE (AF) Allahabad 139 440 83 0 34 0 0 0 38 0 43 0 777 440 30 99
Total 968 1404 320 4 429 25 185 20 148 0 318 0 3821 1453 177 326
CE Srinagar Zone 0 0 17 52 0 0 48 4 10 0 15 1 147 57 0 0
NC
CE Leh Zone 0 0 56 68 0 0 92 43 60 16 108 62 505 189 0 13
Total 0 0 73 120 0 140 47 70 16 123 63 652 246 27 13
_•• - CE Jaipur Zone 0 180 57 70 65 25 147 23 87 22 162 8 846 328 81 55
SWC CE Bhathinda Zone 109 27 9 18 17 1 16 24 45 11 153 ,1 441 92 41 187
5WC. SC. f7..: CE (AF) Gandhinagar 100 164 78 139 158 29 50 42 188 7 251 40 1246 421 29 219
Total 209 371 144 227 240 55 213 89 320 40 566 59 253.3= 841 151 461

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7 '

1 - 1% 1% - 2 2 -3
< 6 Months < 1 Year > 3 Years
STE Comd Fvr nation I Years Years Years G/Ttl Total New 01)1
obsns (IRNR) obsns Sett'
R IRNR R IRNR R IRNR R IRNR R IRNR R IRNR
S T:C2) CE Chennai Zone 16 206 12 0 - 6 11 7 6 37 8 24 0 333 231 0 11.
CE (R&D) •
F.C,SC(P),SC(C) 28 45 22 9 14 4 19 28 53 26 82 35 365 147 0 99
Secunderabad
'.'C,EC,SWC,CC
CE (R&D) Delhi 4 180 0 0 2 94 11 0 1 0 27 4 323 278 9 0
Nc.
ADG
Obsn :C,EC,SC(C),
(Projects) CE (Fy) Hyd 5 74 26 131 , 29 0 34 21 6 0 54 8 388 234 0 26
ettled S:4')

CCE (COD) Delhi 25 50 0 0 0 0 0 0 47 0 78 0 200 50 0 0

26 CCE (OTA) Gaya 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
CE (CG) Goa 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
115
Total 78 555 60 140 51 109 71 55 144 34 265 47 1609 940 9 23
63 CCE No 1 (Army)
EC i Dinjan
0 o 2 0 4 1 0 0 0 0 0 0 7 1 0 3

CCE No 1 (Army)
0 67 25 8 30 10 0 0 0 0 0 0 140 85 0 6
92 EC ADG Missamari
(NEI)
31
EC CCE No 3 Narangi 0 41 0 0 0 0 0 0 0 0 0 0 41 41 0 0
EC CCE NEP Chabua 61 1 0 0 0 0 0 0 6 0 0 0 68 1 0 48
121
EC CE (AF) Shillong Zone 182 0 109 25 18 0 92 23 125 58 258 29 919 135 0 15:
25 Total 243 109 136 33 52 11 92 23 131 58 258 29 1175 263 0 20f
489 NC CE Udhampur Zone 18 264 15 4 52 47 42 20 109 124 87 23 805 482 20 24
ADG (N)
51 NC CE (AF) Udhampur 0 70 12 133 34 23 6 0 50 32 82 3 445 261 70 0
70 Total 18 334 27 137 86 70 48 20 159 156 169 26 1250 743 90 24
::::,P) DGNP Mumbai 0 0 0 0 0 0 0 0 0 0 21 0 21 0 0 0
DGW
174 EC CE DCNP Vizag 4 87 19 15 11 18 22 21 31 9 , 97 17 351 167 0 26
Total 4 87 19 15 11 18 22 21 31 9 118 17 372 167 0 26
....AP DG MAP DG MAP 45 570 286 359 1340 4 49 10 776 72 0 0 3511 1015 227 19

546 Total 45 570 286 359 1340 4 49 10 776 72 0 0 3511 1015 227 19

62 Grand Total 3487 9279 2922 2496 3387 924 1636 525 2807 696 3214 402
.. ._ .
174 -R ecdep y. IRNR-Initial Reply Not Received
86
Table 2.3: CEs Zone observation summary
79

238 ,
6. Draft Paras (DPs). The status of Service-wise /Headquarter-wise outstanding
639
DPs at the end of quarter is as follows:-
97

19
Services / Cases Cases raised Cases finalized Cases
111 as on during 01 Jan 2018 during 01 Jan 2018 as on
Headquarters
99 01 Jan 2018 to 31 Mar 2018 to 31 Mar 2018 31 Mar 2018
326 Army 02 01 01
0 Navy 00 00
13 AF 01 01 00
13 A DG (Projects)* 14 01 13
1 ADG (NEI)**
00 00
ADG (N)*** 00
187
I 00
DGW*"* 00 00
Total 1 17 00 03 14
461
Table 2.4 (a) : Summary of outstanding Draft Paras at the end of Quarter Ending Mar 18

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