SCRUTINY OF TECHNICAL SANCTION OF JOBS IN BRO

INTRODUCTION

BRO is an organisation executing works like construction of Roads, Bridges,

Air Field, Buildings etc. The various stages prior to execution of works are as
under:

a) Acceptance of Necessity
b) Administrative Approval
c) Appropriation of Fund
d) Technical Sanction

I have been assigned the subject of scrutiny of Technical Sanction of jobs in BRO as
such I will confine myself within the parameters of the topic.

AIM OF TECHNICAL SANCTION

The aim of the technical sanction is to ensure that works are executed on
ground taking into account various ground factor, correct assessment of quantities
involved and as per provisions of the sanctioned job in terms of scope, specification,
codes, scales and norms.

TECHNICAL CONTROL

Technical sanction is the basic tool for exercising Technical Control on all
works executed by DGBR through the CEs(P) / TF Commanders. Technical
Control ensures that:-

a) The design and specifications are in accordance with sound Engineering

practice and fulfil the object in view with the least expenditure of funds.
b) The scale and norms as laid down under Border Roads Regulations are
followed.
c) The estimate represents the probable cost of execution of the work as
accurately as possible at the time it is prepared.
d) The Resources commensurate with the time frame for completion and are
in accordance with design and specifications.

ISSUE OF TECHNICAL SANCTION

Technical sanction is issued by the Competent Engineer Authority describing

the various items of work to be done and is appreciation of the cost that will be
involved. Technical Sanction is issued on costed schedule of works which will be
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strictly in accordance with the Admin approval in regard to scope of work, scale of
accommodation etc. In nut shell Technical Sanction amounts to no more than a

guarantee that the proposals are structurally sound and that the estimates are
accurately calculated and based upon adequate data.

Technical Sanction in all circumstances should be accorded by the Competent

Engineer Authority before the commencement of work and before tender documents
are issued in case the work is to be executed through contract. In the case of works
carried out by specialised firms on their own designs, technical sanction should be
accorded on the basis of their accepted designs on receipt of tender but before
acceptance of the contract.

TECHNICAL SANCTION IN B.R.O

The majority of the works are carried out departmentally in BRO as such
Technical Sanction must include an analysis of the amount involved under the
following headings:

i) Pay and allowances including wages of casual labour.

ii) Stores/Rations.
iii) P.O.L
iv) Vehicles and equipments at usage rates and clothing at per capitation rates.
v) Items of work done through contract.
vi) Over Heads.

POWER OF ENGINEER AUTHORITIES FOR ISSUE OF TECHNICAL

SANCTION IN BRO

Powers of Engineer authorities for according Technical Sanction of jobs in BRO are
given below:

D.G.B.R - Full Powers

C.E’s - Full Powers

Cdr TF’s - 22 Lacs

O.C RCC’s - 5 Lacs

The competent Engineer authority may, however, delegate his authority, at

his discretion to his subordinate engineer officer to issue Technical Sanction.
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POINTS TO BE SEEN DURING SCRUTINY OF TECHNICAL SANCTION

The copy of Technical Sanction issued by competent engineering authority

will be endorsed to CDA (BR), AO (P) and AO(TF’s). On receipt of the same audit
of Technical Sanction will be carried out and it will be seen:-

i) That sanction has been accorded by the Engineer Authority competent to

do so.
ii) That the amount of Technical Sanction does not exceed the amount of
Admin approval inclusive of permissible tolerance limit.
iii) That the costed schedule of works accompanying Technical Sanction are
strictly in accordance with scope of work.
iv) That the costed schedule of works does not vary from the specification
shown in Part-II of Approximate Estimate accompanying the Admin
Approval except in following cases.
a) The changes are necessitated by Engineer reasons and are not such as
to alter the scope of work.
b) There is no departure from authorized general specifications.
c) Any excess in cost involved is met from savings from other items of
work.
d) When the effect of such changes is to decrease the cost of work the
savings on the project as a whole are surrendered to the authority
concerned under the normal procedure.

v) That the schedule of works has been prepared by competent engineer

authority before calling for tenders if work is to be executed through
contract.
vi) That in case of work carried out by specialised firms on their own design,
Technical Sanction has been accorded on the basis of the accepted design
on receipt of tender but before acceptance of contract.
vii) Technical Sanction has been noted in the Admin Approval Register
(IAFW-1816) and all Technical Sanctions linked with administrative
approval.
viii) If more than one Technical Sanction has been accorded against one Admin
Approval the same has been recorded in the register serial number wise
and entry authenticated by AO (P)/ AO(TF).
ix) Technical Sanction specifies nature and quantities of stores required for
execution of the job.
x) All documents including collation sheets have been enclosed with the
Technical Sanction.
xi) Incase Technical Sanction has been issued by subordinate engineer officer,
letter delegating powers by competent engineer authority has been
attached with Technical Sanction.
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xii) In case of revised Technical Sanction it will be checked:-

a) That variation between the amount of Technical Sanction and actual

expenditure is due to change in designs/drawings/specification.
b) That reduction in expenditure is due to reduction in the scope of work

DRAWBACKS NOTICED IN THE SYSTEM OF ISSUE OF TECHNICAL

SANCTION

Following drawbacks have generally been observed in the issue of Technical

Sanction in BRO

1. Technical Sanction issued by the executive for a job is more or less a

replica of admin approval and final amount of Technical Sanction is
invariably based upon the Admin approval amount plus the tolerance limit
without taking into account actual ground requirement. The tolerance
limit is routinely and invariably added to all the Technical Sanctions even
before the commencement of work.
2. Technical Sanction does not specify the nature and quantity of stores
required for execution of the job. The stores are procured disproportionate
to the actual requirement or at times stores not relevant to the job are
procured.
3. It is often seen that collation sheets which enumerates the costing of
individual item of stores, man power etc. are either not prepared or not
given to audit authorities for financial verification.
4. As the Technical Sanction is not prepared properly, the desired quality
control or technical aspects is generally not exercised and merely left in
the hands of supervisory staff at site.
5. Technical Sanctions are issued back dated which leads to vigilance cases.
6. Draft Technical Sanctions are prepared and submitted to competent
engineer authority for acceptance and the necessary Technical and
financial control exercised through draft Technical Sanction till the issue
of regular Technical Sanction.

In the process of execution of work the IFAs at Project and TF level should review
procurement of stores with reference to provisions in Technical Sanction. In case of
major variation between provision in Technical Sanction and actual procurement it
should be brought to the notice of CE/Cdr and corrective measures suggested.

Similar review should be carried out for other items of expenditure reflected in
Technical Sanction.
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SCRUTINY OF ADMINISTRATIVE APPROVAL

WHAT IS ADMINISTRATIVE APPROVAL ?

Administrative Control ensures that services proposed for execution

are of real necessity and are in accordance with Government policy and of scales, if
any laid down Administrative control is exercised through the medium of
Administrative Approval.

Administrative Approval is accorded by the CFA to the execution of

the work at a stated cost based on approximate estimate prepared by the Engineer
Authority. The administrative approval will be conveyed by a letter specifying the
source from which funds will be provided and the agency who will carry out the
work. It will also state whether the work is authorised or special, if authorised the
authority will be quoted and if special the reasons for approval will be stated except
where the GOI is the CFA. A copy of the letter according to the administrative
approval together with a copy of the approximate estimate will be sent to the
CDA(BR), concerned AO(P)/AO(TF) and to engineer authority who will issue such
technical instructions as may be necessary to his subordinate officer.

SCRUTINY OF ADMINISTRATIVE APPROVAL

The scrutiny of Administrative Approval accorded by the CFA lower

than GOI will be conducted by AO(P)/AO(TF) as the Director of Audit, Defence
Services is responsible for audit of Administrative sanctions accorded by GOI.

Following points will be seen during scrutiny of Adm. Approval:-

(1) That the authority according the Adm. Approval is competent to do so and
that necessity for the work has been accepted by CFA.

(2) The source from which funds will be provided is stated.

(3) That sanction together with Approximate Estimate has been communicated to
CDA(BR) directed by the sanctioning authority.
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(4) That the project is not split up with a view to bringing the amount within the
power of the lower sanctioning authority.

(5) The charge is for a bonafide public object.

(6) In case of special works involving introduction of a new practice or change

of scale, sanction of GOI has been obtained.

7) If an approval work is not commenced within five years from the date of
Adm. Approval, fresh approval has been obtained.

INITIATION OF RAE

What is RAE?

If during the execution of the Project, it is anticipated that the scope of

the project would change or if the expenditure exceeds/decreases or appears
likely to exceed/decrease the amount of Administrative Approval beyond the
permissible limit, a report should be made immediately to DGBR explaining the
reasons for the change in scope or for the excess of expenditure. A revised
estimate will be prepared and revised Administrative Approval be obtained.

The revised estimate should show clearly :-

(a) The progress of work on each item of the project.

(b) A comparison of the quantum of work and the rates as

between the original and the revised estimate.

(c)Any additional items proposed to be included in the revised estimate.

(d) The reasons for the excess in expenditure.

Following document should accompany with RAE:-

(a) Index of contents

(b) Statement of case justifying the requirement of revised sanction.

(c) Expenditure statement duly vetted by Accounts Officer.

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(d) RAE Part I and Part II should contain parallel columns in Adm.
Approval and period wise RAE provisions.

(e) Cost comparison with other similar jobs in adjoining Sector/Road.

(f) Details of liabilities.

(g) Details of Assets including salvage stores.

(h) Delay Report.

PAYMENT OF WORKS BILLS

In BRO works on the construction of roads is carried out

departmentally by employing labour regular/Casual. Contracts may be entered into
for construction of bridges or ancillary buildings etc or for supply of stores &
material. Most of the contracts in the BRO pertains to supply of stores,
transportation of personnel and stores.

1. The objections/observations raised during the scrutiny of C.A should be

settled before the admitting final bills.

2. The following documents/certificates should be enclosed with the Final Bill.

(a) Bill forwarding certificate IAFW 2254.
(b) Final contract bill form.
(c) Statement of stores
(d) T&P statement
(e) Water/electricity recovery statement
(f) Copies of work/deviation orders together with copies of star/special
rates.
(g) Abstract/requisitions.
(h) Demolition certificate
(i) Completion certificate
(j) Defect rectification certificate
(k) Return of classified documents
(l) Documents relating to the calculation of escalation if applicable

3. The contractor should have signed the final bill without any reservation.
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4. The work provided in C.A has been completed within the stipulated period if
no compensation for the period of delay has been levied. The compensation
statement, if applicable should be signed by both the parties to the C.A., is attached.

5. Demands outstanding against the contractor are recovered from the bills.
6. Store statement attached with the F/B should be technically checked by the
SAI /ASW/SW.

7. Over issue /Under issue of stores is condoned by the competent authority.

Requisite actions have been taken against the contractor who fails to return the
surplus stores and retains for his own use.

8. The requisite provisions exists in the CA for issue of stores under schedule A,
schedule ‘C’ and ‘D’ and rates recovered thereof tally with the rates provided in the
schedules.

9. All advances paid against the C.A on the RAR’s should be recovered in the
F/B quoting CBI No. and date.

10. The recovery on account of water charges has been enforced in accordance
with the clause incorporated to this effect in the C.A.

11. Certificate in regards to testing of electrical/water fitting etc provided in the

CA

12. The nomenclature of items of work executed as per schedule ‘A’/

DO’s/amendment is checked with the items shown in the abstracts of quantities
attached with the bill.

13. Rates and quantities provided in Sch ‘A’ DOs and amendments are checked
with those in the abstract of quantities attached to the bill.

14. Demolition statement attached to the bills have been correctly prepared and
accepted by competent authority.

15. The cost of dismantled stores utilized by the contractor as provided in the CA
is recovered and credited to the state. Demolition statement duly verified is
attached.
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16. In disputed/delayed cases a further on account of payment to the extent of
agreed portion has been allowed only after scrutiny of F.B.

Audit checks on RARs

It will be scrutinized to see that:-

(i) The claim has been preferred on IAFW-2263

(ii) The bill is accompanied by the following certificates signed by the
Engineer authority/TF Commander/OC Unit.

(a) That no work has been ordered on the contractor without a proper
deviation order duly approved by the officer authorized to do so under existing
orders and without settlement of rates with the contactor.

(b) That all special rates involved in the D.O. have been checked and
approved by the competent authority.

(c) That no government stores or T&P have been issued without prior
settlement of their charges.

(d) That all amendments including those necessitated by issue of stores

and T&P not included in schedules ‘B’ & ‘C’ have been approved by the competent
authority.

(e) That all recoveries in respect of stores and T&P issued to the contractor
under schedule ‘B’ and ‘C’and in respect of water, electricity and other
Misc.charges have been made upto date.

(f) That all unresolved disputes have been referred to proper authorities.

(g) That all transactions with the contractor have been recorded on regular
official forms at the correct time.

(h) all the relevant columns have been filled in by the appropriate
authorities Cage ‘C’ has been signed by the TF/OC Units personally.

(i) The RAR is accompanied by debit statements showing debit against

the contractor for issue of stores, T&P, water, transport including all transactions
upto the date of preparation of the RAR and that it has been technically checked.
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(j) If, in case, the statement showing the details making up the amount of
the work done is not attached, a remark of the Engineer I/C to the effect that the
same has been attached with the office copy of the RAR has been endorsed.

(k) In the case of secured advance, certificate in terms of para 481 RMES,
to the effect that the material are of an imperishable nature and have been
reasonably brought on site, and are adequately store and are protected against any
damage by weather or other causes and are not incorporated in the work on the date
of preparation of the RAR has been furnished. It will be seen that the statement of
stores attached is in the prescribed form.
(l) All previous payment “ on account” have been accounted for:

(m) (a) The payment on account of , in the case of contracts for specified
jobs on DGBR CA Form No.1 has only been made if the value of work done plus
the assessed value of any material delivered is more than Rs.1500/- and the
payment on account is not less than Rs.1000/=

(b) On account of payment in the case of contracts for supply of

stores and material on DGBR CA Form 2 has only been made provided the sum due
on account of supplies delivered and accepted by accepting officer is not less than
Rs.1500/-

(n) The interval between the two RARs (to be reckoned with reference to
the date of submission of the RAR and not the actual date of payment) is not less
than a fortnight.

(o) All the arithmetical calculations are correct.

(p) In cases where recoveries on account of security deposit have been

made, the contractor’s receipt is for the gross amount ( i.e. including the amount of
security deposit deducted ) and not for the amount actually paid.

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