CPWD Master Guide
CPWD Master Guide
CPWD Master Guide
EY
Building a better
working world
Study on working and reorganization of CPWD
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Study on working and reorganization of CP\A/D
Disclaimer
This study on working and reorganization of CPWD report 2Ot7 - 20LB (hereinafter referred to as
"the Report") has been prepared by Ernst & Young LLP (hereinafter referred to as "EY") for
Ministry of Urban Development (hereinafter referred to as "MoUD" or "the Client".
The inferences, analyses and projections made by EY in the Report are based on data reported by
CPWD officials, through secondary research and primary interactions. EY has taken due care to
validate the authenticity and correctness of the information from various sources, however, no
representations or warranty, expressed or implied, is given by EY or any of its respective partners,
officers, employees or agents as to the accuracy or completeness of the information, data or
opinions provided to EY by CPWD, third parties or secondary sources.
The Report has been prepared only for the internal use of the Client. The Report, or any part
thereof, may not be shared with a third party without written consent of Ey.
Nothing contained herein, to the contrary and in no event shall EY be liable for any loss of profit or
revenues and any direct, incidental or conseguential damages incurred by MoUD, CPWD or any
other user of the Report. ln case the Report is to be made available or disclosed to any third party,
this disclaimer along with all the limiting factors must be issued to the concerned party. The fact
that EY assumes no liability whatsoever, if for the reason any party is led to incur any loss for
acting upon this proposal, must be brought to the notice of the concerned party.
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Study on working and reorganization of CPWD
List of Abbreviations
AA Ad m in istrative Approva I
ACR Annual Confidential Report
ADG Additional Director General
ADH Additional Director Horticulture
AE Assista nt Engineer
AEE Assista nt Executive Engineer
BD Business Development
BIM Building lnformation Modelling
BPR Business Process Re - engineering
BRO Border Road Organisation
CA Chief Architect
CE Chief Engineer
CPM Chief Project Manager
CPSU Central Public Sector Undertaking
CPWD Central Public Works Department
CSSA Cash SettleTent Suspense Accounts
D&DM Design and Disaster Mitigation
DDH Deputy Director Horticulture
DE Detailed Estimate
DG Director General
DMC Drain Maintenance Companies
DOH Director of Horticulture
DR Delhi Region
EE Executive Engineer
ERP Enterprise Management System
EPC External Processing Cost
ER Eastern Region
GFR General Financial Rules
GPRA General Pool Residential Accommodation
GREF General Reserve Engineer Force
JE Junior Engineer
KM Knowledge Management
KMS Knowledge Management System
KPls Key Perform ing I nd icators
MIS Management lnformation System
/ar MoU Memorandum of Understanding
MoUD Ministry of Urban Development
MTS MultiTasking Staff
NDR New Delhi Region
NDZ New DelhiZone
NR Northern Region
PE Preliminary Estimate
PFMS Public Finance Management System
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l.lntroduction
1.1 About Central Public Works Department
Central Public Works Department (CPWD), an attached office of the Ministry of Urban Development,
is a principal agency of Government of lndia which was set up 160 years ago with a mandate to create
and maintain Central Government assets, with exception of Defence, Railways and
Telecomm nications. Since inception, CPWD, has played a pivotal role in developing infrastructure
u
in the country. ln addition, CPWD is also responsible for performing an informal, partial and quasi
regulatory role as it
undertakes benchmarking and development of standards for the built
environment and infrastructure through Specifications, Schedule of rates, Guidelines and Advisories.
Administratively, CPWD is subdivided into Regions, Sub-Regions, Zones, Circles, Divisions, Sub-
Division and Sections. lt is headed by a DG who is also the Principal Technical Advisor to Government
of lndia. Regions are headed by Special DGs. Sub-Regions by Additional DGs, Zones by Chief Engineer,
Circles by Superintending Engineers, Divisions by Executive Enqineers, Sub- divisions by Assistant
Engineers and Sections by Junior Engineers.
Some of the prestigious projects of CPWD have been construction of stadia and other infrastructure
requirements for Asian Games 1982 and in the Commonwealth Games 2010. CPWD has also
undertaken proiects internationally - one such project being construction of Afghan Parliament
Building in recent years.
Vision
CPWD carries a vision of "Excellence in Public Works" with an obiective "To create and maintain a
sustainable and inclusive built environment within the available resources while ensuring world class
q ua lity. "
The vision of CPWD is built on three core values:
To create and maintain a sustainable built environment
To promote inclusive growth within the resources available and
To ensure lnternationai best practices and timely delivery
Mission
The mission of, the organisation is to play a lead role in execution, maintenance and standardization
of the buill erivironment in India. CPWD aims to strive to educate its iiients to aspire for green
buildings and develop norms for the same. To support its activities th.rough Sound Planning and
Design, Engineered Construction, Effective N4aintenance, Benchmarking the Standards, Capacity
Building, l\4anpower Planning, and Transparency in N4anagement of Works.
Functions of CPWD
CPWD is the agency of the Central Government with Pan-lndia operations and is responsible for
[ollowing functions:
Study on working and reorganization of CPWD
Planning, construction, maintenance and repairs of works and buildings financed from Civil
Works Budget. The scope of work excludes certain departments and Ministries which have
their own engineering wing, or which have been granted special exemption, such as the
Atomic Energy Department, Central Water Commission, Department of Posts, All lndia Radio,
Department of Space, and Railways. The Department however executes the works of
Ministries of Defense, External Affairs (for works outside lndia), Shipping and Surface
Transport (Roads Wing), among others as and when asked for.
Estate work at places where the Directorate of Estates does not have its offices.
Valuation of properties/assets under lncome Tax Act as and when requested for by lncome
Tax department.
Assessment of rent for hiring of properties and assessment of value of properties for
purchase by various Ministries/ Department of Government of lndia.
Advising Government of lndia on various Technical matters relating to public works
Geographical Presence
CPWD is executes works across the length and breadth of lndia. There are seven Regions, namely
New Delhi Region, Delhi Region, PWD Region, North Region, West Region, East Region and South
Region.
Table 1: Geographical Presence
iv. Examine recommendations made by various committees/bodies in the past regarding working of
CPWD.
Recommend different options for enhancing efficiency and effectiveness of the organization.
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Study on working and reorganization of CPWD
\, 4 Horticulture
5 Accounts
5 Ministerial Staff
A 7 Stenographer
I Drawing Staff
5 StenograPher
,\ 6 Drawing Staff
ln addition:
A 1 CGA Cadre supports CPWD through 40 Accounts Officers and 370 Assistant Accounts
Of f icers
2 Also, CpWD is supported by Minlsterial Staff of Central Secretariat Service Cadre (Strength -
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Study on working and reorganization of CPWD
Current structure:
CPWD is headed by Director General who is also the Princlpal Technical Advisor to the
covernment of lndia. The regions and sub-regions are headed by Special DGs and Additional
DGs respectively, while the zones in all state capitals (except a few) are headed by Chief
Eng ineers.
Each Region is headed by Addl. Director ceneral/Engineer-in-Chief apart from dedicated unit
of Additional Director General (Border), which is looking after border fencing, road and
lighting works along Indo-Pak and lndo-Bangladesh borders.
Regions are an independent unit in the matters of execution of works and Chief Engineer
Civil, Electrical and Chief Architect of the Region report to the Regional head.
ADG (Arch) is assisting the Director ceneral (Works) at the headquarters in Architectural
Planning and designing of proiects.
ADG (Training) is in charge of Training activity.
ADG(S&P) and ADG (TD), discharge Headquarters functions relating to administrative,
personnel matters, technical policies etc.
Director General
CPWD
E
@@@ @ @@ Figure 1 : Organization set up at Headquaier
ADG(Border)-Borderworksonlndo-Pak,lndo.china,Indo.Bangladeshandlndo-Myanmar
border
CE (D&DM) - Design and Dlsaster Mitigation
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SDG(HO)
Dethi Region
Soecial DG (DR) is responsible for the works under Delhi Region. There are Additional
Director
in Delhi reqion-
61""-fi-ruix,'oR and Arch. There are 12 Chief Engineers and two Chiel.Architects
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SDG{DR}
DDH(HO)
ADG (NDR)
D€lhi
@
CE(NDZ}I
CE(NDZ).V
cE(NDZII
CE(NDZ>VI
CE(NDZ}III
CE(NDZ).VII
CE(NDZ) IV
cE(NDZIV
@E
CE(PEWZ) cE (rrDPz) CE (PNBPZ)
cE(PCWZ)
CE CE
CE CE
Jammu
Lucknow Dehradun ', Chandigarh
CA CA
CE
Lucknow Chandigarh
Jaipur
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Eastern Region
Special DG(ER) is responsible for the works under Eastern Region. Jurisdiction
of the region covers
Sikkim, Orissa and the North Eastern States. There are
the states of West Bengal, Bihar, Jharkhand,
patna respectively, seven Chief Engineers and two Chief
three ADGs at Kolkatj, and Guwahati
Architects.
SDG (ER)
Kotkata
ADG (ER).III
ADG (ER).I ADG (ER) -II
Guwahati
lTltml lEl
Kolkata Patna
CE
CE CE
Shillong
Kolkata-l Kolkata-ll
CA
CA
CE Ranchi Guwahati
Kolkata
SDG (wR)
Mumbai
DDG(HO)
CE CE
CE CE
Ehopal Nagpur
(Mumbaill (Mumbai)-lt
CE
CA CE
Raipur
trlumbai Gandhinagar
- Westem Region
Figure 6: Organization set uP
;!
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Southern Region
of the region covers
special DG (sR) is responsible for works under southern Region. Jurisdiction
Kerala and Union Territory of Pondicherry'
the states of Tamil Nadu, Andhra Pradesh, Karnataka.
five chief Engineers and one chief
Andaman Nicobar and ralsnaoweep tsLnds. There are two ADG,
Architect.
SDG(SR)
Chennai
DDqHQ)
. ADG (SR) - ll
ADG (SR) I
Bangalore
Chenn.i
CE CE CE VijaYawada
Chennai Madur.i
CE Trivandrum
CE
CA
Hyderabad
Ch.nn!i
CE
Bangalore
up - Sauthem Reqion
Figure 7: Organization set
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lnternal Challenges
CPWD follows a rigid hierarchical structure which requires approval for every activity till the apex
levels, contributing to delays and cost overTUns. Employees are bound by the works manuals, which
adds to the rigidity in work and which need to be rewritten.
The operational levels are not empowered for takinq on-the-spot operational decisions required for
smooth execution of the project and have to follow either the rigid set of rules and procedures or
wait for approvals from the hiqher-ups.
CPWD follows traditional pyramid structure resulting in few opportunities for people at junior levels
for an upward movement in the hierarchy. This results in low motivation of officers and staff as the
number of years they have to serve at every designation is very long.
The process of deputation to other department is very restrictive which limits exposure and new
lea rn ings
The fear of vigilance often prevents employees from innovaiing and taking decisions, where
required
Lack of training has emerged as another major concern within CPWD. Lack of adequate exposure
and training has resulted in stagnation of competence of many of the CPWD employees. This is
preventing innovation in the construction technology and systems & in effectively dealing with cost
and time oveT-TUns in new projects.
There is no concerted PR due to which positive stories of CPWD do not get highlighted enough on
which the existing employees can feel proud of and through which the external world is adequately
informed about CPWD success stories.
External Challenges
2.2 Processes
2.2.1 lntroduction
As previously discussed in section 1 above, the mandate of CPWD primarity includes the following:
a) Construction management: Public works ranging from roads, bridges, hospitals, workshops,
border fencing to public housing and government buildings.
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by specialised units at cPWD like the central Design organization (cDo), contract, Manual &
Specifications and Ouality Assurance (CSO), Consultancy Services Organization (CSO) and the
E Governance unit. These are:
i. preparation of specifications, Schedule of Rates and work related policies for design,
materia ls, disaster mitigation etc.
The detailed assessment of the key functions i.e. construction and maintenance management is
given below.
Execution statistics
Annual project execution value: For the year 2016-17, CPWD undertook work worth 13,304 crores.
There has been a steady increase in the value of work being handled annually by CPWD over the last
decade, as is obvious from the chart below. lt has increased from 4516 crores in 2005-2006 to
13304 in 2016-77 .
13304
14000
11727
12000
9952 9957 10274
10000
8000
5789 s98O 5182
4516 6000
4000
2000
0
^$
^ob_ "r,s" ..!o ^+ "r,o"
^oq^rs'
^oc,^.to" ,r9 ,{9 ar,o' -\6 -r.a'
.sL xi ar,o' -+
ato" .ro" ^-r,o' - -)a' ":to' , ^
$t ,s'
""& "9"" "ad "r"." "..' "o'" "oiu "av ""{, "&"
Project Execution value (in crores)
Distribution of construction vs. maintenance projects: Of the total annual pro.iect execution value,
maintenance work accounts for only 20% or 45% equivalent workload (multiplied by a factor of 2.25
as maintenance activity requires more time and effort). The same is illustrated in the chart below.
This is in line with the trends over the years. ln 1990-91, the equivalent maintenance workload was
the same i.e. 450k ot CPWD'S total workload. Slmilarly, it was 48% of the CPWD'S total workload in
2003-2004.
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8864
81.7yo
8089
5909 6229 6654 85.6%
6544
76.6.L 19.7.A 82.0%
87.6%
@'n.t*
2011-12 2012-13
23.1% E..* @,,*
201+15
@',...*
201$16 201G^17
18.3%
ongoing proiects: As per the web-based Project Management System (PMS) data, the total number
of ongoing projects in CPWD are 3615 out of which 2021 (55%) are construction projects and the
rest are maintenance works. This is close to a 50-50 share whereas in terms of project value,
maintenance is only 200/o of the total value. This points to the skewed workload per person ratio
between construction and maintenance projects.
As per the Nitin GadkariReport (of 2003), out of a totalworkforce of 42,919 employees, 37,500 are
work charged staff from which 24,OOO (i.e. -640/o) are involved in maintenance activity only.
(Currently, there are 9420 work charge staff out of the total CPWD strength ot 27,692 employees.)
---l
\593,44%
2027,56%
Construction Maintenance
Figure 10: No. of Ongoing projects
High quantum of low'value projects: CPWD as a nodal agency.for "Public Works" is liable to get
projects of low value to strategic projects involving huge funds. While there is no formal
categorization, projects are largely classified in the following value categories (a) under 1 crores, (b)
1-5 crores, (c) 5-50 crores, (d) >50 Crores. lt is observed that the quantum of low value projects
which are less than 1 crore (project cost) is the highest in the Department with the lowest value share.
For example, projects less than 5 crores of project cost accountslor 47% of the work but contributes
only 1% of the Department's work value (workload).
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356,25%
568,41%
1 0358. 61 %
391,28%
Figure 11: No of ongoing construction projects Figure 12: Conesponding value of projects
Major clienfs: Work is awarded to CPWD from all ministries, departments and associated offices
except for those which have their own engineering wings or those who have been granted special
exemptions such as Atomic Energy Department, Central Water Commission, Department of Posts,
All lndia Radio, Department of Space, and Railway. CPWD's major clients according to the total
project value are:
and Research
a. Original works-
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ii. all types of additions, alterations and/or special repairs to newly acquired assets,
abandoned or damaged assets that are required to make them workable
(construction piecemeal)
b. Repairs and maintenance work - These cover operations undertaken to maintain the assets
in a proper condition and include maintenance and operation of all services which can be
f urther classif ied as
Apart from the Works Manual, a separate Maintenance Manual of CPWD is referred to, for
execution of maintenance work. The Maintenance Manual of CPWD further classifies the
maintenance Projects as follows:
Table 2: Classification of wotks as per Maintenance Manual
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(ThesefundsaremadeavailableasperparliamentarydecisionsregardingPublicWorks,
subjecttothefinancialyear.Theyarefurtherclassified,fortheeaseofmaintainingdifferent
heads, as
i.Budgetaryworks-WhenprojectComesfromMoUDitself,theseareputunder
BudgetarY works
ii.Authorizedworks-WhenitcomesthroughanyotherMinistrywithaletterof
authorizationisissuedtoCPWD,authorisingittodebitfundsfromtheauthorized
who then become clients for CPWD)
ministries
b.Depositworks:TheseworksareundertakenatthediscretionoftheDepartment.outlayfor
theseworksiseitherprovidedfromGovernmentGrantstoautonomoUsorsemi-autonomous
bodiesorinstitutionsthroughtheirAdministrativeMinistries,orisfinancedfromnon.
in part from:
Government sources wholly or
i.Fundsofapublicnature,butnotincluded.inthefinancialestimatesandaccountsof
- the Union of lndia'
public'
ii. Contributions f rom the
Depositworksdon,tlapseirrespectiveofthepassingofthefinancialyear.Whenevera
Depositworkistobeundertaken,thedepositsnoutoberealisedbeforeanyliabilityis
incurred on the work'
AlthoughnotformallyincludedasaclassificationinWorksManual,CashSettlementSuspense
Accounts(CSSA)areusedtoexecutehighsecurityorurgentworks.lnsuchCaSeS,CPWDexecutes
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the work and charges the expenditure in a suspense account. The Cabinet then reimburses the
expenditure (either through cheque or DD) and the suspense account is cleared.
CPWD is entrusted with largely Budgetary Works f rom MoUD and other GOI ministries which accounts
for almost 570/o of the work. Moreover, for both construction and maintenance projects coming
through budgetary, deposit or CSSA f unds, the number of projects are directly proportional to the
value of work being handled under each of the categories.
2-7,2% 22L.3, t%
Figure 13: No of projects (Construction) Figure 14: Value of construction proiects (in crores)
24.41,4%
Figure 15 No of proiects (Maintenance) Figure 16: Value of maintenance proiects (in crores)
a. Emergency works - those works which arise all of a sudden and require immediate action
without any delay. This may come up in situations of natural disasters, fire and arson, war
and sudden collapse of structure, terrorist attack, mass strike affecting civic services,
ceremonial functions at time of death of presidents or prime ministers, restoration of
buildings of natural importance and services in case of accidents, maintaining law and order
in abnormal situation, any other work declared emergent by chief engineer
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b. Urqent works - The urgent works need not to be treated as par with the works to be taken
up under emergency situations. Urgent works may be defined as those kinds of works which
requires fast start/completion within compressed schedule and are to be taken up on top
most priority at the instructions of Competent Authority
ii. Execution in Project mode: For proiect above 200 crores, pro.iect specific teams headed by
either a Chief Project Manager (CPM - CE level officer) or a Proiect Manager (PM - SE level
officer) are formed for planning and execution. The CPM or PM is allotted a team of EE,
AElAEE and other supporting staff according io requirement.
iii. EPc mode: Additionally, as per the latest guidance by Gol, CPWD has been instructed to
carry out all proiects above the value of 100 croTes in EPC (Turnkey) mode. This move is
anticipated to reduce slowdowns and delays in proiects.
i.l. some part of the work is done in-
tn both (i) and (ii), the projects are executed in a mixed mannel.
house and some is outsourced. As a general trend in the past, the design and estimation elements
were always in-house and execution was largely on item rate contracts. Of late, especially for larger
proiects (in project mode), the design and estimation are also being outsourced but there is no set
pattern/trend oT Teasons for the same. This aspect of execution is further discussed in details in
Section 1.1.3 Typical outsourcing pattern.
A. lnception stage: This step includes requisition of work to its approval and sanctioning. while
the detailed steps are given below, the key milestones under this include:
2. Preparation of Site Survey Plan and Geo-technical surveys and feasibility reports
3. Preliminary Drawings and Specifications
4. Approval ot drawings bY client
5. PreliminarYEstimate
6. Administrative Approval & Expendlture Sanction (AA&ES)
B. Pre-construction and planning: The key milestones under this include:
7. Preparation of DPR (done for specific crucial proiects)
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C. Construction:
\ 13. Land Possession: Handing over site ready for construction
\ 14. Commencing Construction and Execution
D. Closure:
17. post Construction Certification of completion of work along with submission of Final
Biil
.,
i
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)))))))) )) )))) ) ))))))) )))) ))) ))) ))
INCEPTION STAGE
1 Requisition received from Client (not the Client (owner),Architecture wing (Sen. Arch, ln many cases, the architecture wing is not
end user but the Competent Authority who Arch)/SE/CEIADG IDG (as per the financial engaged at all. lt may be executed by the
is providing the fund for work) manually in power delegation of the Works Manual) appointed EE.
the form of a letter. ln some of the projects, the client gets their
Requisition forwarded to Architecture wing own consultant and requests CPWD to only
post which they forward a proforma to the validate the consultants work. There is no
client which has to be vetted by the client's established SOP for the same.
Competent Authority. This formally starts The practice of sending proforma to the client
the process ofdetermining client is not enf orced. Usually designing work
requirements and scoPe of work. commences before or without taking up these
steps.
2 Existing infrastructure, site survey plan, Architecture wing has to coordinate with Client is not charged for step 2 and 3. lt was
geo-technical surveys and feasibility reports field units headed by EE. suggested that DPRs be also made f or
(1f required) to be PrePared af ter EE may do this in house with his team of
lnception stage for which the Client may be
Architecture unit sends proforma to EE to charged (Enabling Estimate) separately but has
AEE/AE and JEs or can outsource work to
carry out site survey/study been opposed by many. Under the existing set
consultants/surveyors through open tender.
up, DPRs are prepared only for large scale
For the pre-construction planning etc.,
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( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
( ( ( ( ( ( ( ( (
Client, PD prepared by Architectural, Civil Non-DSR specifications can also be given for
3 On the basis of the above reports, concepts
and Electrical Wing (Senior Architect (SA))/ projects, if the client approves but are mostly
and preliminary drawings and
speciflcations (PD, PS) are prepared. These SE (planning) in case of roads and bridges not considered since pre-made list of
are also based on discussions with the specifications are usually followed for most
Consultant may be involved (for either or
projects. At the same time DSR is not updated
client to assess and appreciate their both design and structural planning) and
requirements. according to the changing product and
their drawings are vetted by Architecture
services availability
Nofe: Wing if requested bY the Client
For drawings etc., BIM is not used.
1) fhls ls not done f or Border works. Architectural drawings made on AutoCAD.
Border works are divided into three Structural drawings are largely outsourced
parts- lndo-China, lndo-Pak and lndo-
and not made in-house.
Bangladesh. Mostly border fencing and
;' border oufposfs (BOPs)- it is directty
executed with pre fixed designs and
speci ficafions
4 Approval of drawings by client Client ln practice, generally sign off is not taken by
the client causing challenges at a later stage
due to incorrect expectation setting
5 Preliminary Estimate (PE) is prepared by Prepared by the Planning unit (headed by Rates are usually quoted as per present day
the EE based on final drawings, Plinth Area CE) rates without considering inflation of rates. By
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Rates (PAR) and taking into consideration the time detailed estimates are prepared and
levying of departmental charges (if the actual work starts it leads to deviations
applicable). The PE needs to be beyond the set limit of 10%.
countersigned for approval by higher
officials in the Department and sent in
tr:iplicate to the client.
Administrative Approval (AA): The Client Client; to be accorded by Accounts wing and Time taken by client for sanctioning varies
shall return one copy of the PE, dulY EEI sEl cEl ADG/DG/works Board according from months to even years affecting the
gountersigned as a token of acceptance, to the f inancial power delegated as per the project timeline
while communicating the Administrative Works Manual Often, funds required are not deposited on
Approval as a token of acceptance. One Nofe: Excess up fo 10% of the amount of the the whole by client leading to problems of
copy of the Administrative Approval shall Administrative Approval may be authorised fund distribution and hence delay in starting
be endorsed to the concerned Accounts
by Of ficers of the CPWD, uP to their CPWD does not levy any departmental
Off ice.
respecfive powers of technical sanction. ln charges for the work it executes (apart from
Nofe: No concurrence is required for minor case if exceeds this limit, a revised AA must Deposit works), be it construction or
repairs and maintenance works. be obtained f rom the authority competent to maintenance and all its expenditure is met by
approve fhe cosf so enhanced. budgetary appropriation or re-appropriation.
7 Preparation of DPR lf required for any crucial project and need It needs skilled work force but divisions lacks
raised by EElSE/cElcPM/PM or client, the same and hence leads invariably to
consultants may be involved by CE/CA (full outsourcing
powers delegated by the Works Manual)
alternatively it could be done by CPWD
itself .
B Detailed Drawings and Estimate (DE) CE(Civil), SE (Planning), SA (Architecture), This is generally outsourced to consultants
CE (Electrical) or Consultants for specialized leading to underutilization of existing staff.
projects For e.g. since 2011, onwards only type
quarters has been done in house and major
Note: ADG( Border)in case of Border works
projects have been out-sourced.
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9 Approval of plans by the Local Bodies. SA(Architectu re) Even in cases where the work is outsourced,
the responsibility of taking approval rests on
Nofe; /n case oF dependence on local
CPWD architecture or sometimes even the
authorities for external seryices, the EE shall
engineering wing. Thus, time and effort is
f urnish fhe seryices plans to Senlor
wasted on unnecessary coordination.
Architect. fhe Senior Architect willsubmit
through the concerned EE (Civil) the
complete plans to such localbodies f or their
approval prior to commencement of the
work.
10 Technical Sanction: A "technical sanction" A E/AE E/AD H / EE I DOH ISElDO H/CE I CPM I PM Time taken for intra-departmental circulation
amounts to a guarantee that the proposals has the power to accord the TS based on the of documents is excessive delaying the overall
are technically sound, and that the financial powers delegated to them in the process for TS
estimates are accurately prepared and are Works Manual
Does not come to Architecture wing in
based on adequate data.
practice
Nofe:
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(((((( (((( (((( ((((((((((((( (((((((
11 Preparation of Tender Documents/ NIT AElAEE/A D H/EElDO H/S EI DOH I CEI CPMlPM
with DE info: This could be in the following has the power to accord the NIT Documents
packages: a) Single package (composite) based on the financial powers delegated to
covering entire sanction including drawings them in Works Manual
etc., b) Diff erent packages under single
NOTE: For'Different packages', approval of
sanction
ADG is necessary.
L2 Tendering and Awarding of Tender Depending on the type of tender floated, Competitiveness of tenders is an issue
AEE/AE/ADH, EE/DDH, SE/DOH, CE,ADG,
ln practice, local approvals are taken post
Spl. DG, CW Board has the power to accept
tendering and award of tender, hampering the
the bid based on the financial powers
execution timeline.
delegated to each in the Works Manual
CONSTRUCTION
13 Possession of land: Handing over site ready Architecture unit to EE and Contractor Since in practice, work is awarded before all
30
( ( ( ((((( ( ( (( ( ( t ( ( ( ( ( (( ( ( ( ( ( ( ( ('(( ( (
T4 Commencing.Construction and Execution Appointed Empanelled Contractor Coordination between contractors and
Department with respect to changes required,
'.. material or other resource flow, is not
adequate due to absence of full-time site
architects, construction managers, design
coordinators or site engineers
15 lnterim lnspections with respect to EE/SE - draw out a programme of inspection Schedule adherence, quality control and
on quarterly basis technical audit is often compromised on due
1) Work in Progress (WlP), Extension
to lack of intra departmental coordination
of Time, Rescheduling mile stones Senior Architect/Architect SEs / EEs (Civil
and Electrica|)/AE/JE - routine inspection of Absence of representative from architecture
2) payment auditing
leads to compromised design adherence
WIP to ensure execution is according to the
31
( ( ( < ( ( ( ( ( ( ( ( ( ( 1( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
3) Quality Control agreed design, drawing and specifications. Client shows no responsibility towards quality
control, ownership is only for expenditure and
4) Technical and Design Adherence AE(Quality Control)/CSQ team/Third Party
time deviations which leads to speculations
Assessor (engaged by EE and usually are
Both in-house as well as third party during closure in context to the quality of the
teams f rom local engineer collages) - quality
inspection through signing of agreement prod uct
control
The minimum number of inspections for
Separate auditing happens from time to
each work is 1 for every 2 bills for works at
time
headquarters and 1 for each 3 bills for
works outside the headquarters. AE/AEE/ADH/EElDDH/SE/DOH have been
delegated with powers to grant extension of
An lnspection register is maintained at
time and reschedule mile stones and levy
every site of work, duly issued by the EE
compensations based on the financial
and docketed from the division office. The
powers delegated to them in the work
standard porforma'for inspection register
Manual
is prescribed in the CPWD Works Manual.
76 Stage wise bill clearance - interim AEE (all bills)/EE (at least 1O% of bills in HQ Manual record keeping leads to compromised
payments made on the basis of the records or t/3'd bills in regions) - certifies the work information and results in considerable
"Measurement Books" which are the basis completed and the variances if any before deviations
of all account keeping passing the bill for payment to the Divisional
Off icer
CLO SURE
t7 Post Construction Certification of E E/S E/CE Repetitive inspection of final bills leads to
completion of work along with submission delays in clearances
of Final Bill No team (architects, civil engineers and
horticulturists) to inspect and certify
completed work
32
(( (( (((( (( (( ( ( ( ( ( ( (( ( (( ( ( ( ( ( ( (( ( ( (
1B Physical Hand Over to Client EElSE/CE Change in client's/client nodal person's will to
take the asset leads to unprecedented delays
20 Security deposit release after a year (2.5- Contractor recovers the moneY
5%) in order to correct deviations
Hence, the process flow as per the Manual vis-i-vis the process followed in practice is as illustrated below:
33
( {((< ((( (( ((((( (( (((<<(((( ((( ((( ((
Study on.working and reorganization of CPWD
Filled performa
recelved and
torwarded
34
( ( ( ( ( ( ( ( ( ( ( ( ( (
( ( ( ( ( ( (( ( ( ( ( ( ( ( ( ( ( ( (
I I I ritt".t ."rforma I
I
"''['tT:"T''
ll :::;'"..".::" I
r--------1il;;_l
I received uy I
I ,:rient I
fr-.------il
I ry.o-out.nt
I authority
I
I
Description of the step includinq format (online/offline) and tentative time taken A I stakeh ol der s inv olv ed
I Description of challenqes faced
alonq with step
owner/approver
1a Annual maintenance - Preparation of maintenance Budget: At the beginning of the year, JElAE
the concerned JE/AE is expected to conduct a survey of buildings under his charge to Competent Authority
identify the items of day to day repairs, annual repairs, and special repairs, which are
required in their division /sub-division. The annual maintenance budgets are prepared at
each division level, and then compiled at circle, zonaland regional level. The budget,
which is approved by Competent Authority at each level, is then compiled and submitted
as maintenance budget for the entire CPWD for approval to MOUD/ Ministry of Finance
along with budget for construction activity.
Jb
# Steps Team lnvolved lssues
number. mobilizing
d) Site lnspection and Classification of complaints: The service centre reports and site
visits by JE or AE leads to further segregation of the requests in the following
categories:
. No delay: To be attended earliest in any case within 24 hours. (Day to day
repa irs)
r Minor: To be bttended earliest in any case within 48 hours. (Day to day repairs)
. Major (Annual/Special Repair): Attended to through contracts for specific items.
Separate registers for major complaints are maintained for monitoring the
disposal of such complaints. These are attended on first cum f irst serve basis and
within the constraints of the budget available.
2 Carrying out maintenance JE, AE Due to limited funds
and low grade
a. Attending to day to day complaints by the work-charged staff: These services are
provided on receipt of complaint from the users at respective service centres and specif ications allotted
37
(( ( (( ((
( (((( (( (( (( (( ((( ((
tn case comPlainant
contracts after due scrutiny and consideration are carried out on payment of
insists on a certain
certain percentage of the estimated cost of providing the facility. To be treated as
service tYPe which is
Original work or project.
beyond the Purview of
the JE/AEi AEE again a
long process of
approval seeking has
to be initiated resulting
in delaY of service
provision
38
Study on workihg and reoiganization of CPWD
# Steps Months
1 2 3 4 5 6 7 8 9 L 1 1 1 1 1 1 1 1 1 2 2
INCEPTION STAGE 0 1 2 3 4 5 6 7 I 9 0 1
1 Requisition received
from Client in the form
of a letter (manual).
3 Preliminary Drawings
and Specifications (PD,
PS)
4 Approval of drawings
by client
5 Preliminary Estimate
(PE)
6 AA&ES Variable
PRE-CONSTRUCTION AND
PLANNING
7 Preparation of DPR
1 Technical Sanction
0
1 Preparation of Tender
1 Documents/ NIT with
DE info
1 Tenderlng and
39
reorganization of CPWD
Study on working and
nwar-Oinq of Tender
of 2021 ongoing
projects do not adhere to these time frames. Out
However, a large number
of The break-uP of
projects are delayed as per the PMS data.
1890
construction projects' currently
is shown as under:
delayed projects by cost
7
r t
5
4
2
3 2
2 1
n
PC2. studytheprefeasibility and PC3' a.nalysetheproiectDPRin
PC1. identifY Project objectives and ;;il;;"'ttt utttlt and assist in preparing a work
feasibilitv studv and
constralnts plan
execution
viability of project
Out of TheorY
proiects
Figure 19: Delayed vs' Ongoing Construction
the reasons of delays occurring during the
A sample of 5o projects were studied to understand
projectlifecycle.Theprojectswereanalysedunderthefollowingheads(basismentionedreasonsfor
delay):
e. Delays in approvals: Delays due to decision making such as delayed decision of floorinq
pattern/shades by the architect consultant; approvals of drawinqs. DelaYs could also be due
to no response from Iocal bodies or other authorities'
As indicated in the chart below, most project delays occur due to client issues, these being delays
due to lack of responsiveness, continuous scope change and delay in estimate
finalization/sanctioning. Another major reason of delay in projects is inadequate f und flow.
40
I
Study on working and reorganization of CpWD
Case study: Delay from client's side and inadequate fund flow
Construction of 9 CGHS dispensaries at different locations in Delhi was entrusted to CpWD between
2ol3-74 and 2oL4 - 15. Construction had started for many of these dispensaries but of the total
sanctioned amount of Rs 6508.8 lakhs, only Rs 1004.5 lakhs had been released by the client. As a
result, construction was not completed on these sites. This lead to a stage where CPWD has to notify
the client that in case of no further funding, the project would be foreclosed.
41
Study on working and reorganization of CPIA/D
crores) crores)
cD-ilt 6s1.36 204.73 Work
(Patparganj) stopped
DCC-5 22-01.-1.4 28-07-L6 128.O 384.0 80% Work
(Sec-9,Dwarka) 738.81 256.O stopped
DCC-5 22-01,-1,4 28-07-L6 87.0 341.0 75% Work
(Sec-23,Dwarka) 738.81 254.O stopped
Project lifecycles are affected not just by the delays caused by the clients but in many cases due to
the lack of will to further pursue projects with CPWD. On an average the conversion rate of projects
i.e. from the PE stage to the sanctioning stage is approximately 30% which means that only 1 out of
3 projects being requisitioned to CPWD is finally awarded for execution as explained below:
1600
't400
1200
1000
800
600
400
r of Sanctioned No of PE prepared
No-31o/"
\, b. About 33% of recorded projects were more than a year but less than two years old, for
which the PE were yet to be sent.
\,
c. Nearly L20k of the recorded projects were older than 3 years.
v This means that for about 45% projects, the preliminary estimates were not sent even after one year
\, from the date of requisition.
Similarly, MDI's analysis in an earlier report on CPWD restructuring revealed that average time taken
\-. for preparation of preliminary design and preliminary estimates is 72 weeks (about 17 months) and
42
Study on working and reorganization of CpWD
delays in various project related activities which affect the overall operational eff iciency of CpWD.
Given below is a table showcasing the involvement of the separate wings across the different steps
of the project lifecycle and whether the activity is largely outsourced or performed in - house while
'/'refers to general involvement,'"'refers to a step that is largely outsourced.
Table 7: Outsourcing of project activities
7 Preparation of DPR ,/
8 Detailed Drawings and Estimate ,/ ,/
(DE) based on DPR
9 Approval of plans by the Local
,/
Bodies (in theory)
10 Technical Sanction ,/
11 Preparation of Tender Documents/ ,/
NIT with DE info
72 Tendering and Awarding of Tender ,/
43
/A Study on working and reorganization of CPWD
18 lntermittent payment to ,/
contractor on bill submission
79 Post Construction Certification of ,/
completion of work along with
submission of Final Bill
20 Physical Hand Over to Client ,/
27 Financial Submission ,/
22 Security deposit release ,/
A
lt becomes obvious f rom the above table that throughout the lif ecycle, the engineering wing is largely
a involved with very minimal involvement of the architecture wing. Additionally out of the above
activities, the following are usually outsourced:
A) Knowledgemanagement
--
B) vendor management
44
Study on working and reorganization of CPVVD
E) Expenditure Ma nagement
G) CPWD Sewa
The current efforts and approach of the Department in context to these activities are as follows:
B) Vendor management: currently, contract and N4aintenance cell under cDo is responsible
for
for
reqistration and revalidation of contractors. cPWD has a unified registration system
proiects. This
contractors of various seTvices who could be considered for executing various
Systemofcontractorregistrationisaone-timeprocesswithminimUmreviewsorfolloWUpbeing
doneonthelist.l\4oreover,thecategorizationofcontractorsisdoneonthebasisofValUeof
projectshandledandrevieWofofficersinsteadofqUantUmofwork.competenciesorexpertise.
C)clientmanagement:Clientmanagementallowsforeaseofdoingbusiness'assuring
transparency and accountability of work as well as tracking progress of work and flow
of funds'
starts ai the
This is key to ensuring efficient client management programmes. client interaction
sanctioning
requisition of project stage and continues over the preliminary design and estimate
stage, which is mostly carried out informally. currently, there is no
platform or organization to
ensure streamlined client management.
D)Legalcompliance:EnsUringlegalcomplianceateveryStageofworkisofUtmostimportancefor
platforms
any agency involved in public works. Thus, vendor, client and contract management
shouldatsocoverthisaspectw.r.t.legalcomplianceinordertoreduceconflictleadingto.
in the
disputes, vigilance cases oT arbitration later' currently' Iegal compliance is ensured
f ollowing waYs:
a) contract and Maintendnce cell iss-'ues guidelines in context to contracts and upgiades the r"'
45
Study on working and ieorganization of CPWD
Works Manual of CPWD. The GCC is supposed to be reviewed from time to time and the
Manual is reviewed once in two years.
b) The CDO has a Techno-Legal Cell which takes care of arbitration and court cases.
c) Most of the project related legal obligations are taken care of by the EE.
E) Expenditure management: Tracking and fund mobilization over a vast network of executing
parties requires a single point of interaction which is ensured in Expenditure Management.
Nirman Lekha is a software for accounting in CPWD divisions, the primary units responsible for
keeping daily accounts. While CPWD does have an lT enabled system of following up on
expenditures or fund flow, the platform is outdated in terms of technology, is not linked to the
PMS and lastly, is not used by the project team on a comprehensive basis. ln practice, most of
the records are still being held in manually fed account books.
F) Delivery management and monitoring: Efficient project delivery is ensured primarily by creating
a balance between schedules and resources, thus it is important that intradepartmental
coordination, liasoning functions and quality assurance activities are followed upon and
regularly tracked. This helps in building accountability of the organisation and on a larger picture
helps in achieving legal compliance. An online project status updating system, the Project
Monitoring System (PMS) has been put in place which records the projects at different stages in
terms of scale and time they have started. This is a portal which covers major projects of CPWD
and is still being upgraded in order to serve not just as a record keeping platform but also as a
means of project processing. However, the portal is outdated in terms of technology and the
data fed into the system is not updated regularly. Moreover, this is not linked other lT platforms
like PIMS, expenditure management, KMS etc.
G) Quality Assurance Cell: This also comes under CDO and CSQ unit of CPWD and is responsible
for contract related matters and quality assurance functions. The CSQ works on Contract &
Manual, Technical Application Development and Technology Application & Standards Unit.
H) CPWD Sewa: CPWD Sewa, a web based application for lodging, monitoring and managing
maintenance complaints, was introduced in the year 2010 to overcome the drawbacks of
traditional methods of handling complaints. The system caters to both residential and non-
residential buildings.
46
t
I Study on working and ri:orgahization of CpVt/D
I i. De/ays due to client, contractor issues and site clearanceissues.. The project has suffered
an overall delay of 2 years due to the following reasons:
I a) From requisition to the sanctioning stage, it took 4.5 years. PD and pE were submitted only
il after 3.5 years due to complex nature of project. Moreover, sanction was delayed due to non-
t
responsive client.
b) Contractors had to be re-appointed, due to. competency issues. The entire process from
il c)
appointment to re-appointment took2 years.
The site boundaries had to be revised while work was in progress to realign the building within
D prescribed setback limits.
o Scope definition and design finalization took around 1.5 years.
t iii.
unforeseeable nature of work.
Challenges in enforcement of Manual provisions: Even though the Manual mandates the
L client to provide an encumbrance free site, the same is a challenge in practice. The client
tends to rely on CPWD to clear the site for construction.
o iv. Re/iance on outsourcinq for design/planning function: All planning related functions were
t v.
taken care by consultants instead of in-house resources.
o Lean proiect team: The project team involved is lean and compact (with a total of only 17
resources)
a b) PNB Headguarter, Sector 10, Dwarka:
o PNB had approached CPWD with a proposal to develop a head guarter buildlng for the bank with state
of art facilities. The project is being executed in project mode under the deposit head costing 405.01
e crores. The project is close to completion as 98% of the work is done, with just interior installations
t left to be completed. However, this project is also delayed by close to 3 years. While the details of
the project are attached in the annexure below, the key learnings from the project are:
D i. Delayed approvals: Local body approvals delayed the project by 2.5 years even when work
D had commenced in consensus with client.
il ii.Shared accountabitity between CPWD and client /eads to efficient execution: Execution
t becomes easier when clients are mandatorily made given shared responsibility for decision
'making. ln this case, the client was made accountable for-all decisions taken for execution
- using an MOU arrangement. This ensured the client's engagement through the consultants
il and contractors selection process, assistance in getting approvals and providing funds in
t time. The MoU also made CPWD legally obliged to provide justifications for estimate
escalation, in order to maintain transparency in work.
o iii. Re/iance on outsourcing for design/planning function: All design and planning related
I '
functions were taken care by consultants instead of in-house resources. Consultants were
-hired
ll at the time of requisition itself and drawings ahd estimates were preliminarily prepared
a 47
e
B
Study on working and reorganization of CPWD
within a year.
iv. Efficient packaginq can lead to streamlined execution.' The basement was treated as a
separate part of the pro.iect and was designed and executed separately on a fast track basis.
However, the work was started without local body approvals and had to be temporarily
stopped.
v. Lean project team.'The project team involved is lean with just 15 resources in all.
vi. Project withdrawal without any accountability on part of client: lrrespective of the scale of
the proiect, it can be withdrawn at any stage. This indicates a lack in latent marketing skills
in terms of assuring the client of quality output as well as persuading the client to continue
with the engagement with the Depariment.
vii. Limited CPWD mandate: lt reflects the limited mandate of the Department since it cannot
venture into competitive works such as real estate development, private commercial
complexes etc.
viii. No erforcem ent of Manual provisions: Consultants were appointed at the requisition stage
for all consultancy services, even though no Enabling Estimate was charged.
ix. Delayed approyals.' Almost 7 years were spent in attaining several approvals and clearances
thereby delaying the entire proiect life cycle.
x. No provisions to handle changinq client expectations: The client revised the scope of work
almost 5 times in 7 years and then re-submitted the sanction after another 2 years.
xi. Withdrawal due to no fault of CPWD causinq negative public image: Even after CPWD re-
worked the project as per the expectations of the client, the pro.iect was terminated at the
time of iendering. By this time, CPWD has already invested not just financial resources by
appointing consultants but also time and human resources.
xii. lntact AIIMS Project division office due to fedious change managemenf processi Even
though the project was withdrawn in 2016, the divisional office continues to exist at the site
location. Additionally, since there was no work with the division, other projects have been
transferred to the division such as ITBP to ensure that there is some workload on the office.
2.2.5 Challenges
Multiple challenges related to Works -i,lanual
The Works Manual lays down the basic framework for designing, planning and execution of
construction works by CPWD. Currently, the issues with the Works Manual are as follows:
a) overlapping 'Project' definitions: Definition of pro.iects as per Works N4anual allows
construction and maintenance work, both to be clubbed under Original Works, hence
attributable to const ru ctio nlworks. Secondly, while the Works Manual identiiies mainteriance
48
Study on working and reorganization of CP\A/D
work as one of the two type's i.e. annual or special repairs, the Maintenance Manual classifies
them into five different categories. The categorizations according to the Works and
Maintenance Manual are as illustrated below:
OriginalWorks Repairs and maintenance work
G
(E
R .,-,
]-
t:t
-t-
(i', (,'')
\-,-/
t
\:*-,
T
o All new All additions, Major Annual Special
constructions alterations and/or replacements or Repairs Repairs
= special repairs remodelling
.D
5
c Addition/ Special
I
o Preventive Annual Regular
Alteration maintenance* Repairs maintenance Repairs
v
o
U
tn/ r'r G)
c
.!
q
(l, I
1 ,)
Y
o Repairs and maintenance work
b) No differentiation between mandatory and recommended provisions: The Manual does not
distinguish between mandatory and recommended provisions to execute different kind of
works. This puts immense pressure on the executing staff of CPWD to ensure that all project
activities are in line with the Manual, which is extensive in nature and difficult to keep track
of due to continuous amendments. The Vigilance cell of CPWD comes into play whenever
there is a deviation from the laid down procedures, irrespective of the motive behind the
deviation. This has made engineers very cautious about deviating from the Works Manual
procedures as vigilance enquiries get quite cumbersome, apart from adverse remarks in the
appraisal reports. This cautious approach, more often than not, results in project delays,
which ironically is not subjected to vigilance or departmental enquiries.
c) Adhoc revisions to the Manual: The Manual was last revised in 2074, although parts of it get
revised regularly through office orders etc. These revisions to the Manual occur on an as-
and-when basis leading to confusion in the SOPs to be followed. This directly affects the
functioning due to unnecessary time spent in ensuring that all project activities are in line
with the updated provisions of the Works Manual.
d) Selective enforcement of the Works Manual: Lastly, there is an issue of selective
enforcement of the Manual, even where the provisions have been made. Some specific
examples of enforcement issues are:
i. A concept of Enabling Estimate has been introduced in the Manual to ensure that
clients are charged for the preliminary design and planning phase. However, in
' practice, it is not followed by the project teams as it is not mandatory in nature.
Moreover, the Works Manual doesn't lay down the detailed procitdure for putting the
same in practice"
ii. As an industry standard, all approvals are required before construction commences.
. Accordingly, the Works Manual stipulates the same i.e. all approvals to be taken
before the work is awarded for construction. However, in practice, work is sometimes
awarded to a bidder even when local body approvals and other clearances are not
49
Study on working and reorganization of CF'[A/D
lined up. This leads to project delays through a "paid no-work" period since work is
already awarded to contractors and cannot be started without all clearances.
iii. According to the provisions of the lManual, the approvals are the responsibility of the
party that is responsible for preparation of detailed drawings. However, in practice,
more often than not, the responsibility for getting the approvals rests on the
Architecture or the Engineering wing of CPWD irrespective of the fact that the
detailed drawings are being prepared by the consultants. This is incorrect practice.
a. Uniform SOPS for all type of work: The Works Manual of CPWD suggests a single format for
executing Original works, repair and specialized mainienance work and does not account for
variation because of the differential nature of work. Some of the problems caused by one
SOPs with no differentiation are:
i. Open tenders need to be floated under all circumstances irrespective of the project
value or nature. For e.g. a project of lower value (like breakdown of a pumpinq
station) can be done on non-tendering mode.
ii. No separate SOP for proiects )100 crores which need to be carried out on EPC mode,
as per the latest order by GOl.
iii. For maintenance works, provisions like spot quotations and rate based quotations
are required. This is not addressed by the single SOP'
iv. Proiects irrespective of type and value follow the same procedure i.e. requisition,
planning. tendering etc. leading to delays.
b. SOP5 lack in ensuring accountability and are not comprehensive: SoPs need to be
continuously revised to improve overall functioning and accountability and stay relevant to
the general market trends. Moreover, the SoPs are not comprehensive in that they leave out
steps to be followed in case of several contingencies. Some specific issues with the SOPs are
:
i. No streamlined mechanism to set the client expectations, buy-in and/or revise the
scope (and thereby cost) while ensuring that mutual agreement between CPWD and
the client without affecting project timelines. More often than not, proiects get stuck
in the disagreement between the client and CPWD on scope and related issues
ii. No provision for client getting their own consultant for a part of the project, although
the same happens in Practice,
iii. No provision for change in client's/client nodal person's witt to take over the asset.
iv. No provision for deviation in contractor rates thereby impacting overall project cost
due to project delays"
vi. Performance guarantee (from the bidders) should be not taken on fixed charge basis,
as is the current practice.
50
Study on working and reorganization of CP\A,D
vil. Pro.iects are identified in the system the day a requisition for PE is received instead
of the date of project sanctioning. This give out a false and exaggerated impression
of delays on CPWDS part-
viii. The latest order by MoUD (GOl) stipulating usage of new and emerging technologies
in construction work of value not less than 100 crores has not been integrated into
the SOP.
a. Consultants appointed separately by clients: The client may appoint its own consultants to
take care of work on their behalf at any stage of the project. Quite often, these drawings are
not available in time and are sometimes incomplete. Moreover, while the client is responsible
for providing an encumbrance free site. the same is not practiced. Hence, CPWD is forced to
put in extra time and effort in order to push construction activity and keep in line with the
overall pro.iect timelines.
b. Change in will to pursue the project further: The client may change its will to get the project
executed at any stage of the proiect. lt can control the execution through disbursement of
funds which are in its control. ln some situations, the proiect gets stuck due to no fund
available from the client side, due to no fault of CPWD. N4oreover, some of these projects go
into arbitration wherein CPWD has to fight on behalf of the client, for no fault of theirs.
c. Lack of client participation during execution: During execution, the client tends to show no
responsibility of even passively assuring quality of material or processes. This attitude is an
outcome of aversion of getting into arbitration or litigation of any kind. The lack 0f client
engagement throughout the proiect lifecycle has disrupted overall coordination. Many
decisions or change in quantum of work or expenditure happens due to client's change of
expectation but since there is no recording of this change, CPWD is held responsible in case
variations of more than 10% occurs in TS.
d. Change in client's intent t-o take handover of completed projects: ln some of the projects,
there is a change in the client's/client nodal person's will to take over the asset once built.
lnconsistent flow of funds
Some of the key problems related to fund flow management are as undeT:
a. Budgetary vs. Deposit Works: Almost 60-80% of the work received by CPWD are budgetary
or authorisation works, wherein works are undertaken under an outlay that is provided wholly
from the financial .estimates and accounts of the tlnion of lndia for every financial year- A
51
Study on working and reorganization of CPWD.
common challenge in such works is the delay in receiving of funds on a year on year basis.
Moreover, the entire procedure of assigning the budget and giving the LOC (Letter of Credit)
is very tedious and gets delayed leading to expenditure cuts that in turn affects the project
timelines. ln many cases, the projects are stalled since they have only received part of the
money from the client and interests have shifted to some other project f0r that curTent year.
b. No control over fund flow even post-sanctioning: lrrespective of the type of fund
(authorization/budgetary or deposit), the laid down SOPs do not guarantee a continuous flow
of fund. There are no mandatory provisions to guarantee a consistent flow of funds from the
client. As a result, the projects undergo slowdowns and lag periods during execution, again
resulting in overall delays.
c. No charge for preliminary design & planning: The preliminary planninq phases are
completely conducted out of goodwill and not charged for. Many projects have been stalled
because clients have approached other executive bodies after receiving preliminary drawings
and estimate from CPWD. ln many cases, work has been stalled even after work has been
awarded due to lack of funds. As a result, the entire preliminary planning process (which lasts
at least 6-8 months) and many a times Detailed Estimate (DE) planning gets executed without
any charge, even ihough major amount of resources (both in terms of time and effort) go
into this process. This format of funding projects often lead to huge losses in terms of time
and human resource. Also, it shadows the worth of the Department and creates a negative
image that the Department is incapable of providing efficient services.
d. Low budqet for maintenance work: Low budget allocation for maintenance and repair leads
to lower grade specifications of materials leading to unsatisfactory product delivery. This
further leads to the creation of a poor image of CPWD on the whole.
Low use of lT
Some of the key problems related to fund flow management are as under:
a. Disintegrated existing lT portals: The available e-gov portals (Kt\,1S, PMS, PFMS, CPWD Sewa
and PIMS) are all working in isolation with no integration to each other. These are largely
outdated in terms of technology and are not user friendly. Moreover, these portals are only
used as ad-hoc data capturing media rather than as an official record and enforcement of
projects.
b. Partial uptake of lT tools: There is no mandate to update the existing portals as per specific
timelines. This leads to the portals having a lack of credible information since there is no up-
qradation of information at the relevant stages of the project. Resultantly, the portals end
up being only moderately useful as adhoc data capturing platforms.
Others
a. Lack of physical lT assets: There is a huge shortage in terms of basic physical (lT related)
infrastructure especially at vulnerable areas of projects. This also leads to an apprehension
to shift to lT platforms for project planning and monitoring.
52
Study on working and reorganization of CPWD
b. Low use of latest design & engineering software: The training activities of the Department
fail to capture the need to train official's w.r.t. lT tools and modes of project planning such
as new software (BlM) and hardware. The Department seems to be in a technological
sta ndstill.
C. Lack of regular revision of Specifications and Schedule of Rates: The change in market
trends fail to be addressed comprehensively since the Specifications and Schedule of Rates
are not regularly updated. Additionally, the process of revising them is a time taking process
as the Department waits for the products' market review rather than studying its utility in-
house before using it. Real-time changes in rates are also not registered leading to
controversial estimate preparations.
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Study on working and reorgan,zation of CPWD
MDl, Gurgaon, 1998 - Management Study of lnternal systems and processes of CPWD with
the objective of improving effectiveness in successfully executive consiruction and
maintenance activities within the stipulated time, cost and quality standards
Economlc Reforms Commission (2001 - 2002) - Rationalization of the functions, activities
ioverty Alleviation
and structure of the Ministry of Urban Development and
Sh. Nitin Gadkari Committee <2OO2 - 2Oo4) - To review the functioning of CPWD and
suggest measures for reforms in the working of the organization
ICRA 2OO4 - Management consulting Services - To undertake a process improvement study
of CPWD with a view to improve client satisfaction with specific focus on - ProJ'ect
Management, Maintenance Management and Cash Flow Manaqement
organization Structure :
54
Study on working and reorganization of CP\A/D
respective streams
Rate contracts to be done fixed Not implemented
with contractors for each group of
works
Service centre for each cluster of lmplemented
buildings
Work Charged Staff to be made the Not implemented
part of regular establishment
Regular customer satisfaction lmpartial Survey without interface of field staff conducted by the
survey to be undertaken by an department thrice in the past
independent agency to measure the
performance of maintenance unit
Outsourcing for Maintenance lmplemented in selected colonies
Reward for best service centre, lmplemented
best sub - division, best division
55
A.
demonstrators
To encourage contractors for Made part of the contract document
procuring modern equipment
Management Control System:
To completely computerized all HR lmplemented - but PIMS is not completely reliable
data
Director General of the department Higher Financial powers have been delegated to CPWD officers from
may be delegated substantial time to time
powers for day-to-day
administration
Director General of the department
may work on a single file system lmplemented
with the Ministry
To enable Director General of the The post of Director (Finance) f rom ICAS cadre already encadred
A department to perform effectively, with CPWD
he may be given a full time financial
assistance
ADGs in the field, who have not Not implemented. The functions of the Additional DGs in the sub -
been delegated any authority and regions are very crucial for successful execution of the projects
have merely become an additional
channel of communication causing
delay in decision making. This
undermines the role of a Chief
Engineer
At the zone level, all officers of
different disciplines should report
to the Chief Engineer of the zone. lmplemented
Posts of CE maybe held from both
disciplines (civil and electrical) in
the ratio of their cadre strength
There are too manY levels in CPWD. Not lmplemented. After cadre review, the strength of AEs and JEs is
It is recommended that the level of in,the ratio of 1:1. Primarily in maintenance alone, JEs and AEs work
Junior Engineer and Assistant in a chain which is required.
Engineer maybe amalgamated.
Chain of JEIAE-EE-SE-CE and ADG
is too long and a committee maYbe
appointed to reduce at least one
level
Budgetary control and accounting lmplemented
system needs to be re-designed and
56
Study on working and reorganization of CPWD
Amendment in Brovisions of contract documents and procedures to reduee time and cost on proiects
Enhancement of Earnest money, to
lmplemented
be submitted with tender forms
Changing rate of security deposit lmplemented
for works
lntroduction of performa nce lmplemented
57
Study on working and reorganization of CPWD
security
Mobilization adva nce lmplemented
Equipment advance lmplemented
Price adjustment lmplemented
Fixing milestones lmplemented
lncentive clause lmplemented
Other lssues:
Unified command at zonal level lmplemented
Setting up of project teams lmplemented
Signing of Memorandum of lmplemented
Understanding with the clients
Third party q uality audit lmplemented
Relaxation in provisions of GFR 136 lmplemented
Exemption of local body approval of Not accepted - Matter has been taken up by the Ministry with the
drawings prepared by CPWD State Governments for grant of the exemption
Architect
Authorizing DG to make transfer /
Not accepted - A proposal for delegation of transfer / posting
posting of CEs powers of SE/CE is under submission to the lvlinistry
Project Management :
Alternative 1: ln the first model a It is not a workable solution since hierarchies are required to be
new hierarchy of project manaqer reduced. Having an sE overseeing the work of another SE is not
in between CE & SE, to be manned advisable.
by senior SEs having
multidisciplinary skills is proposed.
The second model envisages rhis will l6ad to situations where authority, duties and
separate managers for responsibilities are not with the same authority and is not likely to
preconstruction and construction give desired results
slage. The planning unit will be in-
charge of preconstruction stage
and will hand over the project to the
construction unit for actual
exec ution.
Devising a focused and regular skill Not lmplemented ef f ectivelY
u p-g radalion (tr aining) programme
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Study on working and reorganization of CPI/UD
Rationalisation of Command Chain - At present zonal head is responsible for overall management of
There is need to remove the works and is responsible for writing APARs of officers subordinate
anomaly of duplicity of chain of to him
command (in terms of different
f unctional administrative reporting
structure) the zonal head should be
the final authoritY in a zone and be
responsible for overall management
of works
Adherence to Procedures and the Not lmplemented effectivelY
role of vigilance cell
Establishment of a Knowledge Regional Design centres recently created, have been entrusted
Management SYstem wit-fr tne job of Knowledge Management. Not lmplemented
ef f ectively.
Absence if credible Knowledge
Management SYstem needs to
repetition of designing activitY,
eliminating the oPPortunities of
implementing projects on fast track
Developing a ComPrehensive Not lmplemented effectivelY
Project Management lnformation
System
Scope Change Control sYstem Not implemented
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Study on working and reorganizatiofl of ChA/D
5 Administrative Cadre
posting and promotion.are dealt throuqh
All human resource issues such as - recruitment' training'
quioetines of Engineeri in Chiefs Branch/ IHQ Ministry of Defence'
difterent headquarters unoerlne
60
Study on working and reorganization of CP\A/D
Highway in Afghanistan, completed and handed over to the Afghan Government in 2008, restoration
of the Farkhor and Ayni air bases in Ta.iikistan.
61
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Study on working aM reorganization of CP\A/D
62
Study on'working and reorganization of CPlly'D
Medical
controlled by Administrative
DG-CPWD cadre
(Six Command
Chief Engineers are
co-located under
the operational
Army Commands,
ADGs at Pune and
Secunderabad.
Zonal Chief
Engineers of 31
MES zones)
63
Study on working and reorganization of CPI/VD
Ministry of Works:
Following are the key departments that lie under the
Public Works DePartment
Construction lndustry Development Board
MalaYsian HighwaY AuthoritY
lnfrastructure
Buildings
Technical ConsultancY
Strategic Planning & lnnovation
Khas Provlnce Management
65
'^
Study on working and reorganization of CPWD
There is Managing Director who heads all these 5 sections. One secretary each has been appointed
A for lnf rastructure, Buildings and Consultancy. There is a team of 3 directors to take care of strategic
planning & innovation team..Each of these director has a portfolio assigned to them. All the
secretaries and directors report directly to the Managing Director.
Key Findings:
It was found that Military Engineering Service and Border Road Organization takes projects like CPWD
A of national interest and take projects which may be critical, strategic and at times may not be
economically viable for a corporate entity / PSU to consider, therefore entities like NBCC and the
A CGP of Singapore may not be a tenable option for CPWD to follow.
Given the nature of work and the organization set up of Malaysian PWD seems to be relevant for
a CPWD and the Malaysian set up was taken into consideration while recommending to CPWD. Specific
detail about these organization are included in the various recommendations mentioned in Section 5
of the report.
66
Study on working and reorganrzation of CPWD
5. Recommendations
5.1 Overview
We envision CPWD as a leading design and engineering firm in the country undertaking marquee public
proiects in lndia and across the globe with a separate facility management (maintenance) function. Our
vision for change is based on three key pillars. These are:
While Business Process lmprovement (BPR) allows for streamlining of project execution and
reduction in overall delays, organizational restructuring and cadre management is necessary to
ensure better efficiency of the organization. Our detailed recommendations to achieve the vision for
change are as given below:
a
ra
LU
fli
.-{""1
These have been elaborated along with details of key problems, suggested recommendations,
potential gains, implementation approach and reference to previous studies or case studies below.
bI
Study on wbrking and reorganization of CH /D
5.2 DetailedRecommendations
The Works Manual lays down the basic framework for designing, planning and execution of
construction works by CPWD. Currently, the issues with the Works Manual are as follows:
a) Overlapping'Pro.iect'definitions
b) No differentiation between mandatory and recommended provisions
c) Ad-hoc revisions to the Manual
d) Selective enforcement of the Works Manual
e) No enforcement of Maintenance Manual
The same have been detailed in the 'Challenges' section above.
Recommendatlon:
Considering the complexity and multiplicity of challenges related to Works Manual it is suggested that
the Manual be redrafted in line with latest trends in the construction sector and global best practices.
Some key areas of revision are identified below however extensive stakeholder consultations,
analysis and research is rqquired to finalize the changes and draft the Works Manual 2.0. The
suggestions are as follows:
a) Redefining 'Works': Manual should clearly define 'Construction and Maintenance Works'
omitting all overlaps
b) Simplified Manual with differentiated mandatory & recommended provisions: Manual
should be simplified, with clearly identified sections/volumes for each identified topic for e.g.
Definition, Delegation of powers, SOPs etc. Within each section/volume, the mandatory and
recommended provisions should be stated with clarity
c) Regular revision of the Manual: Define a periodic cycle, which should be well known to all
stakeholder, for revision of the tvlanual. We recommend that the Manual should be revised on
an annual basis with the help of an independent review committee of experts. It is essentiaL
that the lvlanual is revised in line with the latest market trends in terms of materials, design,
specifications, processes and systems as well as changing government regulations.
d) E-Manual: An online and digitized version of the Manual to be made available. This E-Manual
should be search enabled wherein the'Search'provision will be both tag and key-word
enabled. For the same, it is to be ensured that metadata for the page like title, keywords,
description and language is appropriately included.
e) Enforcement of Manual & related provisions: some provisions of the Manual which have to
be enforced are:
a. Enabling Estimate
b. Tender documents/ packages shall be considered valid only when approvals and
clearances are in hand.
68
Study on working and .eorganization of CPWD
c. Entire process of getting approvals is the responsibility to the party preparing the
detailed drawings. For e.g. in case of rate contracts the architecture wing will be
responsible to get the approvals and in case of EPC contracts the approvals are the
responsibility of the contractor.
Potential qains:
a) Ease of access and reference
b) Lesser delays due to reduction in regulatory steps and greater flexibility of working
c) Optimum utilization of the existing provisions of the framework
lmplementation approach:
A consultant should be appointed for the preparation of the new Works Manual for CPWD. This
exercise should roughly take 6-8 months to complete. The indicative list of activities to be
undertaken by the consultant are as follows:
Define the new structure for N4anual and seek wider approval on the same
Appointment of a committee with representation from internal staff and external experts
Organize workshops for discussion on N4anual, inviting people from the field and relevant
ministries
Referencesl
Report by Nitin cadkari Committee: CPWD should implement scope change control system which
shoutd be tinked and sYnchronized
Report by Nitin cadkari Committee: Exemption of local body approval of drawings prepared bY CPWD
Architect
Malaysia's Public Works Authority KEMENTERIAN KERJA RAYA (KKR) has a digital Works Process
Manual which includes all proiect related SOPs
69
Study on working and reorganizaiion of CPWD
The Works Manual prescribes certain steps (SOPs) to be followed for all project related activities.
Some of the key issues pertaining to the SOPS are as follows:
c. SOPS are not comprehensive in that they leave out steps to be followed in case of several
contingencies.
Recommendation:
In context to the challenges highlighted above the following recommendations have been suggested:
a. SOPS specific to type and scale of work: Separate SOPS for both construction and
maintenance projects. Additionally, further bifurcations shall be done in context to the scale
of project and the mode of execution. For e.g. SOP for pro.lects>100 crore, under EPC mode,
shall have its own SOP.
b. Clear demarcation of roles and responsibilities, timelines: These should clearly demarcate
the roles & responsibilities of the various CPWD wings vis-i-vis the step by step timelines.
Potential gains:
a) Execution of work would become fasteT depending on nature of work
lmplementation apProach:
As mentioned in the previous section the Works Manual must be reviewed and revised where in
SOps shall also be considered to be revised. Thus SOP revision would also be a part of the 6-8
months process of Manual change.
Study the teams involved in each stages of the process as well as individual responsibility
share in reqards to execution
Define the new structure for SOPS which vary as per project cost and mode of execution
Stakeholder consultation
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Study on workiog and reorganization of CP!,/t/D
Organize workshops for discussion on Manual inviting people from the field and relevant
ministries
Get approvals and publish the SOP5 as a part of the revised N4anual
As detailed in the 'Challenges' section above, the variation in financial powers according to project
cost and activities lead to unnecessary circulations of documents and delay of projects.
Recommendation:
Absolute financial powers basis project cost: The financial powers delegated to a CPWD officer
should be based on proiect cost and not differ according to activities as per the current delegation
norm. The same should be revised under the new Works l,4anual 2.0. lt was suggested during
stakeholder interaction that that EE's power should be 10 crores, SE power should be 50 crore and
CE should be 100 crores. HoweveT, a detailed exercise may be undertaken to carry out appropriate
delegation.
Potential gains:
Fast tracked execution of projects
lmplementation approach:
The financial powers must be reviewed and revised as a part of revision of the Works Manual. This
would take 6-8 months'time excluding ministry level clearances that would be required to
implement these changes.
Definethenewbasisofdefiningthepowersi.e.projectcost,hierarchy,etc.
Draft the new list of deleqated financial powers
ForthistasktheactivitiestobeundertakenbycPWDareasfollows:
Appolnted,WorksManUalReViewingCommittee,Shallreviewandreviseoffinancialpowers
71
Study on working and reorganization of CPWD
Organize workshops for discussion on the Manual inviting people f rom the f ield and relevant
ministries
Get approvals and publish the "List of Delegated Financial Powers" as a part of the revised
Manual
Since CPWD is a nodal body for execution, the client's engagement in decision making is crucial for
successful project execution. However, there are several issues that come due to lack of
accountability on part of the client and have not been sufficiently addressed. These are:
A
b. Encumbrance free site is not made available
e. Change of exPectation
Recommendation:
Addressing the problems mentioned above, some of the key recommendations are:
a. Enforcement of SOPs: SOPs to make provision for all such contingencies, as has been
discussed in recommendation 'Works Manual 2'0'above'
b. Contractual binding for clients: Ensure client accountability via contractual binding. This can
be achieved in any of the two manners suggested below:
a) Tri-PartYaqreements
b) Back to back agreements clearly defining the responsibility/liabilities of each party
c. Limitation on scope and design changes: Cap on variations requested by the client by value
of anticipated changes
Formal request to incorporate scope and design changes: All variation requests to
be
d.
received formally (letter/e-mail/online) irrespective of value and recorded in orderly
manner
(i.e. a project
e. Ensuring timely hand over of completed projects: All completed constructions
with finished and serviced properties, finished and serviced site, completion and occupancy
certificates issued along with all clearances, final bills and payments cleared) to
be handed
within the
over to client within 6 months by CPWD. lf the client does not sign handover note
at the end of this period,
stipulated time, the project will be deemed as completed and closed
period clause and
with no legal binding on the executing agency to maintain the warranty
immediate release of perf ormance guarantee to the contractor.
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Study on working and reorganization of CPWO
Potential gains:
The approach is two-fold, with a vision to bring immediate changes in the execution process, to be
implemented in a month's time as well as a long term strategy to assure clients participation by
automation in 8 to 12 months. Also, the SOPs in the Manual would have to be revised accordingly.
The indicative list of activities to be undertaken by the consultant are as follows:
Review the current MoU documents and address the shortcomings in terms of assuring client
accountability
Draft standard MoU document formats specific to the modes of execution of projects
Study the potential stages of processes where in client's participation is absolutely necessary
and accordingly revise SOPs and stakeholder responsibility sections of the f,4anual
Define the basis of lT architecture of the Client t\,tanagement Module so that it can be linked
to the Proiect Management System
Circulate an office order mandating that an N4OU may be signed between the client and CPWD
for all pro.iects >10 crores (to start with) which is to accompanied with a sample MoU
document defining responsibilities/liabilities of both parties
Following this the appointed Works Manual Reviewing Committee shall review and revise
SOPS and stakeholder responsibilities as a part of the Manual
Draft and finalize the TOR for selection of consultants for transaction advisory and client
management portal developers
Undertake the Bid Process N4anagement for appointment of consultant and portal developers
Launch the Client Management Module of the ERP along with a short training explaining its
fu nctio ns
References:
Report by Nitin cadkari Committee: CPWD should implement scope change control system which
shou/d be linked and synchronized
Some of the key problems related to fund flow management are as under:
73
Study oo workjng and reorganization of CPWD
Recommendation:
Since efficient execution of proiects is largely dependent on the fund flow, the followinq suqqestions
would ensu re the same:
b. Escrow Accounts for large projects: Execution of large budgetary proiects may be
streamlined through the use of Escrow Accounts in which funds shall be deposited in the
account as the projects proceed based on pre-fixed payment schedules.
Potential qains:
a. This would ensure that the project will come to a successful closure as the client will be bound
by the deposits made.
b. Ensure consistent fund flow and availability such that delays are avoided.
c. Enabling Estimate would prevent the Department's services and Tesources from being
m is used.
lmplementation of the changes with regards to fund flow management requires high level
deliberation and consensus. lt is estimated that a complete BPR & automation exercise can be
completed within 6 to 24 months.
Define projects as large or small based on the scale of pro.iects considering all mode of
e xecutio n
Draft standard LoA and MoU document formats specific to the modes of execution and scale
of projects, ensuring timely release of fund
Define the basis of lT architecture of the Expenditure Management iModule so that it can be
linked to the Project N4anaqement System
Hold discussions with CCA and other ministerial representatives to review the feasibility of
these
.74
Study on working and reorganization of CPWD
circulate an office order mandating execution through Escrow Accounts for larger projects
(more than 1O crores) along with responsibilities of all involved parties. Charging Enabling
Estimate, without which the project commencement shall not be considered, must also
be
Following this the appointed works Manual Reviewing committee shall review and revise
SOPS in order to introduce the new fund management system
groups
organize workshops for discussion inviting representatives of various stakeholder
References.'
ReportbyEconomicsReformsCommission:BUdgetarycontrolandaccountingsYstemneedstobere-
desiqned and strengthened usinq computers
Recommendation:
infrastructure:
a.lntegratedEMs:ThereisneedforanewinterllnkedERPSystemthatallowsforstreamlined
expenditure' clients'
management, monitoring and reporting of projects' resouTces' budgets'
VendoTsetc.TheERPSystemshouldbeestablishedbasisadetailedBusinessProcessRe-
engineering(BPR)exercisethatwillre.lookattheentireCPWDfUnctioninqaswellaSthe
revision of the Works and t\4aintenance N'lanual as suggested above'
complete gamut of services and
The ERP system that will be established should anchor the
is clearly defined by nature of work
actions alonq central theme of a Project wherein Proiect
(newWorksManua/).ThiswillallowCPWDtomovefromalunctiondriventoaprojectdriven
approach, as has been illustrated below
75
Study on working and reorganization of CPWD
LB'
.2.- .
t-l t'l
1i
I
'".:i:' "
CPWD HO
"rru
1't;-
o
@' Oih., CPWD tl.P..lm.nt.
,H
The stakeholders, both external and internal (as listed below) will interact with the portal
through a front-end and a back-end interface respectively. once, this system has been put
into place, it will be possible to carry out the entire project execution lifecycle on the ERP
platform itself. some of the key functional features of the automated project execution
lifecycle could be:
i.AuniquealphanumericprojectlDalongwithadedicatedprojectdashboardshall
beautomaticallygeneratedassoonaSareqUisitionissUbmitted.Thisshallbea
SLAprovisionallDtillsanction(AA&ESstage)andfirstinstalmentofpaymentis
received. This project lD would follow a set format with some inbuilt
differentiation for the nature and type of proiects
ii. Employee log-in lD and password to carry out various activities the official
is
allowedtoperformonthebasisofhisfinanciatpowers,overtheproject
dashboar d
profile on the system with
iii. Similarly, the clients shall also create a client user
portal and reviewing
specific log in lD and password for access to the requisition
and approval giving activities over the project dashboard
related to the project
iv. Proiect dashboard shall not just be a stock house of data
of one stage of work
but also be used for managinq it, too' Successful completion
76
Study on working and rebrganization of CPWD
with all required documents submitted and payments cleared shall activate the
next stage of work. Therefore, all related components of the project like funds,
expenditure, knowledge, vendors, people etc. shall be linked to the project lD
v. The project status in details shall be under public forum notifying all involved
stakeholders of the project's progress. The ERP shall allow access to latest news,
circulars, office orders & notifications, feedback portals, Code of Conduct, FAQ's
and directories. The'Help' option would make the ERP more user friendly
To do the same, the new platform will have interlinked modules which will all be used to
streamline the project execution efficiency. Some of these are:
iii. Client management for requisition, sanctioning, status tracking, fund flow and
other enforcement measures
iv. Vendor management System for registration, rating, feedback, bill submission,
etc.
vi. Expenditure Management System for all fund flow management issues
An illustrative process flowchart of the revised process has been attempted below:
77
( ( ( (( (( (( ( ( ( (( (( (( (
( ( ( ( (
Send requisition
along with
performa &
Enabling Estimate
Comptetion
certificate issued
+ security depos it
released
Filling of e-
measurement books
along with blll
submisslon
78
Study on working and reorganization of CPWD
b. lT based record keeping: All record keeping must also shift to the lT enabled platforms such
that progress of work is tracked online and there is no fall back mechanism. The same should
be included in the revised SOPs, as is covered in recommendation 1.2.1 and 1.2.2 above.
However, archiving of data must be done both in soft and hard copies at the headquarters.
Potential qains:
a. Streamlined project execution reducing coordination efforts and thereby overall delays. For
e.g. currently it takes 9 steps to comes to the site survey stage, however the same may to
streamlined to only 3 steps. The same would lead to reduction in timelines as well.
Table 9: lllustrative reduction & streamlining of process steps
Dashboard related:
79
!. Study on working and reorganization of CA /D
o Appointment of vendor to develop the t\4lS dashboards for tracking of set KPls
o Study the as-is conditions of the existing portals in order to record ihe shortfalls
and
\- work to be done
\, o Study and list down requirements of the processes of the revised
Manual and SOPS
o Design the new ERP portal along with a review and up-gradation
plan
o Facilitate capacity building classes and training program for the staff
\' For this task the activities to be undertaken by cPwD are as follows:
\, lnternally decide on various aspects that need to be covered under the re-engineering
program basis stakeholders to be involved, mandates regulating the design of the portal and
\_ up-gradation
overall efficiency to be achieved. This has to be backed with a portal review and
\,. plan
portal developers
Draft and finalize the TOR for selection of dashboard developers and ERP
Undertake the bid process management of dashboard & portal developers/System lntegrator
\' (sr)
\, Review and oversee the work of dashboard & portal developers ensuring that the
portal is in
line with the new Works N4anual and SOPs
groups
Organize workshops for discussion inviting representatives of various stakeholder
\7 References:
Report by Economics Reforms Commission: lntroducinq the use of computers for improving the
\, efficiency of the Department and time bound plan may be put in place for computerization of billing,
\,
g0
Study on working and reorganization of CF'lArD
accounting
The Public Works Authority (Ashghal) launched its new mobile application 'Ashghal 24/7 in May,
2017. This provides customers with an additional communication channel, apart from its e-services
(projects, suggestions, Enquiry, and complaints) through which fhey access important e-services
easily and quickly, anYwhere and anYtime.
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Study on working and reorganization of CPWD
Recommended Solution:
An agreed organisation purpose, viz.
Government residential & office construction and redevelopment
Government residential and office maintenance
Border lnfrastructure
ln la nd WaterwaYS
U rban infrastructure
Technical services, specifications, schedule of rates, work manuals, advisory, etc.
Any other project as per N4ouD requirement
Potentia I gains:
Building specialization and expertise in the core areas
Common and shared understanding of the organisation goal
lmplementation approach:
\r N4OUD and CPWD management participative process to discuss and agree on a shared
purpose and focus areas for the organisation;
Maintenance and allied works* ( generally up to 5 Cr in the same division) will be undertaken
by the regional structure
(.At the discretion of the DG)
Potentia I gains:
Better focus on both maintenance and small works & on proiects
Opportunity to build organisation competence in a specialized manner in maintenance and
small works area and in projects area
An opportunity to create flexible and lean project teams as per the requirements of the
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Study on working and reorganization of CPWD
projects without getting affected by the traditional geographical structure that exists for
maintenance
Avoid negative perception from projects and maintenance affecting the entire set of
organisational activities
lmplementation approach:
It is an extension of the current P[,4/CPM structure
The projects will be led for different level of officers and will have different sizes / levels in
the team depending on project size
The project sizes for which the approach will be adopted could get increasingly smaller
Generally have skip level structure to enhance operational levels and reduce supervisory
levels
The project teams, especially for large projects, will be attempted to be made self-sufficient
by including officers for Architecture, Horticulture and Planning/ Clearances.
officers - especially the senior team members will be generally deployed for the project
period to ensure continuity on the project. ln case of promotions, in the project duration,
they will continue to play the role with the newer designation.
Once the projeci is over, the team will be dismantled and the team members will be allocated
to proiect teams being created then. lf there are no such opportunity, they will be temporarily
part of the project maintenance team till proiect opportunities arise and they are replaced by
the geographical team members (maintenance and small works teams) or they may be
deployed on other maintenance. (The deployment post completion of the project will be as
per the discretion of the DG)
N4aintenance workload of CPWD has been increasing steadily over the years and currently constitutes
neatly 44% of the total work load. lt is a very significant activity as a large percentage of workforce
is deployed in this activity.
While contractors are deployed / engaged for maintenance works of different nature, outsourcing of
end to end maintenance for a particular set of residential / office buildings has not been attempted.
It is difficult to ascertain the right amount of Tesources (teams, consumables or services) required
for maintenance of iertain quantum of residential/ office area.
Moreover, in spite of large number of officers and Engineer deployed in the function, and large
allocation of tiudget for maintenance; there is large number of complaints and dissatisfaction
among beneficiaries.
lncreasingly, there iS a perceived shortage of officers and workmen who could be deployed for
maintenance.
Recommended Solution:
on a pilot basis, maintenance of a certain amount of office / residential area mav be outsourced
to a reputed building management company (BMC) with
o CPWD staff wjthdrawn except for a few officers for outsouTcee management
\7 o Pre-agreed SLAs (response times, rate contracts or lump sum per square foot
maintena nce value)
It js expected that
o CPWD will be able to understand overall monetary cost of maintenance for a certain types
of office/ residentia I areas
Potential gains:
Depending on the success of this pilot, more aTeas could be outsourced for maintenance
-- This would ensure speedy and guality work and successful closure as per the client satisfaction
\? lmplementation approach:
.v- For the implementatlon of outsourcing exercise, following activities should be undertaken by CPWD:
ldentification of a unit for the pilot project
Allocation of budget for the unit for the period in which the pilot study would be carried out
lmproving the outsourcing plan and gradual roll-out for more / larger units
84
Study on working and reoiganization of CPWD
This wilt be accompanied by maintaining a 1:4 AE:JE ratio with the remaining AEs in projects
For projects, necessary teams led by ADG/ CEISE/EE will be created depending on the project
size and will generally have only skip levels
CE (Medium Project Head) and SE / EE (Small Project Head) will report to SDG Project
Maintenance and small works structure in the regions should change and will be as follows
Table 11: Recommended structure for Maintenance and Small Works
It is proposed to keep the project structure with skip levels and as per the size
Table 12: Recommended structure for Projects
B5
v
v Study on working and reorganization of CpWD
v Potential gains:
More officers in execution roles
Faster decision making
Better accountability and ownership for work leading to better quality, timeliness, job
satisfaction and client satisfaction
_
lmplementation approach:
It should be implemented in a phased manner
v ln some cases, for maintenance structure, exception may be required to the above, in which
case, skill level reporting will be used.
Generally, an overall endeavour to only have skip level structure to enhance operational
v levels and reduce supervisory levels
Currently EE is the contracting/ executing authority. This will put ADG/ CEl SE in executing
roles for the larger projects thereby leveraging their experience and making them more
accountable
References:
\,' . Report by Economic Reforms Commission - Recommendation: There are too many levels in
CPWD. lt is recommended that the level of Junior Engineer andAsslsfant Engineer maybe
amalgamated. Chain of JE/AE-EE-SE-CE and ADG ls foo long and a committee maybe
appointed to reduce af /easf one level
. Report by ICRA - Recommendation: Rationalisation of Command Chain
v . On- the- job Cross- functionaltraining will be required for SEs and EEs
86
\-- Study on working and reorganization of CPWD
v Recommended Solution:
Chief Architects in regions may have a dotted line functional reporting
to ADG (Arch) with
ACR inputs sought from ADG (Arch)
v lmPlementation aPProach:
Appropriate facilities as required for field officers will be required for
architects also in
\7 projects;
for architects
Appropriate facilities as required for design/planning officers will be required
in regional/ HQ;
Detailing of joint ACR working mechanism
v 5.2.14 Delegation of Powers to DG
- Background:
\, CPWD with its structure as an attached office of MOUD, while empowered to take large number of
decisions at the DG level, in practice has not been able to do so.
v- KeY Problem/ opportunitY:
A large delegation of financial, administrative and operational powers to DG, CPWD from
the ministry'
v
Recommended Solution:
y
Financial, operational and administrative powers with the DG
Reference to the Ministry to be restricted to only in matters involving major policy issues
requiring Government approval, Parliamentary matters, approvals beyond the financial/
administrative competence of the proposed body, etc.
All establishment matter, study leave, deputation, transfer posting, ACRs to conclude at DG
Reducing the ACR structures to 2 levels and approval system also to be reduced to 2 levels
: ,",".,,;';:];:l'"""tabiritY
Faster decision making
Reduction of administrative load at the ministry
Higher accountability and ownership at the level of DG
87
Study on working and reorganizalion of CPWD
lmplementation approach:
Changes in AAR reporting levels that go beyond DG level
ldentification of regular aTeas where decisions are consistently not taken at the DG level
References:
. Report by Econamic Refarms Commissian - Recommendation: Director General of the
department may be deleqated substantial powers for day-to'day administration
88
Study on working and reorganizalibn of CPWD
CaPacitY building
Facilitating the implementation of other recommendations from this study/ other initiatives
lmplementation aPProach:
ldentifying and shortlisting of training partners
ldentifying the key areas for training
Assessing the training gaps of individuals
Creating and execution of traininq plans
Recommendation:
89
Study on working and reorganization of CPWD
Computers,prjnterSetc.ThesameneedStobeCarriedoUtaCrossleVels,departmentSand
geographies.
c. Regular reviewing and revision of specifications and Rates: The specifications as well
as
schedule of Rates need to be revisited and u pdated on a regu la r basis as per prevalent norms.
FUrther,theseshoUldbeaUtomatedtoensuTestreamlinedprojectexecUtion.Some
additional measuTes that could be taken up are:
a) A system of live updating of rates need to be developed along with a current rate
addressing PolicY.
b)TheSystemneedstobeaUtomatedandlinkedtothegovernment,Se-marketplace
scheme. This will also enable the dealers and vendors to upload information of new
products being launched in the market.
d. lT based vendor management: The same will be ensured through the vendor Management
module that will be a part of the integrated ERP platform.
Potential gains:
a. Knowledge base under constant review and up-gradation thereby ensuring efficient produci
delivery.
lmplementation approach:
For implementation of the above recommendations the cPWD would have to undertake the
following activities:
Collaborate with facility management consultants to set minimum service Ievel standards for
its offices depending on the locations and remodel the offices accordingly such that access
to basic physical and lT infrastructure is facilitated. This task should take 12-18 months to
be implemented
ln a time frame of 3 months, CPWD should design training schedules and programs in
collaboration with relevant experts and organizations.
Ensure trainings are backed with knowledge check papers and feedback forms which along
with the training schedules shall be circulated amongst all staff through the Personnel
lnformation Management System Portal. This shall be accessed using the employee lD. This
task should be completed in 12-18 months
ln-house team must be formulated bi-annually for revision of specifications and rates.
Vendors'workshops shall also be conducted to receive feedbacks and reviews of materials,
products and processes in the market. The changes shall initiate up-gradation of the e-
schedule of rates and specifications which shall be a part of the ERP portal. This shall run in
parallel to the ERP review and up-gradation schedule
References:
. Report by MDI Gurgaon: Comprehensive training to employees, training of CPWD workers and
90
Study on working and reorganizati6n of CPWD
contractors employees
. Repart by MDI Gurgdon: Rafe contracts to be done fixed with contractors for each group af
works
. Malaysia's Public works Authority KEMENTERIAN KERJA RAyA (KKR) has a comprehensive
e-vendors platform as well as a Human Capital Development program-
91
Study on working and reorganization of CPWD
o
o
o ,s
Rcaions Projects
Director General(DG)
I
n t-l
sDG / ADG SDG / ADG sDG / ADG SD6 / ADG
(Delhi Rcaion) (North) (Wr:t) (South)
I l_
['l ['l
Director
Horticulture ,3,.[:i'li,l,."
92
( ( ( ( ( (. ( ( ( ( ((( ( ( ( (. ( ( ( ( ( ( ((((((((((
lmmediate Policy decisions : DG selection, 2layer delaye common command, minimum tenure,
Project structure, additional functions, Architecture and engagement, DG delegation
E t;;-1
r;I
T d; l
BPR + Fund
Flow
managemenl +
Works Maoual +
DOP
Trlnkq &
ch{lge Outsorrcing ol
malntenance
(pirot)
'l
I 6. I
t8,l
f ror l
tl,;l
t=l4;.1
t;;I
f rs'nl
o2
( (((( (( ((((((((((((( ((( (( (( (
8 Annexure
Annexure 1 - Current Organlzatlon Structure of CPWD
OrrGctoa Oarl.ral
L-IL I
,antE
G. !trctc.i,.art,t)
,{a:lta rLr.,Otr,lE .rl .iLr r. lt. reaaru -I
.allrir!.. r, D.. .lrr!.a r. ,:a. .r ,. ^lEtcrrrrcnt
,t OirEq,
- (Ct, lErinr l=l
lt aL.rr irnErqrtt lo.Ofllrtrr rrpnt.E
ot,lxr6llldtI rn*rorrll
lxr.t,,tlfi| gBrrr,'-l
94
Study on working and reorganization of CPWD
Project details:
Project milestones:
1 Requisition date 11.03.2008 Project was supposed to be completed in 42 months as agreed
during requisition. However, due to its complex nature, it was
aqreed that project wlll be completed in 5 years.
3 Sanctioning date 77.07.2072 4 crores have been charged as Enabling Esflmafe. lt took 4.5
years to sancfion due to lack of responsiveness of the client.
Team deployment happened right after sanctioning.
o^
{ ( ( { ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( t ( ( ( ( ( ( ( ( ( ( (
8 Tendering (packaging, Package 1 - Terminated on 24.07.2074 Work against first package was awarded in 2012 but had to be
NlT, selection) terminated due to issues with the contractor. Thus it was
Package2-October2014
finally re-awarded 2 years later.
Package 3 + balance work of Package 1 - January
2075
Package 4 (services) - June 2015
9 Handing over site/ October 2Ot2 - Drawings were ready Site underwenf changres as fhe work proceeded with changes in
drawings ready for boundaries, presence of defunct utilities, frees fo be retained
construction and realigning of building to incorporafe sefbacks
11 Completion certif icate Not yet since work has been completed only till 70%. Considering the sanctioning date, work is delayed only by 6
issued Finishing and horticulture work remains. Tentative months. However f rom the requisition date, work is delayed by
completion date is Dec, 2017. 4.5 years.
Project team
1 Project mode (Y/N) Yes
96
( ( ( ( (( (( ( ( ( ( ( ( ( ( ( ( ( ( ( ( { ( ( ( ( ( ( ( ( ( < (.
Outsourcing
Project details:
Project milestones:
2 PD & PE submission date 29.02.2072 Deliberations regarding desiqn approval took time
97
< ( ( ( ( ((( ( ( (( ( (( ( ( ( (( ( (( (((( ((((( ( (
Study on working and reorganizatlon of CPWD
instalment)
Furniture - November 20 16
Horticulture
7 Receipt of all approvals December 2012 applied received in 2074 2.5 years delay due to getting approvals
8 Progress of work according to Three level basement - July 2072to Work f or basemenf could be sfarfed only after local body approvals
packages November 2013 were received
Superstructure including all services - Tender had to be recalled due to limited enfries f or superstructure
august 2014 till date there by delaying work by 1 years
Water supply and sewerage connection -
October 2016 till date
98
i
( (( ((((( (( (( ((( ( ( ( ( ( ( { ( (((( ( ( (( ( ( (
Project team
1 Project mode (Y/N) Yes
Outsourcing
oo
( ({ ((( (( ( ( (( ( (((( ( (((( ( 1(( (( ( ( ( ( ( (
Project details:
3 Current status Discontinued after 9 years Was terminated before calling for tenders by client
4 Project cost Approximately 300 Crores
Project milestones
1 Requisition date 09.03.2006
2 PD & PE submission date 19.05.2006 - as per first scope Consultants were appoinfed af this stage only f or alt
7 Receipt of all approvals lnitiated on 06.10.2008 and received all clearances The approval process took around 7 years partty due to detays
by 12.03.2015 by external authorities and partly due to change in scope of
100
( ( 1 ( ( <(( ( ( (( ( (( ( ( ( (( ( ( ( ((( {( ( (( (( (
B Tendering (packaging, NlT, 01.08.15 - Tenders floated Since the client now wished the work fo be execuf ed by NBCC
selection)
September 2075 - CPWD was asked to hold the
tender
Project team
1 Project mode (Y/N) Yes
2 Total no. of people involved Was not constant due to no surety in terms of
throughout the project futurb of the project, hence cannot be determined
Cutsourcing
101
( ( ( ((((( (( (((( ( (( ( (( ((( <(((( ((( ( ( (
Study on working and reorganization of CPWD
1 Engineering cadre
DG 1
ADG 3
CE 45
Additional CE 32
SE 28L
EE 480
AEE 478
AE 678
JE 3343
5341
Surveyor cadre
(Quantity Surveying
2 and Contracts)
CE 6
i
SE 40
EE 140
AEE t26
AE 727
JE 7672
102
( ( I ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( t
3 Architect cadre
6
SA 42
Architect 66
DA 22
Draughtsman 1349
Tracer 374
Ferro Printers 433
3004
Sr. BSO 78
BSO 212
Storekeeper-l I 336
Storekeeper-l 416
103
, i:,
1( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( I ( I ( ( ( | 4 t ( ( ( | ( ( ( (
5 Admin cadre I
Principal AO 2
Sr AO 77
I A0-l 35
UDC 3286
LDC 301 1
6500
6 Stenographer cadre
Sr. Personal secretarY (PS) 2
PS 18
Steno- | 107
Steno- ll 213
340
7 lndustrial cadre
Sr. Mechanic- | (Ref) t77
'.,1
Sr. Electrician- | 7724
Carpenter- | 509
Fitter- | 574
104
r t ( (( (( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
\\\
Blacksmith- | 86
Mason -l 316
Painter- | 754
Cable Jointer- | 163
Mechanist/Welder/Moulder-l 4t
Sr. Mechanic- ll (Ref) 972
M echa nist/Welder/M ou lder-ll 55
Fitter- ll 767
Carpenter- ll 677
Blacksmith- ll t79
Mason -ll 427
Painter- ll 206
Cable Jointer- ll 243
105
(((((( (( (<(((((((((((( ((<( ((((((((
Study on working and reorganization of CPWD
Welder 727
Boiler attendant 34
Moulder 3B
L7487
Grand Total 110935
106
( ( (( (( ( ( (((( ( ( (( (( ( ((( (( (( ((( (( (
t;I
E c.
(llt
XETRO
NOI'HER.H
9roRt(s ano
Ilncml
orccrr"
I
107
( ( ( (( ( (( (.( ((( (( ( ( ( ( ( ( (( ( (( (((((( ( (
Conrtrucl lor
Public Rslrtionl
108
( ( ( ((( (( ( ( (((( ( ((( (t( (( ((( ((( (( (((
Sludy on $/ofiing and llorganlzalion of CPWD
109
( ( ( ( ( ( ( ( ( ( ( ( ( (
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
fleld:
t
; propoie modlfications and send suggestions / Advisory Notes to Ministry of Railways on reference made by Ministry of Railways.
.Makesuggestionsregarding,pollcie5of[4inistryofRailwaysforInffastrUcturecreationthroughprivateinve5tments/PPPandtoensure
reasonable safeguards to PPP lnvestors.
, Dlspute resoluflon regardinq future Concesslon Agreements subject to a specific clause in the Concession Agreement for referring of such : :
disputes to RDA in compliance with the Arbitration and Conciliation Act, 1996 and Amendments thereto including the Arbitration and :
Conciliation Act,2015
3. settlnq efficlency and performance standard
It shall also be the Authority,s mandate to suggest measures lor absorbinq new technoloEies lor achlevlng deslred efflclency and performance I
standards. I
4. Dissemlnallon of lnforrnatlon - The Authority will suqqest a framework / guidelines for dlssemlnation of information relating to best practices for
the assistance and awareness of consumers.
5. RDA shalt have betow-mentioned specific exclusions while performing the functions listed at point (1) to (4) above:-
Policy making regarding Rallways as a sector or any of its facets;
-
Tariff determtnation and ctasslfication/reclasslfication of commodlties save as provlded in Clause (4), Sub'Clause (i) (1) to (3);
operatlons & Maintenance ofthe Railsystem;
., Financial/ expenditure management save and except suggesting benchmarks that can guide decision makinq I
Setting of technicalstandards; . ,
Such functions which are statutorily provided under any of the statutes for the tlme being in force;
Authority may suggest measures for Human Resource Devetopment to achieve any of lts stated obiectlves and functlons.
RDAshallsubmitperiodicalreportstotheCentralcovernmentonvariousaspectsrelatingtothefunctlonsprescribedfortheRDAandonsuchotherspecific
matters as may be called for by the eentral Government from time to time.
110
( ( ( ( ( ( ( ( ( ( ( ( ( ( (' ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
3 A requlator/ authority None Construction/ maintenance functions are untenable for a regulator
4 No change (Continues to be Objectives of efficiencyl qualityl better None
an attached office of MOUD) client service/ autonomy/ accountability
and long term success achievable through
other systemic changes in the current
setting
Minimal Resistance f rom employees
111
A\
A
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