CPWD Master Guide

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Final Report

Study on working and reorganization of


CPWD

Submitted to: Ministry of Urban Development


August 28,2017 | Ernst & Young LLP

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.

.A

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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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Study on working and reorganization of CF\A/D

PIMS Personnel lnformation Mana


PM Project Manager
PMC Project Management Consultancy
PMS Project Ma nagement System
PNBPZ PNB Project Zone
PSU Public Sector Undertaking
PWD Public Works Department
QA Quality Assurance
R&D Research and Development
RCCs Road Construction Company
RDA Railway Development Authority
RTI Right to lnformation
SDG Special Director General
SE Superintend ing Engineer
Sen. Arch Senior Architect
SLA Service Level Agreement
SOP ndard Operating Procedures
Sta
Spl DG Special Director General
SR Southern Region
TD Technology Development
Tech & PR Technology and PR
TOR Terms of Reference
TS Technical Sanction
UT Union Territory
WIP Work in Progress
WR Western Region

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Study on working and reorganization of CP\A,D

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.

CPWD is an All-lndia organization and possesses capability to undertake construction of projects


including in difficult terrain and their maintenance, post construction. lt executes projects on turnkey
basis with all the services including water supply, sewerage, roads construction and maintenance,
electrical, air-conditioning, firefighting etc. lt possesses in-house expertise in all fields of building
construction namely Architecture, Civil Engineering, Electrical Engineering and Horticulture under
one umbrella. The organisation takes upon itself full responsibility for planning, designing,
estimation, evaluation of bids, finalization of contracts, construction, clearances and approvals,
maintena nce, redevelopment etc.

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

Region Headquarter Jurisdiction


New Delhi New Delhi Areas covered by the Municipal limit of NDMC. Mostly areas
having offices & residences of VlPs & VVIPs in Central Delhi,
three Central Govt. hospitals, Supreme Court
Delhi New Delhi Delhi, except areas covered by New Delhi Region

PWD New Delhi Works of GNCTD in National Capital Territory of Delhi


Northern New Delhi Punjab, Haryana, H.P., Uttaranchal, J&K, U.P., Rajasthan &
U.T. of Chandigarh
Western Mumbai Maharashtra, Gujarat, Goa, M.P., & U.T. of Dadra & Nagar
Haveli, Chhattisgarh
Eastern Kolkata West Bengal, Bihar, Jharkhand, Orissa, Sikkim, and North
Eastern States
Southern Chennai Tamil Nadu, Andhra Pradesh, Kerala, Karnataka, U.T. of
Pondicherry, Lakshadweep, and Minicoy & Andaman &
Nicobar lsland

L.2 Scope of Work


The scope of work of this study covers the followini:
i. Study in detail the working of CPWD keeping in view its mandate and functions.
ii. Carry out an analysis of the structure and organization of CPWD considering all the verticals viz.
origlnal works, deposit works, maintenance functions, technical advisory functions etc.
iii. Carry out a comparative analysis with similar / comparable Central Government organizations in
the Government, such as Military Engineering Service, Border Roads Organization etc. as well as
Public Sector Undertakings in the field of civil/electrical construction.
Study on working and reorganization of CPVVD

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.

1.3 Approach and Methodology


Organisation structure is defined as the way in which the organisation's units and levels, roles,
capabilities and resources are arranged to deliver on the vision, mission, goals and strategy. lt is the
formal system of accountability that defines key positions and enables the efficient allocation of
resources to support organisational outcomes.
A comprehensive approach to organisation structuring is driven by strategy and operating processes
and takes into account infrastructure, governance, performance, talent and culture components of
the organisation.
For this study, a systematic and structured approach was adopted, considering all interdependent
components of an organisation before completing the design. At the same ilme dimensions such as
talent, performance and cultural elements of CPWD were considered while arriving at the final design
of the organization to make it more relevant and meaningful.

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Study on working and reorganization of CPWD

a 2. Current State Assessment

2.L Human Resource Overview


2.'1.1 Organization Structure
^
CPWD is divided into several cadres, namely Group 'A' cadres, controlled by Ministry of Urban
Development, Group 'B' and Group 'C' cadres controlled by Director General (CPWD) and workmen cadre.

a Group 'A' cadre has 6 cadres viz.:


1 Civil Engineers
2 Electrical Engineers
3 Architects
4 Horticulturists
5 Finance Officers
6 Assistant Accounts Officers

a Group 'B' cadre has B cadres viz.:


1 Civil Engineers
2 Electrical Engineers
a 3 Architects

\, 4 Horticulture
5 Accounts
5 Ministerial Staff
A 7 Stenographer
I Drawing Staff

Group 'C' cadre has 6 cadres viz.:


2' 1 Architects
2 Horticulture
3 Ministerial Staff
4 MTS

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.

Organizational Setup at Head Quarter


The Director ceneral is assisted by Additional Director General (Works) for effective control
of works and administration matters. The field units are located all over lndia to take up
construction and maintenance works even in the remotest parts of the country. The
departments has a decentralized system of working, which provides for better and easily
accessible service as the units are placed closed to work centres'
Following organizational setup is currently operational for the office of the Director General
excluding the PWD.

Director General
CPWD

E
@@@ @ @@ Figure 1 : Organization set up at Headquaier

Yarious Units in Directorate


Various Units in Directorate are headed by SDG (HO). Various units currently functional in the
Directorate beinq:
ADG (Training) - For all cadres in CPWD

ADG(Border)-Borderworksonlndo-Pak,lndo.china,Indo.Bangladeshandlndo-Myanmar
border
CE (D&DM) - Design and Dlsaster Mitigation

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Study on wo*ing and reorganization of CPWD

CVO Unit - Vigilance functions of CPWD - CVO Reports to DG

DDG(e Gov) - E- Gov initiatives like eSewa, eoffice, PllvlS, WBPt\4S

DDG (HQ) - Cadre matters of Grade B, C cadres, SC/ST matters, PG cases


CE (HQ) - Cadre matters of JE / AE
Director(S&D) - Cadre matters of Grade A, Shifting of Projects, PQ
Director (P&WA) - Work policies, Establishment of various Ministries, Pre-sanction
Director (PM&PG) - Project Monitoring, Public Grievances, VIP Refer
Director (Tech & PR) - Staff officer to DG, lnteraction with HoDs
Director (Finance) - AII Budqet & Finance, Finance Advisor to DG

Director (Personnel) - All T&P of EElArch, AEE/Dy. Arch Ievel

SDG(HO)

|^*-l l^"..-l |*:fl|-l


ffil rmll"?I'"".j*r r*;rffiffi Ho'j

rm t..9s"",l r-fir I'E I


m,ml
rmil r-,,,ls,] |;,--I
Figure 2: Organization set up at Headquaier

Oroanizational Setuo at Reoional Level


The regions are categorized as follows:
1 Delhi Region
2 Northern Region
3 Eastern Regidn
4 Western Region
5 Southern Region

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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Study on working and reorgan zation of CPWD

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(SCPZ) CE(CAPFIMS) CE (TBPPZ) CE (NSGPZ)

Figure 3: Organization set up - Delhi Region


Northern Region
Jurisdiction of the Region covers
special DG (NR) is responsible for the works under Northern Region.
J&K. There are two ADG
the states of Utta. pijJ"in, Uttarakhand, Puniab, Haryana, chandigarh-and
respectivety, five chief Ensineers and two chief Architects
;ii;;k*;
";J.handigarh
SDG (NR)
Delhi

DDG (HO) DDG (Coordination)

ADG (NR}I ADG (NR).II


Chandigarh
Lucknow

CE CE
CE CE
Jammu
Lucknow Dehradun ', Chandigarh

CA CA
CE
Lucknow Chandigarh
Jaipur

Figure 4: Organization set up - Nofthem Region

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Study on working and reorganization of CPWD

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

DDG (HO) &


Coordination

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

Figure 5: Organization set up - Eastem Region


Western Region
under western Region' Jurisdiction of the region covers
Special DG (WR) is responsible for w-orks -Goa'
Gujarat' and Union Territory of
praoesn, inhattisgarh'
the states of Maharashtra, Madhya Architect'
Dadra and Nagar nut.ii. in.r" aie
two ADC, ;ix Cniet-engineers and one chief

SDG (wR)
Mumbai

DDG(HO)

ADG (WR) -ll


ADG (wR).I
' BhoPal
Mumbai

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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Study on working and reorganization of CP\ /D

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

of lndia (Part XIV -Article


rticle 309 of the Constltution
3oB to 323)
Governed bY
(Conduct) Rules - 1964
Central Civil Services Rules - 1965
(Classification' Conduct and Appeal)
Central Civil Services - 1957
(Medical Examination) Rules
cent'af Ci'if Services
Controlling Authority
MoUD is CPWD's Cadre
transactions'
2017 apply to all CPWD
General Financial Rules
Principal Accounting
officer
. Secretary UD is the
DFPR 1978
delegated to him vide
po*""
DG CPWD
"nloyt

2.1.2 challenges dynamic.proc,essl::::,.'_?il::


nr^iecrs which invorves very
cPWD handres rarse scare-
-..!,^^ ^r
executi:l'::
:l??|nt:J'Ti:';ll"]]il;J'
ii" "u'iir internar and
Ioordinated ensineerinq'-a0mc ;tli';;il;;;;;; enumerated here'
ano
iactors tnat lead to time

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Study on working and reorganization of CP\.lD

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

External Factors (Direct tmpact)


CPWD faces very stiff competition from Construction PSUs like NBCC, which have been given the
status equivalent to Public Works Organization in the cFR. They enjoy financial, functional and
administrative autonomy. These PSUs are, therefore, able to carry out their construction projects
at a faster pace.
Over the years, CPWD's credibility has weakened, because it is unable to take effective action for
an organizational turnaround on aspects like timely completion, quality of maintenance etc.
External Factors (lndirect tmpact):
Shortaqe of reputed contractors with long term vision and known for quality work within time
who would like to work on CPWD contracts.

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.

b) Maintenance management: Maintenance of residential, non-residential buildings, includinq civil,


electrical, mechanical, air-conditioning, horticulture, and other related services. Maintenance
activity is significant for CPWD as a large percentage of its work force is deployed in this activity.
c) Non-construct ion activities: CPWD takes up non-co nst ruct io n activities, which are undertaken

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Study on working and reorganization of CFl .lD

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.

ii. Executes vigilance, quality control and techno-legal functions

iii. Registration of contractors and training activities

iv. Valuation for lncome Tax Department

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)

Figure 8. Annual Execution value

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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Study on working and reorganization of CPWD

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%

r Maintenance deposit Construction deposit

Figure g: Annual Execution value (construction vs. maintenance projects) in crcres


Nofe.' fhe chart does not take into consideration equivalent workload for maintenance work

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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Study on working and reorganization of CPWD

OV. O70 198.08,1%


945.31. 6%

356,25%
568,41%

1 0358. 61 %

391,28%

<lcrore :1-5crore r5-50crore >50 crore <lcrore x1-5crore r5-50crore >50crore

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:

# Client No. of Construction Funds demanded


projects (crores)

1 Ministry of Home Affairs 50 2532.67

2 Border Securlty force 196 t862.78


3 Central Reserve Police Force 100 7842.99

4 lndo Tibetan Border Police 9B 1009.99

5 Supreme Court of lndia 1 884.30

6 Kendria Vidyalaya Samithi 67 863.48

7 Sashastra Seema Bal 66 726.29

8 lndian lnstitute of Science Education 13 659.1 1

and Research

9 lndian lnstitute of Management 74 644.50

10 lndian School of Mines 6 555.87

2.2.2 Project definitions & categorization


The Works Manual,2014 categorizes and defines projects within CPWD as follows:

L. On basis of nature of work, works can be divided as:

a. Original works-

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Study on working and reorganization of CPWD

i. all new constructions,

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)

iii. major replacements or remodelling of a portion of an existing structure or installation


(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

i. Annual (routine as well as yearly operation and maintenance works) and


ii. Special (major repair or replacement or remodelling of a portion of an existing
structure or installation or other works due to major breakdowns, or deterioration,
or periodic renewal, which do not result in a genuine increase in the value of the
property)

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

Classification (as Per Sub-Classif ication Examples


Maintenance Manual, 2OL2)

Original work (Addition & Nit Providing additional


Alteration): Necessitated on toilets, renovating
accounts of imProvement bY existing kitchens and
means of additions or toilets, providin g false
alterations to existing buildings. ceiling etc.

Preventive maintenance - Repair of cracks due to


Repairs: Operations undertaken
Periodical rePairs carried plant outgrowth,
to ensure serviceabilitY of
out before or with change painting of exteriors
buildings and facilities for their
of seasons and rectification before monsoons or
original intended use
of defects identified during other works before
inspections winters

Periodic maintenance Regular white washing,


(Annual RePairs) - regular painting etc.
repair to be done as Per
prescribed norms

Maintenance on request or Repairing damaged or


attending daY to daY worn out
service requirements fixtu res/fittings

20
Study on working and reorganization of CPWD

Classif ication (as per Sub-Classif ication Examples


Maintenance Manual, 2072)

Special repairs: Major rePairs Nil


or replacement of elements to
prevent buildings from reaching
a level of un-serviceability. High
costs and usually attended
through contracts.

(for sanction of minor works),


c.Minor work - Works within delegated powers of DG, CPWD
under MoUD Head of Account shall be treated as minor works.
,construction works' to refer to'original works' which includes construction
cpwD uses the term
etc' Therefore' for ease
projects as well as addition/alteration works, special repairs, remodelling
works' or 'construction projects' in
of reference, all original works are referred as 'construction
the subsequent chaPters.
On basis of fund, works can be divided
as:
2.
a.Budgetedworks:Theseareworksthatareundertakenunderanoutlaythatisprovided
whollyfromthefinancialestimatesandaccountsoftheUnionoflndiathatarelaidbefore
and voted by both the Houses of Parliament'

(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
21
Study on working and reorganization of CPWD

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%

13134.7, 49% 73547.9,


50%

Budgetary Deposit CSSA Budgetary Deposit CSSA

Figure 13: No of projects (Construction) Figure 14: Value of construction proiects (in crores)

24.41,4%

Budgetary Deposit CSSA Budgetary Deposit CSSA

Figure 15 No of proiects (Maintenance) Figure 16: Value of maintenance proiects (in crores)

3. Work of inescaPab/e nature

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

22
Study on working and reorganization of CPWD

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

2.2.3 Prolecl execution


CPWD follows two project execution modes, basis the proiect cost. These are:
i. Execution by Divisional structure: All projects below 200 crores of project cost are executed
in this mode only. ln this mode, the Executive Engineer (EE) of the respective division that
the project lies in, functions as the head of the pro.iect team. The EE also acts as the Drawing
and Disbursing officer (DDO) for the project.

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.

Process lifecycle management


Even though the works Manual formally categorizes the projects basis nature of work and fund, the
Standard Operating procedure (SOP) given in the Works Manual for all proiects irrespective of their
variation in nature and size remains the same. Hence, as per the process described in the works
N4anual, the common steps of project execution is as follows:

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:

1.. Requisition received rrom Client

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)
Study on working and reorganization of CPVi/D

, 8. Detailed Drawings and Estimate (DE)


g. Approval of plans by the Local Bodies
10. Technical Sanction

11. Preparation of Tender Documents/NlT with DE info

12. Tendering and Awarding of Tender

C. Construction:
\ 13. Land Possession: Handing over site ready for construction
\ 14. Commencing Construction and Execution

\ 15. lnterim lnspection and reviewing work or auditing

. 16. Stage wise bill clearance & interim payments

D. Closure:
17. post Construction Certification of completion of work along with submission of Final
Biil

18. Physical Hand Over to Client


19. Financial Submission

20. SecuritY dePosit release

.,
i

24
)))))))) )) )))) ) ))))))) )))) ))) ))) ))

study on woAing and reoBanization or CPWD

Process mapping- Originalworks, Annual& SPcclal RePairs & Maintenance


for all Original works as well as maintenance projects (Annual and Special repair). The same S0P
The following steps are applicable is also followed in Project
Mode, only the team configuration and accountability changes, as has been explained above.
Tabte 3: Standard Operating Procedure (SOP) for Construction and Maintenance wotks (Annual and Special)

# Team lnvolved lssues


!leos
Oexr'tption ot the step includinq format (online/offline) and All stakeho/ders involved along with step Description of challenges faced
tentative time taken owner/approver

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.,

25
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
( ( ( ( ( ( ( ( (

Study on working and reorganization of CPWD

Team lnvolved lssues


* Steps
Enabling Estimate may be called f or by projects operating under the project mode.
EElsElcElADG/DG under the purview of
financial powers delegated to them in the
Manual

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

2) Special Repairs are done only on basis


of PD, PS

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

lo
(( ( ((, 1
(l (((((t
Study on working and reorganization of CPWD

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.

Expenditure Sanction (ES): ES indicates


that funds for the project have been
provided and a liability of undertaking the
construction work can be incurred. ln other
words, it signifies the concurrence of the
Government of lndia in the expenditure
proposed. This is sort of a guarantee that
the project will come to the Department
even in case of delays.
( ((((( (( (( (( ((( ( ( ((((( ( ( (( ( (( (( ( ( (

Study on working and reorganization of CPWD

# Steps Team lnvolved lssues

Nofe: /n case of Ministry of Finance, AA is


given at the f irst sfep ifse/f.

PRE-CONSTRUCTION AND PLANNING

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.

System of specifically detailing and capturing


market variances in available items is not in
place. Modern lT based tools such as BIM etc.
is not used for project management for all
scale or types of projects

Lack of coordination amongst different


service lines (Architecture, Civil and
Electrical) while preparing detailed drawings
and DE

28
Study on working and reorganization oiCPWD

# Steps Team lnvolved lssues.

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:

7) The technical sanction can be


exceeded up to beyond which
7Oo/o

revised'technical sanction' shall be


I necessary.

2) A copy of the technical sanction


should a/so be endorsed to the
concerned SA/CA, SE (Elect)/ CE
(El ct)/ E E ( e ect)/ S E (e e ct )/ C E (e I e ct )
e I I

as wellas fhe DoH/DDH for initiating


action at the appropriate time

29
(((((( (((( (((( ((((((((((((( (((((((

Study on working and reorganization of CPWD

# Steps Team lnvolved lssues

3) For a project costing /NR 10 crores or


above, the Administrative Ministry or
Department will set up a Review
Committee (rep. f rom the
Ad mi nistr ative Mi nistry, Fi na nce
(lnternal Finance Wing) and the
Executing Agency)to review the
progress of the work and accept
variations of the approved estimates.
For other works a similar reviewing
committee may or may not be
founded.

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 ( ( ( ( ( (( ( ( ( ( ( ( ( ('(( ( (

Study on working and reorganization of CPWD

# Steps Team lnvolved I ssues

for construction. clearance and approvals are received, work


cannot be started at site leading to delays
On receiving Copy of Agreement the
Architecture unit issues the "Good for Many a times, assured funds do not reach the
Construction" drawing to all keY units for whatever reasons leading to
stakeholders. All other approvals (tree appropriation or re-appropriation of funds.
cutting, demolition, disposal of waste etc.) This leads to further delays
and f und should be in place. All the ln practice, all drawings are not issued to the
concerned units dealing with civil, electrical contractor in time
and horticulture work are immediately
informed about commencement of work ldeally, client should hand over an
along with copies of estimates and plans encumbrance free site to the EE and
furnished to them to initiate f urther action. Contractor, but the same is not always put
For external services, MuniciPal into practice.
Corporation/ local bodies, electric
companies are written simultaneously

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( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (

Study on working and reorganization of CPWD

f Steps Team lnvolved I ssues

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
(( (( (((( (( (( ( ( ( ( ( ( (( ( (( ( ( ( ( ( ( (( ( ( (

Study on working and reorganization of CPWD

# Steps Team lnvolved lssues

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

79 Financial Submission EElSE/CE to Finance dePartment 1

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

Project Execution Standard Operating Procedure (SOP) as per Work Manual

Site survey plan, geo-


technlcat surveys and
f easlblltty report s (lf
requlred) to be Preparatlon of
Requisitlon
prep ared
. tender
letter recelved documents
and lorwarded

Filled performa
recelved and
torwarded

Rlled & vettod


by competent
authorlty

Figure 17: SOPs as per the Works Manual Provisions

34
( ( ( ( ( ( ( ( ( ( ( ( ( (
( ( ( ( ( ( (( ( ( ( ( ( ( ( ( ( ( ( (

Study on working and reorganization of CPWD

Project Execution in Practice

Site survey Plan, geo-


technlcal survevs and
teaslbilfty reports (lf
required) to be Preparation of
prepared tender
Requish ion documents
letter recelved
and lorwarded

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

Figure 18: Proiect execution in practice


(((((((( (( (( (({(( (((((((((((<(((((
Study on working and reorganization of CPWD

Process mapping' Other maintenance works


For all other maintenance works (apart from Annual and Special repairs), the key steps are:
: Table 4 SOP for Maintenance Works (apart from Annual and Speciat repairs)

# Steps Team lnvolved lssues

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.

1b Service based day to day maintenance - Service centres, Reporting and


JE(C). JE (E), SO recording of the
a) Registration of complaint by an occupant: ln the residential areas maintained by
(Horticulture) complaints are usually
CPWD, the tenants have following options for registering their complaints.
delayed
O ln a service centre either over a phone or in person.
Usually when
O Through IVRS- available in Delhi only complaints are banked
O Online complaint ( though internet) - available in Delhi only to form a major
complaint the time
ln order to enable occupants/residents to lodge their complaints, service centres have taken to attend to the
been setup, which were previously known as enquiry offices. A service centre is generally complaint becomes
located at a centre point in each neighbourhood covering 1,500-3,000 houses per longer due to a tedious
centre. An acknowledgement slip is given to the complainant along with a complaint process of resource

Jb
# Steps Team lnvolved lssues

number. mobilizing

b) Categorization of complaints: The service centre is responsible for maintenance of


premises including the services within it. These service centres cater to complaints
relating to civil, electrical and horticulture disciplines in the Department.

c) Reporting of Complaints - Complaints based on the urgency is reported to


concerned JElAEE/AEs. Recording of complaints in respective registers - JE(C), JE
(E), SO (Horticulture). The complaints are recorded in the register of the respective
JE or the equivalent officer of each discipline.

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

are attended by work-charged staff of CPWD, which are supervised by the


for maintenance work
the quality of service is
concerned JE.
compromised
b. Attending to arlnual/special repairs to be done in 1 to 3 years based on annual

37
(( ( (( ((
( (((( (( (( (( (( ((( ((

Study on working and reorganization of CPWD

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

JE/AE and ffre vatiOitY of this


FeedbaC(: The conierneO JEIAE has the responsibility for getting feedback from the
complainant feedback is not
complainants on complaints of the nature of day to day repairs, attended to by the work-
assured since
charged staff.
recording sYstem is
a. Obtain feedback from the complainant on complaints attended by the work manual and usuallY
charged staff recorded bY the staff
b. Respond to tenant on likely time for compliance of the compliant themselves

38
Study on workihg and reoiganization of CPWD

Typical project timeline


project
As per the general directions of the Works Manual, the mandated timeline for a construction
allows a total period of 21 months, (excluding the time taken for according the AA and ES as
well as
local body approvals) from the date of requisition f rom client as the project planning period. The
same has been shown in the table below:
Table 5: Project Timeline as per CPWD intemal order

# 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).

2 Site Survey Plan and


Geo-technical Surveys
and feasibility reports

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

B Detailed Drawings and


Estimate (DE) based on
DPR

9 Approval of plans by Variable


the Local Bodies (in
theory)

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):

Changes beyond control: Any externa/ lssues such


as heavY rainfatl or poor wor4able
a.
to policy level changes
conditions; probtem of materiat and labour supply due

b. Delay from client,s side: Delay in structural drawings


from clients; frequent changes from
client during Progress of work
to shortage or lack in meeting
c. lnadequate fund flow: Fund flow is hampered either due
requiremenfs for release of f und etc'

d. Site challenges and contractor slowdowns: Casua/ approach of contractor due to


too may
f rom tenders which
work of dif f erentexpertise under one aqreement, Lack of timelY response
presence of hybrid plants or
hampers project progress, site is not ready for construction,
monuments, inadequate water or electricity supply

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

r Changes beyond control (Economy/Weather)

Delay from client's side

22% , lnadequate fund flow


32%
Site challenges and contractor slow downs

r Delays in approval (local body, clearances and


internal)
20%

Figure 20: Reasons for delay

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.

Table 6: Fund Status - CGHS Dlspensanes

Name Sanction Last Liabilities Work Physical Status


date release incurred Done (in progress
date (in crores) (in%l
Amount (in Amount (in crores)
crores) crores)
INAPD (Nauroji 16-01-13 03-09-1s 1.27.5 227.5 55% Foreclosed
Nagar) 770.3 125.0
INAPD (Prasad 24-1,1-1,4 03-09-15 102.9 102.9 20% Applied for
Nagar) 692.sl 25.0 foreclosu re
INAPD (Vikas 17-72-1,4 08-03-16 337.0 32s.0 70% Work
Puri) 570.4 37.9 stopped
AIIMSPD (Vasant 23-t2-1,4 02-09-15 600.0 450.0 8s% Work
Kunj) 684.75 30.00 stopped
AIIM SPD 24-LL-L4 02-09-r.5 600.0 400.0 ss% Work
(Alaknanda) 824.44 31.80 stopped
AIIMSPD (Vasant L8-07-t4 10-09-15 600.0 250.0 65% Work
Vihar) 837.56 40.00 stopped
05-07-13 30-09-16 s00.0 423.O 65%

41
Study on working and reorganization of CPIA/D

Name Sanction Last Liabilities Work Physical Status


date release incu rred Done (in progress
date (in crores) lin%l
Amount (in Amount (in crores)

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

200 247 243


25
0 1s% z z2% 27
s2o/o
less than 1 crore 1-5 crores 5-50 crores more than 50 crores

r of Sanctioned No of PE prepared
No-31o/"

\' Figure 21 : Transition of projects front PE to Sanctioning srage


v Moreover, as per the ICRA Report of 2005:
\/ a. Only 25% of the recorded projects were requisitioned within past six months (of the study).

\, 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.

Typical outsourcing pattern


Currently, the number of active tenders for construction and maintenance projects are 2079 and
948 respectively. Compared to the number of ongoing projects i.e.2027 construction and 1593
maintenance projects, it indicates that on an average, outsourcing activity is carried out for all
projects (irrespective of size), thus making procurement and vendor management extensive in nature
and extremely crucialfor the organization. ln terms of workload w.r.t maintenance project, as much
as750/o work is handled in-house and about 250/owork (annual and special repairs) is contracted out
(as per Nitin Gadkari Report).

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

# Steps Engineering wing Architecture wing


INCEPTION STAGE
Requisition received from Client in ./
1
,/
the form of a letter (manual).
2 Site Survey Plan and Geo-technical ,/
Surveys and feasibility reports
3 Preliminary Drawings and ,/ ,/
Specifications (PD, PS)
4 Approval of drawings by client

5 Preliminary Estimate (PE) ,/


6 AA&ES

PRE-CONSTRUCTION AND PLANNING

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

# Steps Engineering wing Architecture wing


13 Land Possession: Handing over ,/
site ready for construction
74 Commencing Construction and
Execution

15 lnterim lnspection and reviewing ,/


work or auditing
76 Quality Control: Third party ,/
inspection
77 Approval of all EOTs, deviations, ,/
extra items

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) Site Survey Plan and Geo-technical Surveys and feasibility reports


A b) Preparation of DPR/Detailed drawing
It is to be noted that in case of projects )50 crores, generally all design and engineering activity is
outsourced and cPWD only functions as a project management unit.
A
Management of associated project activities
To ensure successful execution of project, CPWD has to cater to several ancillary or supporting
functions and activities pertaining to research, managing vendors, record keeping, training, so on
and so forth. They can be discussed under the following heads, namely:

A) Knowledgemanagement
--
B) vendor management

44
Study on working and reorganization of CPVVD

D) Lega I com pliance

E) Expenditure Ma nagement

F) Delivery management and monitoring

G) CPWD Sewa

The current efforts and approach of the Department in context to these activities are as follows:

A) Knowledge management: An important aspect in the construction industry which helps in


delivery of efficient products is the component of research and market study. This allows the
resources in keeping up to date with the current trends in terms of techniques, materials,
processes and skill requirement. Post the lcRA report which hiqhliqhted the absence of a
credible Knowledge Management System (KMS), regional design centres were created and were
entrusted the responsibility of knowledge management. However, there continues to be a need
for a credible integrated KMS which can be used by the project team effectively'
Additionally, a special unit called the Central Design Organization (CDO) has been entrusted with
the work of design oriented research. This body is also in the position to provide consultancy or
advisory services in context to design of public buildings. However, their knowledge sharing is
limited to publishing articles through the annual newsletters and is considered almost redundant
at present. Another unit, also redundant in the present day, is the consultancy services
The
Organization (CSO) provides consultancy services for planning design and specifications.
standards and specification cell under CDO is responsible for updating and laying down
specif ications and benchmarking.
grades
The cPWD Training lnstitute, Ghaziabad takes care of providing training across various
of officers and also conducts orientation programmes as per the guidelines of Directorate of
Training and Technical Education. The training programs are grade based and mostly conducted
as face to face interactions.

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.

2.2.4 Detailed review of projects:


ln order to enhance our understanding w.r.t. project execution as well as substantiate some of the
observations made above, a sample of 3 projects have been studied. The projects have been studied
in context to the delays/challenges faced during its lifecycle. The uncertainty and vulnerabilities
related to the SOP followed as well as the construction industry become clear in this segment.

a) Additional office complex for Supreme Court


The client i.e. Supreme Court of lndia, required an additional office space for.its supportinq activities
for which a requisitionwas sent to CPWD. The project is being executed in the project mode under
the budgetary head costinq 884.3 crores. The work is currently in progress, with 7O% of the work
already executed. lt is expected to be completed by December,2OtT which would put the overall
delay at approx. 2 years. While the details of the project are attached in the anne-Iure below, the key

46
t
I Study on working and ri:orgahization of CpVt/D

t learnings from the project are:

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 ii. lJnforeseeable nature of construction work: Project was supposed to be completed in 42


months as agreed during requisition. However, due to its complex nature, an extension of
a 2.5 years was given, making the lifecycle of the project 5 years long. This highlights the
t nature of the construction industry wherein timelines have to be generally extended due to

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.

c) Residential quarters for AIIMS:


This proiect was requisitioned to CPWD by Allt\4S, proposing the construction of residential quarters
and non-residential buildilgs at Ayur Vigyan Nagar, AllMS, New Delhi. This was taken up as a Deposit
work with the final proiect cost going above 300 crores. However, after 9 years from date of
requisition, this proiect was withdrawn and awarded to NBcC. While the details of the pro.iect are
attached in the annexure below, the key learninqs from the proiect are:

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

Figure 22: Categorization of prcjects as per respective Manuals

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.

Outdated, undifferentiated SOPS for all project types


The Works Manual prescribes certain steps i.e. the SOP to be followed for all project related activities.
Some of the key issues pertaining to the SoP are as follows:

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"

v. No provision for submission of bills at the time of billing (for contractors),

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.

Unnecessary variation in delegated financial powers


The Works Manual defines the financial powers delegated to the CPWD officials based on the activities
they have to execute and the project cost. This unnecessary variation in financial powers according
to each activity leads to extensive circulation of documents and consequently delaying proiects. For
e.g. the financial limit of an EE to accord Technical Sanction (TS) is different from the limit within
which he can accept tenders. Hence, for each activity, the Competent Authority varies.

Lack of client accountabllity


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 in the SOPs. These are:

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.

c. Need for additional lT modules related to project management: There continues to be a


need for a credible and integrated lT systems related to vendors, clients, Works Manual,
specifications etc. which can be used by the pro.iect team to fast-track the delivery.

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.

d. lnadeguate vendor management: The procurement process does not ensure


competitiveness amongst the vendors. Moreover, there are limited means to ensure quality
vendor performance and management.

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Study on working and reorgan,zation of CPWD

3. Summary of Recommendations from previous Reports


The functioning and structure of CPWD has been under review in the past. There have been a number
of committees / studies constituted by the Ministry to study the processes and structure of CPWD.
Some of the studies made are:

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

3.1 MDl, Gurgaon Report

Gist of Recommendations Status of lmplementation

organization Structure :

Constitution of Central Public Not accepted by Ministry


Works Board
CPWD to be headed by a Civil Not accepted
Engineer with at least one year left
for his retirement
Creation of post of Executive Consequent to Cadre review, the post of Director (Tech and PR) has
Director (Public Relations) been created which is directly attached with the DG - Not effective
Unified Command at zonal level lmplemented consequent to cadre review in the year 2012
Business development cell to be lmplemented consequent to cadre review in the year 2012 - Not
created effective
Quality Assurance :
ED (Ouality Assurance in each Post of Director (Works cum OA) exists in all sub regions headed by
region) Additional DGs
Testing laboratory to be set uP at lmplemented
circle level
Com prehensive Training to lmplemented
employees
Training of CPWD workers and lmplemented / RTls were created
contractors em PloYees
Maintenance:
Maintenance to be under Director Civil, Electrical, Mechanicat, Horticulture Maintenance is under
(l\4aintenance) responsible f or civil, unified command system at the zonal level
electrical, mechanical, horticulture
maintena nce under their
jurisdiction havi49 officers of

54
Study on working and reorganization of CP\A/D

Gist of Recommendations Status of lmplementation

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

Human Resource Management :

Corporate strategy needs to be Not lmplemented effectively


evolved

Manpower and career planning to Not lmplemented effectively


be integrated with the
organizational growth

Comprehensive review of Not lmplemented effectively


recruitment and promotion rules

Transfer and posting up to ED level lmplemented up to SE Levels


to be decided within CPWD
Court cases to be reviewed by a Not lmplemented
higher powered committee and
settled bilaterally through trust
building exercises
lntroduction of award to best lmplemented
perf ormers

Perf ormance linked incentive Not lmplemented:


scheme to be started
Seminars to be conducted for lmplemented -
CPWD employees, suppliers,
contractors, clients and users
5% of total salary budget for Not lmplemented-
training
New Technologies Adoption :

Director (TAD) to organize product lmplemented "

55
A.

Study on working and reorganization of CP\A/D

Gist of Recommendations Status of lmplementation

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

3.2 Economic Reforms Commission

Gist of Recommendations Status of lmplementation

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

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Study on working and reorganization of CPWD

Gist of Recommendations Status of lmplementation

strengthened using computers


Esta blish ment cost should be The strength of CPWD is about 32,000 as against 46,000 in the year
brought down and the productivity 2000.
increased by 20% per annum
Creation of separate PWD for Not implemented
Government of NCT Delhi
lntroducing the use of computers Not lmplemented effectively though E - Governance unit under CE
for improving the efficiency of the level officer is working for implementing e- governance in CPWD
department and time bound plan
may be put in place for
computerization of billing,
a cco u ntin g
Work charged staff receive salary
and all facilities like regular
government employees. They are
also governed under the f,4inimum Not implemented
Wages Act. lt is recommended that
an urgent view maybe taken on
treating them as either government
employees or industrial employees
Automation maybe introduced on
the electrical side for various Not lmplemented completely
operations and this will reduce the
req uirement of staff

Outsourcing for iobs should be Maintenance of selected colonies outsourced


explored for maintenance
outsourcing for jobs should be Wherever required, outsourcing is done
explored for projects
Directorate of Horticulture may also The highest post in the Horticulture wing has been upgraded to cE
improve its productivity level officer i.e. DDG(H)
Dlrectorate of Horticultu re may The Horticulture works are being carried out both departmentally as
outsou rce different jobs well as through contract

3.3 Sh. Nitin Gadkari Committee Recommendations

Gist of Recommendations Status of lmplementation

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

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Study on working and reorganization of CPWD

Gist of Recommendations Status of lmplementation

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

lssue of delegation of LOc to SEs Not accepted

3.4 ICRA 2OO4 - Management Consulting Services


ICRA 2004 - Management Consulting Services

Gist of Recommendations Status of lmPlementation

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

Gist of Recommendations Status of lmPlementation

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

CPWD should imPlement scoPe


change control sYstem which
shouLd be linked and sYnchronized
Maintenance Management :
Ensure better customer interface lmplemented
and service deliverY
Strengthen monitoring of compliant lmplemented
redressal mechanism
Outsourcing of maintenance lmplemented in selected colonies
activity
Cash - Flow Management:
Creation of revolving f und Not implemented

Funding in Phases in an Escrow


Not imPlemented
account
Not imPlemented
Synchronising the budgetarY
piocess with the flow of cash

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Study on working and reorganizatiofl of ChA/D

4. Study of Leading Practices


ln order to enhance our understanding w.r.t. organization restructuring of central Public works
Department, we have studied similar departments / organizations in lndia and abroad. we
have
studied the working of MES, BRO, NBCC and Railway Development Authority and internationally, we
have also studied structure of Public works Department of singapore and t\4alaysia.

4.1 Military Engineering Services (MES)


pillars of
N4ilitary Engineering services (MES), is the premier construction agency and one of the
set up over 200 years ago to execute both civil and
corps of engineerc of the lndi"n Army which was
mitiiary intrastructure. lt is one of the largest construction and maintenance agencies in lndia
operational infrastructure, major roads and administrative
,.rponriblu for.reating strategic and the
habitat for all three services and the associated organizations of the Ministry of Defence'
hospitals,
Military Engineering Services carries out construction of residential and office buildings,
the country including
mititary rojds and iunways, marine structure like docks and harbours across
border areas. lt contributes significantly towards building and disaster mitigation.

organization set uP of MES:


MEShasapanlndiareachandprovidesengineeringsupporttovariousformationsofArmy.AirForce,
the island territories of lndia'
Navy and onOO. tt n", over 6ilg stations icross the country including
- in chief, who is the advisol:
Administratively, lvES functions under the overall control of the Engineer
totheMinistryofDefenceandthethreeservicesonoperationalandpeacetimeconstruction
activities. lt has a multi-disciplinary team which comprises of the following:
1 Architects
2 Civil, Electrical and lvlechanical Engineer
3 Structural desig ners
4 Quantity Surveyors
5 contract specialists for planning, designing and supervision of works
The civilian cadre consists of 4 main cadres which are as follows:
1 Engineering
2 Surveyor Cadre
3 Architect
4 BSO (Qualif ied Engineers)

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

4.2 Border Roads Organization (BRO)'


BorderRoadSorganization(BRo),Underthelt4inistryofDefence,isoneofthenation,smostreputed
modern construc on orqunLat-i;n- reiponsibte for developing
and maintaining road.networks in
proiects undertaken by BRo typically include
lndia,s border areas and n"iqhbourlnq countries. The
developing roads, bridges and airfields in hostile environments'
some of the projects also include the development initiatives
of the lndian Government in foreign
- the Delaram zaranj
teEitories.like Taiikistan, nrqh;nirtan, Myanmar.and Bhutan. For example

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.

Organization Structure of BRo


Structurally, BRO comprises of the Border Roads Wing in the Ministry of Defence and the General
Reserve Engineer Force (GREF).
Administratively, BRO is headed by DG Border Roads and operates via HQ and Directorates and is
divided into Eastern Region and North Western Region headed by ADGS.
The Headquarter includes the following:
Technical Administration
East Directorate

West Directorate and Contracts


Technical Plan ning
Personnel
Disclpline and Vigilance
t\4 ed ica I

Boring and Tunnel


The BRO includes 18 Pro.iects, which are divided into Task Forces, Road Construction Companies
(RCCS). Bridge Construction Companies (BCCS), Drain l\4aintenance Companies (DMCs), and other
functional platoons. The organization also includes base workshops, store divisions, training and
recruitment centers, and other staff. The organization employs labourers locally. No local labourer
is deployed in the GREF on casual employment.'

4.3 National Building Construction Corporation (NBCC)


National Building Construction Corporation (NBCC), is a blue-chip Government of India Navratna
Enterprise undei the Ministry of Urban Development. lt was set up in 1960 with a mandate to
undertake Real Estate Development and construction business, and provide Project Management
consultancy Services. The area covered under NBCC includes - Roads, Hospitals and Medical
colleges, lnstitutions, offices, Airports, Bridges, lndustrial and Environmental structures.
NBCC offers services via 3 segments - Project Management consultancy, Engineering Procurement
and Real Estate. However, the current areas of operations are: PMc, Real Estate Development, EPC
Contracting and Redevelopment of Government colonies.
It has a pan lndia presence as well as global pTesence. Some of the recent proiects of NBCC includes
(GPRA)
the New Moti Bagh- Green Complex (Delhi) under General Pool Residential Accommodation
scheme. The project today is certified largest Green Home Complex of its kind in the country.
lnternationally, N'BCC ventured into overseas operation by executing projects of diverse nature in
countries like Libya, lraq, Yemen, Nepal; Maldives, lvlauritius, Turkey and Botswana'
Currenuy, the Company has its presence in Mildives, Turkey and Botswana implementing various
prolects. ot late, NBCc has opened an office !,n oman and also signed a Mou with Al Naba services
Lri in Or.n in order to jointly explore and secure infrastructure proiects in Sultanate of Oman &
neighbouring countries. To further its prospects oveTseas, the company has also entered into lt4oLJs
with Construction Industry Development Board Holdings, N4alaysia and Form Yapi Malzemeleri lnsaat
Samayi Ticaret Ltd., TurkeY.

61
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Study on working aM reorganization of CP\A/D

Organization Structure of NBCC


NBCC is headed by a Chairman / Managing Director. Under the Chairman, the Management cadre
consists of L Senior Executive Director and 5 Executive Directors.

,^ To summarize, following is a comparative analysis of the organizations discussed above.


Table 8: Comparative analysis

Parameter Central Public Military Border Road National Building


Works Engineering Organization Construction
Department Services (BRO) Corporation
(cPwD) (MES) (NBCC)
Ministry Department Ministry of Defence Ministry of A Navratna CPSU in
under Ministry Defence category I under
of Urban Ministry of Urban
Development Development
Established 1851 (in the
in Year current form since
1854 1899) 1960 1960
Mandate To create and To undertake To develop and To undertake Real
maintain construction of maintains road Estate Development
Central new infrastructure networks in lndia's & Construction
Government works and their border areas and business, and
assets, with subsequent f riendly provide Project
exception of maintenance for neighbouring Management
Defence, Army, Navy, Air countries Consultancy
Railways & Force, Coast services
Telecommunic Guards, Ordnance
ations Factories, DRDO
and other
organizations
associated with the
defence
establishments
Organization Subdivided Works distributed Operates via HQ Offers services via
Division into 7 in 6 Commands and Directorates three divisions:
Regions, Sub- . Northern HQ (includes . Project
Regions and Technical Management
e Eastern
Administration, Consultancy
Zones
A r Western East Directorate,
. Engineering
West Directorate
. Southern and Contracts)
Procurement
. South Technical Planning
. Real Estate
Western
Personnel
o Admin
Discipline and
Vigilance

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Study on'working and reorganization of CPlly'D

Parameter Central Public Military Border Road National Building


Works Engineering Organization Construction
Department Services (BRO) Corporation
(CPWD) (MES) (NBCC)

Medical

Boring and Tunnel


Headed By DG who is also Engineer-ln-Chief Director General - Chairman - Cum -
Principal (advisor to the Border Road Managing Director
Advisor to Ministry of Defence
Government and the three
of lndia Services on
operational and
peace time
construction
activities)
Regions Special Commands Management cadre
headed by Director Headed by: ADG (North West) below Board:
and
General Director Works 1 Senior Executive
Sub Regions Additional (DW) ADG (East) Director - 1
headed by Director DW & CE (Army) 2. Executive
General DW & CE (Navy) Directors - 5
Zones Chief Engineer DW & CE (Air)
headed by The civilian cadres
Cadres Three Cadres consists of four Two cadres at
namely Group main cadre i.e. Officers levels-
A\ A controlled Engineering, ADM and Medical
by MoUD, Surveyor cadre, 63 Ranks/ Trades
Group B and Architect & BSO under Group B and
Group C and an C

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)

Total Group A - A Large 40t72 Regular Employees -

Strength 8440 construction and 2344

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Study on working and reorganization of CPI/VD

Parameter Central Public Military Border Road National Building


Works Engineering Organization Construction
Department Services (BRO) Corporation
(CPWD) (MES) (NBCC)

CPWD Cadre maintenance


9100 agency in lndia
Also (Over 1.1 lakh
supported by strong across 8
Ministerial cadres) - refer
Staff of Annexure 3
Central
Secretariat -
550
Workers -
15500

4.4 Singapore - CGP CorPoration


CpG Corporation (CPG Corp) is the corporatized entity of the former Singapore
Public Works
Department (pwD). lt employs more than 2ooo people across the Asia - Pacific region and provides
a full spectrum of infrastruciure & building development and management services. lt is one of the
region providing building and infrastructure
leading development professionals in the Asia-Pacific
planning and urban design, green
development and management services which comprise master
project
design, architectural and engineering design and consultancy, landscape urbanism,
management services. Currently, CPG Corp has
*unug"..nt, construction management to facilities being
with China, lndia and ASEAN
expanded its portfolio to over 25 countries outside Singapore,
their key markets.
CpG became a corporatized entity in 1999 having realized that there was
a huge demand in the
market for the quality of work they do. Post the process of corporatization,
they started providing
region. As a part of their
consulting to the *ork, department in various countries across Asia Pacific
growth pio..rr, they later ventured into structural design management & later started
bidding
office in Singapore led
independenly for construction projects. The whole organization has its head
by the Chief Executive Officer.
Organizational Structure of CGP:
Next' is the Business
The organization structure of CPG is headed by the CEO in Singapore'
f rom singapore office' After these
Development Vice President & Managing Director who operates
having its own support
2, the organization takes a departmLnfal structure with each department
work done by each of them' These
function. The departments have been divided based on the
departments work inl.p.nO.nily or in unison, as the need may be' The departments are as follows:

Design & Engineering ConsultancY


Facilities Management
Project Management
n Construction Management
Except for Design & Engineering Consultancy,
all the departments are headed by a Managing
portfolio of the organization' has 11 Ieadersf'or the 1L
Director. Design a rnqine;rinq,.oelnq the key
wings, divided on ffre basis oi.ihe work they
do' Some importint wings are Airport Development'
64
Study on working and reorganization of CP\ /D

Structural Desiqn, lnfrastructu re, etc.

4.5 Malaysia - Public Works Department of Malaysia


Malaysian .Govern ment
Kementarian Ker.ia Raya (or The t\4inistry of works) is a t\4inistry under the
the construction of roads
responsible for infrastiucture development. lt is primarily responsible for
and inoustrial infrastructure development within the state of Malaysia. lt is led by a Minister
pioneer in the
.pp"i.i"J ov the prime Minister of tvtalaysia and envisions to be'the organization in the global
Oluutopr"ni of infrastructure and spur industrial development to be more competitive
market'.
Key Objectives
the quality of life
Provide federal road network that can develop economy and enhance
EnsurethatthedevelopmentofindustrialprojectsinonschedUle,monitorthecost&
specifications and ensure high quality work is done
Providetheconstructionindustrywithanenvironmentandprofessionalservicesthatis
growth and international competitiveness
conducive in order to contribute io industrial
industry
Build and strengthen the entrepreneurs in the construction

Ministry of Works:
Following are the key departments that lie under the
Public Works DePartment
Construction lndustry Development Board
MalaYsian HighwaY AuthoritY

Public Works Department - Malaysia


ThePublicWorksDepartmentofMalaysia,PWD(Malaysia)worksundertheaegisofMinistryofWorks
Malaysia. They are primarily responsible for:
design and construction of infrastructure
Planning, design & construction of Planning'
ventures ,r.n u, ,o.ltl' no"trnment build-ings'
iirports' harbours' piers and related
engineering works'
government buildings; and
Malntenance of roads and selected
Government' as well as states and district
Technical advisory services to the Federal

Organization Structure of PWD' Malaysia


Pub|icWorksDepartment,MalaysiaisleadedbyaChief.DirectorofPublicWorks,assistedbythree the
Deputy chief Director of P'bli;il;;k;'
;;;iniiiration of the P;blic works Department isobscures
that it is a
structure
whole country except for , |.lqi";;.
i;" k;y-aspect ot their orqanization been separated and have
nir fi'" xey ,functioni have
completely functional or.qtn''5lo'nu'r''i'*i"L' have been listed as follows:
their own organization t""t' inJ'xtv
t'nctions

lnfrastructure
Buildings
Technical ConsultancY
Strategic Planning & lnnovation
Khas Provlnce Management

65
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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:

Vision for change


t:l
hi
l-l
a
,g\
r--I---'I
E
rgig
Butlnell procell Org restructuring & C.p.city building of
lmproYCmant cadrr management in-house resources
Figurc 23: Dive/s tor change

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

Process lmprovement org restructurlng lnfrastructure facllity


Proccss rcvicw M.lnt.in St.tus ot CWPD Up qr.d.tion ot
1 phytic.l
R.d.tlnitlon ol tn. tocur o, CPt{D inlra3tructura
2 Work! M.nu.l r.craation
3 Oitl.r.nti.t.d .nd r.vir.d 5oP3 Crc.tlng rap.rata structuro tor Proiactr

D.l.g.tlon ot tln.ncl.l pow.r3 Gradual outrourclng ol Mrlntanrnc.


4 linked to proirqt cort Activity
R.ductlon ln lrvtl ol hl.r.rchl.t
5 Battar Contrrct managamtnt
Lorrrlng Ehctrlc.l/ civil common
command rlviGw tor malntanan€a
6 Enh.nclng cll.nt .ccount.blllty
Aliqnmtnt o, olficcrr lrom ArchitGct &
7 B.tt.r Fund tlow m.n.9.m.nt Hortlcultur. c.dr..

lnt.grrt.d lT !...d Proj.ct D.lrg.tion ot pow.E to DG (CPWD)


M.nrg.m.nt Syrt m (PMS)
DG srlrctlon lrom ! ptnrl ot.ll0lblc crndld.t..
Brlng ln .ddltlon.l focus on som. kry tunclions
lnt.nrlv. initiatlva on traihing I d.v.lopm.nt
acro!i lavels / lunction3
Figure 24: List of detailed Recommendations

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

5.2.1 Works Manual 2.0


Key problem/ opportunity:

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.

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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:

Review the current Man ual

Study the processes followed for execution of projects

Undertake stakeholder consultation

Undertake study of globat examples

Define the new structure for N4anual and seek wider approval on the same

Draft the new f,4anual

For this task the activities to be undertaken by CPWD are as follows:

Appointment of a committee with representation from internal staff and external experts

Draft and finalize the ToR for selection of consultants

Undertake the Bid Process Management for appointment of consultant

Review and oversee the work of consultant

Organize workshops for discussion on N4anual, inviting people from the field and relevant
ministries

Get approvals and publish the Manual

Organize trainings for staff

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

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Study on working and reorganizaiion of CPWD

5.2.2 Differentiated & revised SOPs


Key problem/ opportunity:

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:

a. Single format of work execution irrespective of types and scale

b. SOPs fail to address change in trends of technologies, materials and implementation


processes (mode of execution).

c. SOPS are not comprehensive in that they leave out steps to be followed in case of several
contingencies.

The same have been detailed in the'Challenqes'section above.

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

b) SOP5 would be in line with the changing market trends of processes

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.

The indicative list of activities to be undertaken by the consultant are as follows:

Review the cuTrent processes followed for execution of projects

Study the teams involved in each stages of the process as well as individual responsibility
share in reqards to execution

Study of legal frameworks which regulate public works execution

Undertake case studies of SOPs used in the construction industry

Define the new structure for SOPS which vary as per project cost and mode of execution

Draft the new SOPs

Stakeholder consultation

For this task the activities to be undertaken by cPwD are as


follows:

Appointment of a committee with representation from internal


staff and external experts for

70
Study on workiog and reorganization of CP!,/t/D

revising the SOPs as a part of the N4anual revision

Draft and finalize the TOR for selection of consultants

Undertake the Bid Process Management for appointment of consultant

Review and oversee the work of consultant

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

Organize trainings for staff

5.2.3 Delegation of financial powers linked to project cost


Key problem/ opportunity:

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.

The indicative list of activities to be undertaken by the consultant are as follows:

Review the current financial delegation plan


powers to
Study the rules of GFR and other documents regulating delegation of financial
government officials
they
Study of projects in terms of scales and officials involved along with the responsibilities
' are given

Definethenewbasisofdefiningthepowersi.e.projectcost,hierarchy,etc.
Draft the new list of deleqated financial powers

ForthistasktheactivitiestobeundertakenbycPWDareasfollows:
Appolnted,WorksManUalReViewingCommittee,Shallreviewandreviseoffinancialpowers

" Draft and finalize the TOR for selection of consultants

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Study on working and reorganization of CPWD

Undertake the Bid Process Management for appointment of consultant

Review and oversee the work of consultant

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

5.2.4 Ensuring client accountability


Key problem/ opportunitY:

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. Appointment of private consultants at any stage of the project

A
b. Encumbrance free site is not made available

c. Refusal to continue execution of project midway without assigning reasons

d. Timely and sometimes total non-payment of dues

e. Change of exPectation

f. Ref usal to takeover completed assets


The same have been detailed in the 'Challenges'section above'

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:

a. Accountability on part of the client towards the project.

b. Limiting pro.iect delays due to the fault of the client.

c. Lower rate of projects going to arbitration.

I m ptem ent at ion a pproac h:

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

For this task the activities to be undertaken by cPWD are as follows:

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

Review and oversee the work of consultant and portal developers


'\ Organize workshops for discussion inviting representatives of various stakeholder groups

Get approvals and publish the standard MoU formats

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

5.2.5 Fund flow management


Key problem/ opportunitY:

Some of the key problems related to fund flow management are as under:

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Study oo workjng and reorganization of CPWD

a. lnconsistent fund flow, especially for Budgetary works

b. No control over fund flow even post-sanctioning

c. No charge for preliminary design & planning


The same have been detailed in the'Challenges'section above.

Recommendation:

Since efficient execution of proiects is largely dependent on the fund flow, the followinq suqqestions
would ensu re the same:

a. lT based expenditure management: Payment scheduling, billing and transactions should be


done over an e-portal designed for expenditure management. The same is also currently
being planned for but would have to be reviewed for its comprehensiveness and integration
with other existing lT portals.

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.

c. Enabling Estimate to be charged mandatorily: Concept of Enabling Estimate should be


enforced mandatorily for all projects as mentioned in recommendation'Works N4anual 2.0'
a bove.

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.

I mple m e nt at ion app roach:

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.

The indicative list of activities to be undertaken by the consultant are as follows:

Define projects as large or small based on the scale of pro.iects considering all mode of
e xecutio n

Define the usage pattern for the Escrow Accounts

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

For this task the activities to be undertaken by CPWD are as follows:

Hold discussions with CCA and other ministerial representatives to review the feasibility of
these

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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

mandated in the same order.

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

Get approvals and publish the standard MoU formats

References.'

ReportbyEconomicsReformsCommission:BUdgetarycontrolandaccountingsYstemneedstobere-
desiqned and strengthened usinq computers

Report by Nitin Gadkari Committee: Funding in phasesin an Escrow account


process with the flow of cash
Report by Nitin Gadkari committee: synchronising the budgetarY

5.2.5lntegrated lT based Enterprise Resource Planning (ERP) system


Key problem/ opPortunitY:

Some of the key problems related to fund flow management aTe


as under:

a. Disintegrated existing lT portals


b. No enforcement through lT
c. Need for additional lT modules related to proiect management
The same have been detailed in the'Challenqes'section above'

Recommendation:

The following recommendations would address the above mentioned


challenges of the lT

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

Fun ct ia n -.e nt ri c to P roj e ct'ce nt ric

LB'

.2.- .

t-l t'l
1i
I
'".:i:' "

Figure 25: Approach for BPR lmprovement

aternal Stateholders lnternalStakeholders

CPWD HO

"rru
1't;-

o
@' Oih., CPWD tl.P..lm.nt.

,H

Dala vr'auld be stared ds e;lhe. r/nked to d Con structlon ot a l'latnten3nce pra)ecl-

Figure 26: ERP potlal conceqt

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:

i. Monitoring and management module with automated measurement books,


Works Manual, estimate developers and digital schedule of rates and
specifications '
ii. Personnel lnformation Management System for all CPWD employee details
including promotions, transfers, ACRs, leaves, etc.

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.

v. Knowledge Management system for record keeping of organizational and


research data, knowledge and experience sharing platform and as an extension
of the project management system (with customized report generators etc.)

vi. Expenditure Management System for all fund flow management issues

An illustrative process flowchart of the revised process has been attempted below:

77
( ( ( (( (( (( ( ( ( (( (( (( (
( ( ( ( (

Study on working and reorganization of CPWD

lllust rative: Re vised Sta ndard Operatin g proced ure (SO p)

$ite suruey plan, geo- DPR prepared &


technlcal survq/s and uploaded
f easibility reports (if
regu ired) prep ared &
uploaded PE prepared and
uploaded Detalled Drawlngs
& Estimate
prepiled &
uploaded

Handing over site


& 'Good for
construct ion,
Apply for
approvals

Send requisition
along with
performa &
Enabling Estimate

Comptetion
certificate issued
+ security depos it
released

Filling of e-
measurement books
along with blll
submisslon

Figure 27: lllustrative - Revised SOp

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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.

c. Dashboards: Since the implementation of an Enterprise wide system is a long term


endeavour, as a short term measure, dashboards may be developed that will keep track of
the CPWD progress against targets and set KPls.

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

s Steps of the existing process # Steps of the proposed process


1 Sending requisition letter 1 Submission of requisition along with filled
2 Receiving and forwarding in proforma and Enabling Estimate
requisition letter
3 Requisition letter received by
architecture wing
4 Proforma sent to client
5 Proforma received and completed
by client
6 Vetting and reviewing of Performa 2 Architecture and Engineering wing team
bv competent authoritv assignment
7 Filled proforma forwarded to
Architecture winq
8 Forwarded proforma sent to and
received bv Enqineerinq winq
9 Site survey plan, geotechnical 3 Site survey plan, geotechnical survey and
survey and feasibility report to be feasibility report to be prepared and
orepared uploaded
b. Ensuring transparency in the system

c. Efficient and collaborative knowledge/experience sharing and processing set up

d. Ensuring correct assessment of the workload and resource distribution

I m ple m entation approach:


We recommend outsourcing a Business Process Re-engineering (BPR) study to an independent
third party consultant who would carry out a detailed exercise for redesigning the current
functioning of CPWD. We recommend this approach over directly going for an off'the-shelf ERP as
the latter would simply be an automation exercise and will not help in streamlining the existing
processes and minimizing redundancies. We estimate a time period of 12-18 months to launch the
proposed ERP platform.

The indicative list of activities to be undertaken by the consuttant are as follows:

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

v Business Process Reengineerinq (BPR)

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 Define the lT architecture, including all recommended key features of the


system,

along with feasibility and efficiency assessment and forecasts


. Help in appointment of a full-time IT team to ensure uninterrupted service
of the
o
porta I

\,. ERP system

o Design the new ERP portal along with a review and up-gradation
plan

o Conduct trials before final approval of the portal

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

Get necessarY aPProva ls


\- Launch the ERP along with a short training explaining its functions
v Scheduled training to the staff to ensure ease of use

\7 References:

\, Report by Nitin Gadkari committee: Developing a Comprehensive Project Management lnformation


SYstem
\7 Report by Nitin cadkari committee: Estab/ishment o f a Knowtedge Manaqement system
v Report by Nitin Gadkari Committee: Ensure better customer interface and service deliverY
v Report by Economics Reforms Comm ission: Budqetary control and accounting system needs to be re-
designed and strenqthened using computers

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.

5.2.7 Maintain status of CPWD


Background:
groups and other
CPWD is currently an attached office of the MouD. At different stages, employee
position of
stakeholders have perceived and discussed multiple options for structural nature and
CPWD as, among others,

a) A Corporate / PSU like NBcC;


b) A board like the Railway Board;
c) A regulators/ authoritY;
d) No change
Key problem/ opportunitY:
What is the best positioning of CPWD in the overall context to enable efficiency/ quality/ better client
service/ autonomy/ accountability and long term success?
Recommended Solution:
considering the pros and cons of each of the structural options above (refer to Annexure 4
for compaiative analysis), the objectives of efficiency/ quality/ better client service/
autonomy/ accountability and long term success are best achieved by retaining the current
setting ( as an attached office of the MouD) and implementing other structural changes.
For the analysis of most appropriate positioning of cPWD, PSU structures (like NBCC), board
structures (iixe the Railway Board- Annexure 2), ob.iectives and structures of a regulator/
authority (like the Rail Development Authority- Annexure 3) were studied'
Potential gains:
Achieving the goals of efficiency/ quality/ better client service/ autonomy/ accountability and long
term success with minimal resistance
lmplementation approach:
Stakeholder based approach by involving key stakeholders
References:
Annexure 4 - Placement Options for CPWD

5.2.8 Redefinition of the focus of CPWD


Background:
Over its 154 year history, CPWD has been called up and has undertaken several kinds of work. Today,
the context has cha nged.
Key problem/ opportunity:
There is a need to have a shared understanding of what the organisation stands for in the current
c o n text.

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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;

Once agreed, the organisation purpose could be communicated organisation wide

5.2.9 Creating a Separate Structure for Projects


Background:
Construction of Projects is a separate activity from maintenance and small works. The former calls
\! for competencies like project management, technicalskills, team/ time / contract/ cost management
among other things. The latter has a stronger importance of customer service/ interpersonal skills.
ln the current system. with the exception of PM/ CPM structure for large projects, the geographical
structure manages both maintenance and projects.
Key problem/ opportunity:
v This creates a situation of the same officers/ teams/ offices having to focus on both proiects as well
as maintenance. lt also creates neqative perception from one activity affecting the perception about
the team's ability to take up the other activity. This also encourages development of generic skills
rather than specialized proiect management or maintenance management skills.
Recommended Solution:
Creating a flexible, separate, self-sufficient and lean structure for large projects ( From >50
Cr and increasingly reducinq the size) for the duration of the proiect

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

82
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)

5.2.10 Gradual outsourcing of Maintenance activity


Bac kgrou nd:

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.

Key problem/ opportunity:

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.

ls there a smait solution to managing maintenance activities, efficiently with accountability?


v. Study on working and reorganization of CPWD

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)

o Pre agreed time frame- say 3 years

It js expected that

o Beneficiary satisfaction will be higher


!- o The outsourcee agency will bring in efficient work methods and technologies

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

Contracting a rra nqement

ldentification of 2 -3 competent and reputed agencies to whom maintenance work can be


outsourced

Evaluation of performance and price benchmarking


\r,,
Roll-out of the pilot plan and continuous moniioring

lmproving the outsourcing plan and gradual roll-out for more / larger units

5.2.11 Reduction in level of hierarchies


\- Background:
The decision / reporting hierarchy is currently tall. Between the JE and DG, there are 6levels. Above
the executing building block i.e. division headed by an EE, there are still 5 levels.
There is also a 'passing the buck'tendency in large chain approach in many cases without the officers
taking the responsibility.
For the maintenance/ geographical structure (other than CPt\4/ PM led project structure and HQ or
other unit office functions), the following is the current structure

84
Study on working and reoiganization of CPWD

Table 10: Current Structure in CPWD

Level (Actual/ sanctioned) Unit Number of units (Approx.)


DG (1) CPWD 1
sDG (6) + 1 Reqion 5
ADG (15) Sub-region 9
cE (67) Zone 50
SE (182) Circle -160
EE(667= 44O + 22O) Division -400
AE (Civil 1768/2200 + Electrical Sub- Division - 1100
638/890)
JE (Civil 7570 /2200 + Electrical Sections - 2000
v 7331890)
AEE (Civil 95/lO2 + Electrical 25127). Numbers are other than CPWD. Numbers are approximate
v and indicative.
Key problem/ opportunity:
V
This creates a situation of few working levels and large number of supervisor levels. This also leads
to slower decision making and distributed accountability leading to delays and impacts quality.
Recommended Solution:
Reducing the number of reporting levels for quick decision making and execution
Phase 1: No inter-reporting between SDG and ADG (No sub-regions)
Phase 2: No inter-reporting between SE and EE (No Circles)

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

Current Phase 1 Phase 2


DG (CPWD) DG (CPWD) DG (CPWD)
\,, SDG (Reqion) SDG/ ADG (Region) SDG/ ADG (Reqion)
ADG (Sub-reqion)
CE (Zone) ADG/CE (Zone) ADG/CE (Zone)
SE (Circle) SE (Circle)
EE (Division) EE (Division) SE/EE (Division)
AE (Sub- Division) AE (Sub- Division) AE (Sub- Division)
JE (Sections) JE (Sections) JE (Sections)

It is proposed to keep the project structure with skip levels and as per the size
Table 12: Recommended structure for Projects

Project Structure: larqe Proiect Structure: Medium Proiect Structure: Small


ADG
CE
SE
EE SE/EE
AE /AEE AE /AEE AE /AEE

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

5.2.12 Lowering Electrical / Civil Common command for maintenance


Background:
v Currently, the common command is at the level of CE (zonal level)

_ Key problem/ opportunity:


The current command structure leads to duplication of units below the level of CE.
v
Recommended Solution:
v- lf the command is lowered to SE in the first phase and to EE level in the next phase with necessary
cross-training, the need for separate Electrical circles and divisions will not be there
Potential gains:
The clients/ GPRA residents or GPOA occupants will need to work with one interface rather
than two in their Circles and Divisions.
lnter-functional co-ordination shall be better between the electrical and civil teams.
\7 There will be no need for separate Electrical Circles and divisions
Partially address the issue shortage of officers vis-a-vis sanctioned strength/ requirement
-
lmplementation approach:
v
o Detail the exact procedural modif ications required post changes
v . Start with a region and mature the approach
\7 . lmplement in other regions

v . On- the- job Cross- functionaltraining will be required for SEs and EEs

86
\-- Study on working and reorganization of CPWD

v s.2.13Alignment of officers from Architecture cadre


\7 Background:
most architecture
Chief Architects in regions do not have any reporting relationship with the senior
v off icer - Head (Arch). Further, Sr. Architects /Architect work at the zonal level. Architects integration
in the projects also is not consistent'
Y
Key problem/ opportunitY:
v Currenily, the full potential of architect's competence is not leveraged.

v Recommended Solution:
Chief Architects in regions may have a dotted line functional reporting
to ADG (Arch) with
ACR inputs sought from ADG (Arch)

Chief Architect/ Sr. Architects /Architect ( depending on


project size) may be attached in
(Arch)
projects with reporting to the CPM/ PM and a dotted line f unctional reporting to ADG
ADG (Arch) to be enabled to contribute to management of the repository of drawings/
designs
t"t"tt'1;:llrlnt"qrution
: and reverase or the architecture runction

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

5.2.15 Bring in additional focus on some key functions


Backqround:
Some of the important core and enabling functions need to be strengthened at CPWD for greater
effectiveness and efficiency in the organisation.
Key problem/ opPortunitY:
There is a need to provide additional focus to some of the functions.
Recommended Solution:
Core functions to be constituted/ strengthened at the HO level with execution capability/
representation in regions and in projects
lntegrated HRM (Training, Transfer, posting, PN4S, Rewards and recognition)
pR and BD (only HQ)

Lega I (execution through empanelment)


!'z Technical Services (QA; KM- to be outsourced; New technology/ R&D- interface with R&D
organisations like CRRI, CBRI, Advisory; Works manual, schedules of rates, model designs
and work methods)
\- lT as a backbone for HR/projects/KM/ performance tracking (To be outsourced)

Design, planning and approvals/ Clearances


Customer Service (Not required in projects)
Vendor management (Vendor registration, development, rating, Vendor feedback)
v Potential gains:
This provides the organisation with all the necessary functions and capabilities to be able to deliver
on its ma ndate
lmplementation approach:
Some of the functions may not have internal people capabilities with relevant experience and will call
for appropriate external contract hiring or outsourcing
References:
. Secflon 4- Study of Leadinq Practices: Malaysia - Malaysia works has a functional
o rg a ni z at io na I st r uctu r e

. Section 4 - Studv of Leading Practices: NBCC

5.2.16 Training and Development initiatives across levels and functions


'v Key Problem / opportunity:
Lack of adequate exposure and training has resulted in stagnation of knowledge of many of the CPWD
technical personnel. This is preventinq innovation in the construction technoloqy and systems and in

88
Study on working and reorganizalibn of CPWD

effectively dealing with cost and time oveT-TUns in new projects.


Recommendation:
Systemic efforts for overall Training and Development
On - the - iob training in basics of Civil/ Electricaland Architecture area for a I AEs/ EEs/SEs/
CEs & exposure visits/ trainings at all levels;

Trainings at specialised orqanisations and academic institutes;


To facilitate proper training and building capacity, the head of the training institute should
report to DG CPWD
Mandatory trainings for mid/senior level promotions
Potential gains:
lm Proved em Ployee Performance

CaPacitY building

Enhancement in reputation and profile of CPWD


lncreased job satisfaction and morale among employees
Facilitatinq lowering the command from CE to SE level and subsequently to EE level

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

5.2.1 7 Miscellaneous process related recommendations


Key problem/ opportunitY:

a. Lack of physical lT assets

b. Low dependency on latest design & engineering software

c. Lack of regular revision of Specifications and Schedule of Rates

d. lnadeq uate vendor management

The same have been detailed in the'Challenges'section above.

Recommendation:

The key recommendations are as follows:

a. Up-gradatlon of physical infrastructure: There needs to be an up-gradation in physical


infrastructure across all CPWD offices, especial y at vulnerable locations. Assets including
computers, printers, software's etc. need to be made available. This will enable CPWD's shift
to lT dependent platf orms.
\v b. Regularized capacity building endeavours: Capacity building programmes are required to
train CPWD emplovees in the latest software as well as handling of physical assets such as

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.

b. Enhanced client engagement and enhanced probability of meeting client expectation

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

Review and incorporate changes in empanelment after scrutiny, enlistment rules,


contractor's project bank, in to the Vendor [4anagement System on a bi-annual basis. 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-

5.2.18 Miscellaneous restructuring related recommendations


1 Broader pool of candidates for selection for the post of DG / DG selection from a panel of
eligible candidates
Selection from a wider pool of 5 eligible candidates, including eligible and senior most SDGs/
ADGS with a criteria of minimum one year of service; Selection committee could include
lvlouD/ DoPT/ current DG and selection could be based on certain pre-defined criteria. All
officers at seniority more than the promoted officer will carry the next pay scale and
designation in the earlier role
2 lT based Vendor/ Contractor management system for quality and commitment:
There is a need to set up a vendor management function at regional, projects and He level.
This will cover projects and maintenance (through rate contract for a longer term period);
Punitive clauses should be included in contracts for wrong MB entries, over invoicing and
long term oA issues wiih personal liabirity of the companies, directors and impait on
contractor rating.
(Currently all accountability and fear of Vigilance is with CPWD officers and contractors go
scot free). This system The Vendor/ Contractor management function should be lT enabled.
3 Performance and Continuity
Review of ACR system: Bringing transparency and accountability in the performance of
officers every year starting with the level of cE and above (and for all project Heads at the
level of SEs) where their performance in the area of maintenance and construction is publicly
available at the end of each year. All officers on projects to have a minimum tenure of 2
years/ completion and the promoted officer will carry the next pay scale and designation in
the earlier role
4 Horticulturefunction
Currently the 182 officers and approximately 3000 work charge staff are deployed in
different regions. One of the Dy. Directors with 2-3 ADs may be brought in the He level
Planning, design and Architecture cell under an ADG, ADG (Arch) for technical advice on
Planning, design and Architecture
5 Simplifying designations to reflect easily understandable meaning of their role for general
public
6 Employee recognition, engagement and motivation
Current vicious cycle of negativity (from fear of vigilance, delayed promotions and tit|e
recognition or-appreciation needs to be replaced by a virtuous cycle that includes
recognition, welfare programmes (Yoga, meditation, counselling, senior officer interactions
etc.)

91
Study on working and reorganization of CPWD

6 Proposed Organisation Structure


Director General(DG)
!
o
{
!
o

o
o
o ,s
Rcaions Projects

Director General (DG)


I
e I
=-
5
vt -t : l-l l-t l-l I t-l i t.t : I'l ,: t-t r l-l t-t t-l t-l
\- to t-l
ADG IOO
! s00/ADo / ADG aoo SOO/AOC SDC/ADG SDG/AOG sDo/ADG SDO/ADC SDG/ADG SDG/ADC AOO sDc/ADG noo
(East) (wcst) (South) (Prciects). (ProiEt 1) erolct 2) (ProFt 3) (HR) (V.ndor
SDC
A (North) (Drlhl (BD/ PR) (Leenr) g1L1-1r] (tT)
o rls*q.n*nt) Serylces)
L
o_
Region)
L_J l-l
srufl & Lirge Proiacts
lledlum
Proiects

Figure 28: Proposed broad Organization Structurc

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,."

Figure 29: Proposed Regional Organization set up

ADG (Architecture/ planning/


Drawings Repository )
-l
I

L:I ffi fr"il


Chief Chief Chief
Engineer Engineer (Horticulture) Architect
(Electrical) (Civil)

Figure 30: Proposed Organization sef up - Architecture Cadre


\,,

92
( ( ( ( ( (. ( ( ( ( ((( ( ( ( (. ( ( ( ( ( ( ((((((((((

Study on worklng and reorganization of CPWD

7 lmplementation and Way Forward


These are some of the initiatives which can be carried out at CPWD over the next few months. These will enable bringing in more efficiency in the
organization.

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

Figure 31: lmplementation Roadmap

o2
( (((( (( ((((((((((((( ((( (( (( (

Study on working and r€organization ot CP\A/D

8 Annexure
Annexure 1 - Current Organlzatlon Structure of CPWD

Figure 32 : Organization Chad of CPWD

OrrGctoa Oarl.ral

L-IL I

Ol ftrd €.rFr ti.i. rrE 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

Annexure 2 ' Detailed review of sample proiects

The details of the case studies discussed above are as follows

a) Additional office complex for Supreme Court


# Parameters lnformation Remarks

Project details:

1 Name of project Additional office complex for Supreme Court of lndia

2 Client Supreme Court of lndia

3 Current status Work in progress (70% completed) and delayed by


24 months

4 Project cost 884.3 Crores

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.

2 PD & PE submission date 05.10.2011

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.

4 Funds received date (first September 2012


instalment)

5 DE submission date 05.10.2011

6 Technical sanction date 24.07.2012 For the f irst package only.

o^
{ ( ( { ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( t ( ( ( ( ( ( ( ( ( ( (

Study on working and reorganization of CPWD

# Parameters lnf ormation Remarks

7 Receipt of all approvals November 2012

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

Package 5 and 6 (Finishing and horticulture) -


Estimate being prepared

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

10 Construction starts October 2012

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

2 Total no. of people L7 Architecture was outso urced to consu/tanfs


involved throughout the
CPM - 1, PM (C) - 1, PM (E) - 1,
project
EE (C) - 3, EE (E) - 1, AEE and AE (C) - 7, AEE and AE
(E)-3

96
( ( ( ( (( (( ( ( ( ( ( ( ( ( ( ( ( ( ( ( { ( ( ( ( ( ( ( ( ( < (.

Study on working and reorganization of CPWD

# Parameters lnf ormation Remarks

Outsourcing

1 What all services were . Consultancy services for comprehensive planning


outsourced through the and designing (Arch)
lif ecycle
. Data entry operators, steno-cum-PS to senior
of f ices

o MTS, inspection vehicle drivers, security guards


I

b) PNB Headquarter, Sector 10, Dwarka:

# Parameters lnformation Remarks

Project details:

1 Name of project PNB Headquarters

2 Client Punjab National Bank

3 Current Status Work in progress (98% completed) and


delayed by 36 months

4 Project cost INR 405.01 Crores

Project milestones:

1 Requisition date 13.01.2011 Consu/fanfs were hired just after requisition

2 PD & PE submission date 29.02.2072 Deliberations regarding desiqn approval took time

3 Sanctioning date 14.o5.2072


4 Funds received date (first May 2072

97
< ( ( ( ( ((( ( ( (( ( (( ( ( ( (( ( (( (((( ((((( ( (
Study on working and reorganizatlon of CPWD

# Parameters lnf ormation Remarks

instalment)

5 DE submission date 05.10.2011


Technical sanction date Three level basement - Feb 2012 Basement work was separately sfarfed even before receiving
sancfions anticipating that internal approvals of drawings wiil be
Superstructure including all services -
easy available
September 2013

Water supply and sewerage connection -


July 2016
Lighting fixtures - august 2016

Furniture - November 20 16

lnterior finishes of some specific areas -


May 2017

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

Lighting fixtures - September 2016 till


date

98
i
( (( ((((( (( (( ((( ( ( ( ( ( ( { ( (((( ( ( (( ( ( (

Study on working and reorganization of CPWD

# Parameters lnf ormation Remarks

Furniture - January 2017 till date

lnterior f inishes of some specif ic areas -


November 2016 till date

Horticulture - December 2016 till date

9 Handing over site/ drawings December 2Ot2 for basement


ready for construction
August 2074(tor super structure)

10 Construction starts December 20L2 ior basement

August 20t4 (for super structure)

11 Completion certificate issued To be received by July-August 2017

Project team
1 Project mode (Y/N) Yes

2 Total no. of people involved 15 Architecture was oufso urced to consu/fanfs


throughout the project -
cPM 1,

EE (C) - 2, EE (E) - 1, AEE and AE (C) - 4,


AEE and AE (E) - 1, Clerical staff - 6

Outsourcing

1 What all services were a Architectural services


outsourced through the
a DPR preparation
lif ecycle

c) Residential quarters for AIIMS:

oo
( ({ ((( (( ( ( (( ( (((( ( (((( ( 1(( (( ( ( ( ( ( (

Study on working and reorganization of CPWD

s Parameters lnformation Remarks

Project details:

1 Name of project Residential quarters for AIIMS

2 Client All lndia lnstitute of Medical Science

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

27 .72.2Ot3 - after 5th revision of scope of work


consultancy seryices
which was essentially a design idea which was The ctient reyised fhe scope of work almost 5 fjmes in 7 years
scrapped earlier and then re-submitted the sanction after another 2 years

3 Sanctioning date 26.09.2006 - as per first scope -do'

13.05.15 - after 5th revision of scope of work which


was essentially a design idea which was scrapped
earlier

4 Funds received date (f irst Not received


instalment)

5 DE submission date October 2008 -do-

6 Technical sanction date 13.05.15 - after f ifth revision -do-

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
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Study on working and reorganization of CPWD

# Parameters lnformation Remarks

work f rom clients end

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

1 What all services were Architectural Services


outsourced through the
lif ecycle

101
( ( ( ((((( (( (((( ( (( ( (( ((( <(((( ((( ( ( (
Study on working and reorganization of CPWD

Annexure 3 - MES Sanctioned Strength


Table 13: MES Sanclloned Strength

S No. Cadre level Sanctioned Strength Cadre Total

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

Study on working and reorganization of CPWD

level Sanctioned Strength Cadre Total


S No. Cadre
2105

3 Architect cadre
6

SA 42

Architect 66

DA 22

Technical Officer 325


AA 66

Sr. Draughtsman 381

Draughtsman 1349
Tracer 374
Ferro Printers 433
3004

BSO cadre (Barrack


4 and Stores Officers)
Principal BSO 2

Sr. BSO 78

BSO 212

Supervisor BS-ll 1203

Supervisor BS-l 351

Storekeeper-l I 336
Storekeeper-l 416

103
, i:,
1( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( I ( I ( ( ( | 4 t ( ( ( | ( ( ( (

Sludy on wotking and reoEanizstion of CP$/O

level Sanctioned Strength Cadre Total


S No. Cadre
Meter Reader 69
2667

5 Admin cadre I

Principal AO 2

Sr AO 77

I A0-l 35

Office Superintendent 749

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

Sr. Mechanic -l (HVAC) 730

Carpenter- | 509

Fitter- | 574

104
r t ( (( (( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
\\\

Study on working and reorganization of CPWD

S No. Cadre level Sanctioned Strength Cadre Total

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

I Mechanic (Ref) 3160


Elect ric ia n 7469
Mecha nist 57
Carpenter 2200
Fitter 2492
Blacksmith 153
Mason 7259
Painter 1048
Lift Mechanic 20

105
(((((( (( (<(((((((((((( ((<( ((((((((
Study on working and reorganization of CPWD

S No. Cadre level Sanctioned Strength Cadre Total

Welder 727
Boiler attendant 34
Moulder 3B

Pump House Operator 8388


Upholsterer 251
Packer 20

Diesel mechanic (C&l) 358


i Tradesmen mate 37689
Master Craftsman 794
7349t
8 Non lndustrial cadre
Jr. Chowkidar 12699
Civilian Motor Driver 7392
Civilian Motor Driver - | 7392
Civilian Motor Driver - ll 7623
Civilian Motor Driver - Spl 232
Khansama Chowkidar t4L
Saf aiwala B

L7487
Grand Total 110935

106
( ( (( (( ( ( (((( ( ( (( (( ( ((( (( (( ((( (( (

Study on lvo*ing and €oqanization of CP\ /D

Annexure 4 - lllustration: working ot a Board (Rallway Board)

Figue 33: Oeanizalion Chaft of RDA

O RGAN ISATION STRUCTURE


R(jANISATION S-'RUCTURE

zota L t rLuraYS OTHTT UXITE mtftrmrai,


(oPE t LIit) cotTor tlda

t;I
E c.

GEttctat xlflaGCts G€NEN,AI I'ANAGET,S GI'{tllt }IAXAGETS


E_ SEIII^uNJN
rocoilorryE wotxs
;ENIIA OTSATISATIOT FgR
latlwav fl.fcTrtilc tto]{
ErsrEtri
EAST CENTRAL It t ILwlY (COrliTRUCrIOr'al II corror
rra- I

f, sT colsr DITSCL LOCONOTIVE


I crrr
I

(llt
XETRO
NOI'HER.H
9roRt(s ano
Ilncml
orccrr"
I

ccilTtat otcMrSrTloi fot


xotrH cEtlttal
rORTH EASTERI
Loottrattattoi of wotxtaoTt
rxDr ra LAttwaY Paorfcr
IImcI
rrcrc I

llonrHEAsr .AII. ulActttrt uxrt (nrxo,


t{ottt{ wEsTERx
COACH TACTOTV
]llDlrltall. lvc[€lxtlltlor I rrcr I

sourHEmt IAII WXECI FACTOTY rol ltTEtitrt fuclS tloatt lxrcl


a
IrcLl
AOUI}I CEilINAL
SOUI}I EASTERN
clo (t)' I rrr:r
InorI I

SOUTH EAST CEilTtrAL


IOUTH WESTERII DIESEL I-OCO
t{oo€tiilsr.TIoil DlrECrOi Gf,Itftl.t- I lI-
wEsrEtt{
WEST CENTN L tYoRr(s
oPFtco GE'lEtaL raln/lctl
L'*__]

107
( ( ( (( ( (( (.( ((( (( ( ( ( ( ( ( (( ( (( (((((( ( (

Study on working and reorganization of'CPWD

Addl- 6errEral lrlanager

Conrtrucl lor

Public Rslrtionl

108
( ( ( ((( (( ( ( (((( ( ((( (t( (( ((( ((( (( (((
Sludy on $/ofiing and llorganlzalion of CPWD

Rall Development Authority (RDA) - Oblectlves of setting a Rall Requlator:


An independent Rail Regulator wlll help to achieve the following objecuves:
i. Pricing of servlces commensurate with costs
li. Sugqest measures for enhancement of Non Fare Revenue
. . iii. Protection of consumer interests, by ensurinq quality of service and cost optimization
iv. Promoting competition. efflclency and economy
v. Sncouraglng market development and participation of stakeholders ln the rail sector and for ensuring a fair deal to the stakeholders and customers
vl. Creatinq positive environment for investment
vii. Promoting efflcleit allocation of resources in the sector.
vill. Benchmarking of servlce standards agalnst international norms and specify and enforce standards with respect to the quatity, continuit\/
and
reliability of services provided by them.
ix. Providing framework for non-dlscriminatory open access to the Dedicated Frelght corridor (oFc) lnfrastructure and others in future.
x. Suqgesting measures to absorb new technologies for achieving desired efficiency and performance standards
xi. Suggesting measures for human resource development to achleve any of lts stated objectives

Composltlon oI Railway Development Authorlly:


It consists of a Chalrman who is responsible for overallfunctioning of RDA and three Members;
Member (Tarlff) shall be responsible for functlon pertaining tariff determination and track access charges;
Member (PPP) shall.be responsible for dealing with all issues of stakeholders lnvestments lncluding concession agreement; and
Member (Efficiency, standards & Benchmarkinq) shall be responsible for dealing with all issues of setting efficiency, performance standards,
and
benchmarking and information dissemination;

Functioo,s of RDA:. RDA will undertake the following functions:


1. Tarllf determlnatlon functions
2. Ensurlng lalr play'and level playiilg fleld for stakeholder lnvestmeni in Rallways: RoA shaI perform the following functions to ensure rever praying

109
( ( ( ( ( ( ( ( ( ( ( ( ( (
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (

Studyon wo,king and Eolganir€lion of CBIVD

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
( ( ( ( ( ( ( ( ( ( ( ( ( ( (' ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (

Study on working and reorganization of CPWD

Annexure 5'Comparative Analysis of CPWD Placement options


Table 14: Placement Options for CPWD

S No. Options for CPWD Pros Cons


1 A Corporate / PSU like Autonomy and delegation f rom the MOUD Creates an NBCC-Il
NBCC; Enables growth through projects based on CPWD currently also works on Projects/ works of national
commercial principles importance; technical advisor to the Govt. and f or national
standards/ price benchmarks/ specifications. These functions be
untenable for a PSU among many
Anticipated resistance from employees on losing a 'government' job
status
2 A board like the Railway Autonomy and accountability Normally the boards are set-up within a ministry where the works of
Board the board are for the concerned ministry only
I
No specific advantage over the'attached off ice'structure along wlth
the systemic change recommendations

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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