MANUAL FOR PROCUREMENT OF WORKS Second Edition, 2025 by Department of Expenditure, Ministry of Finance

MANUAL FOR PROCUREMENT OF WORKS Second Edition, 2025 by Department of Expenditure, Ministry of Finance

MANUAL FOR PROCUREMENT OF WORKS Second Edition, 2025

V. Vualnam I.A.S.
Secretary (Expenditure)

Government of India
Ministry of Finance
Department of Expenditure

FOREWORD
(Second Edition, 2025)

As part of the initiative to enhance ease of doing business, competition, value for money, transparency, fairness and good governance in public procurement, the Department of Expenditure, Ministry of Finance had released various Manuals for Procurement.

2. This Works Manual, Second Edition (2025) incorporates significant policy changes since its first edition in 2019 (updated in 2022) – resulting from stakeholder discussions, FT A dialogues, Covid policy responses, various studies and reports, amendments to the General Financial Rules (GFR) 2017, Delegation of Financial Powers Rules (DFPR) 2024, and new legislative developments such as the Mediation Act – as well as evolving practices in the procurement ecosystem.

3. The Works Manual is intended primarily for Ministries and Departments with limited inhouse engineering capacity, providing broad procedural guidance for small repair works up to ₹60 lakh, and for procurement of larger works through the agency of Public Works Organisations (PWO) or Public Works CPSEs. Major engineering organisations with established departmental procedures may continue to follow their approved frameworks.

4. I would like to acknowledge the dedicated efforts of the team led by Shri Chinmay Pundlikrao Gotmare (Joint Secretary), Shri Sanjay Aggarwal (ex-Advisor PPD) and comprising Shri Manish Bhatia (Director), Shri Anil Kumar (Deputy Secretary), Shri Praveen Kujur (Under Secretary), Shri Sudesh Kumar (Section Officer), Shri Girish Bhatnagar (Sr. Consultant) and Shri Vikram Rajvanshi (Procurement Specialist). I also extend my gratitude to Ministries, Department and other Organisations that reviewed drafts and provided valuable inputs.

5. It is hoped that this Manual will serve as a practical and dependable guide to all officers and organisations engaged in the procurement and execution of public works.

(V. Vualnam)

Date: 23.12.2025

Preface

1. Compliance: This Manual adheres to the relevant laws, General Financial Rules (GFR), and clarifications/ OMs issued by the Procurement Policy Division (PPD), Department of Expenditure (DoE), Ministry of Finance (‘the Ministry’) up to December 2025. In case of inconsistencies between this Manual and prevailing law or GFR, the extant law and GFR shall prevail. However, the provisions of this Manual shall prevail in case of discrepancies with the clarifications/ OMs issued till December 2025 by the Ministry. Procuring entities are advised to stay informed about any further changes in the relevant law, GFR, and clarifications/ OMs from the Ministry.

2. Interpretation:

a) Any mention of writing or written includes matter in digital communications (including email), manuscript, typewritten, lithographed, cyclostyled, photographed, or printed – under or over signature or seal or digitally acceptable authentication, as the case may be.

b) Words in the singular include the plural and vice-versa. Words importing the masculine gender shall be taken to include other genders. Words importing persons include any company or any association/ body of individuals/ companies and viceversa.

c) Any reference to any legal Act, Government Policies or orders shall be deemed to include all amendments to such instruments, from time to time, till date.

d) Sentences containing ‘may’ are to be considered desirable or good practices which procuring entities are encouraged to implement.

e) Sentences containing ‘should’/ ‘shall’ are required to be followed.

f) Sentences containing “allowed” indicate an optional course of action to be decided upon on merits.

3. Manual for Procurement of Goods as a Comprehensive Reference: The ‘Manual for Procurement of Goods, Second Edition, 2024’ is written to be a comprehensive reference. Other Manuals (Works, Consultancy, and Non-consultancy Services) are self-sufficient from the point of carrying out a procurement; however, common topics relevant for a deeper understanding of the fundamentals of procurement are included only in brief in these manuals, giving reference to relevant details in the ‘Manual for Procurement of Goods, Second Edition, 2024’.

4. Annexures: Voluminous details from various orders/ websites are relegated to annexures to maintain an uninterrupted flow of text on a topic. Since these orders/ websites undergo frequent revision, it would be easier to update the annexures than the body of the Manual.

5. An attempt has been made in this edition of Manuals to illustrate some topics with relevant examples.