(1) Notwithstanding anything contained elsewhere in this Regulation, a construction work or service related thereto the cost estimate of which does not exceed ten million rupees may be caused to be executed by or obtained from a users' committee or beneficiary community consisting only of the inhabitants residing in that place and from the community using such service.
(1a) The cost estimate not exceeding ten million rupees as referred to in sub-rule (1) shall include value added tax, overhead contingency amount and amount of portion of public participation.
(2) For the purpose of sub-rule (1), a public entity may invite proposals by publishing a public notice setting out the nature, quantity
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of the concerned work or service, required amount, amount to be borne by the users' committee or beneficiary community and other necessary matters or such committee or community itself may submit a proposal or application.
(3) Upon receipt of the proposal or application referred to in sub-rule (2), the concerned public entity and such users' committee or beneficiary community shall conclude a procurement contract in respect of such work or services, upon discussing, negotiating or visiting the construction site, as required. Such a contract shall contain the following matters:
(a) Nature, quantity, cost estimate of the construction work or services, the amount that the users' committee will bear or has to bear, period for completion of the work or services,
(a1) In the case of a work the cost estimate of which exceeds six million rupees, contribution to be made by the users' committee or beneficiary community to each work unit,
(b) Matter that the public entity shall carry out the work of preparing and approving the design and cost estimate of the concerned work, providing technical advice, carrying out measurement, final acceptance and providing other necessary technical assistance, supervision and quality control,
(c) Matter that the construction work or service shall be completed or made available with the
participation of the public entity and the users' committee or beneficiary community,
(d) Statement that the users' committee or beneficiary community shall operate or repair and maintain the completed construction work,
(e) Advance amount to be made by the public entity to the users' committee or beneficiary community,
(f) Conditions and mode of payment for the completed construction work or service, and
(g) Other necessary matters.
(4) In awarding the construction work or service to the users' committee or beneficiary community, payment shall be made only after deducting value added tax, overhead contingency amount and amount of portion of public participation specified in the cost- estimate referred to in clause (b) of sub-rule (3).
(5) Once the procurement contract is concluded pursuant to sub-rule (3), the public entity may give earlier advance payment not exceeding one third amount of the contract amount to such a committee or community. The public entity shall settle the advance so given before payment of the final installment.
(6) The users' committee or beneficiary community shall have the technical evaluation of the work, bills, receipts and other documents proving the expenditure of the work of each installment endorsed by its meeting and submit the same to the concerned public entity.
(7) The users' committee or beneficiary community shall post a notice in the public place of the expenditure made by it in each instalment, and have social audit of the acts and actions performed by it within such period and in accordance with such process as specified by the Public Procurement Monitoring Office.
(8) If the public entity is unable to provide technical assistance to the users' committee or beneficiary community for the concerned work, the committee or community itself may appoint technical human resource required for the work. The remuneration required to be paid to the technician so appointed shall be paid from the contingency deducted by the public entity. Provided that such remuneration shall not exceed three percent of the cost estimate.
(9) Heavy machines such as a loader, excavator, roller, dozer, grader, bitumen distributor and bitumen boiler cannot be used in the construction work to be executed by the users' committee or beneficiary community.
180Provided that if the work is so mentioned when the cost estimate was prepared as to be work of complex nature requiring the use of heavy machines, such machines may be used with the consent of the public entity, on recommendation of the concerned technician.
(9a) If it is found that any heavy machine has been used contrary to the proviso to sub-rule (9), the contract concluded with such a users' committee or beneficiary community shall be canceled.
(10) The users' committee or beneficiary community itself shall complete the work obtained by it and cannot cause such work to be executed by a construction entrepreneur or sub-contractor. If, for
any reason, such a committee or community itself cannot complete that work in time, it shall give a notice thereof to the public entity. Upon receipt of such a notice, the public entity shall, after making necessary inquiry into the matter, terminate the contract concluded with such a committee or community and have the remaining work executed in accordance with the Act and this Regulation.
(11) After completing the construction work, the users' committee or beneficiary community shall cause such work to be finally examined and accepted by a technical employee deputed by the concerned public entity and submit to that entity the statements of the total expenditure including the money received from such an entity and the cost of labor, cash or goods-in-kind provided or borne through public participation. The concerned public entity shall prepare a work completion report setting out, inter alia, the statements so received and the survey, design, cost estimate, supervision of the construction work and name and post of the person and official having performed the work and keep the records thereof.
(12) Once the construction work is completed pursuant to sub- rule (11), the public entity shall transfer the ownership of the project to the users' committee or beneficiary community, also specifying the responsibility of care, repair and maintenance thereof.
(13) If the users' committee or beneficiary committee is found to have misused any amount received by it, the concerned public entity shall inquire into the matter and recover such an amount as government dues on pro-rata basis from the office-bearers of the users' committee. It shall be the duty of the concerned Chief District Officer to render assistance to such an entity in making such recovery.
(13a) If the users' committee or beneficiary community is found to have involved a construction entrepreneur in any work obtained by it, the public entity shall cancel the contract concluded with that users' committee or beneficiary community, maintain records to the effect that any of such kind of work will not be awarded to such a users' committee or beneficiary community in the future, and make a recommendation to the Public Procurement Monitoring Office to blacklist the construction entrepreneur who has executed that work.
(14) The Public Procurement Monitoring Office may determine the procedures to be followed by a public entity in having a work executed by the users' committee or beneficiary community with respect to the following matters:
(a) Determination of labour-intensive work,
(b) Method of formation, and functions, duties and powers of the users' committee or beneficiary community,
(c) Manner of increasing economy, quality, sustainability of the work or service,
(d) Keeping the records of incomes and expenditures,
(e) Supervision and monitoring of the work or service,
(f) Settlement and final examination and acceptance of the construction work, and
(g) Other necessary matters.
(15) The users' committee or beneficiary community may fix the service charge to be paid by the users for using the service of the project transferred pursuant to sub-rule (12) and shall establish a fund
consisting of such charges and operate, repair and maintain such construction work from such fund.