Department of Rural Development - Northern Province
Circular No: 03/2016
Reference: NP/19/11/Dept/Cir
Date: 29.03.2016
To: All District Rural Development Officers
Subject: Important matters to be considered regarding the implementation of contract work undertaken by Village Rehabilitation Societies and Women's Rural Development Societies registered under this Department.
Introduction
This circular provides essential guidelines for the proper execution of contract work by Rural Development Societies. These instructions are designed to ensure transparency, financial discipline, and the overall development objectives of the societies while maintaining high standards of work quality.
Guidelines
1. Developmental Objective of Contract Work
Contract work undertaken by societies contributes to their progress and instills a sense of ownership towards the development of their respective divisions. Societies should view contract work not merely as income-generating activity but as a means to participate in and contribute to local development.
2. Allocation of 5% for Society Development Fund
When implementing contract work by societies, 5% of the total contract amount shall be allocated to the societies as a development fund for their advancement. Only in exceptional circumstances, with prior written permission from the Director, may this 5% be utilized fully for the project after proper documentation. This fund is intended to support the society's developmental activities and capacity building.
3. Jurisdictional Limitation
Societies cannot undertake contract work in any other Divisional Secretariat division beyond their own area of authority. This restriction ensures that societies focus on development within their designated administrative areas and prevents conflicts of interest.
4. Competitive Allocation Based on Capacity
Instead of awarding multiple contracts to a single society, contracts should be distributed among societies capable of completing them efficiently. This approach ensures timely and quality completion of work while promoting the development of multiple societies. By distributing opportunities, all societies can grow and strengthen their institutional capacity.
5. Documentation and Responsibility
Until contract work is completed and handed over, the society bears full responsibility for all related documents and activities. Proper maintenance of records, including contracts, progress reports, and financial statements, is essential for accountability and transparency.
6. Monitoring by Rural Development Officer
The Rural Development Officer must monitor all contracts through proper procedures (society selection, approval, payment, inspection) and bears full responsibility for this oversight. Regular monitoring ensures compliance with guidelines and identifies any issues requiring intervention.
7. Quality Assurance and Registration
During contract work, proper registrations must be maintained, and through appropriate inspections, Rural Development Officers should assess the qualitative level of progress. Quality assurance mechanisms ensure that work meets specified standards and provides value for money.
8. Monthly Reporting Requirement
A summary report of contract work undertaken by societies must be submitted at the end of each month, attached with your regular monthly diary extract of advanced programmes. A specimen format for the summary report is attached to this circular. This regular reporting enables the department to track progress and provide timely support where needed.
Summary
These guidelines aim to strengthen the capacity of Rural Development Societies in undertaking contract work while ensuring proper financial management, quality control, and developmental impact. Adherence to these instructions will contribute to the sustainable growth of societies and the effective implementation of rural development projects.
Distribution List
- Secretary, Ministry of Transport, Highways, Trade and Commerce, Rural Development, Road Development and Motor Transport, Northern Province – for information.
- District Secretary (Government Agent) – for information.
- Divisional Secretary – for information.
- District Rural Development Officer – for implementation.
S. Srijeyanthan
Director
Department of Rural Development
Northern Province
Attachments
1. Specimen format for Monthly Summary Report of Contract Work
Key Points Summary
- 5% allocation: Mandatory set-aside of 5% of contract value for society development fund
- Geographic restriction: Work limited to society's own Divisional Secretariat area
- Fair distribution: Contracts to be distributed among capable societies
- RDO responsibility: Full monitoring and oversight by Rural Development Officer
- Monthly reporting: Summary report required with monthly diary extract
- Documentation: Proper maintenance of all contract-related records
- Quality focus: Emphasis on quality and timely completion
These guidelines supersede any previous instructions inconsistent with these provisions. All District Rural Development Officers are requested to ensure strict compliance and bring this circular to the attention of all societies under their purview.
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