G.O.(Ms) No.195, Revision in the Monetary Limit for Categories of Registration of Contractors, 2021
The Public Works (G2) Department issued G.O.(Ms) No.195 on 14 December 2021 to revise the monetary limits for all five classes of Public Works Department contractors, move registration and renewal work to the Regional Chief Engineers, and extend the renewal validity of a contractor's Live Certificate from one year to three years. It modifies the earlier contractor registration and annual renewal arrangements.
What the government order changes
The Public Works (G2) Department issued G.O.(Ms) No.195 on 14 December 2021 for contractors undertaking Public Works Department work. The government accepted proposals concerning revised contractor classes, registration through Regional Chief Engineers, renewal through those offices, and three year validity for renewed Live Certificates.
The changes concern contractor eligibility and administration. They do not directly alter private land ownership, registration of property, planning permission or land classification.
Revised contractor categories
G.O.(Ms) No.195 revises the monetary limits used to classify registered contractors according to the value of work they are considered competent to execute:
- Class I: Above Rs.10 crore.
- Class II: From Rs.5 crore to Rs.10 crore.
- Class III: From Rs.2 crore to Rs.5 crore.
- Class IV: From Rs.50 lakh to Rs.2 crore.
- Class V: Up to Rs.50 lakh.
The earlier limits recorded in the document were above Rs.75 lakh for Class I, up to Rs.75 lakh for Class II, up to Rs.30 lakh for Class III, up to Rs.15 lakh for Class IV and up to Rs.6 lakh for Class V. The government states that revision was needed because the earlier slabs were very low in view of cost escalation, low value procurement and delegation of tender award powers.
Registration and renewal authority
G.O.(Ms) No.195 places new registration for contractors in Classes I to V with the relevant Regional Chief Engineer of the Public Works Department. The listed offices are:
- Engineer-in-Chief (Buildings) and Chief Engineer (Buildings), Chennai Region.
- Chief Engineer (Buildings), Tiruchirappalli Region.
- Chief Engineer (Buildings), Madurai Region.
Applications received with the prescribed application fee must be sent to the relevant Division or Circle for scrutiny. Officials must check eligibility and verify the evidence submitted. The application is then returned to the Regional Chief Engineer with the recommendation of the relevant Superintending Engineer or Executive Engineer.
Who is affected
G.O.(Ms) No.195 mainly affects existing and prospective Public Works Department contractors. Contractors should identify the class matching the value of work they intend to undertake and deal with the relevant Regional Chief Engineer for registration or renewal. Property buyers and landowners are affected only indirectly when engaging with contractors for Public Works Department projects.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does G.O.(Ms) No.195 change land ownership or property registration rules?
No. The document concerns registration categories, monetary limits and Live Certificate renewal for Public Works Department contractors.
How long is a renewed contractor Live Certificate valid?
The Public Works (G2) Department accepted the proposal to change renewal validity from one year to three years.
Where should a contractor apply for new registration?
New registration for Classes I to V is handled by the relevant Public Works Department Regional Chief Engineer in the Chennai, Tiruchirappalli or Madurai Region.
What is the revised limit for a Class V contractor?
Class V covers work valued up to Rs.50 lakh.
