G.O.(Ms) No. 37, Registration of Contractors, 2022
The Government of Tamil Nadu, Public Works (G2) Department, issued G.O.(Ms) No. 37 on 17 June 2022 to create a new Class IA contractor category and revise the monetary limits and solvency requirements for Public Works Department contractor registration. It revises limits previously fixed under G.O.(Ms) No. 195, Public Works (G2) Department, dated 14 December 2021, and mainly affects contractors seeking registration for Public Works Department projects.
What the government order does
G.O.(Ms) No. 37, issued by the Government of Tamil Nadu, Public Works (G2) Department, on 17 June 2022, changes the registration framework for Public Works Department contractors. It introduces Class IA for contractors handling work valued above Rs.25 crore and revises the monetary ranges and solvency amounts for Classes I to V.
The changes implement an announcement made by the Chief Minister at the All India Builders Convention held at Mamallapuram on 12 March 2022. The Finance Department concurred with the decision.
Revised contractor classes
G.O.(Ms) No. 37 sets the following registration values and solvency requirements:
- Class IA applies above Rs.25 crore. The required solvency amount is Rs.2.50 crore.
- Class I applies above Rs.10 crore and up to Rs.25 crore. The required solvency amount is Rs.1.50 crore.
- Class II applies above Rs.5 crore and up to Rs.10 crore. The required solvency amount is Rs.75 lakh.
- Class III applies above Rs.2 crore and up to Rs.5 crore. The required solvency amount is Rs.30 lakh.
- Class IV applies above Rs.50 lakh and up to Rs.2 crore. The required solvency amount is Rs.10 lakh.
- Class V applies up to Rs.50 lakh. Solvency is 15 percent of the registration value requested by the contractor.
For example, a Class V applicant seeking registration for Rs.20 lakh must provide solvency of Rs.3 lakh. For Class IV, the solvency certificate amount is fixed at Rs.10 lakh instead of Rs.7.50 lakh.
Who is affected
G.O.(Ms) No. 37 directly affects contractors applying for registration with the Tamil Nadu Public Works Department, including existing applicants whose appropriate class depends on the value of work they seek to undertake. It does not set out rules on land title, ownership, sale, planning permission or land classification.
Registration authorities
G.O.(Ms) No. 37 records that new registrations for contractor Classes I to V are handled by the regional Chief Engineers of the Public Works Department. The listed authorities include the Engineer in Chief, Chief Engineer (General) and Chief Engineer, Chennai Region, and the Chief Engineers for the Buildings wings in the Tiruchirappalli, Madurai and Coimbatore regions.
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. 37 change land ownership or property registration rules?
No land ownership or property registration change is stated. G.O.(Ms) No. 37 concerns the registration classes, monetary limits and solvency requirements of Tamil Nadu Public Works Department contractors.
What is the new Class IA contractor category?
Class IA is the new category for registration above Rs.25 crore. Its required solvency amount is Rs.2.50 crore.
How is solvency calculated for a Class V contractor?
For Class V registration up to Rs.50 lakh, solvency is 15 percent of the value for which registration is requested. The document gives the example of Rs.3 lakh solvency for a Rs.20 lakh registration application.
What solvency certificate is required for Class IV registration?
Class IV covers registration above Rs.50 lakh and up to Rs.2 crore. The required solvency amount is Rs.10 lakh.
