Internal Check & Internal Control

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NEEL (Querist)
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10 May 2010 Dear Sir,

I am a fresher as far as construction industry is concerned. I need guidance on how to develop a procedure of Internal Check and Internal Control for making payments to labour contractors on the basis of work performed by them i.e right from the stage of inviting tenders till the stage of full and final settlement. Plz. Help. If possible in the form of a flow chart.

Can send me ur valuable reply on my mail ID caneeldoshi@yahoo.co.in

Thanx N Regards,
C.A. Neel S. Doshi

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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10 May 2010 it will be veru difficult to answer in short .. pls use google.. i am sur eyou will get their useful stuff on this

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CA Archana

CA Archana (Expert)
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10 May 2010 Dear neel.
Prakash is correct but I can give you brief idea.
First of all for all the construction project u need to be in touch with the particular department and maintain a proper list of each site...taken care by each contractor..then maintain a brief of each contractor.I think the contractors must be submitting there bills along with the attendance record of all the laborers and their break of salary contents along with PF etc.
Such bills must be verified by the authorized employee(manager/engineer) of company who is looking after that site.This was mainly about making the payment so don't forget to deduct tds.Variation in the monthly bills should be properly monitored and inquired.
When inviting the quotations please see the contractor is having all the statutory no.like PF etc.
This is not the complete process but i hope at least it will help u a bit.

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