Section 8(1) in Tamil Nadu Panchayats (Preparation of Plans and Estimates for Works and Mode and Conditions of Contracts) Rules, 1998
(1)Tenders shall be called for in respect of every work which is to be executed by or on behalf of village panchayat, panchayat union council, district panchayat, as the case may be, on contract and the value of the amount of which is rupees five thousand and above. Any work, the estimated cost of which does not exceed rupees five thousand may be entrusted to a village panchayat within a panchayat union and district panchayat without calling for tenders at rates not exceeding estimate rates.
