Outgoing Mayor Walter E. Washington said yesterday that he had restored City Administrator Julian R. Dugas, a longtime friend and confidant, to his former job as director of the D.C. Department of Licenses, Investigations and Inspections.

The mayor signed a formal order Tuesday that also will keep Dugas on duty as acting city administrator until Dec. 31, two days before Washington is replaced by Mayor-elect Marion Berry.

The city administrator, who over-sees day-to-day operations of the government, serves at the pleasure of the mayor. Dugas, 60, a city employe for 25 years, was appointed administrator on the advent of home rule in 1975.

Dugas said he became administrator with the clear understanding that he would not lose civil service rights to his old job [then called director of the Department of Economic Development] or to the substantial retirement benefits he has earned.

Washington said he took the action early so Barry could speedily choose his own administrator.

The administrator's post pays $50,000 a year, and that of department director pays $47,500.

With Dugas returning to his old job, the department's current director, James Weldon Hill, will evert to his former post as its deputy director.