CONTENTS - Central Public Works Department

208 SECTION 33
33.10.2 Calculation of escalation/de-escalation (Modified as per OM/MAN/167A)
(1) The contractor shall prepare the statements of escalation or de-escalation at the end of every 3
months, and submit to the Engineer-in-charge. The first statement of escalation shall be prepared
at the end of 3 months, excluding the month in which the work was awarded. The work done
from the date of start to the end of this period shall be taken into account. For subsequent
statements, cost of work done during every quarter shall be taken into account. At the completion
of work, the work done during the last quarter or fraction thereof shall be taken into account. For
the purpose of reckoning the work done during any period, the bills prepared during the period
shall be considered. The dates of preparation of bills as entered in the Measurement Book by
the Assistant Engineer shall be the guiding factor to decide the bills relevant to any period. The
date of completion as finally recorded by the competent authority in the Measurement Book
shall be the criterion.
(2) The Executive Engineer will communicate the base index to the contractor in respect of each
work.
(3) The Executive Engineer will sanction the compensation for escalation or deduction on account of
de-escalation, and the amount thus sanctioned will be included in the next running account bill or
final bill, as the case may be. The cost of work for which escalation/de-escalation is applicable/
deductible shall be worked out as below:
(a) Gross value of work done upto this quarter ………………………………………………… …..(A)
(b) Gross value of work done upto the last quarter…………………………………………….… (B)
(c) Gross value of work done since previous quarter: (A – B) …………………………………….(C)
(d) Full assessed value of secured advance (excluding the material covered under clause 10CA)
fresh paid in this quarter .................……………….....................................................(D)
(e) Full assessed value of secured advance (excluding the material covered under clause 10CA)
recovered in this quarter ................. …………………......................................................(E)
(f) Full assessed value of secured advance for which escalation is payable in this
quarter:(D– E)............................................................................................................................(F)
(g) Advance payment made during the quarter .......…………………………………..………….(G)
(h) Advance payment recovered during the quarter …………………………………..........……(H)
(i) Advance payment for which escalation is payable in this quarter:(G – H) ..........……………(I)
(j) Extra items/deviated quantities of agreement items paid as per clause 12 based on prevailing
market rate during this quarter ……….….............................................................................. (J)
M = C + F + I – J
N = 0.85 M
(k) Less cost of materials supplied by the department as per clause 10 & recovered during the
quarter……..……..……………………………………………………………………………………………(K)
(l) Less cost of services tendered at fixed charges as per clause 34 & recovered during the
quarter …………………………………………………………………………………………….(L)
(m)Cost of work for which escalation/deescalation is applicable ……………………................(M)
W = N – (K + L)
(4) All India Wholesale Price Index for civil component/electrical component of construction material
as worked out on the basis of ‘All India Wholesale Price Index for Individual Commodities/Group
Items’, and All India Wholesale Price Index for ‘Fuel, Oil and Lubricant’, both published by the
Economic Adviser to the Government of India, Ministry of Industry and Commerce, and applying
weightages to the Individual Commodities/Group Items, and the higher of the ‘Minimum wage of an