EAST CENTRAL RAILWAY - Indian Railways

iii)
iv)
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The adjustment i.e. re-imbursement/recovery based on price indices shall be
made only if, and to the extent, the amount to be adjusted is in excess of 5% of the
amount payable to the contractor as per accepted rates.
The price variation clause will be applicable to all extensions of time granted to
the date of completion except that granted under Clause 17.B of GCC,2001.
C) Method of calculation adjustments :
i) The amount of adjustment i.e. increase/decrease in total payable amount shall be
calculated by the following formula for each component of input, i.e. labour, material,
fuel, explosive, detonator. There shall be a fixed component also on which no adjustment
shall be made :
a) L = R x(I – 10)/10 x P/100
b) M = R x(W – Wo)/W0 x Q/100
c) U = R x (F – Fo)/Fo x Z/100
d) X = R x (E – Eo)/Eo x S/100
e) N = R x (D – Do)/Do x T/100
Where :-
L = Amount of price variation in labour
M = Amount of price variation in materials
U = Amount of price variation in fuel
X = Amount of price variation in explosives
N = Amount of price variation in detonators.
R = Gross value of the work done by the contractor as per on-account bill(s)
excluding cost of materials supplied by Railway free or at a fixed price. This will also exclude specific
payment, if any, to be made to the consultants engaged by the contractors (such payment will be indicated
in the contractor’s offer).
Io = Consumer price index number for Industrial workers. All India – Published in
RBI Bulletin for the base period.
I = Average consumer price index number for industrial workers – All India –
published in RBI Bulletin for the three months of the quarter under consideration.
Wo = Index number of whole sale prices – By groups and subgroups – All
commodities – as published in the RBI bulletin for the base period.
W = Average index number of whole sale prices – by groups and subgroups – all
commodities – as published in the RBI Bulletin for the three months of the quarter under consideration.
Fo = Index number of whole sale prices – by groups and subgroups for fuel, power,
light and lubricants as published in the RBI bulletin for lthe base period.
F = Average index number of whole sale prices – by groups and subgroups for fuel,
power, light and lubricants as published in the RBI bulletin for the three months of the quarter under
consideration.
Eo = Cost of explosive as fixed by DGS&D in the relevant rates contract of the firm
from whom purchases of explosives are made by the contractor for the base period.
E = Average cost of explosives as fixed by DGS&D in the relevant rate contract of
the firm from whom purchase of explosives are made by the contractor for the three months of the quarter
under consideration.
SIGNATURE OF TENDERER(S)/CONTRACTOR(S)