GAIL (India) Limited MECON LIMITED

above shall, however, not apply for thefollowing:-Where the value of additions of new itemstogether with the value of alterations,additions/deletions or substitutions does notexceed by or is not less than plus/minus (+_)25%of the VALUE OF CONTRACT. The item rates inthe Schedule of Rates shall hold good for allsuch variations between the above mentionedlimits, irrespective of any increase/decrease ofquantities in the individual items of Schedule ofRates.Where the value of addition of new itemstogether with the value of alterations,additions/deletions or substitutions reduces morethan 25% of the contract value but is within thefollowing limits the tenderer shall be paidcompensation for decrease in the value of work,as follows:S.No. Range of Variation Percentage compensation fordecrease in the value of workin the respective range.a) Beyond (+) 25% upto & No increase and/or decreaseinclusive of (+) 50%shall be applicable for theSchedule of Rates (The ratesquoted for this increase shallbe valid).b) Beyond (-) 25% upto & For reduction beyond 25%inclusive of (-) 50%contractor shall becompensated by an amountequivalent to 10% of thereduction in value of thecontract as awarded. Forexample if the actual contractvalue is 70% of awarded valuethen compensation shall be10% of (75-70) i.e. 0.5% ofawarded contract value.II.For Lumpsum ContractsCONTRACTOR shall, within 7 days of the date of receiptof order to carry out the WORK, inform theENGINEER-IN- CHARGE of the rates which it is hisintention to charge for such class of WORK, supported byanalysis of the rate or rates claimed, and theENGINEER-IN-CHARGE shall determine the rate orrates on the basis of the prevailing market rates, labourcost at schedule of labour rates plus 10% to covercontractor's supervision, overheads and profit and paythe CONTRACTOR accordingly. The opinion of theENGINEER- IN-CHARGE as to current market rates ofmaterials and the quantum of labour involved per unit ofmeasurement will be final and binding on theCONTRACTOR.