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Pls. help.
If a contract was awarded to a contractor in april 2012 with
steel & cement base price as rs. 45/kg & 250/bag. Now in
oct. 12 steel cement price becomes 55/kg & 290/ bag. How
escalation will be calculated? Pls. tell complete calculation
Regards,
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Answer Posted / viswanadhamklvs
Generally the PVC formula will be given in the Contract
document itself. The month in which the contractor quoted
his bid will be considered as Base month. The indices for
the commodities will be published by the office of Economic
Adviser in the web site eaindustry.nic.in. These index
values shall be substituted in the formulae given against
each commodity viz., steel and cement. In the same fashion,
labour component also shall be considered based on the index
value given by labour Beuro of India.
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