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 / a.sanjeevakarna
First of all refer the contrctor agrremnt regarding the
Price escalation.
Some Govt sector accept the present rates based on the
invoices of the materials purchased and some accept only
rates approved by the govt every month.
in case of Cement and Steel in A.P. irrigation The
Escalation calculations are calculated as follows.
Cement
Date of Measeurement, Qty of concrete, Cment req as per
Design mix, Qty of Cement Consumed, Base rate + 5%,
Present rate, Present rate - Base rate, Qty of cement X
diff in price is the Escalation Amount.
Please note all above deatils sepaetared by commas are
write in Table Format.
Steel: Same as above.
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