Price Escalation Clause for Govt of Maharashtra

PRICE ESCALATION CLAUSE
1. If during the operative period of the contract as defined in condition (I) below, there shall be any variation in the consumer price index ( new series) for industrial workers for center as per the Labour Gazette published by the commissioner of Labour., Govt. of Maharashta and / or in the wholesale price index for all commodities prepared by the officer of Economic Adviser, Ministry of Industry, Govt. of India, as compared to the respective figures therefore on the date 30 days before the last date prescribed for receipt of tender, and / or in the prices of petrol / oil and lubricants, then subject to the other conditions mentioned below. Price adjustment on account of (1) Labour component and (2) Material component (3) POL component, which respectively are 20 %, 76 % & 4 % for electrical works and 36 %, 60 % and 4 % for civil works of the total cost of work put to tender, calculated as per the formula hereinafter appearing shall be made.

A) FORMULA FOR LABOUR COMPONENT.
VI = 0.85 x ( P- cost of Schedule”A”) X ( KI X CI - C0)
(Material Used) 100 C0
Where,
VI = Amount of Price variation in rupees to be allowed.
P = Cost of work done during the period under consideration.
K1 = Percentage of Labour components as indicated above.
CO = Basic consumer price index for Mumbai Centre Ascertained as above on the date 30 days preceding the last date prescribed for receipt of tender.
CI = Average consumer price index for Mumbai center.
Ascertained as above during the period under Consideration

B) FORMULA FOR MATERIAL COMPONENT.
V2 = 0.85 x (P – cost of Schedule ‘A’) x { K2 x (I1 – IO) }
(material used) 100 IO
Where —
V2 = Amount of price variation in Rupees to be allowed.
P = Cost of work done during the period under consideration.
K2 = Percentage of materials components as indicated above.
IO = Basic wholesale price index ascertained as on the date 30 days preceding the last date prescribed for receipt of tender.
I1 = Average wholesale price index ascertain as above during the period under consideration

C) FORMULA FOR PETROL, OIL AND LUBRICANTS COMPONENT.
V3 = 0.85 x (P- Cost of Schedule -A) x K3 x {(P1 – PO) }
(material used) 100 PO
Where
V3 = Amount of price variation in Rupees to be allowed.
P = Cost of work done during the period under
consideration.
K3 = Percentage of Petrol, Oil and lubricants component.
P1 = Average price of H.S.D. for Mumbai during the period
under consideration.
PO = Average price of H.S.D. for Mumbai on the date 30 days proceeding the last date prescribed for receipt of tender.

For RBI Price Index you may refer to :- http://www.contractorindia.com/Whole_Sale_Price_Index.htm