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Price adustment

Dt.24-04-2006 As per G.O.Ms.No.73, TR&B (R.I) Deptt

Bids are invited based on the rate provided in the technical sanctioned estimate.

Either the rate or the All India Wholesale Price Index should be 28 days prior to the closing
date of submission of bids

Calculate the date 28 days prior to closing date of submission of bids, in the following
different situations:

14-5-2007, 23-8-2007, 26-12-2008, 5-1-2009, 24-4-2009, 15-7-2009, 22-9-2009,

30-12-2009

Calculate the variation in rates of 5% more or less than the rates provided in the technical
sanctioned estimate for the following different components in different situations:

Situation1 Situation2 Situation3 Situation4 Situation5

Bitumen Emulsion(Bulk) 36908 35897 37498 34697 39882

Bitumen 60/70 grade 41,850 40980 42386 39984 43,494

CRMB-55
(Modified Bitumen) 45150 44960 46596 48962 45698

Steel (MT) 51200 49876 50982 46698 52100

Cement (MT) 4400 4300 4200 4100 4150

POL 36.50 34.70 33.96 38.60 37.20

Decide the eligibility either favourable, neutral or unfavourable and the same may be quoted
based on the following corresponding actual rates on the day prior to 28 days prior to the of
last date of measurement.
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Situation1 Situation2 Situation3 Situation4 Situation5

Bitumen Emulsion(Bulk) 34900 36805 39468 37657 37822

Bitumen 60/70 grade 40,890 41080 43280 38980 44,490

CRMB-55
(Modified Bitumen) 46140 45990 48590 46062 47662

Steel (MT) 52908 48806 50080 48662 51190

Cement (MT) 4300 4400 4100 4200 4350

POL 34.50 35.70 34.96 37.60 36.20

As per G.O.Ms.No.35 28-2-2006

All India Wholesale Price Index as published by the Ministry of Industrial Development,
Government of India, New Delhi has to be taken for which web site Economic Advisor to
Government has to be referred.

Adujstment clause for cement component: (Variation in rates of Cement)

V= variation, C or c = Cement, i = index, o = origin, P = percentage

Adujstment clause for steel component: (Variation in rates of steel)

V = variation, S or s = Steel, i = index, o = origin, P = percentage

Adujstment clause for Bitumen component: (Variation in rates of Bitumen)

V = variation, B or b = Bitumen, i = index, o = origin, P = percentage

Adujstment clause for POL component: (Variation in rates of POL)

V = variation, F or f = Fuel , i = index, o = origin, P = percentage

Even in the case of G.O.Ms.No. 35 where All India Wholesale Price Index has been
prescribed, index is taken for Steel and Cement Components only, whereas for bituminous
components and POL , the average wholesale price at nearest refinery and High Speed
Diesel (HSD) at the existing consumer pumps would be taken into account.

The percentage of POL component has been prescribed at 15%. It does mean that for every
Rs.100 work Rs.15 will be spent on POL.
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The co-efficient considered for price adjustment is 0.85, which does mean that for every
Rs.100 variation, only Rs.85 is considered for increase or decrease.

The initial rate on the day 28 days prior to closing date of submission of bids may be taken
as the Standard Rate (may be it is as provided in the Technical sanctioned estimate or All
India Wholesale price index) with which the actual rate on the date 28 days prior to last date
of submission of bids for each bill or for each month.

Overhead charges are indirect charges which are incurred on those other than the items of
work such as insurance, VAT etc., Overhead charges does not include seigniorage charges as
it is a direct charge.

Calculate the date 28 days prior to the last date of measurement , in the following
different situations:

17-7-2007, 20-9-2007, 28-1-2009, 10-2-2009, 17-5-2009, 22-9-2009, 9-11-2009,

27-10-2010

CALCULATION OF “R” Value

In the calculation of “R” value, seigniorage, Overhead charges which is inclusive of all other
indirect charges such as VAT Insurance and contractor’s profit should be excluded. If
overhead charges are provided in the estimate either at 25% in case of Bridge Works or at
10% in the case of road works, no vat or insurance should be added to the estimate
separately. If vat is not included in the overhead charges, it should be separately added to the
abstract of the billed items and the same should be deducted from the amounts payable to the
contractors as in the case of other deductible items such as IT Seigniorage etc.,
Find the ‘R’ Value from the date furnished:
Case 1
Total value of work done say Rs.3,56,78,920, Seigniorage 4,45,678 Tender
percenge18.33% less Adverse price adjustment 12,34,763 Road work.

Case 2

Total value of work done say Rs. 4,78,45,297, Seigniorage Rs. 5,78,398 Tender premium
13.11% excess Price adjustment favourable 25,47,998 Road work

Case 3

Total value of work done say Rs.1,75,87,985, Seigniorage Rs.1,78,843 Tender premium
5.66% excess Price adjustment neutral. Road work.

Case 4
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Total value of work done say Rs.4,56,86,798 Seigniorage Rs.3,56,876 Tender premium at
estimated rates price adjustment 24,67,486 less . It is bridge work.

Case 5
Total value of work done say Rs.4,96,78,920, Seigniorage 3,95,678 Tender
percenge18.33% less Adverse price adjustment 12,34,763 Bridge work.

Case 6

Total value of work done say Rs. 5,78,45,297, Seigniorage Rs. 5,98,398 Tender premium
12.11% excess Price adjustment favourable 28,47,998 Bridge work

Case 7

Total value of work done say Rs.6,75,87,985, Seigniorage Rs.12,78,843 Tender premium
5.66% excess Price adjustment neutral. Bridge work.

Calculate the percentage component of the following materials:

Case 1
Emulsion 759.67 MT Rs. 37,489 per MT Total Value of R Rs. 4,89,67, 895

Bitumen 60/70 1758.64MT Rs.45,783 per MT Total Value of R Rs. 4,89,67, 895

CRMB 1245.76 MT Rs.52,876 Per MT Total Value of R Rs. 4,89,67,895

POL 15%

Steel 879.65 MT Rs.37,498 Per MT Total Value of work R Rs. 4,89,67,895

Cement 12,456 MT Rs.4700 Per MT Total Value of work R Rs. 4,89,67,895

Case 2

Emulsion 689.67 MT Rs. 36,489 per MT Total Value of R Rs. 5,89,66, 895

Bitumen 60/70 1878.64MT Rs.42,783 per MT Total Value of R Rs5,89,66, 895

CRMB 1745.46 MT Rs.45,876 Per MT Total Value of R Rs. . 5,89,66, 895

POL 15%
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Steel 975.65 MT Rs.36,497 Per MT Total Value of work R Rs. . 5,89,66, 895

Cement 11,456 MT Rs.4700 Per MT Total Value of work R Rs. . 5,89,66, 895

Case 3

Emulsion 689.67 MT Rs. 36,489 per MT Total Value of R Rs. 5,49,66, 895

Bitumen 60/70 1878.64MT Rs.42,783 per MT Total Value of R Rs5,49,66, 895

CRMB 1745.46 MT Rs.45,876 Per MT Total Value of R Rs. . 5,49,66, 895

POL 15%

Steel 975.65 MT Rs.36,497 Per MT Total Value of work R Rs. 5,49,66, 895

Cement 11,456 MT Rs.4700 Per MT Total Value of work R Rs. 5,49,66, 895

In the State Government, the material components that are considered for price
adjustment are Bitumen( and its components like emulsion, 60/70 and CRMB) Steel, Cement
and POL but labour is not considered for price adjustment whereas in the central government,
the components that are considered for price adjustment are labour, cement, steel, POL,
bitumen, plant and materials and other materials based on the All India average wholesale
price index. In fact, index is taken for labour, steel, cement, Plant and materials and other
materials and for bitumen and POL only Average wholesale price index is taken considering
the nearest place.

In addition to the G.O. Ms. No. 35 TR&B (R.I) Dt.28-02-2006 and G.O.Ms.No.73,
Dt.24-04-2006, the other GOs that have been issued by the TR&B (R.I) Deptt from time to
time are G.O.Ms.No.94, Dt.16-4-2008, G.O.Ms.No.252, Dt.28-08.2008, G.O.Ms.No.141,
Dt.27-07-2006, G.O.Ms.No.77 Dt.15-4-2006 GO Ms.No.123 Dt.6-7-2006 G.O. Ms. No.
77 Dt.15-4-2006