9-10 Section 9 Contract Forms

Appendix 2 - Price Adjustment

1.1 Bidders may please note that price adjustment will be applicable only on:
the copper, Ferrous material (tank and accessories) of Power Transformer.
the aluminum and steel component of ACSR Cardinal Transmission Line Conductor)
the Steel component and Zinc for Transmission Line tower
Prices of all other items of supply and construction activities under the Contract, for all purpose,

1.2 Also, since advance payment will be made to the Contractor, price adjustment will not be allowed
on this amount and accordingly, price adjustment shall be permitted for 90% (if 10% advance is
taken) cost of the Material only.

1.3 The Base date for indices, for the purpose of price adjustment, shall be taken as 28 days prior to the
deadline for submission of the Bid.

For final date for indices, for price adjustment, the same will be governed by 60 days prior to the
date of dispatch of different lot, which is committed by the Contractor for various plants in the bar
chart (work Schedule) and approved & accepted by the employer at the time of signing of contract
agreement.

The date of adjustment shall be the midpoint of the period of manufacture or installation of
the component or Plant.

Prices payable to the Contractor, in accordance with the Contract, shall be subject to adjustment
during performance of the Contract to reflect changes in the cost, in accordance with the following
formula:

1.3.1 For Power Transformer/ Autotransformer:

Where in,

P1 = Price adjustment payable in accordance with above formula

P0 = Contract Price quoted/ confirmed
a = percentage of fixed element as listed in Table below
b = percentage of Copper component of Power Transformer as listed in Tablle below
c = percentage of Ferrous Component of Power Transformer as listed in Table below

Item % of Fixed % of Copper % of Ferrous

Component Component Component
(a) (b) (c)
Power
Transformer
64 29 7

OCB No. PMD/EGMP/GKTLSS-078/79-01 Procurement of Plant Single-Stage: Two-Envelope

Section 9 Contract Forms 9-11

PRICE INDEXES:

C0 & C1 = LME price of Copper wire bars as applicable on the base date & on the date
for adjustment respectively.
F0 & F1 = LME price for Steel bar as applicable on the base date & on the date for
adjustment respectively.

1.3.2 For ACSR conductor (Transmission Line Conductor "Cardinal'):

Wherein,

P1 = Price adjustment payable in accordance with above formula

P0 = Contract Price quoted / confirmed
a = percentage of fixed element as listed in Table below
b = percentage of aluminum component of Transmission Line Conductor as listed in Table below
c = percentage of steel component of Transmission Line Conductor as listed in Table below.

Item % of Fixed % of Aluminum % of Steel

Component Component (b) Component
(c)
(a)
Transmission Line Conductor
(ACSR Cardinal) 25 55 20

PRICE INDEXES:

Al0 & Al1 = Average LME price of Aluminum as applicable on the base date & on the date for
adjustment respectively.

S0 & S1 = Average LME price of Steel bars as applicable on the base date & on the date for
adjustment respectively.

1.3.3 Transmission Line Tower:

Wherein,

P1 = Price adjustment payable in accordance with above formula

P0 = Contract Price quoted / confirmed

OCB No. PMD/EGMP/GKTLSS-078/79-01 Procurement of Plant Single-Stage: Two-Envelope

9-12 Section 9 Contract Forms

a = percentage of fixed element as listed in Table below

b = percentage of Steel component of Tower as listed in table below
c = percentage of Zinc component of Tower as listed in Table below

Item % of Fixed % of Steel % of Zinc

Component Component (b) Component
(c)
(a)
Lattice Transmission
Line Tower 34 57 9

PRICE INDEXES:

S0 & S1 = Average LME price of Steel bars as applicable on the base date & on the date for
adjustment respectively.

Zn0 & Zn1 = Average LME price of Zn as applicable on the base date & on the date for
adjustment respectively.

1.3.4 Additional Condition Applicable to the Price Adjustment of supplied Power Transformers,
Transmission Line Tower and Transmission Line Conductor:
Price adjustment will be applied only if the resulting increment or decrement is more than 10%
of the base material Price of the Copper and Steel for Power Transformer, Aluminum and Steel
for the Transmission Line Conductor and Steel and Zinc for the Transmission Line Tower. And
the price will be adjusted by deducting 10% of increased or decreased amount from the base
material price.

No price adjustment shall be payable on the portion of the Contract Price paid to the contractor
as Advance payment as indicated above in clause 1.2.

No price increase will be allowed beyond the original dispatch date of different lots of
equipment unless covered by an extension of time awarded by the Employer under the terms of
the Contract. No price increase will be allowed for periods of delay for which the Contractor is
responsible. The Employer will, however, be entitled to any price decrease occurring during
such periods of delay.

If the currency in which the Contract price, P 0, is expressed is different from the currency of the
materials indexes, a correction factor will be applied to avoid incorrect adjustments of the
Contract price. The correction factor shall correspond to the ratio of exchange rates between the
two currencies on the base date and the date for adjustment as defined above.

OCB No. PMD/EGMP/GKTLSS-078/79-01 Procurement of Plant Single-Stage: Two-Envelope