Price Variation Clause

Imports Purchase Officers within their normal powers Variation in exchange rate Statutory changes in Import duties Cost of RM susceptible to fluctuations Variation in Sea-freight- GM’s approval (1957)

Indigenous Stores Variation in Railway Freight Variation in Excise Duty Variation in Sales Tax Documentary evidence required

Wages Escalation Clause As a special case Base month & date should be indicated by the tenderers along with the wage structure of the permanent worker Base wage, DA, PF, ESIC, Others Escalation due to direct Govt action or legislation Rly Bds approval where value > Rs 5 L

Steel PVC Clause to be incorporated in tender –Tenderers desiring variation on price of steel / pig iron may quote their prices based on SAIL price of Rs…/MT ruling on the date of quotation Formula to be quotedFinished wt Base month for the formula

Metal Variation Clause Insulated Cables / Wires Prices quoted will be treated as based on the following prices of Cu, Pb, Al based on MMTC / LME / industry index Theoretical nett wt kg of metal/km For every rise or fall of Rs 100/MT in the base price of Cu/Pb/Al the amt of adjustment in price/km of cable will be Rs….

Metal Variation Clause No escalation claim < Rs 100 shall be entertained No claim oftener than once in 6 months shall be preferred Rs 100/MT apply separately to Cu & Pb The ceiling of Rs 100 will apply to entire contract & not unit price

Variations in Firm Price Contracts No variations will be allowed – where DP expired LD may be waived Fresh parallel contracts at market rates for additional quantities may be placed and deliveries rescheduled to min loss Ex-gratia payments to cover the loses –GM’s powers upto 5% of contract value

Guidelines No PVC where DP < 6 months Material intensive components Labour intensive contracts, WPI / CPI IEMA formula Where no formula –Fixed element15 to 20 % –Variation in matl40 to 60 % –Wage variation20 to 40 %

Book Examination All tenders valuing > Rs 3 lakhs BE clause Produce on demand Cost records and books, vouchers, invoices, contracts, etc, to Govt official Afford facilities to Govt official to visit contractor’s works for examining processes of manufacture. Within a period of 60 days from receipt of notice If contractor does not arrange BE, the contract price will be readjusted on the basis of the judgement of the purchaser, and this would be final.