Common use of Payment of Price Variation Clause in Contracts

Payment of Price Variation. if the price of diesel increases or decreases, the contractor shall be compensated for such increase or recoveries shall be made from the dues of the contractor for such decrease as per provisions detailed below (for the relevant period) and the amount of the contract shall accordingly be varied, subject to the condition that such compensation/ recoveries for variation in prices shall be available only for the work done during the stipulated period of the contract including such period for which the contract is validly extended under the provisions of the contract without any penal action. If the contract is to be extended beyond the stipulated period for completion of the work due to fault on the part of the contractor, escalation on prices should not be allowed further. However, during the extended period (beyond the stipulated period) of work due to fault on the part of contractor, recoveries shall be effected as per applicable price variation clause. Such compensation/recoveries for variation in the prices when due shall be worked out based on the following provisions: 37.1 Compensation for price variation on the account of diesel will be paid/ recovered. 37.2 The base date shall be the 10th day prior to the last date on which the tenders were stipulated to be received (including the last date of submission of bid as mentioned in the Bid Document prior to revision, if any) for working out such price variation. The compensation of Price variation shall be worked out at monthly intervals and shall be with respect to the work done during the previous month. The first such payment shall be made at the end of one month after the month (excluding) in which the tender was accepted and thereafter at monthly interval. 37.3 Benchmarking of price variation on account of diesel will be done on the basis of price of the diesel of the retail outlet of IOC/BP (PSUs), nearest to the worksite and the price variation will be admissible on simple average of diesel rate (nearest to the worksite) of the period considered for price variation.

Payment of Price Variation. if If the price of diesel diesel, and ‘other components’ (wages, consumables, spares, tyres) increases or decreases, the contractor Contractor shall be compensated for such increase or recoveries shall be made from the dues of the contractor Contractor for such decrease as per provisions detailed below (for the relevant period) and the amount of the contract shall accordingly be varied, subject to the condition that such compensation/ recoveries for variation in prices shall be available only for the work done during the stipulated period of the contract including such period for which the contract is validly extended under the provisions of the contract without any penal action. If the contract is to be extended beyond the stipulated period for completion of the work due to fault on the part of the contractorContractor, escalation on prices should not be allowed further. However, during the extended period (beyond the stipulated period) of work due to fault on the part of contractorContractor, recoveries shall be effected as per applicable price variation clauseClause. Where the contract period is up to 6 months, no compensation/ recovery for price variation will be made except for diesel. Where the contract period is more than 6 months, compensation/ recovery for price variation in respect of diesel, and ‘other components’ will be effected as per Price Variation formula provided in the Special Terms & Conditions. Such compensation/recoveries for variation in the prices when due shall be worked out based on the following provisions: 37.1 19.1. Compensation for price variation on the account of diesel diesel, and ‘other components’ (wages, consumables, spares, tyres) will be paid/ recovered. 37.2 19.2. The base date shall be the 10th day prior to the last date on which the tenders were stipulated to be received (including the last date of submission of bid as mentioned in the Bid Document prior to revision, if any) for working out such price variation. The compensation of Price variation shall be worked out at monthly intervals and shall be with respect to the work done during the previous month. The first such payment shall be made at the end of one month after the month (excluding) in which the tender was accepted and thereafter at monthly interval. 37.3 19.3. Benchmarking of price variation on account of diesel will be done on the basis of price of the diesel of the retail outlet of IOC/BP (PSUs), nearest to the worksite and the price variation will be admissible on simple average of diesel rate (nearest to the worksite) of the period considered for price variation. 19.4. Price Variation for excavation cum removal/Transportation of OB by conventional Mining on account of Diesel, Wages & other components for Excavation cum removal, transportation of OB shall be governed by the following formula: Formula for price variation R×a×(D1-Do)/Do R×b×(W1-Wo)/Wo R×c×(M1-Mo)/Mo Excavation, Removal and Transportation of OB a = 0.56 b = 0.09 c = 0.04

Payment of Price Variation. if If the price of diesel diesel, and ‘other components’ (wages, consumables, spares, tyres) increases or decreases, the contractor Contractor shall be compensated for such increase or recoveries shall be made from the dues of the contractor Contractor for such decrease as per provisions detailed below (for the relevant period) and the amount of the contract shall accordingly be varied, subject to the condition that such compensation/ recoveries for variation in prices shall be available only for the work done during the stipulated period of the contract including such period for which the contract is validly extended under the provisions of the contract without any penal action. If the contract is to be extended beyond the stipulated period for completion of the work due to fault on the part of the contractorContractor, escalation on prices should not be allowed further. However, during the extended period (beyond the stipulated period) of work due to fault on the part of contractorContractor, recoveries shall be effected as per applicable price variation clauseClause. Where the contract period is up to 6 months, no compensation/ recovery for price variation will be made except for diesel. Where the contract period is more than 6 months, compensation/ recovery for price variation in respect of diesel, and ‘other components’ will be effected as per Price Variation formula provided in the Special Terms & Conditions. Such compensation/recoveries for variation in the prices when due shall be worked out based on the following provisions: 37.1 32.1 Compensation for price variation on the account of diesel diesel, and ‘other components’ (wages, consumables, spares, tyres) will be paid/ recovered. 37.2 32.2 The base date shall be the 10th day prior to the last date on which the tenders were stipulated to be received (including the last date of submission of bid as mentioned in the Bid Document prior to revision, if any) for working out such price variation. The compensation of Price variation shall be worked out at monthly intervals and shall be with respect to the work done during the previous month. The first such payment shall be made at the end of one month after the month (excluding) in which the tender was accepted and thereafter at monthly interval. 37.3 32.3 Benchmarking of price variation on account of diesel will be done on the basis of price of the diesel of the retail outlet of IOC/BP (PSUs), nearest to the worksite and the price variation will be admissible on simple average of diesel rate (nearest to the worksite) of the period considered for price variation. 32.4 Price Variation for Excavation, Removal of Overburden, Extraction of Coal and Transportation - Composite work Price Variation for a) Excavation, Removal and Transportation of OB.

Payment of Price Variation. if If the price of diesel diesel, and ‘other components’ (wages, consumables, spares, tyres) increases or decreases, the contractor Contractor shall be compensated for such increase or recoveries shall be made from the dues of the contractor Contractor for such decrease as per provisions detailed below (for the relevant period) and the amount of the contract shall accordingly be varied, subject to the condition that such compensation/ recoveries for variation in prices shall be available only for the work done during the stipulated period of the contract including such period for which the contract is validly extended under the provisions of the contract without any penal action. If the contract is to be extended beyond the stipulated period for completion of the work due to fault on the part of the contractorContractor, escalation on prices should not be allowed further. However, during the extended period (beyond the stipulated period) of work due to fault on the part of contractorContractor, recoveries shall be effected as per applicable price variation clauseClause. Where the contract period is up to 6 months, no compensation/ recovery for price variation will be made except for diesel. Where the contract period is more than 6 months, compensation/ recovery for price variation in respect of diesel, and ‘other components’ will be effected as per Price Variation formula provided in the Special Terms & Conditions. Such compensation/recoveries for variation in the prices when due shall be worked out based on the following provisions: 37.1 32.1 Compensation for price variation on the account of diesel diesel, and ‘other components’ (wages, consumables, spares, tyres) will be paid/ recovered. 37.2 32.2 The base date shall be the 10th day prior to the last date on which the tenders were stipulated to be received (including the last date of submission of bid as mentioned in the Bid Document prior to revision, if any) for working out such price variation. The compensation of Price variation shall be worked out at monthly intervals and shall be with respect to the work done during the previous month. The first such payment shall be made at the end of one month after the month (excluding) in which the tender was accepted and thereafter at monthly interval. 37.3 32.3 Benchmarking of price variation on account of diesel will be done on the basis of price of the diesel of the retail outlet of IOC/BP (PSUs), nearest to the worksite and the price variation will be admissible on simple average of diesel rate (nearest to the worksite) of the period considered for price variation. 32.4 Price Variation for Excavation, Removal of Overburden, Extraction of Coal and Transportation - Composite work Price Variation for a) Excavation, Removal and Transportation of OB. b) Extraction and Transportation of Coal. c) Extraction of Coal by Surface Miner. d) Loading & Transportation of Coal extracted by Surface Miner. on account of Diesel, Wages & other components shall be governed by the following formula: Formula for price variation R×a×(D1- Do)/Do R×b×(W1- Wo)/Wo R×c×(M1- Mo)/Mo Excavation, Removal and Transportation of OB. a = 0.56 b = 0.09 c = 0.04 Extraction and Transportation of Coal. a = 0.46 b = 0.15 c = 0.05 Extraction of Coal by Surface Miner. a = 0.29 b = 0.07 c = 0.01 Loading & Transportation of Coal extracted by Surface Miner. a = 0.37 b = 0.25 c = 0.07