Common use of Price Adjustment Clause in Contracts

Price Adjustment. 47.1 Contract price shall be adjusted for increase or decrease in rates and price of labour, materials, fuels and lubricants in accordance with the following principles and procedures and as per formula given in the contract data: (a) The price adjustment shall apply for the work done from the start date given in the contract data upto end of the initial intended completion date or extensions granted by the Engineer and shall not apply to the work carried out beyond the stipulated time for reasons attributable to the contractor. (b) The price adjustment shall be determined during each quarter from the formula given in the contract data. (c) Following expressions and meanings are assigned to the work done during each quarter: R = Total value of work done during the quarter. It would include the amount of secured advance for materials paid for (if any) during the quarter, less the amount of the secured advance recovered, during the quarter. It will exclude value for works executed under variations for which price adjustment will be worked separately based on the terms mutually agreed. 47.2 To the extent that full compensation for any rise or fall in costs to the contractor is not covered by the provisions of this or other clauses in the contract, the unit rates and prices included in the contract shall be deemed to include amounts to cover the contingency of such other rise or fall in costs.

Price Adjustment. 47.1 Contract price shall be adjusted for increase or decrease in rates and price of labour, materials, fuels and lubricants in accordance with the following principles and procedures and as per formula given in the contract data: (a) The price adjustment shall apply for the work done from the start date given in the contract data upto up to end of the initial intended completion date or extensions granted by the Engineer and shall not apply to the work carried out beyond the stipulated time for reasons attributable to the contractor. (b) The price adjustment shall be determined during each quarter from the formula given in the contract data. (c) Following expressions and meanings are assigned to the work done during each quarter: R = Total value of work done during the quarter. It would include the amount of secured advance for materials paid for (if any) during the quarter, less the amount of the secured advance recovered, during the quarter. It will exclude value for works executed under variations for which price adjustment will be worked separately based on the terms mutually agreed. 47.2 To the extent that full compensation for any rise or fall in costs to the contractor is not covered by the provisions of this or other clauses in the contract, the unit rates and prices included in the contract shall be deemed to include amounts to cover the contingency of such other rise or fall in costs.

Price Adjustment. 47.1 Contract price shall be adjusted for increase or decrease in rates and price of labour, materials, fuels and lubricants in accordance with the following principles and procedures and as per formula given in the contract data: (a) The price adjustment shall apply for the work done from the start date given in the contract data upto up to end of the initial intended completion date or extensions granted by the Engineer and shall not apply to the work carried out beyond the stipulated time for reasons attributable to the contractor. (b) The price adjustment shall be determined during each quarter from the formula given in the contract data. (c) Following expressions and meanings are assigned to the work done during each quarter: R = =Total value of work done during the quarter. It would include the amount of secured advance for materials paid for (if any) during the quarter, less the amount of the secured advance recovered, during the quarter. It will exclude value for works executed under variations for which price adjustment will be worked separately based on the terms mutually agreed. 47.2 To the extent that full compensation for any rise or fall in costs to the contractor is not covered by the provisions of this or other clauses in the contract, the unit rates and prices included in the contract shall be deemed to include amounts to cover the contingency of such other rise or fall in costs.

Price Adjustment. 47.1 Contract price shall be adjusted for increase or decrease in rates and price prices of labour, materials, fuels and lubricants in accordance with the following principles and procedures and as per formula given in the contract data: (a) The price adjustment shall apply for the work done from the start date given in the contract data upto end of the initial intended completion date or extensions granted by the Engineer and shall not apply to the work carried out beyond the stipulated time for reasons attributable to the contractor. (b) The price adjustment shall be determined during each quarter month from the formula given in the contract data. (c) Following expressions and meanings are assigned to the work done during each quartermonth: R = Total value of work done during the quartermonth. It would include the amount of secured advance for materials paid for (granted, if any) , during the quartermonth, less the amount of the secured advance recovered, if any during the quartermonth. It will exclude value for works executed under variations for which price adjustment will be worked separately based on the terms mutually agreed. 47.2 To the extent that full compensation for any rise or fall in costs to the contractor is not covered by the provisions of this or other clauses in the contract, the unit rates and prices included in the contract lumpsum bid price shall be deemed to include amounts to cover the contingency of such other rise or fall in costs.

Price Adjustment. 47.1 Contract price shall be adjusted for increase or decrease in rates and price of labour, materials, fuels and lubricants in accordance with the following principles and procedures and as per formula given in the contract data: (a) The price adjustment shall apply for the work done from the start date given in the contract data upto end of the initial intended completion date or extensions granted by the Engineer and shall not apply to the work carried out beyond the stipulated time for reasons attributable to the contractor. (b) The price adjustment shall be determined during each quarter from the formula given in the contract data. (c) Following expressions and meanings are assigned to the work done during each quarter: R = Total value of work done during the quarter. It would include the amount of secured advance for materials paid for (if any) during the quarter, less the amount of the secured advance recovered, during the quarter. It will exclude value for works executed under variations for which price adjustment will be worked separately based on the terms mutually agreed. 47.2 To the extent that full compensation for any rise or fall in costs to the contractor is not covered by the provisions of this or other clauses in the contract, the unit rates and prices included in the contract shall be deemed to include amounts to cover the contingency of such other rise or fall in costs. 47.3 Price escalation clause for O & M over 5 years