Part 3: Conditions of Contract and Contract Forms 148
Appendix-2 : PRICE ADJUSTMENT
The prices for execution of the entire works covered under the scope of this work shall be
quoted by the Bidder in the manner specified, in the BPS. The Ex-works price component,
less advance will be subject to price adjustment, only for equipment/materials/items of work
specifically stated under clause 1.0 below, (for which the bidder shall quote a base price),
based on separate formulae as per price adjustment provisions given herein. However, it shall
be noted that the Price Adjustment clause will be effective from the contract signing date.
The Employer shall ensure that all the Price Adjustment would be governed as per the
approved L-2 schedule signed by Employer and Contractor, which would be included in the
contract.
Prices for Ex-works price component for all other equipment/items except specified at Clause
1.0 below, Charges for Erection, Inland Freight & Insurance etc. shall be FIRM and no price
adjustment shall be applicable for these components for the entire duration of the Contract.
No price adjustment shall be applicable on the portion of the Contract Price payable to the
Contractor as advance payment. However, if a Contractor opts for no advance then Price
Adjustment would be applicable on 100% contract value.
1.0 Materials and Labour portion:
1.0.1 For ACSR Conductor
The price quoted/confirmed for Aluminum Conductor is based on the input cost of
raw materials as on the date of quotation. It is deemed to be related to the prices of
the raw materials, as specified in the price variation clauses mentioned below. In case
of any variation in these prices, the prices payable shall be subject to adjustment up or
down in accordance with the following formula:
For Excise duty units:
P = Po + WA ( AL ALo) + WF (FE FEo)
For Excise duty exempted units:
P = Po + WA ( ALe ALoe ) + WF ( FEe FEoe )
Wherein,
P = Ex-works price payable in Rs. Per km as adjusted in accordance with the price
variation clause
Po = Ex-works price quoted/confirmed in Rs. Per km.
WA = Weight of Aluminium in ACSR conductor in MT per km. (As per IS: 398)
WF = Weight of Steel content in the ACSR conductor in MT per km. (As per IS: 398)
Part 3: Conditions of Contract and Contract Forms 149
AL = Price of EC Grade Aluminium Ingot/Rod (as per contract) exclusive of excise
duty in Rs./MT for the conductor. This price is applicable prevailing as on 30 days
prior to the date of delivery.
Ale = Price of EC Grade Aluminium Ingot/Rod (as per contract) inclusive of excise
duty in Rs./MT for the conductor. This price is applicable prevailing as on 30 days
prior to the date of tender delivery.
ALo = Price of EC Grade Aluminium Ingot/Rod (as per contract) exclusive of excise
duty in Rs./MT for the conductor. This price is applicable prevailing as on 30 days
prior to the date of tender opening.
ALoe = Price of EC Grade Aluminium Ingot/Rod (as per contract) inclusive of excise
duty in Rs./MT for the conductor. This price is applicable prevailing as on 30 days
prior to the date of tender opening.
FE = Price (exclusive of excise duty) of high tensile galvanized steel wire in Rs./MT
of appropriate size. This price is applicable prevailing as on 30 days prior to the date
of delivery.
FEe = Price (exclusive of excise duty) of high tensile galvanized steel wire in Rs./MT
of appropriate size. This price is applicable prevailing as on 30 days prior to the date
of delivery.
FEo = Price (exclusive of excise duty) of high tensile galvanized steel wire in Rs./MT
of appropriate size. This price is applicable prevailing as on 30 days prior to the date
of tender opening.
FEoe = Price (exclusive of excise duty) of high tensile galvanized steel wire in
Rs./MT of appropriate size. This price is applicable prevailing as on 30 days prior to
the date of tender opening.
Note : In case of any clarifications in the above formula kindly refer the IEEMA price
variation formula for ACSR conductors given in circular
st
IEEMA/PVC/CONDUCTOR/2012 effective from 1 April 2012, In case of any
discrepancies the IEEMA circular mentioned shall prevail.
1.0.2 Station / Distribution Transformer (Aluminum/Copper wound)
The price adjustment on the Ex-works price component, less advance, of
Transformers shall be as follows:
1.0.2.1 The price variation clause for Aluminium wound distribution transformers (Single &
Three phase of ratings upto and including 2,500kVA and voltage upto 33kV)
complete with all accessories and components.
The price payable shall be subject to adjustment, up or down in accordance with the
following formula:
P = 0.01 X Po ( 8 + 22 X ( AL / ALo) + 36 X( ES / ESo ) + 12 X ( IS / ISo ) + 5 X (
IM / IMo ) + 10 X( TO / TOo ) + 7 X ( W / Wo )
Wherein,
P = Price payable as adjusted in accordance with the above formula.
Po = Price quoted / confirmed.
ALo = LME CSP Average of Aluminium (as published by IEEMA) This price as
applicable for the month, one month prior to the date of tendering.
ESo = Price of CRGO Electrical steel lamination (as published by IEEMA) This price
as applicable for the month, one month prior to the date of tendering.
ISo = Price of the HR coil of 3.15 mm thickness (as published by IEEMA) This price
is as applicable for the month, one month prior to the date of tendering.
IMo = Price of Insulating Material (as published by IEEMA) This price is as
applicable for the month, one month prior to the date of tendering.
TOo = Price of Transformer oil (as published by IEEMA) This price is as applicable
for the month, one month prior to the date of tendering.
Wo = All India average consumer price index number for industrial workers, as
published by the labour bureau, Ministry of Labour, Govt. of India (Base: 2016 =
100) This index number is as applicable for the month, three months prior to the date
of tendering.
AL = LME CSP Average of Aluminium (as published by IEEMA) This price as
applicable for the month, one month prior to the date of delivery.
Part 3: Conditions of Contract and Contract Forms 152
ES = Price of CRGO Electrical steel lamination (as published by IEEMA) This price
as applicable for the month, one month prior to the date of delivery.
IS = Price of the HR coil of 3.15 mm thickness (as published by IEEMA) This price
is as applicable for the month, one month prior to the date of delivery.
IM = Price of Insulating Material (as published by IEEMA) This price is as applicable
for the month, one month prior to the date of delivery.
TO = Price of Transformer oil (as published by IEEMA) This price is as applicable
for the month, one month prior to the date of delivery.
W = All India average consumer price index number for industrial workers, as
published by the labour bureau, Ministry of Labour, Govt. of India (Base: 2001 =
100) This index number is as applicable for the month, three months prior to the date
of delivery.
Note : In case of any clarifications in the above formula kindly refer the IEEMA price
variation formula given in circular IEEMA/PVC/DIST_AL_upto 2.5 MVA/2021
effective from 1st September 2021, In case of any discrepancies the IEEMA circular
mentioned shall prevail.
1.0.2.2 The price variation clause for Copper wound distribution transformers (Single &
Three phase of ratings upto and including 2,500kVA and voltage upto 33kV)
complete with all accessories and components.
The price payable shall be subject to adjustment, up or down in accordance with the
following formula:
P = 0.01 X Po ( 7 + 41 X ( C / Co) + 23 X( ES / ESo ) + 10X ( IS / ISo ) + 5 X ( IM /
IMo ) + 8 X( TO / TOo ) + 6 X ( W / Wo )
Wherein,
P = Price payable as adjusted in accordance with the above formula.
Po = Price quoted / confirmed.
Co = Price of CC copper rods (as published by IEEMA) This price as applicable for
the month, one month prior to the date of tendering.
ESo = Price of CRGO Electrical steel lamination (as published by IEEMA) This price
as applicable for the month, one month prior to the date of tendering.
ISo = Price of the HR coil of 3.15 mm thickness (as published by IEEMA) This price
is as applicable for the month, one month prior to the date of tendering.
IMo = Price of Insulating Material (as published by IEEMA) This price is as
applicable for the month, one month prior to the date of tendering.
Part 3: Conditions of Contract and Contract Forms 153
TOo = Price of Transformer oil (as published by IEEMA) This price is as applicable
for the month, one month prior to the date of tendering.
Wo = All India average consumer price index number for industrial workers, as
published by the labour bureau, Ministry of Labour, Govt. of India (Base: 2016 =
100) This index number is as applicable for the month, three months prior to the date
of tendering.
C = Price of CC copper rods (as published by IEEMA) This price is as applicable for
the month, one month prior to the date of delivery.
ES = Price of CRGO Electrical steel lamination (as published by IEEMA) This price
is as applicable for the month, one month prior to the date of delivery.
IS = Price of the HR coil of 3.15 mm thickness (as published by IEEMA) This price
is as applicable for the month, one month prior to the date of delivery.
IM = Price of Insulating Material (as published by IEEMA) This price is as applicable
for the month, one month prior to the date of delivery.
TO = Price of Transformer oil (as published by IEEMA) This price is as applicable
for the month, one month prior to the date of delivery.
W = All India average consumer price index number for industrial workers, as
published by the labour bureau, Ministry of Labour, Govt. of India (Base: 2016 =
100) This index number is as applicable for the month, three months prior to the date
of delivery.
Note : In case of any clarifications in the above formula kindly refer the IEEMA price
variation formula given in circular IEEMA/PVC/DIST_CU_upto 2.5 MVA/2021
effective from 1st September 2021, In case of any discrepancies the IEEMA circular
mentioned shall prevail.
1.0.3 Cables
The price adjustment on the Ex-works price component, less advance, of Cables shall
be as follows:
Terms used in price variation formula :
P = Price payable as adjusted in accordance with the appropriate formula (in Rs/km)
Po = Price quoted/confirmed (in Rs/km)
Aluminium
AIF = Variation factor in Aluminium (as published by IEEMA)
Al = Price of EC grade aluminum rods (Properzi rods) (as published by IEEMA).
This price is as applicable on the first working day of the month, one month prior to
the date of delivery.
Part 3: Conditions of Contract and Contract Forms 154
Alo = Price of EC grade aluminum rods (Properzi rods) (as published by IEEMA).
This price is as applicable on the first working day of the month, one month prior to
the date of tendering.
Copper
CuF = Variation factor for copper
Cu = Price of CC copper rods (as published by IEEMA). This price is as applicable
on the first working day of the month, one month prior to the date of delivery.
Cuo = Price of CC copper rods (as published by IEEMA). This price is as applicable
on the first working day of the month, one month prior to the date of tendering.
PVC Compound Polymer
PVCc = Price of PVC compound (as published by IEEMA). This price is as
applicable on the first working day of the month, one month prior to the date of
delivery.
PVCco = Price of PVC compound (as published by IEEMA). This price is as
applicable on the first working day of the month, one month prior to the date of
tendering.
CCFAl = Variation factor for PVC Compound/ Polymer for aluminum conductor
cable (as published by IEEMA)
CCFCu = Variation factor for PVC Compound/ Polymer for copper conductor cable
(as published by IEEMA)
XLPE COMPOUND
Cc = Price of XLPE compound. This price is as applicable on first working day of the
month, one month prior to the date of delivery.
Cco = Price of XLPE compound. This price is as applicable on first working day of
the month, one month prior to the date of tendering.
XLFAL = Variation factor for XLPE compound for aluminum conductor cable.
XLFCU = Variation factor for XLPE compound for Copper Conductor cable.
Steel
FeF = Variation factor for steel (as published by IEEMA)
FeW = Variation factor for round wire steel armouring (as published by IEEMA)
Fe = Price of steel strips / steel wire (as published by IEEMA). This price is as
applicable on the first working day of the month, one month prior to the date of
delivery.
Feo = Price of steel strips / steel wire (as published by IEEMA). This price is as
applicable on the first working day of the month, one month prior to the date of
tendering.
The prices and indices mentioned above are published by IEEMA vide circular
reference IEEMA(PVC)/Cable/--/-- prevailing as on 1st working day of the month i.e.,
one month prior to the date of tendering.
Part 3: Conditions of Contract and Contract Forms 155
Price variation formulae for Power Cables
A. Aluminium conductor PVC insulated 1.1kV power cables
P=Po + AlF ( AL Alo ) + CCFAl ( PVCC PVCco ) + FeF ( Fe Feo)
For unarmoured multicore cables (without steel armour); FeF = 0
B. Copper conductor PVC insulated 1.1kV power cables
P = Po + CuF ( Cu Cuo ) + CCFCu ( PVCC PV Cco ) + Fef ( Fe Feo) +
AlF (Al -Alo)
For steel armoured cables; AlF = 0
For aluminium armoured cables ; FeF = 0
For unarmoured cables ; FeF, AlF = 0
C. Copper conductor PVC insulated 1.1kV control cables
P = Po + CuF( Cu Cuo) + CCFCu ( CC- Cco) + FeF (Fe Feo)
For unarmoured cables; FeF = 0
D. Aluminium conductor XLPE insulated 1.1kV power cables
P = Po + AlF (AL Alo) + XLFAL (CC-Cco) + CCFAl (PVCC PVCco) +
FeF (Fe Feo)
For unarmoured cables; FeF = 0
E. Copper conductor XLPE insulated 1.1kV power cables
P = Po + CuF (Cu Cuo) + XLFCU (CC Cco) + CCFCu (PVCC PVCco)
+ FeF (Fe -Feo) + AlF (AL Alo)
For steel armoured cables; AlF = 0
For aluminium armoured cables ; FeF = 0
For unarmoured cables ; FeF, AlF = 0
F. Copper conductor XLPE insulated 1.1kV control cables
P = Po + CuF (Cu Cuo) + XLFCU (CC Cco) + CCFCu (PVCC PVCco) + FeF
(Fe Feo)
For unarmoured cables; FeF = 0
G. For Aluminium conductor XLPE insulated 3.3 to 33kV power cables
P = Po + AlF (Al -Alo) + XLFAL (CC Cco) + CCFAl (PVCc PVCco) + FeF (Fe
Feo)
For unarmoured multicore cables (without steel armour); FeF = 0
H. Copper conductor XLPE insulated 3.3 to 33kV power cables
P = Po + CuF (Cu Cuo) + XLFCU (CC Cco) + CCFCu (PVCC PVCco) + FeF
(Fe Feo) + AlF (AL Alo)
For steel armoured cables; AlF = 0
For aluminium armoured cables; FeF = 0
For unarmoured cables; FeF, AlF = 0
Note : In case of any clarifications in the above formula kindly refer the IEEMA price
variation formula given in circular IEEMA/DIV/CAB/05 dated 24.04.2018 effective
Part 3: Conditions of Contract and Contract Forms 156
from 1st November 2017, In case of any discrepancies the IEEMA circular mentioned
shall prevail.
1.0.4 A. Steel Structure
Steel structure (excluding nuts, bolts) used in fabrication work at various places in
Sub-Transmission and Distribution network (such as lattice structure used in ST&D
network/line, switchyard etc.), which are billable items in the Bill of quantity (BOQ)
shall be covered under this head. The price adjustment formula for such structural
steel items shall be as mentioned hereinafter.
The price component of the structural steel for any shipment/ dispatch comprises of a
fixed portion (designated as 'F' and the value of which is specified hereunder) and a
variable portion linked with the indices for respective materials and labour
(description and co-efficient as enumerated below).
The amount of price adjustment towards variable portion payable/recoverable on each
shipment/dispatch shall be computed as under:
EC = EC1 - EC0
EC1 will be computed as follows in any of appropriate manner as applicable (a or b
or c):
a) For structure using both heavy and lighter angles:
EC1= EC0 * [F + 0.18 * (HA1/HA0) + 0.40 * (LA1/LA0) + 0.16 * (Zn1/Zn0)
+ 0.11 * (L1/L0)]
b) For structure using only heavy angles:
EC1= EC0 * [F + 0.58 * (HA1/HA0) + 0.16 * (Zn1/Zn0) + 0.11 * (L1/L0)]
c) For structure using only lighter angles:
EC1= EC0 * [F + 0.58 * (LA1/LA0) + 0.16 * (Zn1/Zn0) + 0.11 * (L1/L0)]
d) Steel Pole Tower (including Bolts, Nuts & structural component etc.)
EC1 = EC0 [0.15 + 0.58 * (HA1/HA0) + 0.16 * (Zn1/Zn0) + 0.11 x (L1/L0)]
EC0
Where
EC = Adjustment to Ex-Works price component payable to Contractor for
each shipment/dispatch
EC1 = Adjusted amount of Ex-works price component of Contract payable to
Contractor for each shipment / dispatch.
ECo = Ex-works price for the respective item of the Contract,
Shipment/dispatch wise (quoted price).
Part 3: Conditions of Contract and Contract Forms 157
F= Fixed portion of the ex-works/FOB component of the Contract Price (F)
shall be 0.15.
HA = Price of Heavy angle steel, as published by IEEMA
LA = Price of Lighter angle steel, as published by IEEMA
Zn = Price of electrolytic high grade zinc, as published by IEEMA
L = All India average Consumer Price Index Number for Industrial
Workers (base 2001=100) as published/declared by Labour Bureau, Shimla,
Government of India and circulated by IEEMA.
For the indices, subscript 'o' refers to indices as on 30 days prior to date set for
opening of bids. Subscript '1' refers to indices as of
(a) two months/sixty (60) days prior to the date of shipment/dispatch for labour,
and
(b) at the expiry of two third (2/3) period from the date of Notification of Award to
the date of shipment/dispatch, for material.
For the purpose of this clause the date of shipment/ dispatch shall mean the Schedule
date of shipment/dispatch or actual date of shipment/dispatch, whichever is earlier.
The schedule date of shipment/dispatch shall be as identified in line with provisions
of Time Schedule in the Contract Agreement.
In case of shipments/ dispatches which are delayed beyond the schedule date of
shipment/dispatch for reasons attributable to the Contractor, the price adjustment
provision shall not be applicable for the period of time between the schedule date of
shipment/dispatch and the actual date of shipment/dispatch.
Note: As per IEEMA Circular No. IEEMA(PVC)/TLT/(R)/02/2007-
1) Heavy Steel Angles of size 150mm*150mm*12mm as per IS-2062 has been
categorized as Heavy Angles (HA).
2) Re-rolled steel angles of size 50mm*50mm*4 mm Lighter has been categorized
as Lighter Angles (LA).
3) Input costs for all heavy angles of size above 110m*110mm are deemed to be
related to the price under Sr No.1.
4) Input costs for all lighter angles of size below & including 110m*110mm are
deemed to be related to the price under Sr No.2.
Steel Tubular Poles: PRICE VARIATION CLAUSE FOR POLES: The price
quoted/confirmed is based on the input cost of raw materials/components and labour
cost as on the date of quotation and the same is deemed to be related to prices of raw
materials and all India average consumer price index number for industrial workers as
specified in the price variation clause given below. In case of any variation in these
prices and index numbers, the price payable shall be subject to adjustment, up or
down in accordance with the following formula:
Part 3: Conditions of Contract and Contract Forms 158
(A) Steel Tubular Poles
= ( + + +
(B) Polygonal Poles
= ( + + +
Wherein,
P = Price payable as adjusted in accordance with the above formula.
P0 = Price quoted/confirmed.
IS0 = Price of HR Coil of 3.15 mm thickness (refer notes) This price is as
applicable for the month, ONE month prior to the date of tendering.
Zn0 = Price of Electrolytic high grade zinc (refer notes) This price is as
applicable on the 1st working day of the month, ONE month prior to the date of
tendering.
W0 = All India average consumer price index number for industrial workers, as
published by the Labour Bureau, Ministry of Labour, Govt. of India (Base: 2016
= 100) (Refer notes)
This index number is as applicable for the month, THREE months prior to the
date of tendering.
For example, if date of tendering falls in May 2022, the applicable prices of HR
Coil (IS0) should be for the month March 2022, Zinc (Zn0) should be for the
month April 2022 and all India average consumer price index number (W0)
should be for the month of February 2022.
The above prices and indices are as published by IEEMA vide circular reference
number IEEMA (PVC)/TLT-2014 (R-1)/_/_ ONE month prior to the date of
tendering.
IS = Price of HR Coil of 3.15 mm thickness (refer notes) This price is as
applicable for the month, FOUR month prior to the date of delivery.
Zn = Price of Electrolytic high grade zinc (refer notes) This price is as
applicable on the 1st working day of the month, ONE month prior to the date of
delivery.
W = All India average consumer price index number for industrial workers, as
published by the Labour Bureau, Ministry of Labour, Govt. of India (Base: 2016
= 100) (Refer notes) This index number is as applicable on the first working day
of the month, THREE months prior to the date of delivery.
For example, if date of delivery falls in December 2022, the applicable prices of
HR Coil (IS) should be for August 2022 and Zinc (Zn) should be for the month
November 2022 and all India average consumer price index number (W) should
be for the month of September 2022.
Part 3: Conditions of Contract and Contract Forms 159
The date of delivery is the date on which Poles are notified as being ready for
inspection/dispatch (in the absence of such notification, the date of
contracted delivery date (including any agreed extension thereto), whichever is
earlier.
Notes:
(a) All prices of raw materials are exclusive of GST and any other central, state
or local taxes etc.
(b) The details of prices are as under:
1. Price of steel is the average retail price of HR Coil 3.15 mm thickness as
published by Joint Plant Committee (JPC) in Rs./MT.
2. The price of Electrolytic high grade zinc (in Rs/MT) is ex-works price as
quoted by a primary producer.
(C) Note : In case of any clarifications in the above formula kindly refer the IEEMA
price variation formula given in circular 10/PVC/T & D Project/05 effective
from 1st April 2022, In case of any discrepancies the IEEMA circular mentioned
shall prevail.
1.0.5 66/11 KV & 33/11 KV Switchgear (indoor/outdoor) including 66/33/11 KV
Circuit Breakers and Isolators:
The Contract Price shall be subject to price adjustment during performance of the
Contract to reflect changes in the cost of labour and material components in
accordance with the provisions described below.
The Ex-Works price of 66/11 KV & 33/11 KV Switchgear (Indoor/Outdoor), Circuit
Breakers, and Isolators excluding Mandatory Spares and Type Tests Charges (if any)
will be subject to Price adjustment. The price adjustment formula for the components
of the Contract Price, as mentioned above shall be as stipulated hereinafter.
The price component of the equipment for any shipment/ dispatch comprises of a
fixed portion (designated as 'F' and the value of which is specified hereunder) and a
variable portion linked with the indices for various materials and labour (description
and co-efficient as enumerated below).
The amount of price adjustment towards variable portion payable/recoverable on each
shipment/dispatch shall be computed as under:
P = 0.01 X Po ( 20 + 28 ( IS / ISo ) + 26 ( C / Co ) + 4 ( AL / ALo ) + 9 ( ln / lno) +
13 ( W / Wo )
Wherein,
Part 3: Conditions of Contract and Contract Forms 160
P = Price payable as adjusted in accordance with the above formula
Po = Price quoted/confirmed
ISo -
12 = 100) (as published by IEEMA). This price index number for the month, Three
month prior to the date of tendering
Co = Average LME settlement price of copper wire bars (as published by IEEMA).
This price is applicable for the month, One month prior to the date of tendering
Alo = Price of busbar grade aluminum (as published by IEEMA). This price is
applicable on the 1st working day of the month, One month prior to the date of
tendering
lno = Price of epoxy resin for indoor circuit breakers and switch gear (as published by
IEEMA). This price is applicable on the 1st working day of the month, One month
prior to the date of tendering
Or wholesale price index of insulator for outdoor circuit breakers (VBF and SDB) (as
published by IEEMA). This index number is as applicable for the month, Three
month prior to the date of tendering
Wo = All India average consumer price index number for industrial workers, as
published by the Labour bureau, Ministry of Labour, Government of India (Base :
2001 = 100)
This index number is as applicable for the month, Four month prior to the date of
tendering. (as published by IEEMA)
ISo -
12 = 100) (as published by IEEMA). This price index number for the month, Three
month prior to the date of tendering
Co = Average LME settlement price of copper wire bars (as published by IEEMA).
This price is applicable for the month, One month prior to the date of tendering
Alo = Price of busbar grade aluminum (as published by IEEMA). This price is
applicable on the 1st working day of the month, One month prior to the date of
tendering
Part 3: Conditions of Contract and Contract Forms 161
lno = Price of epoxy resin for indoor circuit breakers and switch gear (as published by
IEEMA). This price is applicable on the 1st working day of the month, One month
prior to the date of tendering
Or wholesale price index of insulator for outdoor circuit breakers (VBF and SDB) (as
published by IEEMA). This index number is as applicable for the month, Three
month prior to the date of tendering
Wo = All India average consumer price index number for industrial workers, as
published by the Labour bureau, Ministry of Labour, Government of India (Base :
2001 = 100) (as published by IEEMA). This index number is as applicable for the
month, Four month prior to the date of tendering
Note : In case of any clarifications in the above formula kindly refer the IEEMA price
variation formula given in circular IEEMA/PVC/MVSWGR/2019 (R-2) effective from
1st January 2019, In case of any discrepancies the IEEMA circular mentioned shall
prevail.
1.0.6 Aerial Bunched Cables
The price payable shall be subject to adjustment up or down in accordance with the
formulae provided in this document.
Terms used in price variation formulae:
P = Price payable as adjusted in accordance with above appropriate formula (in
Rs/Km)
Po = Price quoted/confirmed (in Rs/Km)
n = No. of phase conductor
ALUMINIUM
Alph= Aluminium factor for phase conductor (as published by IEEMA)
Alm= Aluminium factor for messenger conductor (as published by IEEMA)
Alsl= Aluminium factor for street light conductor (as published by IEEMA)
Aln= Aluminium factor for neutral conductor (as published by IEEMA)
AI = Price of LME average Cash SELLER Settlement price of Primary Aluminium in
US$ per MT as published by London Metal Bulletin (LME) including Premium for
Aluminium Ingot in US$ per MT converted in Rs./MT
This price is as applicable of first working day of the month, one month prior to the
date of delivery.
Alo = Price of LME average Cash SELLER Settlement price of Primary Aluminium
in US$ per MT as published by London Metal Bulletin (LME) including Premium for
Aluminium Ingot in US$ per MT converted in Rs./MT
Part 3: Conditions of Contract and Contract Forms 162
This price is as applicable on first working day of the month, one month prior to the
date of tendering.
XLPE COMPOUND
CCFAlph = XLPE factor for phase conductor (For LV AB Cables) (as published by
IEEMA)
CCF1Alph= XLPE factor for phase conductor (For MV_HV AB Cables) (as
published by IEEMA)
CCFAlm= XLPE factor for messenger conductor (as published by IEEMA)
CCFAlsl= XLPE factor for street light conductor (as published by IEEMA)
CCFAln= XLPE factor for neutral conductor (as published by IEEMA)
Cc = Price of LV/HV XLPE Compound in Rs/MT of a representative grade
applicable for LV /HV Aerial
Bunch Cables respectively; as quoted by supplier/s. (as published by IEEMA)
This price is as applicable of first working day of the month, one month prior to the
date of delivery
Cco = Price of LV/HV XLPE Compound in Rs/MT of a representative grade
applicable for LV /HV Aerial
Bunch Cables respectively; as quoted by supplier/s.
This price is as applicable of first working day of the month, one month prior to the
date of tendering
PVC/PE Compound
CCF2Alph= PVC/ PE factor for phase conductor (For MV_HV AB Cables)
PVCc price of PVC compound (equivalent to CW-22 grade) in Rs/MT; as quoted by
supplier/s.
This price is as applicable on first working day of the month, one month prior to the
date of delivery
PVCco Price of PVC compound (Equivalent to CW-22 Grade) in Rs/MT; as quoted
by supplier/s.
This price is as applicable on first working day of the month, one month prior to the
date of tendering Copper
CuFtph= Cu tape factor for phase conductor
CU = The LME price of Copper Wire Bars (in Rs./MT) is the LME average
settlement price of Copper
Wire Bars converted into Indian Rupees with average exchange rate of the month.
This price is the
Part 3: Conditions of Contract and Contract Forms 163
landed cost, inclusive of applicable customs duty only.
This price is as applicable of first working day of the month, one month prior to the
date of delivery.
CU0 = The LME price of Copper Wire Bars (in Rs./MT) is the LME average
settlement price of Copper
Wire Bars converted into Indian Rupees with average exchange rate of the month.
This price is the landed cost, inclusive of applicable customs duty only.
This price is as applicable of first working day of the month, one month prior to the
date of tendering.
The above prices and indices are as published by IEEMA vide Circular reference
IEEMA(PVC)/CABLE(R-1)/--/-- prevailing as on 1st working day of the month i.e.
one month prior to the date of tendering.
Price variation formula
1. LV Aerial Bunched Cables with Aluminium Conductor , XLPE Insulated
and Aluminium Magnesium-Silicon Alloy Messenger Conductor
P = P0 + Alph * n* (Al-Al0) + Alm(Al-Al0) + Alsl(Al-Al0) + Aln(Al-Al0) +
CCFAlph *n* (CC-CC0)+ CFAlm(CCCC0) + CCFAlsl (CC-CC0) + CCFAln(CC-
CC0)
In case messenger is bare; XLPE factor CCFAlm= 0
2. HV Aerial Bunched Cables with Aluminium Conductor, Conductor screened,
XLPE Insulated, insulation screened followed by copper tape and over all
PVC/PE sheathe cores twisted around Bare Aluminium Magnesium-Silicon
Alloy Messenger Conductor
P = P0 + Alph *n *(Al-Al0) + Alm(Al-Al0) + CUFtph * n *(Cu-Cu0) + CCF1Alph *
n* (CC-CC0) + CCF2Alph * n *(PVCc-PVCc0) + CCFAlm (CC-CC0)
Note In case of any clarifications in the above formula kindly refer the IEEMA price
variation formula given in circular IEEMA(PVC)/AB CABLE/2017 effective from 1 st
November 2017, In case of any discrepancies the IEEMA circular mentioned shall
prevail.
1.0.7 The Employer shall use the recent formula/ revisions published by IEEMA to
calculate the Price adjustment on supply of plants and facilities.
1.0.8 The price adjustment amount towards the price components of materials shall be as
per the price variation formulas mentioned in para 1.0.1 to 1.0.8 without any ceiling.
Part 3: Conditions of Contract and Contract Forms 164
1.0.9 For the purpose of price adjustment for Ex-works price component, the date of
shipment for goods shall mean the scheduled date of shipment or actual date of
shipment, whichever is earlier. Scheduled date of shipment will be ex-works date of
dispatch, governed by the approved PERT Chart as per Appendix- 4 Time Schedule.
1.0.10 No price increase shall be allowed beyond the original delivery dates unless
specifically stated in the Time Extension letter, if any, issued by the Employer. The
Employer will, however, be entitled to any decrease in the Contract price which may
be caused due to lower price adjustment amount in case of delivery beyond the
original delivery dates. In such event where the time extension is agreed by the
Employer, a revised L2 schedule is to be released by the Employer for the extended
period in which price variation would also be allowed.
1.0.11 In case of non-publication of applicable indices on a particular date, which happens to
be the applicable date for price adjustment purposes, the published indices prevailing
immediately prior to the particular date shall be applicable.
1.0.12 If the price adjustment amount works out to be positive, the same is payable to the
Contractor by the Employer and if it works out to be negative, the same is to be
recovered by the Employer from the Contractor without any ceiling.
1.0.13 The Contractor shall promptly submit the price adjustment invoices for the supplies
made and works executed at site, positively within three (3) months from the date of
shipment/work done whether it is positive or negative.
1.0.14 Bids shall conform to the price adjustment provisions detailed above. Bids specifying
prices for items on variable basis run the risk of rejection. A bid submitted on a fixed
price basis will not be rejected but the price adjustment will be treated as zero.
1.0.15 In case of extension of the project beyond the scheduled date of completion, the price
adjustment shall remain in effect till the time of scheduled completion, however for
the period beyond the scheduled date of completion for which the Contractor is liable
to pay liquidated damages to the employer, the price adjustment shall not be
applicable.
