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Price Variation Clause

This document outlines a price variation clause for the supply of 8M PSC poles. It specifies that the price will be revised based on monthly indices for cement, steel, labor, and diesel costs. The price variation formula takes the quoted price and adjusts it based on the proportionate change in these input costs from their base date values. It also describes the conditions under which this price variation will apply, such as for delayed or late deliveries within or beyond the contractual period. Payments will be made based on the lower of various calculated price variations depending on the delivery timing and documentation submitted.

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123 views

Price Variation Clause

This document outlines a price variation clause for the supply of 8M PSC poles. It specifies that the price will be revised based on monthly indices for cement, steel, labor, and diesel costs. The price variation formula takes the quoted price and adjusts it based on the proportionate change in these input costs from their base date values. It also describes the conditions under which this price variation will apply, such as for delayed or late deliveries within or beyond the contractual period. Payments will be made based on the lower of various calculated price variations depending on the delivery timing and documentation submitted.

Uploaded by

APRWSEA WG
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ISO 9001:2008 Certified

DAKSHIN GUJARAT VIJ CO. LTD.,


“Urja Sadan” CORPORATE OFFICE,
Kapodara Char Rasta, Nana Varachha Road, SURAT 395006
Ph .No.0261-2506100
Fax No. 0261- 2506169 e-mail: [email protected]

PRICE VARIATION CLAUSE


A. Tender invited as above is with Price variation (PV) clause. The
Price Variation clause for supply of 8M PSC Pole is as under:
P = Po { 15 + 20 C1 + 34 I1 + 15 L1 + 16 D1 }
100 C0 I0 L0 D0
Where,
• P = Revised Basic Price payable per pole
• Po =Price Quoted / Confirmed and accepted by DGVCL. Excluding Sales
tax /VAT payable per pole.
• C1 = The monthly index number of wholesale prices in India as published
in RBI monthly Bulletin www.rbi.org.in – Table no. 21 for – Commodity
“Cement” under Major Group “Non metallic mineral products” and sub-
group “cement & lime” corresponding to the month under consideration.
• C0 = The monthly index number of wholesale prices in India as published
in RBI monthly Bulletin www.rbi.org.in – Table no. 21 for – Commodity
“Cement” under Major Group “Non metallic mineral products” and sub-
group “cement & lime” corresponding to Base date.
• I1 = The monthly rates of H.T. steel as per Prices declared by Rashtriya
Ispat Nigam Limited (Vizag Steel) for 7mm wire Rod grade PC 115
corresponding to the month under consideration.
• I0 = The monthly rates of H.T. steel as per Prices declared by Rashtriya
Ispat Nigam Limited (Vizag Steel) for 7mm wire Rod grade PC 115
corresponding to Base date.
• L1 = The Monthly rates of labour declared by Government of Gujarat
under minimum wages applicable for semi skilled labour rate under
Cement Prestressed Producer Industry corresponding to month under
consideration.
• L0 = The Monthly rates of labour declared by Government of Gujarat
under minimum wages applicable for semi skilled labour rate under
Cement Prestressed Producer Industry corresponding to Base date .
• D1 = The monthly index of Diesel as per Rates prevailing at Indian Oil
outlet in Surat corresponding to month under consideration.
• D0 = The monthly index of Diesel as per Rates prevailing at Indian Oil
outlet in Surat corresponding to Base date.
Conditions for applying Price Variation Clause:
The prices quoted in tender for the supply of the above materials will be accepted
on a PV basis for delivery on Ex. works basis subject to following conditions:
1. The base date for PV calculation is one month prior to the scheduled
technical bid opening date.
2. For the supplies made during the contractual delivery period, price shall
be payable in accordance with the Price Variation formula with
positive/negative variation as the case may be.

Signature of Tenderer Company’s Round Seal Date: Place:


Page 1 of 2
ISO 9001:2008 Certified
DAKSHIN GUJARAT VIJ CO. LTD.,
“Urja Sadan” CORPORATE OFFICE,
Kapodara Char Rasta, Nana Varachha Road, SURAT 395006
Ph .No.0261-2506100
Fax No. 0261- 2506169 e-mail: [email protected]

3. For delayed deliveries but within contractual delivery period, Price shall
be payable at lower of the following:
a. Worked out with indices applicable for schedule month of delivery
or
b. Worked out with indices applicable for actual month of delivery of
material.
4. For delayed deliveries and also beyond the contractual delivery period,
Price shall be payable at lower of the following:
a. Worked out with indices applicable for scheduled month of
delivery or
b. Worked out with indices applicable for actual month of delivery of
material or
c. Worked out with indices applicable for last month of Contractual
Delivery period.
5. The Price as worked out with indices applicable for actual month of
delivery shall be payable. And termed as “the month under
consideration”.
6. The date of delivery is the date on which the actual delivered poles were
inspected and accepted at pole factory.
7. The supplier will have to submit PV Calculation sheet along with self-
attested copy of relevant supporting documents.
8. This clause shall be operative from the date of issue of work order and
up to the expiry of original and extended time limit.
Payment as per A/T base rate shall be made to Supplier at first instance and
the PV amount shall be paid after approval of PV by corporate office on
availability of supportive authentic documents.

Signature of Tenderer Company’s Round Seal Date: Place:


Page 2 of 2

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