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ESCALATION :

1) Refer Clause 10 Of CPWD - GCC for calculation of Escalation


In addition to this following information will be helpful to you
2) Escalation shall be applicable for the entire contract Period including extended period.
3) Escalation shall be claimed & settled provisionally based on PTI index,
which will be suitably corrected when the index figures from RBI are available.
4) Payment towards escalation shall be computed and paid as per the formula
every month along with monthly progress bills.
5) Visit following for whole sale price index.
http://eaindustry.nic.in/
E = 0.85 V X 0.4 (L1 - L0) + 0.55 (M1 - M0) + 0.05 (D1 - D0)
L0 M0 D0
Where,
E = is the escalation amount payable
V = is the gross value of work done during the period under consideraion
L1 = is the minimum statutory wages for an unskilled labour as applicable
in state for the month under consideration
L0 = is same as above but as on the date of the offer.
M1 = is All India Wholesale Price Index for all commodities ( Groups & Sub-
groups) for the period under consideration as published in RBI Bulletin.
M0 = is same as above but as on the date of the offer.
D1 = is retail price of diesel at the nearest petrol bunk for the period under
consideration
D0 = is same as above but as on the date of the offer.
Indices on the date of the offer Indices for the period under consideration
L0 75.68 L1 82.15
M0 160.7 M1 164.7
D0 24.82 D1 25.38
V = Rs. 30,735,868.96
E = 0.85 X Rs. 3,07,35,68.96 0.4 (82.15 - 75.68) + 0.05 (164.7 - 160.7)
75.68 160.7
+ 0.05 ( 25.38 - 24.82 )
E =
24.82
Rs. 1,280,536.79

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