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Price Fluctuation
ICTAD Formula Method for Price
Fluctuation
The ICTAD Formula Method was introduced in January
1993.
To Reimburse of Price fluctuation of Material, Labour &
Plant in Construction.
To Calculate the amount due to the Price Fluctuation.
There are two Formula
1. Contract exceeding 10 Million
2. Contract not exceeding 10 Million
THE FORMULA METHOD FOR CONTRACT
EXCEEDING RS. 10 MILLION
V =V V
na nac nap
For Example,
If the bids were closed on any date of the month
of September, the applicable base indices shall
be the indices published for the month of August
of the same year
Ixc Current Indices
The current index of a particular input shall be the index
published by ICTAD for that input for the month
applicable.
The Contractor is supposed to submit the monthly
statement for the payment.
For the first interim bill, Current indices shall be taken as
the indices prevailing on the first month after
commencement of the contract.
For any other interim claim or the final claim the Current
indices shall be taken as indices prevailing for the calendar
month, one month after the previous valuation was done.
Ixc Current Indices
Example for the use of Current Indices
Details of monthly statement submitted by the Contractor
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Case a Claim 1 Claim 2 - - Claim 3 Final
Case b - Claim 1 Claim 2 - Final -
100
Px (Ixc Ixb) as the second part
all inputs Ixb
Method Of Computation Of Price Fluction
Computation of V- V na
Heavy
Machinary (P2) 37.89 313.7 313.7 0.000
Unskilled
labor(L2) 4.35 352.1 352.1 0.000
Skilled labor
(L1) 2.12 363.5 363.5 0.000
0.327
Method Of Computation Of Price Fluctuation
F = Step 5 X Step 6
26,312.13 X 0.327
= 8,604.06
The Formula Method For Contract Not Exceeding Rs. 10
Million