OFFICE OF THE ENGINEER-IN-CHIEF, JAL O PARIMAL BHAWAN RURAL WATER SUPPLY & SANITATION, UNIT-V, BHUBANESWAR. 751001 ODISHA. Tel: 0674-2395734, FAX: 0674-2394946, e-mail: cerwssodisha@ar OF bl 2042 File No. Tender(P)-06/17 Letter No. 2/3, Di Additional Chief Engineers, All RWS&S Circles Superintending Engineers! Executive Engineers, All RWS&S Divisions Sub: Codal/Contractual provisions regarding Price Adjustment in Works Contract. Refi Letter No. 22786 dated 27.12.2021 of Govt. in PR&DW Department and OM. No. 15847/W dated 19.11.2019 & O.M. No. 8189/W dated 07.06.2021 of Works Department Sir. Please find enclosed herewith Govt. in PR&DW Department Letter No. 22786 dated 27.12.2021 and O.M. No. 15847/W dated 19.11.2019 & O.M. No. 8189/W dated 07.06.2021 of GoO works Department. As such, you are requested to follow O.M. No. 15847/W dated 19.11.2019 of GoO Works Department retrospectively from 07.07.2012 in respect of all ongoing Rural Piped Water Supply Projects. All the stipulations made in Letter No. 22786 dated 27.12.2021 of Govt. in PR&DW Department and O.M. No. 15847/W dated 19.11.2019 & O.M. No. 8189/W dated 07.06.2021 of Works Department are to be followed strictly and the following percentage breakup shall be followed towards price adjustment. | Item _ Component Water Supply Works — Pipeline work Structural works Labour (PL) %e — 6 ‘Cement (PC) Nil 20% Steel (PS) Nil 20% Bitumen (PB) ___Nil Pipe (PP) 0% - Nil Fuel and lubricants (PF) 3% 3% Other Materials (PM) 20% 30% ing machinery and spares. a 20% Total 100% 100% } You are, therefore, requested to take necessary action regarding price ‘Adjustment in works contract as per the above provisions prescribed by the Works Department.Enel: e 1. Letter No. 22786 dated 27.12.2021 of Govt. in PR&DW Department 2. O.M. No. 15847/W dated 19.11.2019 of Works Department and 3. O.M. No. 8189/W dated 07.06.2021 of Works Department. cai 1. Chief Engineer-I/ Chief Engineer-II for kind information. 2. Copy to file No. WSSO-WQ-01(Part-1)2010-19.Fai Gal AAGIA ce reas ae = = abooa nd george -28teoe aaINS aie 6 ainia ee Faia Odisha Lokseva Bhawan 7 - GOVERNMENT OF ODISHA ‘Sachibalaya Marg, Bhubaneswar-751 001 \ PANCHAYATI RAJ & DRINKING WATER. a DEPARTMENT 27 12 /rdoa! Shri B.Parameswaran,IAS, Director, DW&S-cum-Additional Secretary to Govt. To The Engineer-in-Chief, RWS&S, Odisha, Bhubaneswar. Sub: Codal/ Contractual provisions regarding Price Adjustment in Works Contract- clarification on applicability of Works Department 0.M. No.15847/W, dated 19.11.2019 in place of the conditions agreed upon by the agencies in the clause No.19.10 (DA) of the existing agreement. Sir, In inviting a reference to your letter No.8140 dated 29.09.2021 on the subject cited above, | am directed to say that the Price Adjustment clause due to increase or decrease in rate and price of Labour, Materials, Fuels & Lubricants and Plant and Machineries, Spare Components issued vide Works Department 0.M.No.15847/W, dated 19.11.2019 will be effective for the period retrospectively from 07.07.2012 to 18.11.2019 in respect of all ongoing Rural Piped Water Supply Projects as per Works Department 0.M.No. 8189/W, dated 07.06.2021 subject to following stipulations: 1. Administrative Department will have complete proof _ (including documentary proof) for cost escalation in terms of actual work done. Il. Acertificate has to be signed by competent authority, if delay is not due to the actions of contractor concerned IIL If there are avoidable administrative delays, responsibility has to be fixed on Government Servants concerned for cost escalation and a consolidated Action ‘Taken Report in this matter be submitted to Finance Department. You are, therefore, requested to take necessary action regarding Price ‘Adjustment in Works Contract as per the above provisions prescribed by the Works Department. Yours faithfully, | Director, DW&S-cum-Addl SecretaryGOVERNMENT OF ODISHA WORKS DEPARTMENT OFFICE MEMORANDUM No.07556900242019-_ SB \ Sey M., dated “J. L- a\ Sub:- Codal /Contractual provisions regarding Price Adjustment in Works Contract. Codal / Contractual provisions regarding Price Adjustment in Works Contract was under active consideration of Government for some time past. After careful consideration, Government was pleased to make the codal /contractual provisions: regarding Price Adjustment Clause due to increase or decrease in rate and price of Labour, Materials, Fuels & Lubricants and Plant and Machineries, Spare Components vide Works Department Office Memorandum No.15847/W dated 19.11.2019, which was effective from the date of issue of the said Office Memorandum. 2. Now, in continuation of this, Government have been pleased to order that the Price Adjustment clause due to increase or decrease in rate and price of Labour Materials, Fuels & Lubricants and Plant and Machineries, Spare Components issued Vide Works Department O.M. No.15847/W dated 19.11.2019 will be effective for the period retrospectively from 07.07.2012 to 18.11.2019 subject to the following stipulations; i Administrative Department will have complete proof (including documentary proof) for cost escalation in terms of actual work done. ii. A certificate has to be signed by competent authority, if delay is not due to the actions of contractor concerned. iii, If there are avoidable administrative delays, responsibility has to be fixed on Government Servants concemed for cost escalation and a consolidated Action Taken Report in this matter be submitted to Finance Department. 3. This has been concurred in by Finance Department vide their OSWAS File No. FIN-WF1-MISC-0031-2019. By “ of Governor (Or. Krishan Kumary 7: Commissioner-cum-Secretary to Govt.wemone_ “So VAS _M, dated “AG: 24 Copy forwarded to Private Secretary to Hon'ble Chief Minister, Odisha for Kind information. Ss 272) FA-cum-Additional Secratary folGovt Memo No.__&1\' Mv, dated “G24 Copy forwarded to Private Secretary to Hon'ble Minister, Works, Steel & Mines, Odisha/ Private Secretary to Hon'ble Minister, Finance, Odisha for kind information. FA-cum-Additional Secretary td Govt Memo No__3 \ V2 WW, dated A> Gy Copy forwarded to OSD to Chief Secretary, Odisha/ Sr. P'S. to Development Commissioner-cum-Additional Chief Secretary, Odishal Sr P.S. to. Principal Secretary, Finance Department for kind information of Chief Secretary, Odisha Development Commissioner-cum-Additional Chief Secretary, Odisha and Principal a. FA-cum-Additional Secretary Bebe Memo No__&\ AS M., dated. “+ > Copy forwarded to the Principal Accountant General (A&E), Odisha. Secretary, Finance Department ar| Bhubaneswar/ Principal Accountant General (E & RSA), Odisha, Puri Branch, Puri for information and necessary action. FA-cum-Additional Secretary fo Govt Memo No._ S\AY MW. dated“ & Dy Copy forwarded to All Departments of Government! Managing Director. OB&CC Ltd., Bhubaneswar! Managing Director. OCC Ltd, Bhubaneswar/Chief Architect, Odisha, Bhubaneswar for information and necessary action Sel a ghana FA-cum-Additional Secretary to|Govt. Memo No._&\AS IW., dated » Ee Sy Copy forwarded to EIC (Civil), Odisha/All Chief Engineers, Odisha/All Superintending Engineers/All Executive Engineers (under Works Department) for information and wide circulation among subordinate offices. E om FA-cum-Additional cecal abe3 Memo No._& Vek W., dated. 4&6 2) Copy forwarded to OSWAS Control Room with a request to upload it in the web-site of Works Department. met oho FA-cum-Additional Secretanyld Govt | Memo No. %& \ St MW, dated “y+ & 24 Copy forwarded to the Director, Printing, Stationary & Publication, Odisha Cuttack by e-mail (deputydirectorpp@redifmail.com) for publication of this Office Memorandum in the next issue of Odisha Gazette and supply 20 (Twenty) copies to this Department for official use. mpg k ‘ FA-cum-Additional Secretary to’ ad) : Memo No.__S \A% _W., dated. “A-_& + >) Copy forwarded to Accounts-| Section/Accounts-II Section/Road Section/Plan Section/Building Section/Budget _Section/NHs_Section/FC&AA —Section/EAP. Cell/Legal Cell, Works Department for information and necessary action. ae) FA-cum-Additional Secretary fo bowe GOVERNMENT OF ODISHA WORKS DEPARTMENT OFFICE MEMORANDUM File No. -07556900242019- [BEY ~, a. 19-/) fF) ‘Sub:- Codal / contractual provisions regarding Price Adjustment in works contract Codal / contractual provisions regarding Price Adjustment in works contract was under active consideration of Goverment. After careful consideration, Government have been pleased to make the codal/ contractual provisions regarding Price Adjustment clause due to increase or decrease in rate and price of labour, ‘materials, fuels & lubricants and plant & machineries spare component to be incorporated in DTCN / condition of Contract as per Annexure-“A’. 1- This Office Memorandum shall be a part of the relevant clauses of DTCN and Agreement and shall take effect from the date of issue. 2. This has been concurred in by Finance Department vide their File No. FIN-WF1-MISC-0031-2019 (OSWAS) dt.23.10.2019 and Law Department vide their UOR No.2218/L dt-29,10.2019. ral Commissioner - cum- Set Government Memo No. / SY ux MM, dated, —// alG Copy with copy of enclosure forwarded to Principal Secretary to Hon'ble Chief Minister, Odisha for information and necessary action. Sewer yar FA- cum- Addl. Secretary to Government Memo No. / 5 eug Ww, dates, 2) -/)-19 Copy with copy of enclosure forwarded to P. S. to Hon't Odisha / P. S. to Hon'ble Minister, Finance, Odisha for inform: action. ‘ble Minister, Works, ration and necessary Crea 1a MAG FA- cum. Addl. Secretary to Government (P74) Scanned with CamScanners - ates, 11 Ne-l4 - memono. 5 X50 mw ae ‘sp to Chief Secretary, Oaisha / Ceny with copy of enlnure forded 12 OSD aha Se: ecessary . a conmmsener PS. to Principal Secretary, Finance Department * action eyettett FA-cum- Aedi. Secretary to Government wanons. [FES | mda, 14-1) “19 Copy with copy of enclosure forwarded to the Principal Accountant ‘General (ABE), Odisha, Bhubaneswar / Principal Accountant General (E & S R Audit) ‘Odisha, Puri Branch, Puri for information and necessary action. perry etd FA-cum- Addi, Secretary to Government Memo No. JB ESS 2 m, dated, /9) -/1 JF Copy with copy of enclosure forwarded to All Departments / Managing Director, OB & CC Ltd., Bhubaneswar / Managing Director, OCC: Ltd., Bhubaneswar 1 Chief Architect, Odisha, Bhubaneswar for information and necessary action. eas FA-cum- Addl. Secretary to Government Meme No, /FS 5S , dated, 19 —/} -/G Copy with copy of enclosure forwarded to EIC (Civil), Odisha / Ali Chief Engineers, Odisha / All Superintending Engineers / All Executive Engineers (under Works Department) for information and wide circulation among subordinate offices, yet FA-cum- Addl. Secrdtary to Government memo wo. SS Y MW, dated, 19) — |] “19 Copy with copy of enclosure forwarded to OSWAS Control Room with a request to upload it in the web-site of Works Department, es tee | 4. FA-cum- Addl. Secratary to Government (P To) Scanned with CamScanner* memo no. SSSI 1m, dated, [9] - J “19 Copy with copy of enclosure forwarded to the Director, Printing, Stationary & Publication, Odisha, Cuttack by e-mail (deputydirectorpp@redifmail com) for Publication of this Office Memorandum in the next issue of Odisha Gazette and ‘supply 20 (Twenty) copies to this Department for official use. perry aiess FA-cum- Addl. Secretary to Government memoNo. JISAES mM, dates, 19 —/) 9 Copy with copy of enclosure forwarded to AIC-| Section / AIC-II Section / Road Section / Plan Section / Building Section / Budget Section / N.H5. Section / FC & AA Section / EAP Cell / Legal Cel, Works Department for information and Sheet 9 FA-cum- Addl. Secretary to Government Scanned with CamScannerClause 31 ;- Price Adjustment 31.1: Contract price shall be adjusted for in price wit of labour, materials, fuels and lubricants in accordance mula given in following Paras. crease or decrease in rates and th the following principles and procedures and as per fo reid (2) The price agjustment shall apply for the work dane rom the start date give contract data up to end ofthe intial intended compltion date or extensions granted by the Engineer and shall not apply to the work cerried out beyond the stipulated time {or reasons attributable to the contractor. (®) The price adjustment shall be determined during each month from J given in folowing Paras (6) Following expressions and meanings are assigned to the work done during each month: the formula Re Total value of work done during the month, It would include the amount of secured advance granted, if any, during the month, less the amount of secured advance recovered, if any during the month. It will exclude value for works executed for extra items under variations. 31.2: 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 The formula (e) for adjustment of prices are: Vinw Vu = Mo= Me Pm 1stment of Other Materials Component Price adjustment for increase or decrease in cost of local materials other than cement, steel, bitumen , pipe and POL procured by the contractor shall be paid in accordance with the following formula: 0.85 x Pr 100 x Rx (My- Ma)/Mg Increase or decrease in the cost of work during the month under consideration due to changes in rates for local materials other x than cement, steel, bitumen and POL. e ‘The all India wholesale price index(all commodities) on 28 days preceding the date of opening of Bids, as published by the Ministry of Commerce and Industry Government of India, New Delhi. The all India wholesale price index (all commodities) for the month under consideration as published by the Ministry of Commerce and Industry , Government of India, New Delhi Percentage of local material component (other than cement, steel, bitumen and POL) of the work. =(e-T lean y Scanned with CamScannerAifa}lii): Adjustment for Cement Component Price adjustment for increase or decrease ir the cost of cement procured by the contractor shall be paid in siccordance with the following formula: Vex 0,85 x Pe100 x Rx (Cr+ Colo Ve = Increase or decrease in the cost of work dur ng the month under consideration due to changes in the rates fo" cement Co= ‘The all India wholesale price index for Ordinary Portland Cement (OPC) on 28 days preceding the date of opening of Bids as published by the Ministry of Commierce and Industry , ‘Government of India, New Delhi Cy The all India wholesaie price index for Ordinary Portland ‘Cement (OPC) for the month under considaration as published ay the Ministry of Commerce and Industry, Government of India, New Delhi Po= Percentage of Cement Component of the wark 34(a)iii); Adjustment for Steel Component «iy Price adjustment for increase or decrease in the cost of steel procured by the contractor shall be paid in accordance with the following formula: Vee 0.85 x Px/100 x R x (St- So)/So Vs = Increase or decrease in the cost of work during the month under consideration due to changes in the rates for steel So: The ail India wholesale price index for steel (Mild Stee! long Products) on 28 days preceding the date of opening of Bids as published by the Ministry of Commerce and Industry Government of India, New Delhi. ‘Si. The all India wholesale price index for steel (Mild Stee! long Products) for the month under consideration as published by the Ministry of Commerce and Industry, Government of India, New Dethi. P,= Percentage of steel component of the work ‘Note: For the application of this clause, index of (Mile Steel long products) has been chosen to represent steel group Scanned with CamScanner34(a)(iv): Adjustment of Bitumen Component Price adjustment for increase or decrease in the cast of bitut shall be paid in accordance with the following formula: Vex 0.85 x Py/100 x R x (B1- Bol/Bo p= Increase or decrease in the cost of work during the month under consideration due to changes in the rate for bitumen. Bo. The official retail price of bulk bitumen at the 1OC / BPCL depot at nearest center on the day 28 days prior to date of opening of Bids. B, = The official retail price of bulk bitumen at IOC / BPCL depot at nearest center for the 15th day of the month under consideration. men Py = Percentage of bitumen component of the work ost of Pipe: 31(a\v): Adjustment towards diffore Price adjustment for increase or decrease in the cost of pipe shall be paid in accordance with the following formula: Vpix 0.85 x Pp/100 x R x (Pi1- Pa)/Pio Ve = Differential cost of pipe ie. amount of increase or decrease in rupees to be paid or recovered during the month under consideration. Pp= Percentage of pipe component of the work Pi = All India Whole sale price index of pipe for the period under consideration as published by the Ministry of Commerce and Industry , Government of India, New Delhi. e Po» All India Whole sale price index of pipe on 28 days preceding the date of opening of Bids as published by the Ministry of Commerce and Industry , Government of India, New Dethi “heen (eu. cg Scanned with CamScannersemen 6 Qposemnmes uses vomits ‘3Alb): Adjustment of Labour Component Price adjustment for increase or decrease: in the cost due to labour shall be paid in accordance withthe ‘ollowing formula Vex 0.85% P/100 x R x (Lim Laie Increase or decrease in the cost of work during the month under consideration due to changes in rates for loval labour. Lo. The minimum wages for unskilled labour as Notified by Government of Odisha as prevailed on the last stipulated date of receipt of tender including extension, if any. Ly = The minimum wages for unskilled labour as Notified by Government of Odisha as prevailed on the last date of the Month previous to the one under considerat;on P,.. Percentage of labour component of the work. 31(c): Adjustment of POL(fuel and lubricant) Component “ Price adjustment for increase or decrease in cost POL(fuel and lubricant) shall be paid in accordance with the following formula Vex 0.85 x P10 x R x (Fi- Fo)/Fo Vi Increase or decrease in the cost of work during the month under consideration due to changes in the rales for fuel and lubricants. Fo= The official retail price of High Speed Diesel (HSD) at the ‘existing consumer pumps of IOC | BPCL/ HPCL at nearest center on the day 28 days prior to the date cf opening of Bids. The official retail price of HSD at the existing consumer pumps of IOC / BPCL/ HPCL at nearest center for the 15th day of the month under consideration, P= Percentage of fuel and lubricants component of the work Note For the application of this clause, the price of High Speed Diese! 11 has been chosen to represent fuel and lutricants group. Sheer sgh 8 Scanned with CamScanner= 1(6); Adjustment for Plant and Machinory Spares Component Note the cost of plant i ri 1: decrease in t w Price adjustment for increase 0 ra bs aed and machinery spares procured by the Contract in accordance with the following formula Vor 0.85 x Pp/100 x R x (P3- Pol/Po Vr Increase or decrease in the cost of work tunder consideration due to changes in the ral machinery spares Po. The all India wholesale price index for manufacture machinery for mining, quarrying and construction on 28 days preceding the date of opening of Bids as published by the Ministry of Commerce and Industry , Government of India, New Dotti P,. The all India wholesale price index for manufacture of machinery for mining, quarrying anid construction for the month under consideration as published by the Ministry of Commerce and Industry , Government of India, New Dethi Pye Percentage of plant and machinery spares component of the work For the application of this clause, index of manufacturing of machinery for mining, quarrying and construction.has been chosen (o represent the Plant and machinery Spares group. during the month ites for plant and of Regarding wholesale price Index (WPI) for appropriate commodity for payment of price adjustment, due to change of base year of WP! from 1993- 94 to 2004-05 & 2011-12, it is observed that, the commodity “Bars and Rod’, ‘Cement’, ‘Heavy machinery and parts’ included in the list of WPI 1993-94 seties are not mentioned as such in the WPI 2004-05 & 2011-12 series. Therefore, the following items in the WPI 2004-05 & 2011-12 series shall be considered corresponding to items in WPI 1993-94 series SL] am in WPT 1993-94 | Item in WPI 2004-08 | Item in WPI 2011-12 | No, series series series 7 Cement Grey Cement ‘Ordinary Portland cement z Bars & rods Rebars Mild steel tong products 3] Heavy Machinery & | Construction Machinery [~~ Manufacture of | parts machinery for mining, quarrying & ‘construction. Stene Yaa, —al Scanned with CamScannersa ree 31(e): APPLICATION OF ESCALATION CLAUSE; of differential ‘The contractor shall for the purpose of availing rei nbursemenvrefund Cost of steel, bitumen, cement, pipe, POL and wages, Keep such books OF account and other documents as are neces sary to show that the amount of 'norease claimed or reduction available and shail allow inspection of the same by a duly authorized representative of Government and further. shall atthe request of the Engineer-n-Charge, furnish documents to be verified in such a manner as the Engineer-in-Charge may require any document and information kept. The contractor shall within a reasonable time of 15 days of his becoming aware of any alteration in the price of such material, wages of labour and /or price of P.O.L. give notice thereof {to the Engineer-in-Charge stating that the same is given pursuant to this condition along with information relating to there to which he may be in a position to supply, Percentage Table ‘SINo. | Category of works % Component (cost wise) Tabour [POL | Steet (P+ Cement (Pi) (Pd (P.)+* Bitumen (P,) +Pipes (Pq) + Plant & Machinery Spare &Component(P,) + ‘Other Materials : Road Works 5 & 90 = & [Bridge wons = 5 30 #85 § dq Buena wore 5 5 3 z | Structural work 5 5 Ca se b Ze & [Earth Cane S715 o BS _E | Embancment work ve - Efs8q . 3 P.H. Work | Structural work 5 s ‘90 [Pipeline Werk aa) Pipe 70% 7 = | “Machinery + Other = L |__material -20% | Sewer Line Ss 5 T Pipe- 70% “Machinery + Other material -20% “Note:- Further break up may be worked Cement, Steel, Bitumen, pipe and Plant & ‘ut considering the consumption of Machinery Spare Component in the Concerned works and shall be provided in the bid document ir shape of “Schedule of Adjustment Data” as an “Appendix to Bid” "(enclosed herewith) Veneta Scanned with CamScanner- Appendix to Bid ‘Schedule of Adjustment Data [For all works, adjustment factor for Labour and POL shall be considered @ 5% e each. Steel, Cement, Pipes, other Materials and Machinery shall contribute to 90% of Price Adjustment and shall be calculated for each work separately during preparation of estimate, shall be approved by the authority during technical sanction asa "Schedule of Adjustment Data" and shall form part of the Bid Document] ( CiNo- > index Source of index Base Base (Weighta 31 of | descripti | j value* - Date” \ge of ryp1{| on | | ‘items | contrac ' [ssn | | | | No { | _ AI india Whole sale price index (all| 1 ter [eommodities) as published by the) | 131 (a0 | yoinetig [Economic Advisor to the Govt. of] | | {indi Ministry of Commerce and | i L Industry. | {37 Ta)G [Cement | Woie sale price index for Cement — | (Orcinary Portland Cement) 25 | ! ' | published by the office the Economic } | Advisor to the Govt. of India, Ministry | | | of Commerce and Industry. ree 31 [Steet [Whole sale price index for Stee! (id | | canis | Steel-Long Products) as published by i | the office of the Economic Advisor to i the Govt. of India, Ministry of | Commerce and Industry. 31 ‘Bitumen — | Official retail price of bulk bitumen at (2)()_{(VG-30) _jthe nearest |OC/ HPCL depot___ | ice index for the ype of 31 (a)(v)|Pipes | Whole sale Pipe under consideration, as! published by the office the Economic | ‘Advisor to the Govt. of india, Ministry | j ‘of Commerce and Industry. i 31 (6) [Labour {Minimum Wage notified by the i Labour and Employee's State! | Insurance Department of Government | lof Odisha, India 1 34 (e) [POL (Official retail price of HSD at nearest | 1OCU HPCL BPCL Consumer pump | depot. | 31(@) [Plant and|Wnole sale price index — for |Machinery | Manufacture of Machinery for Mining, }Quarrying and Construction as | ‘published by the office the Economic i Advisor to the Govt. of India, Ministry _____of Commerce and industry. 3% + | | 1. | i | T00% = Values to be filled up at the time of drawl of contract “*Values to be filled up in the bid document. Ye, lag Scanned with CamScanner