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UDIT OF ESC L TION CL IMS – IMPORT NT POINTS

1. What is the relevance ! C n"iti n N . #$ ! I. .F.W %%&' "ealin( )ithEscalati n a**lica+le t C ntracts,

C n"iti n N . #$ ! I. .F.W %%&' is a**lica+le nl- ! r all Ter C ntractsan" c ntracts havin( a *eri " ! less than r e/0al t % -ears . It is !elt that)here the S*ecial c n"iti n *rescri+e" +- E in C has n t +een inc r* rate" inthe C ntract2 +- "e!a0lt2 C n"iti n N . #$ ! I. .F.W %%&' ) 0l" stan"a**lica+le. In the case ! ) r3 ! r Electrical Installati n ! r li!ts2 the S*ecialc n"iti n *rescri+e" in nne40re 5II ! c *en"i0 ! E in C C ntracts

sh 0l" +e incl0"e" in the c ntract an" as ) 0l" +e incl0"e" in the sai" S*ecialc n"iti n2 the *r visi ns c ntaine" in this S*ecial c n"iti n ) 0l" s0*erse"ethe *r visi ns ! C n"iti n #$ ! I FW %%&' an" the *r visi ns ! C n"iti nN . #$ ! I FW %%&' shall n t +e a**lica+le in s0ch cases .

The c n"iti ns t +e !0l!ille" ! r clai in( *a- ent in cases ! r )hichc n"iti n N . #$ is a**lica+le are as 0n"er6

718 There has +een an act0al an" *ai" *rice increase in aterials

7E4cl0"in( sche"0le 9 St res iss0e" +- MES t the c ntract r8 )hichare act0all- inc r* rate" in the ) r32 an": r increase in Wa(es.

(2) The increase is as a "irect res0lt ! the c in( int ! rce ! an- !reshla) r stat0t r- r0le r r"er 7 ther than sales ta48. 9- i *licati n it" es n t c ver ere in!lati nar- increase in *rices.

(3) S0ch increase e4cee"s ten *ercent(4) The *a- ent is t +e restricte" ! r the e4cess ver ten *ercent7;8 In the O*ini n ! the C.W.E the increase is n t attri+0ta+le t "ela- in

the e4ec0ti n ! the C ntract )ithin the c ntr l ! the c ntract r.7#8 The *a- ent )ill n t c ver *eri " +e- n" the c ntract "ate r

e4ten"e" "ate ! c *leti n ! the ) r3.(7) The sa e li it ! 1

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%. What are the salient !eat0res ! the s*ecial c n"iti n ! r 0late" +- E INC ! r escalati n,

The salient !eat0res ! the S*ecial c n"iti n ! r Escalati n clai s

! r 0late" +- E in C are as 0n"er6718 The a0th rit- 0n"er )hich this S*ecial C n"iti n has +een a**r ve" is

>OI MOD letter N . &7&8:?':&&1$:D7W r3s II8 "ate" 1;:11:@% 7! raterial an" )a(es8 an" E in C letter N . $#

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ens0re that the al0e ! ) r3 clai e" as " ne in the calc0lati n sheet+e! re the act0al "ate ! c ence ent ! ) r3 as *er W r3 Or"er isNil.

7#8 R Rs 0st +e ti e" in s0ch a anner that the (r ss val0e ! ) r3

" ne 0* t the c rres* n"in( "ate is rea"il- availa+le.(7) The *a- ent )ill n t c ver *eri " +e- n" the c ntract "ate r

e4ten"e" "ate ! c *leti n ! the ) r3.

$. ) is v( arrive" at ! r calc0lati n ! M,The R R has t +e ti e" t instantl- arrive at the val0e ! ) r3 " ne n

the critical "ate. There is n a0th rit- t arrive at a *r * rti nal val0e n thecritical "ate ther)ise than thr 0(h act0al eas0re ent.

&. ) is the )ei(hte" val0e ! v( 7val0e ! ) r3 " ne ! r escalati n nacc 0nt ! aterials arrive" at,

The C nstant *ercenta(e2 )hich is t +e a**lie" n v(: >12 is s*eci!ie"in **en"i4 ! the E in C letter. These are nl- a4i 0 *ercenta(es. Withinthis li it the e4act *ercenta(e a**lica+le 0st +e s*elt 0t in the (ree ent.

PPENDI5 TO E IN C 9R NC LETTER NO. $#

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'RO D WORHS NOT IN OL IN>SU9ST NTI L E RT WORH ;?.

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'. ) sh 0l" the val0e ! escalati n ! r a /0arter +e rec3 ne" )hen theval0e arrive" at ! r a /0arter is a in0s !i(0re,

S eti es in the Escalati n clai s )hen the !i(0re ) r3e" 0t ! r a

/0arter is a in0s !i(0re it is re ar3e" that the in0s !i(0re is n acc 0nt !e4cess iss0e ! Sche"0le 9 St res an" hence the in0s !i(0re is i(n re" an"acce*tin( er as the !i(0re. D 0+t arises as t )hether this is tena+le.

0"it has t e4a ine the case ! e4cess ! iss0e ! Sche"0le 9 st res)ith re!erence t C n"iti n N . 1E sh 0l"! r)ar" s0ch R Rs ! r Pre 0"it +- Main O!!ice ! CD 2 7)here escalati nclai s are re/0ire" t +e a**r ve" +- CD 8 "0l- in! r in( the >E in thisre(ar".

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11. What is the si(ni!icance ! escalati n in rec3 nin( the val0e ! c ntract! r the *0r* ses ! calc0latin( retenti n ne- an" li/0i"ate" "a a(es,

F r the *0r* ses ! calc0latin( retenti n ne- an" li/0i"ate" "a a(es2

the val0e ! c ntract as revise" +- the a+ ve *rice variati n )ill +e ta3en intacc 0nt.

1%. F r )hat t-*es ! C ntract are escalati n cla0ses a**lica+le,The > vt. ! In"ia letter sti*0lates that the s*ecial c n"iti n shall +e

incl0"e" in all ten"ers in )hich 7a8 the *eri " ! c *leti n has +een s*eci!ie"as re than # nths 7n ) %-ears r re as *er DWP %