S. RFQ DOCUMENT QUERY JKSPDC RESPONSE NO. TENDER … · operation for 03 years post commissioning....
Transcript of S. RFQ DOCUMENT QUERY JKSPDC RESPONSE NO. TENDER … · operation for 03 years post commissioning....
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
1. Request for Qualification Part – 2: Information & Instructions to Applicants
5. QUALIFICATION CRITERIA (M/s Angelique)
As per RfQ’s, bidder shall be allowed to propose 01 sub-contractor for Planning, Design & Engineering Works. To have competitiveness during bidding stage, we request you to kindly allow more than one subcontractor for Planning, Design & Engineering Works.
The bidder can propose 02 (two) subcontractors for Planning, Design & Engineering Works.
2. Request for Qualification Part – 2: Information & Instructions to Applicants
Clause No 1.1 (M/s Angelique)
Hydroelectric projects are constructed with a long implementation schedule and hence carries risk in enhancement of material & services cost. Long lead projects where civil components are substantially high are generally being implemented with Price Variation Formula. We request you to allow Price Variation clause under the Contract and provide us relevant formulas.
Price variation shall be allowed in the Contract, in case of reasons attributable to the Owner viz:
1. Delay of more than one year from the last date of financial bid submission to the award of Contract by JKSPDC, provided, however, that the successful bidder responds and submits any clarifications that JKSPDC may ask during the bid evaluation and award stage, in time. The price variation shall be allowed for the period of delay beyond the one year period.
2. Delay of more than six months in handing over of encumbrance-free land to the EPC Contractor for a particular project component from the start date of that project component as per the agreed construction schedule. The
Cl. No. 1.3 / Part -2/ Information & Instruction to Applicants
……………..This is a fixed EPC Turnkey Lump Sum Fixed Cost contract and no variation on any account shall be allowed in the contract. (M/s Power Mech)
You will kindly appreciate that geological surprises are very common during execution of hydro project resulting in delay in completion of project. Therefore it is requested that price variation may kindly be permitted on delayed works beyond the original contractual period, if the project completion is delayed for reasons not attributable to Contractor. Kindly confirm.
Clause-7.2 “Price Variations.”
“As per Vol 1. Of RFQ Clause 17.2” This being a lumpsum EPC contract, the contract price of the bid shall remain fixed and shall not be subject to any adjustment/ variation. (M/s Choudhary Power)
As the execution of the work is extending over a period of 4 years and there are many unforeseen events on which the bidder has no control and cannot be attributed to the bidder, therefore it is requested that the price variation clause may kindly the incorporated in the tender document.
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
price variation shall be allowed for that particular component only for the period of delay beyond the six month period.
Payments due on account of price variations shall be made only after successful commissioning of the project. No interest shall be paid to the contractor on account of delay in payment of price variation amount, in any case.
3. Cl. No.5.1.4/ Electro Mechanical Works Part - 2 /Information & Instruction to Applicants
The bidder should have carried out design, manufacture, erection, testing and commissioning of the following electro mechanical works & equipment in the preceding 10 Years:- i. One Hydro turbine and hydro generator, with necessary ancillary equipment, having unit size not less than 3.20MW and shall be in successful operation for 03 years post commissioning. (M/s Power Mech)
As per the general world wide practices, the turbine designers & manufactures does not manufacture Generators in their works/factories accept a few & as per the practices followed by most of the hydro power utilities (NHPC,KSEB etc), the Pre-Qualification requirement calls for Either a turbine manufacturer or a generator manufacturer in order to have a fair participation. Therefore you are requested to kindly modify the clause as under:- i. One Hydro turbine Or hydro generator, with necessary ancillary equipment, having unit size not less than 3.20MW and shall be in successful operation for 03 years post commissioning.
Clause 5.1.4 is modified as under: “Electro-Mechanical works: The bidder should have carried out the following electro mechanical works & equipment in the preceding 10 Years:-
i. Design, manufacture, erection,
testing and commissioning of One Hydro turbine and hydro generator, with necessary ancillary equipment, having unit size not less than 3.20 MW and shall be in successful operation for 03 years post commissioning. or Design, manufacture, erection, testing and commissioning of Two Hydro turbines and hydro
Part-2: Information& Instruction to Applicants Clause No. 5.1.4, Electro-Mechanical
Electro-Mechanical works: The bidder should have carried out design, manufacture, erection, testing and commissioning of the following electro mechanical works & equipment in the preceding 10 Years:-
As per the tender clause, Electro-Mechanical subcontractor should be a manufacturer of both turbine and Generator. We request JKSPDC to kindly modify this clause as under: One Hydro Turbine and/or Hydro Generator, with necessary ancillary equipment, having unit size
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
Works i. One Hydro turbine and hydro generator, with necessary ancillary equipment, having unit size not less than 3.20 MW and shall be in successful operation for 03 years post commissioning. (M/s Angelique)
not less than 3.20 MW and shall be in successful operation for 03 years post commissioning.
generators, with necessary ancillary equipment, having unit size not less than 2.0 MW and shall be in successful operation for 03 years post commissioning. or Design, manufacture, erection, testing and commissioning of Three Hydro turbines and hydro generators, with necessary ancillary equipment, having unit size not less than 1.60 MW and shall be in successful operation for 03 years post commissioning.
ii. Erection, testing and
commissioning of One 3-phase generator step-up transformer having rated capacity of 3.20 MVA or higher at rated voltage of 33 KV or 66 kV and shall be in successful operation for 03 years post commissioning. or Erection, testing and commissioning of Two 3-phase generator step-up transformer having rated capacity of 2.0 MVA or higher at rated voltage of 33 KV or 66 kV and shall be
Cl. No.5.1.4/ Electro Mechanical Works Part - 2 /Information & Instruction to Applicants
ii One 3-phase generator step-up transformer having rated capacity of 3.20 MVA or higher at rated voltage of 33 KV or 66 kV and shall be in successful operation for 03 years post commissioning. iii. One conventional type 33 KV / 66 kV switchyards for evacuation of power from generating station which should be presently under successful operation (M/s Power Mech)
You will Kindly appreciate that normally sending and receiving end switchyards are under the transmission packages and therefore most of the Turbine & Generator manufacturer are not having experience of switchyards and therefore we would request you to kindly modify the clause as follows: ii One 3-phase generator step-up transformer having rated capacity of 3.20 MVA or higher at rated voltage of 33 KV or 66 kV and shall be in successful operation for 03 years post commissioning. Or iii. One conventional type 33 KV / 66 kV switchyards for evacuation of power from generating station which should be presently under successful operation.
(M/s Angelique) Also, it is inadvertently mentioned that to meet the qualification criteria, H-M subcontractor can be considered for E-M works. Kindly amend H-M subcontractor as E-M subcontractor.
Cl. No.5.1.4/ Electro
Bidder may propose sub-contractors for Hydro Mechanical Works. The
It seems that to be a topographical error under the qualification part of electromechanical works
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
Mechanical Works/Part - 2 /Information & Instruction to Applicants
proposed sub-contractors for the purpose shall necessarily meet all the criteria mentioned above individually. (M/s Power Mech)
the word Hydro Mechanical shall be reads as ” Electromechanical”. Kindly confirm
in successful operation for 03 years post commissioning. or Erection, testing and commissioning of Three 3-phase generator step-up transformer having rated capacity of 1.60 MVA or higher at rated voltage of 33 KV or 66 kV and shall be in successful operation for 03 years post commissioning.
OR iii. Erection, testing and
commissioning of One conventional type 33 KV / 66 kV switchyards for evacuation of power from generating station which should be presently under successful operation.
Bidder may propose sub-contractors for Electro Mechanical Works. The proposed sub-contractors for the purpose shall necessarily meet all the criteria mentioned above individually.
Experience of having executed the above mentioned works in JV or Consortium shall be considered only if the experience certificates issued
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
by a client clearly mentions therein the scope of work of each individual partner of JV or Consortium.
Vendor selection for Electro Mechanical Works shall be as per the relevant guidelines of Government of India, in view of the project area partly being close to the Line of Control (LoC).”
4. Cl. No.5.1.3/ Hydro Mechanical Works Part - 2 /Information & Instruction to Applicants
Penstocks: a) Execution of at least one penstock/ steel pipes (including mild steel pipes) of not less than 1.30 m internal diameter and having minimum 500 m of length. Or b) Execution of at least two penstock/ steel pipes (including mild steel pipes) of not less than 0.8 m internal diameter and having minimum 500 m of length Or c) Execution of at least three penstock/ steel pipes (including mild steel pipes) of not less than 0.65 m internal diameter and having minimum 500 m of length.
We request JKSPDC to kindly reduce the length of penstock to 200 m for qualification purpose, as allowed by JKSPDC for other RFQs of similar capacity hydro projects (i.e. Durbuk Shyok HEP etc.)
The qualifying length of the penstock shall be 200 m in each case (a, b & c). However, the qualifying diameter shall remain unchanged in each case (a, b & c).
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
(M/s Power Mech)
5.1.3 (Hydro-Mechanical Works). ii) Penstock.
Execution of at least one penstock/steel pipes(incl. Mild steel pipe) of not less than 0.8m internal Dia and having minimum 500m length. (M/s Choudhary Power)
As in most of the big Hydro-Projects such a long length of Penstock is not normally executed, so most of the bidders who have experience of big hydro projects may not be able to meet this qualification criteria on this account though meeting all other qualification requirements.It is requested that the qualifying length of the penstock may kindly be reduced to 200m.
5. i) 5.1.3 (Hydro-Mechanical Works).
The bidder should have carried out Design,Manufacture,Erection,testing and commissioning as prime contractor or as a partner in a joint venture/consortium or as a sub-contractor hydromechanical works and equipment in the preceding 10 years. (M/s Choudhary Power)
As a design consultant is to be engaged for planning,design and engineering works as sub-contractor, who will be doing the design work of hydro-mechanical works also,therefore the bidder itself having carried out the design of hydro-mechanical works will not be necessary.As such it is requested that this clause may kindly be modified accordingly.
The bidder is allowed to meet the technical requirement of ‘design’ of the Hydromechanical works (of type, number & dimension as specified in Clause 5.1.3) through the subcontractor proposed for Planning, Design & Engineering Works. In such a scenario, client certificate/s, with complete details of the scope of work and specifications, explicitly certifying that the said design/s prepared by such proposed subcontractor has/ have been successfully manufactured, erected and commissioned and has/ have been in trouble-free operation for not less than 05 (five) years post-commissioning, shall be necessarily required. In such case, the balance technical requirement of Hydromechanical works, viz. manufacture, erection, testing and commissioning of the
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
Hydromechanical works of type, number & dimension as specified in Clause 5.1.3 shall be met by the bidder itself or through a sub-contractor. The limit for the number of subcontractors shall remain as per reply at S. No. 1.
6. 5.1.2(Civil Works)
The bidder should have successfully completed civil or structural works related to water resources/marine/hydroproject/Power projects in the last 10 years. (M/s Choudhary Power)
In the earlier tender in the qualification criteria, it was provided that the bidder should have successfully completed work/works in any of the following types of projects:- 1. Power/Ports/Airports/Dockyards/steel plants/Gas pipelines/Canals/Dams/Bridges & Irrigation Works.The Works of Canals/Dams/IrrigationWorks/bridges/ roads/Airports come in the category of Infrastructural works, therefore it is requested that the qualification criteria may kindly be modified as kept in the earlier tender.
Accepted.
7. Application Form 4A
Letter of Authorization (M/s Choudhary Power)
We understand that the intent of this form is:
To bind the subcontractor (E&M subcontractor) only for the successful technical performance of the guaranteed parameters of the item (s) /equipment as specified in the contract, supplied by such subcontractor.
To bind the subcontractor for Guarantees and warrantees for the item (s)/ equipment supplied by the subcontractor
Kindly confirm
Confirmed.
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
8. 6.1.2 (Composition of JV/consortium)
The partners of the JV/consortium shall necessarily meet one or more of the following technical experience criteria individually. (M/s Choudhary Power)
This clause is in contravention of clause 5.2 of qualification criteria where it is mentioned that consortium/JV including sub-contractor shall collectively satisfy as a whole technical/financial requirement.This clause may kindly be modified accordingly.
Clause 6.1.2 is modified as under: “6.1.2 The partner(s) of the JV / Consortium shall necessarily meet the following Technical Experience criteria individually: i. Civil works excluding tunneling
works.” Clause-6.1.2 “Composition of JV/Consortium”
(The Partners of JV/Consortium shall necessarily meet one or more of the following experience criteria individually----------) (M/s Choudhary Power)
This Clause is in contravention of Clause 5.2 of qualification criteria where it is mentioned that consortium/JV including sub-contractor shall collectively satisfy as a whole technical/Financial requirement.This clause may kindly be modified accordingly.
9. 3.1 As per this clause, the “RFQ” cum “RFP” document shall be accompanied with document Fee of INR 2.00 Lacs. (M/s Choudhary Power)
As per the N.I.T issued for “Tamasha HEP”, the JKSPDC has invited e-request for qualification only.Please clarify whether “RFP” documents will also be issued after depositing of Rs 2.00 Lacs as document Fee.
Clause 3.1 is modified as under: “The RFQ document shall be accompanied with document fee of Rs.50,000/- (Rupees Fifty Thousand only) payable in the shape of a Demand Draft in favour of General Manager (Accounts), JKSPDC at Srinagar, J&K and placed in a separate sealed envelope marked as ‘BID Document Fee’. Document fee is non refundable. “
10. General query (M/s Angelique)
We request you to allow bidders to approach for all subcontractor that have been approved for all the bidders. This will give us an opportunity to quote competitive prices which is in the interest of the project
Not accepted.
11. Cl. No/5.1.3 Hydro-
Bidder may propose sub-contractors for Hydro Mechanical Works. The
We request JKSPDC to kindly incorporate the below mentioned paragraph in the existing clause
It is clarified that the Hydromechanical subcontractor is
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
Mechanical works/Part - 2 /Information & Instruction to Applicants
proposed sub-contractors for the purpose shall necessarily meet all the criteria mentioned above individually. (M/s Powermech)
as already mentioned in previous RFQs. (i) The above criteria of qualification requirement for gates can be met through proposed sub-contractor of the applicant. ii) The above criteria of qualification requirement for Penstock can be met through proposed sub-contractor of the applicant.
required to individually meet all of the Hydromechanical qualification criteria viz. both gates and penstocks.
12. Cl. No./5.1.4 Electro-Mechanical works/ Part - 2 /Information & Instruction to Applicants
Bidder may propose sub-contractors for Electro Mechanical Works. The proposed sub-contractors for the purpose shall necessarily meet all the criteria mentioned above individually. (M/s Powermech)
We request JKSPDC to kindly incorporate the below mentioned paragraph in the existing clause as already mentioned in previous RFQs. “The above criteria of qualification requirement can be met through proposed sub-contractors of the applicant.”
It is clarified that the Electromechanical subcontractor is required to individually meet all of the Electromechanical qualification criteria.
13. 5.1.5.2 (Profitability)
Each member of consortium/JV should have earned net profit(before taxes for preceding 3 years(three) financial years.The bidder should not be under debt restructuring at the time of submission of bid. (M/s Choudhary Power)
Kindly increase the consideration years to preceding 5(five) years out of which any 3(three) years the bidder shall have earned net profit(before taxes).The reason being that the infrastructure works in the country have suffered due to slow market growth,demonetization,implementation of GST,slow down in hydropower sector.
Bid provisions shall prevail.
14. Application Form 4A Letter of
Authorization
We further undertake that we shall be directly responsible to the Owner for guarantees & warrantees for the item (s) of equipment manufactured by us and shall be jointly and severally responsible with M/s ______________ (Name of the EPC Contracting Company) for the performance of the
1. We request to kindly rephrase the clause as below: “We further undertake that we shall be directly responsible to the Owner for guarantees & warrantees for the item (s) of equipment manufactured by us and shall be jointly and severally responsible with M/s
Bid provisions shall prevail.
REPLIES TO PRE BID QUERIES TAMASHA HEP BY JKSPDC
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S. NO.
RFQ DOCUMENT TENDER CLAUSE NO / DESCRIPTION
QUERY JKSPDC RESPONSE
Contract(s), for the items of equipment mentioned, if awarded. (M/s Choudhary Power)
_________ (Name of the EPC Contracting Company) for the performance of our contract, for the items of equipment mentioned, if awarded”.
15. Cl.No/5.1.1 Planning, Design & Engineering Works/Part - 2 /Information & Instruction to Applicants
The applicant shall furnish the particulars of specialists proposed to be engaged for the project as per the prescribed format. The proposed specialist must have experience of working for projects with above mentioned features. The specialist may be on the rolls of the company or must be a committed associate (with a letter of consent from Expert). Bidder shall be allowed to propose 01 sub-contractor for Planning, Design & Engineering Works. (M/s Power Mech)
We request JKSPDC to kindly incorporate the below mentioned paragraph in the existing clause as already mentioned in previous RFQs. “The above criteria of qualification requirement can be met through proposed sub-contractor of the applicant.”
Bid provisions are clear.
16. Cl.No/5.1.2 Civil Works/Part - 2 /Information & Instruction to Applicants
………AND A Tunnel of minimum 2.5 m finished dia and having length not less than 1.0 KM. Bidder shall be allowed to propose 01 sub-contractor for Tunnelling Works. (M/s Power Mech)
We request JKSPDC to kindly incorporate the below mentioned paragraph in the existing clause as already mentioned in previous RFQs. “The above qualification requirement of Tunnelling works can be met through proposed sub-contractor of the applicant.”
Bid provisions are clear.
Annexure to Replies to Prebid Queries
PAGE 1 OF 17
PRICE ADJUSTMENT
(This shall only be applicable in case of delay on account of reasons attributable to the
Owner and the conditions as explicitly defined in the replies to the prebid queries)
(The EPC Contract does not have any Foreign Currency Component. As such, Foreign Currency Component and its
connected formulae/ indices, wherever reflected in this Annexure, shall not be considered.)
(i) The Contract Price shall be subject to Price Adjustment during performance
of the Contract to reflect changes in the cost of labour and material compo-
nents etc. in accordance with the provisions described below.
(ii) The Price Adjustment provisions shall be applicable separately for price com-
ponents relating to supply of Equipment and Erection, as per price break-up
furnished by the Contractor in Schedule-1/ Schedule-2 and Schedule-4. (iii) Only following components of the Contract Price will be subject to Price
Adjustment:
(a) Ex-Works (India) Price of Plant and Equipment excluding Mandatory
Spares manufactured within the Employer's Country (covered in
Schedule 2) and FOB Price component for Plant and Equipment ex-
cluding Mandatory Spares supplied from abroad (covered in Schedule
1). The Price Adjustment amount towards these Price component
shall be subject to a ceiling of twenty percent (20%) of Ex-works and
FOB Price component of the Contract Price respectively.
(b) Installation Services component of the Contract Price (covered in
Schedule 4).
(c) Civil Works Component of the Contract Price (covered in Schedule-4)
(iv) Price Adjustment amounts towards aforesaid components of Contract Price
shall be paid in the respective currencies of Contract. Specified ceilings on
amount of Price Adjustment shall be applicable for each of the Contract cur-
rencies separately.
(v) The indices for Price Adjustment shall necessarily be of the country of ori-
gin of goods/labour and shall be well established and nationally recognized in
that country. Preferably Government indices shall be used.
(vi) The Price Adjustment formula for the components of the Contract Price, as
mentioned at Sl.No. (iii) above shall be as stipulated hereinafter.
(vii) Ex-Works/FOB Price component of Plant and Equipment excluding Man-
datory Spares and Type Test Charges
It is understood that the Price component of the equipment for any shipment/
dispatch comprises of a fixed portion (designated as 'F' and the value of
which is specified hereunder) and a variable portion linked with the indices for
PAGE 2 OF 17
various materials and labour (description and co-efficient as enumerated
below).
The amount of Price Adjustment towards variable portion payable/recoverable
on each shipment/dispatch shall be computed as under :
EC = EC1 - EC0
EC1 will be computed as follows :
A1 B1 C1
EC1= EC0 { F + a x ----- x f1 + b x ------ x f2 + c x ------ x f3 +
A0 B0 C0
L1
Lb x ------ x fLb} L0
Where
EC = Adjustment to Ex-Works/FOB Price component expressed in
the currency of the Contract payable to the contractor for each
shipment/dispatch.
EC1 = Adjusted amount of Ex-works/FOB Price component expressed
in the currency of the Contract payable to the Contractor for each shipment/dispatch.
EC0 = Ex-works/FOB Price for the Plant and Equipment in the cur-
rency of the Contract, shipment/dispatch wise.
- The fixed portion of the Ex-works/FOB component of the Con-
tract Price (F) shall be 0.15.
- a,b,c etc. shall be co-efficient of major materials/items involved in
the Ex-works/FOB Component of the Contract Price. The
sum of these co-efficients shall be between 0.50 to 0.60.
- A,B,C etc. shall be published Price indices of corresponding
major materials/items. Such indices shall necessarily be of
the country of origin of goods.
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- 'Lb" shall be co-efficient for labour component in the Ex-works/
FOB Component of the Contract Price which shall be between
0.25 to0.35.
'L' shall be labour index.
- Sum of all the material co-efficients and the labour co-efficient
shall be 0.85.
f1, f2 - f1,f2,f3 etc. are Exchange rate correction factors for the res-
f3, fLb etc. pective materials and fLb is the exchange rate correction fac-
tor for labour with reference to the currency of the country of
origin of index and the respective contract currency, such that
Z0 f = ----
Z1
where Z is the no. of units of the currency of the country of the origin of in-
dex, which is equivalent to one unit of the respective contract currency. The
exchange rates to be used for calculation of factor 'f' shall be as per Bills
Selling Exchange Rates established by the STATE BANK OF
INDIA.,….,Jammu
For the indices, subscript 'o' refers to indices as on 30 days prior to date set for opening of bids. For 'Z0' subscript 'o' refers to value as on the date
of opening of bids.
Subscript '1' refers to indices/exchange rates as of :
(a) three months/ninety (90) days prior to the date of shipment/dispatch
for labour, and
(b) at the expiry of two third (2/3) period from the date of Notification of
Award to the date of shipment/dispatch, for material.
For the purpose of this clause the date of shipment/dispatch shall mean the
Schedule date of shipment/dispatch or actual date of shipment/dispatch,
whichever is earlier. The schedule date of shipment/dispatch shall be as
identified in line with provisions of Time Schedule, Appendix-4 to the Contract
Agreement.
Price Adjustment on Ex-works Prices for the Plant and Equipment (Schedule- 2) and FOB Price for Plant and Equipment (Schedule-1) shall be subject to
separate ceilings of twenty percent (20%) of Ex-Works Price and FOB Price
PAGE 4 OF 17
component of the Contract Price respectively. The actual payment of esca-
lation at any stage shall not exceed 20% of cummulative Ex-Works Price or
FOB Price of Plant and Equipment already supplied, as the case may be.
Any escalation at any stage exceeding the aforesaid actual payment in either
the Ex-works Price Component or the FOB Price Component shall be kept
to the credit of the contractor and shall be released as and when the actual
payment of escalation falls below 20% of cummulative Ex-works Price or
FOB of Plant and Equipment already supplied, as the case may be. Any un-
adjusted credit shall however, lapse when the actual cumulative Price Adjust-
ment payments reach the respective ceiling amount of 20% of Ex-works
Price or FOB Price component of the Contract, as the case may be. The
specified ceiling of 20% of the adjustment amount towards Ex-works or
FOB Price of the Plant and Equipment shall be applicable for each of the
Contract Currencies separately and Price Adjustment amount shall be com-
puted and payable/recoverable in respective currencies.
In case of shipments/dispatches which are delayed beyond the schedule
date of shipment/dispatch for reasons attributable to the Contractor the Price
adjustment provision shall not be applicable for the period of time between
the schedule date of shipment/dispatch and the actual date of shipment/des-
patch. For this purpose, the schedule date of shipment/dispatch shall be as
given above.
The above formula for Price Adjustment will be applicable if the currency in
which the Contract Price is expressed is different from the Currency of the
country of origin of labour and material indices. In other case, formula shall
be applied without the exchange rate correction factor 'f'.
(viii) Installation Services [excluding Planning, Design & Engineering and
Civil Works (including Structural Steel Works), Allied Works etc.] Com-
ponent (covered in Schedule-4)
It is understood that the Price component for installation services comprises of
a fixed portion and a variable portion linked with the index of labour (de-
scription and coefficients as enumerated).
The monthly Price Adjustment amount for the installation services component
of the Contract Price will be computed separately for Indian currency and for
foreign currency portion, if any, related to expatriate supervision/labour as per
the formula given below:
(a) Indian Rupee portion of the Installation Services
ER = ER1 - ER0
PAGE 5 OF 17
ER1 will be computed as follows :
F1)
ER1 = ER0 (0.15 + 0.85 ----
)
F0
Where :
ER = Adjustment to Installation services component of Contract Price
expressed in Indian Rupees payable to the contractor for each
billing.
ER1 = Adjusted amount of Installation services component of Contract Price expressed in Indian Rupees payable to the Contractor.
ER0 = Value of the Installation work done in the billing period, which
shall be calculated as under:
For the purpose of computing ER0, each bill (which is exclud-
ing Initial Advance and amount payable on completion of the Facilities and on successful completion of Guarantee test) dur- ing the Erection period up to the 'Completion of the Facilities' shall be divided by a factor as indicated below:
Installation Services _ [Initial Advance amount+Installa-
component of the tion services of Installation com-
Contract Price ponent of the Contract Price
payable on completion of the
Facilities + Installation services
component of the Contract
Price payable on successful
completion of Guarantee test]
---------------------------------------------------------------------------------------
Installation Services component of the Contract Price
The payment of Price Adjustment amount so computed (refer
Sr.No. F, Appendix-1) shall be made against a separate in-
voice, linking the corresponding invoice for Installation payment
after retaining the pro-rata amount due on completion of the
Facilities and on Completion of the Guarantee Tests. The
amounts so retained shall be paid on completion of the Facili-
ties and on successful completion of Guarantee Tests respec-
tively.
PAGE 6 OF 17
F = Indian field labour index namely, All India Consumer Price Index
for Industrial Workers (All India Monthly Average) as published
by Labour Bureau, Simla, Government of India.
(b) Foreign Currency portion of the Installation
Services
EE = EE1 - EE0
EE1 will be computed as follows
: EE1 = EE0 (0.15 + 0.85 EF1 x
f)
---------
EF0
Where
EE = Adjustment to Installation services component of Contract Price
expressed in foreign currency payable to the contractor for
each billing.
EE1 = Adjusted amount of Installation services component of Contract
Price expressed in foreign currency payable to the contractor for each billing.
EE0 = Value of foreign currency portion of Erection work done in the
billing period which shall be calculated as under :
For the purpose of computing EE0, each bill (which is exclud-
ing Initial Advance and amount payable on Completion of the Facilities and on successful Completion of the Guarantee test) during the Erection period upto the 'Completion of the Fa- cilities' shall be divided by a factor as indicated below:
Installation Services _ [Initial Advance amount+Installa-
component of the tion services of Installation com-
Contract Price ponent of the Contract Price
payable on completion of the
Facilities + Installation services
component of the Contract
Price payable on successful
completion of Guarantee test]
---------------------------------------------------------------------------------------
Installation Services component of the Contract Price
PAGE 7 OF 17
The payment of Price Adjustment amount so computed (refer
S.No. F, Appendix-1) shall be made against a separate invoice,
linking the corresponding invoice for Installation payment after
retaining the pro-rata amount due on completion of the Facili-
ties and on Completion of the Guarantee Tests. The amount
so retained shall be paid on completion of the facilities and on
successful completion of the Guarantee Tests respectively.
EF = Index for Expartriate field labour component of the Erection
Price of Installation work. Such index shall necessarily be of
the country of nationality of the labour.
f = Exchange rate correction factor for expatriate labour with refer-
ence to currency of country of origin of index for expatriate
labour and the respective contract currency, such that
Z
0
f = ----------- Z1
where Z is the no. of units of the currency of the country of origin of index,
which is equivalent to one unit of the respective contract currency. The ex-
change rates to be used for calculation of factor 'f' shall be as per Bills
Selling Exchange Rates established by the STATE BANK OF
INDIA,……,Jammu.
For the indices, subscript 'o' refers to indices as on 30 days prior to date set for opening of bids. For 'Z0', subscript 'o' refers to value as on the
date of opening of bids.
For the indices, subscript '1' refers to the indices as applicable for the
month of execution of the erection work. For the exchange rates, subscript
'1' refers to the exchange rates as applicable on the last day of the month
of execution of the erection work. For the purpose of this clause, month of
execution of erection work shall mean the schedule month of execution of
the erection work or actual month of execution of the erection work, which-
ever is earlier. The schedule date for completion of a particular erection
activity shall be as identified in line with provisions of Time schedule, Appen-
dix-4 to the Contract Agreement.
The above formula for foreign exchange portion of Installation Services Com-
ponent of Contract Price shall be applicable if the currency in which the con-
tract Price has been expressed is different from the currency of country of
origin of indices for foreign labour. In other cases, the formula shall be ap-
plied without exchange rate correction factor 'f'.
PAGE 8 OF 17
Price Adjustment on Erection Portion of installation component of the Con-
tract Price shall be without any ceiling.
In case of erection activities which are delayed beyond the schedule date for
reasons attributable to the contractor, the Price Adjustment provision shall not
be applicable for the period of time between the schedule date of completion
and actual date of completion of the respective erection activity. For this
purpose, the schedule date for completion of a particular erection activity
shall be as given above. (ix) Civil Works (including Structural Steel Works), Allied Works etc. Price
Component
The Price Adjustment formula for the various components of the Con- tract
Price shall be construed as stipulated hereinafter. The formula designed
for governing and calculating the Price Adjustment to be ap- plied to the
Contract Price shall be as follows:
a) Category-I: STRUCTURAL STEEL SUPPORTS - Steel Ribs, Steel lag-
ging and metal works (steel) including steel pipes for Civil Works (in-
cluding Structural Steel Works), Allied Works etc. covered in Schedule-
4) (To be calculated for each currency separately)
It is understood that the Civil Works Price Component comprises a fixed
portion (designated as 'F' and the value of which is specified hereunder) and
variable portion linked with the indices for various materials and labour
(description and coefficients as enumerated below):
The amount of Price Adjustment towards variable portion payable/recoverable
shall be computed as follows:
ECW = CC1 - CC0
CC1 will be computed as follows:
S1 L1 A1 B1 E1 Z0
CC1= CC0 {F + s* ---- + I * ---- + a * ---- + b * ---- + e * ----} ----
S0 L0 A0 B0 E0 Z1
Where
ECW = Adjustment to Civil Works Price Component during billing period
for items covered under Category-I.
PAGE 9 OF 17
CC1 = Adjusted amount of Civil Works Price Component during billing
period for items covered under Category-I
CC0 = Civil Works Price Component during billing period for items
covered under Category-I
F = Fixed Portion of the gross value which will not be subjected to
any adjustment = 0.20
's' = Coefficient of steel content in the cost of work = 0.50
'I' = Coefficient of labour (for all categories) content in the cost of
work = 0.20
'a' = Coefficient of Acetylene gas content in the cost of work = 0.03
'b' = Coefficient of Oxygen gas content in cost of work = 0.03
'e' = Coefficient of Electrodes content in the cost of work = 0.04
'S' = Index for Steel
Index Numbers for wholesales prices in India = by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40.
Group (J) : Basic Metals, Alloys & Metal Products Sub Group a : Basic Metals & Alloys
a1 : Iron & Steel
'L' = Labour Index
Consumer Price Index Numbers for Industrial Workers - All In-
dia & Selected Centres (Base 2001:100) Published by Labour
Bureau, Shimla / RBI Bulletin.
Table No. 36, Under the Head : "All India"
'A' = Index for Acetylene Gas
Index Numbers of Wholsale Prices in India - by Groups & Sub
Groups (Base 1993-94:100) Published in RBI Bulletin, Table
No. 40
PAGE 10 OF 17
Group (H): Chemicals & Chemical Products Sub Group i: Matches, explosives and other chemicals
n.e.c
'B' = Index for Oxygen Gas
Index Numbers of Wholesale Prices in India - by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40
Group (H): Chemicals & Chemical Products Sub Group I : Matches, explosives and other chemicals
n.e.c
'E' = Index for Electrodes
Index Numbers of Wholesale Prices in India - by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40
Group (J) : Basic Metals, Alloys & Metal Products Sub Group a : Basic Metals & Alloys
a4 : Ferro alloys
There shall be no ceiling on the Price Adjustment Payment for Items
listed under Category - I.
b) Category-II: REINFORCEMENT, ROCK BOLT AND WIREMESH for Civil
Works covered in Schedule-4) (To be calculated for each currency
separately)
It is understood that the Civil Works Price Component comprises a fixed
portion (designated as 'F' and the value of which is specified hereunder) and
variable portion linked with the indices for various materials and labour
(description and coefficients as enumerated below):
The amount of Price Adjustment towards variable portion payable/recoverable
shall be computed as follows:
ECW = CC1 - CC0
CC1 will be computed as follows:
S1 M1 L1 Z0
CC1=CC0 {F + s* ----- + m * ----- + I * -----} ------
S0 M0 L0 Z1
PAGE 11 OF 17
Where
ECW = Adjustment to Civil Works Price Component during billing period
for items covered under Category-II.
CC1 = Adjusted amount of Civil Works Price Component during billing
period for items covered under Category-II.
CC0 = Civil Works Price Component during billing period for items
covered under Category-II.
'F' = Fixed Portion of the gross value which will not be subjected to
any adjustment = 0.20
's' = Coefficient of steel content in the cost of work -= 0.66
'm' = Coefficient of Materials (Other than Steel) content in the cost of
work = 0.03
'I' = Coefficient of labour (for all categories) content in the cost of
work = 0.11
'S' = Index for Steel Index Numbers for wholesales prices in India - by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40.
Group (J) : Basic Metals, Alloys & Metal Products Sub Group a : Basic Metals & Alloys
a1 : Iron & Steel
'M' = Index for Material (Other than Steel) Index Numbers for Wholesales Prices in India - by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40.
Under Head : All Commodities
PAGE 12 OF 17
'L' = Labour Index
Consumer Price Index Numbers for Industrial Workers - All In-
dia & Selected Centres (Base 2001:100) Published by Labour
Bureau, Shimla / RBI Bulletin.
Table No. 36, Under the Head : "All India"
There shall be no ceiling on the Price Adjustment Payment for Items
listed under Category-II.
c) Category-III: All the balance items not included in Category-I and Cat-
egory-II above for Civil Works covered in Schedule-4 (To be calculated
for each currency separately)
It is understood that the Civil Works Price Component comprises a fixed
portion (designated as 'F' and the value of which is specified hereunder) and
variable portion linked with the indices for various materials and labour
(Description and coefficients as enumerated below):
The amount of Price Adjustment towards variable portion payable/recoverable
shall be computed as follows:
ECW = CC1 - CC0
CC1 will be computed as follows:
C1 M1 D1 L1 Z0
CC1 = CC0 {F + c* ----- + m * ----- + d* ----- + I * ------ } -----
C0 M0 D0 L0 Z1
Where
ECW = Adjustment to Civil Works Price Component during billing period
for items covered under Category-III.
CC1 = Adjusted amount of Civil Works Price Component during billing
period for items covered under Category-III.
CC0 = Civil Works Price Component during billing period for items
covered under Category-III
'F' = Fixed Portion of the gross value which will not be subjected to
any adjustment = 0.20
PAGE 13 OF 17
'c' = Coefficient of Cement content in the cost of work = 0.40
'm' = Coefficient of Materials (Other than Cement) content in the
cost of work = 0.22
'd' = Coefficient of High Speed Diesel Oil content in the cost of
work = 0.05.
'I' = Coefficient of labour (for all categories) content in the cost of
work = 0.13.
'C' = Index for Cement Index Numbers for wholesales prices in India - by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40.
Group (I) : Non Metallic Mineral Products
Sub Group c : Cement
'M' = Index for Material (Other than Cement) Index Numbers for Wholesales Prices in India - by Groups &
Sub Groups (Base 1993-94:100) Published in RBI Bulletin,
Table No. 40.
Under Head : All Commodities
'D' = High Speed Diesel Oil High Speed Diesel Oil price at outlet of Indian Oil Corporation
nearest to the project site. (Selling price inclusive of taxes and
duties per litre of H.S.D. Oil) ' L' = Labour Index
Consumer Price Index Numbers for Industrial Workers - All In-
dia & Selected Centres (Base 2001:100) Published by Labour
Bureau, Shimla / RBI Bulletin.
Table No. 36, Under the Head : "All India"
The total Price Adjustment Payment for Items under Category-III shall
be limited to a ceiling of 20% (Twenty Percent only) of the total value
of these items as per NOA.
Sub-Script for all Categories:
'o' = Refers to index/price as on 7 days prior to date of opening of
Part-II (Price) bids.
PAGE 14 OF 17
"1" = Refers to index / price as applicable for the month prior to the
month in which the work is executed for which adjustment is
applicable.
Z0 and Z1 For all Categories:
Z0 = the rate of exchange of the Foreign Currency equivalent to
Indian Rupees as published by State Bank of India
(B.C. Selling Rate) as on the date of opening of Part-II
(Price) Bid.
Z1 = the rate of exchange of the Foreign Currency equivalent to
Indian Rupees as published by State Bank of India
(B.C. Selling Rate) as on the date of Certification of pay-
ment by the Engineer.
Z0 and Z1 shall be applicable in case the payment is to be made in
currencies other than Indian Rupees. In case, the payment is to be re- leased in Indian Rupees, Z0/Z1 shall be equal to 1 in the above formulae.
The Price Adjustment for each currency shall not exceed 20% (Twenty
percent) of the Contract Price for Category-III items in respective
Currency(s) as awarded. However, if any authorised extension of time is
granted to the Contractor by the Project Manager / Engineer which is more
than 6 months but not exceeding 12 months then the ceiling for the Price
Adjustment shall be 22% (Twenty Two percent) of the Contract Price
for Category-III items in respective Currency(s) as awarded. However,
if the extension of time is more than 12 months then the ceiling shall be
23% (Twenty Three percent) of the Contract Price for Category-III items in
respective Currency(s) as awarded.
For Categories I, II, III:
CC0 = Value of Civil works done in the billing period which shall be
calculated as under :
For the purpose of computing CC0, each bill (which is exclud-
ing Initial Advance and amount payable on Completion of the Facilities and on successful Completion of the Guarantee test) during the period up to the 'Completion of the Facilities' shall be divided by a factor as indicated below:
PAGE 15 OF 17
Civil works _ [Initial Advance amount + Civil
component of the Works component of the Cont-
Contract Price ract Price payable on comple-
tion of the Facilities + Civil
Works component of the Con-
tract Price payable on suc-
cessful completion of Guarantee
test]
---------------------------------------------------------------------------------------
Civil Works component of the Contract Price
The payment of Price Adjustment amount so computed (refer
S.No. F, Appendix-1) shall be made against a separate invoice,
linking the corresponding invoice for Civil Works payment after
retaining the pro-rata amount due on completion of the Facili-
ties and on Completion of the Guarantee Tests. The amount
so retained shall be paid on completion of the facilities and on
successful completion of the Guarantee Tests respectively. (x) The following components of the Contract Price shall not be subject to Price
Adjustment and shall remain firm during the execution of the Contract:
(1) Ocean Freight and Marine Insurance for Plant and Equipment, Manda-
tory Spares and Recommended Spares.
(2) Ex-works/FOB Price component for Mandatory spares & Recom-
mended Spares.
(3) Inland Transportation charges (including Inland Transit Insurance, port
clearance, port handling & port charges) for Plant & Equipment and
Spare Parts.
(4) Planning, Design & Engineering
(5) Type Test Charges (xi) The source of applicable indices and their base values for the purpose of
computing Price Adjustment under the Contract shall be as under :
PAGE 16 OF 17 A. Ex-works/FOB Price component of Plant and Equipment (excluding Type Test
Charges and Mandatory Spares)**
NAME OF CURRENCY *** : ..................................... -----------------------------------------------------------------------------------------------------------------------------
S.No. Item Value of Source of Value of Base
Coefficient Indices used Date Indices (as
on 30 days prior
to date of open-
ing of Part-II
(Price) bids)
-----------------------------------------------------------------------------------------------------------------------------
1. Fixed portion : F = 0.15 2. Material : a =
3. b =
4. c =
5. Labour : Lb =
----------------------------------------------------------------------------------------------------------------------------- B. Installation Services Component (excluding Planning, Design & Engi-
neering and Civil Works)
NAME OF CURRENCY*** : ............................................ -----------------------------------------------------------------------------------------------------------------------------
S.No. Item Value of Source of Value of Base
Coefficient Indices used Date Indices (as
on 30 days prior
to date of open-
ing of Part-II
(Price) bids) -----------------------------------------------------------------------------------------------------------------------------
Fixed Portion F = 0.15 -- --
Expatriate 0.85
Labour (EF)
Indian Field 0.85 All India Consumer
Labour (F) Price index for
industrial workers
(All India Monthly
Average) published
by Labour Bureau,
Simla, Govt. of India
--------------------------------------------------------------------------------------------------------------------
PAGE 17 OF 17
** This information shall be filled in at the time of signing of Contract
Agreement, based on Price adjustment data submitted by the successful bidder
in Attachment-
17 to his bid and/or as mutually discussed and agreed upon.
*** Sheets of like size and format shall be annexed in case no. of currencies
are more. Note : The date of bid opening shall mean the date of bid opening for Part-II (Price) Bids.