GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Municipal Administration and Urban Development Department – Price adjustment for
Steel, Cement, Bitumen and POL and adoption of overhead charges – Accorded – Orders
– Issued.
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MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT DEPARTMENT
[Link]. No. 435 Dated: 18-08-2006
Read the following:
[Link].35, T.R.&B.(R.I) Deptt., dated 28.2.2006.
[Link].73, T.R.&B.(R.I) Deptt., dated 24.4.2006.
[Link] the Commissioner, Vijayawada Municipal Corporation Lr. Roc. No.
VMC/11318/2005, dt. 25.4.2006.
<<>>
ORDER:
In the references [Link]. 1st and read above, orders have been issued by T.R & B.
(R1) Department on price adjustment clause in respect of Steel, Cement, Bitumen and
POL and adoption of overhead charges for all road works and bridge works including
ROBs/RUBs where estimate value is Rs. 50.00 lakhs and above and where time schedule
provided is 6 months and above.
2. The commissioner, Vijayawada Municipal Corporation vide his letter 3 rd read
above has informed that he has identified a few works for providing B.T. Roads in
Vijayawada Municipal Corporation and accordingly estimates have been prepared for the
works and tenders were called for. But, the contractors have not participated in the
tenders. The Commissioner, Vijayawada Municipal Corporation, has also informed that
on enquiry, the contractors have informed that the rate of the Bitumen is increasing day
by day and price adjustment clauses as per Government Orders are not applicable for
these small works. He has requested the Government to accord necessary permission to
make the small works into packages of estimate contract value more than Rs. 50 lakhs
and call for tenders duly incorporating the price adjustment clause in the tenders as per
the Government Order, so as to get more competition for the works.
3. Government after careful examination of the matter hereby accord permission to
accept to allow such price adjustment on works with a value of more than Rs. 50 lakhs
and for which the stipulated period to complete the work as per agreement is more than
six months, subject to the following conditions:
i) Price adjustment shall be both for increase and decrease in the prices for the works
completed within the original agreement period.
ii) In addition, the price adjustment shall be for valid extension given for natural calamities
duly limiting to the actual period /days lost and for portion of work where work is
delayed due to land acquisition / shifting of utilities (this shall also be limited to actual
length affected).
iii) The price adjustment shall be effective for all ongoing works for which final bills are not
paid and all future works.
iv) The variation clause will be when the variation in rates is more or less than 5% of the rate
provided in the technical sanctioned estimate based on which bids are invited or All India
Wholesale Price Index as stipulated in the [Link].35, TR&B(R1) Deptt., dated
28.2.2006 on the date twenty eight days prior to closing date of submission of bids,
whichever is advantageous to the Department.
v) For works taken up under Externally aided Projects, the guidelines specified thereon are
to be followed.
4. This order shall not be applicable to the works of Hyderabad Metro Water Supply
and Sewerage Board, Hyderabad.
5. The Engineer-in-Chief (Public Health), Hyderabad shall take necessary action in
the matter.
6. This order issues with the concurrence of Finance (Expr. MA&UD & EFS&T)
vide their [Link]. 21300/314/A1/Expr.M&F/2006, dated 1.8.2006.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
[Link]
SECRETARY TO GOVERNMENT
To
The Engineer-in-Chief (Public Health), Hyderabad.
The Commissioner and Director of Mpl. Admn., Hyderabad.
The Commissioners of all Municipal Corporations.
Copy to:
The Accountant General, A.P., Hyderabad.
The P.S. to Spl. Secretary to C.M.
The P.S. to Minister for Municipal Administration.
The Finance (Expr. MA&UD & EFS&T) Deptt.
The T.R. & B. (R1) Deptt.
The P.S. to Secretary to Govt. (SPS), M.A. & U.D. Deptt.
The P.S. to Secretary to Govt. (V), M.A. & U.D. Deptt.
SF/SC.
// Forwarded By Order //
SECTION OFFICER
