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This comprehensive contract administration guide covers major elements, including scope, outcome/output, time control, cost control, quality control, force majeure, and finishing the contract.
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:jfutd\ ;fj{hlgs vl/b M s/f/ ;Demf}tf k|zf;g / vl/b;DaGwL dfldnfx? ;'/]z k|wfgg]kfn k|zf;lgs k|lzIf0f k|lti7fg, @)&^.)%.@#
k|:t'tLsf ljifo vl/b ;Demf}tf ug'{kg]{ vl/b ;Demf}tfsf] 5gf}6 s/f/sf] cfwf/ / bz{g s/f/ ;Demf}tf k|zf;g s/f/ k|zf;g M k|d'v tTjx? ;fO{6 cflwkTo / lgdf{0f ;fO{6df kx'Fr s/f/ k|zf;gdf Wofg lbg'kg]{ kIfx? • k'j{ lgwf{l/t Ifltk"lt{ • e]l/o;g cfb]z • d'No ;dfof]hg, • Dofb yk, s/f/ ;dfKtLsf kl/j]z / ljjfb Joj:yfkg vl/b;DaGwL dfldnfx? -d]nDrL vfg]kfgL cfof]hgf, jfO{8a8L vl/b k|s/0f_
vl/b ;Demf}tf ug'{kg]{ km'6s/ vl/b afx]s cGo vl/b ubf{ vl/b ;Demf}tf ug'{ kg]{ • km'6s/ vl/b M ? ! nfv eGbf a9L vl/bdf ;Demf}tf ug'{kg]{ vl/b ;Demf}tf cfjZos x'g] cj:yf M • ;f]em} vl/b -? ! nfv b]lv % nfv;Dd_ • b/efpkq tyf af]nkq -qmdzM @) nfv / ;f] eGbf a9L /sd_ • k/fdz{bftfsf] ;DaGwdf k|:tfj -;f]em} vl/b ? % nfv;Dd, k|fljlws / cfly{s k|:tfj dfu u/L ? @) nfv;Dd / ;f] eGbf a9L /sdsf] nflu k|:tfj dfu kq - Request For Proposal_ ;Demf}tfsf zt{x? M af]nkq jf l;naGbL b/efp kq jf k|:tfj kmf/fddf sfdsf] k|s[lt cg';f/ s/f/ ;Demf}tfsf zt{x? ;dfj]z ug'{ kg]{
s/f/sf] cfwf/ / bz{g -Philosophy of Contracting_ • vl/b ug]{ lgsfo / s/f/sf] csf]{ kIf -Contractor_ ;dfg ;fem]bf/ -Partner_ • ;dtf / :jR5tf -Fairness_ • kf/blz{tf -Transparency_ • k]zfut k|s[of jf k|0ffnL -Approach_ • k|To]s s/f/ cl4tLo -Unique_ 5 eGg] s'/f hfGg' kb{5 • cfk;L xLt . kmfO{bf / ;dfgtfsf] cfwf/df x'g'kg]{ • ;fj{hlgs lgsfo / 7]s]bf/ b'j}n] zt{x? kfngf ug{ ;xdt ePsf] x'g'k5{ / csf]{ kIf;+u s/f/ cg';f/ sfo{;Dkfbg ug]{ u/fpg] clwsf/ /xG5
s/f/ ;Demf}tf k|zf;g -lgod !!!_ sfo{ jf ;'k'b{uL cjlw -Work and Delivery Schedule_ sf] cfwf/df 7]s]bf/ / cfk"lt{stf{ kl/rfng ePsf] x'g' kg]{ vl/b ;Demf}tfdf pNn]lvt cjlwleq s/f/ ;Demf}tfsf] sfd z'? ug'{ kg]{ -h:t} &, !% lbg jf cGo pko'St ;do_ • pNn]lvt ;do leq sfd z'? gu/]df s/f/ e+u klg x'g ;Sg] vl/b ;Demf}tf ePkl5 a}7s -kf]i6 la8 sGkm|]G;_ ug]{, ;Demf}tf sfof{Gjog 6f]nL u7g ug]{, ;Demf}tf sfof{Gjog ;DaGwL sfo{ of]hgf / sfo{tflnsf tof/ ug{], ;do tflnsf cg';f/ sfd z'? ug{ kqfrf/ ug'{kg]{ dfn;fdfgsf] s/f/ ;Demf}tfdf e'StfgLsf] dfWod k|ltt kq eP cfk"lt{stf{sf] gfddf k|ltt kq vf]Ng] Joj:yf ug]{
s/f/ ;Demf}tf k|zf;g -lgod !!!_ ladf ;DaGwL Joj:yf M • lgdf{0f sfo{ M ;Demf}tf /sd, d]lzg/L dfn;fdfg, t]>f] kIf , sd{rf/Lx? • k|ltt kqsf] dfWodaf6 vl/b ubf{ M dfn;fdfg vl/bdf l;=cfO{=kL= -Sofl/h P08 OG;f]/]G; k]8 6''''''_ d"Nosf] sDtLdf !!) k|ltzt /sd a/fa/sf] uf]bfdb]lv uf]bfd;Dd o'4, x8tfn / cfuhgL ;d]tsf] ;a} hf]vLd Aoxf]g]{ u/L aLdf u/fpg' kg]{ ;Demf}tf sfo{fGjogsf] k|ult cg'udg ug]{ / u'0f:t/ lg/LIf0f / k/LIf0f ug]{ vl/b ;Demf}tfsf] x]/km]/, e]l/Pzg cfb]z, d"No ;dfof]hg, vl/b ;Demf}tf lgnDjg jf cGt, sfo{ ;DkGg k|df0fLs/0f, e'QmfgL cflbsf] Joj:yfkg ug]{, ljjfb pTkGg eP ;dfwfgsf] pkfo ckgfpg], ;Demf}tf pNn+3g ePsf]df ;Demf}tfdf plNnlvt pkrf/ ;DaGwL Joj:yf cg';f/ sf/afxL cl3 a9fpg], ah]6 / nfut n]vf -s:6 PsfpG6LË_ , ljQLo kIfsf] Joj:yfkg ug]{, ;Demf}tf sfof{Gjog;Fu ;DalGwt sfuhft l;nl;nfa¢ / Jojl:yt 9+un] /fVg], ;Dkfbg ePsf] sfd :jLs[t ug]{, / cfjlws k|ltj]bg Ps tx dflysf] clwsf/L ;dIf k]z ug]{ .
Contract Administration: Major Elements Scope : Outcome/output Time Control : Update of the Program , . Extension of the Intended Completion Date, Management Meetings, Contractor shall warn the Project Manager at the earliest opportunity of specific likely future events or circumstances Cost Control : Unit Rate contract ( the Bill of Quantities ) shall contain priced items, Changes in the Contract Price, Variations, Cash Flow Forecasts, Payment Certificates, Payments, Compensation Events, Tax,Price Adjustment, Retention, Liquidated Damages, Bonus, Advance Payment, Day works, cost of repairs
Contract Administration: Major Elements... Quality Control : Identifying defects, Tests, Correction of Defects Force Majeure: Release from Performance Finishing the Contract : Completion, Taking Over, Final Account, Operating and Maintenance Manuals -as built drawings, Termination (Commencement, Progress, Abandon), Fraud and Corruption, Blacklisting
;fO{6 cflwkTo / lgdf{0f ;fO{6df kx'Fr Possession of the Site: The Employer shall give possession of all parts of the Site to the Contractor. If possession of a part is not given by the date stated in the SCC, the Employer shall be deemed to have delayed the start of the relevant activities, and this shall be a Compensation Event. Access to the Site : The Contractor shall allow the Project Manager and any person authorized by the Project Manager access to the Site and to any place where work in connection with the Contract is being carried out or is intended to be carried out.
;Demf}tfsf] cjlw yk -Extension of Time_;DaGwL Joj:yf vl/b ;Demf}tfdf pNn]v x'g'kg]{ M vl/b ;Demf}tfsf] cjlw yk ;DaGwL Joj:yf ;DalGwt vl/b ;Demf}tfdf pNn]v eP adf]lhd x'g]-bkmf %^_ tf]lsPsf] cfwf/df cjlw a9fpg ;Sg] M • sfa" aflx/sf] kl/l:ylt, • ;fj{hlgs lgsfon] pknAw u/fpg' kg]{ s'/f pknAw u/fpg g;s]df jf • cGo dgfl;a sf/0faf6 vl/b ;Demf}tfsf] cjlw ga9fO{ gx'g] ePdf ;Demf}tf k|fKt ug]{ JolQmsf] lgj]bg adf]lhd clwsf/ k|fKt clwsf/Ln] tf]lsPsf] cfwf/df cjlw a9fpg ;Sg]
;Demf}tfsf] cjlw yk;DaGwL Joj:yf -lgod !@)_ vl/b ;Demf}tfadf]lhdsf] sfdcjlwleq k"/f ug{ g;lsg] ePdf;DalGwtlgdf{0fJoj;foL, cfk"lt{stf{, jf k/fdz{bftfn]]] sf/0fv'nfO{ vl/b ;Demf}tfsf] Dofb ;lsg' sDtLdf PSsfO{; lbg cufj} cjlwyksf] nflulgj]bglbg' kg]{ lgj]bgk|fKtePkl5clwsf/ k|fKtclwsf/Ln] lgDgadf]lhdcfjZoshfFra'emug{ jf u/fpg ;Sg] M -s_ ;DalGwtपक्षले vl/b ;Demf}tfadf]lhdsf] sfd;do d} ;DkGgug{ e/ dUb'/ k|of; u/]sf] lyof] jflyPg < v_ lgof]Stfn] ;Demf}tfadf]lhdpknAw u/fpg' kg]{ s'/f pknAw u/fPsf] lyof] jflyPg < -v !_ bkmf ^& s adf]lhdsfuhftlemsfPsf] sf/0faf6sfddfl9nfO{ ePsf] xf] jfxf]Og-bkmf ^& s M vl/b sfo{sf] 5fglagug]{ k|of]hgsf] nflusfuhftlemsfpFbfvl/b sf/jfxLcufl8a9fpgafwfgkg]{ u/L lemsfpg' kg]{ , P]gsf] k|yd ;+zf]wg_, / -u_ sfa'aflx/sf] kl/l:yltsf] sf/0faf6sfddfl9nfO{ ePsf] xf] jfxf]O{g .< • pklgod k|f/De x'g' cl3 ePsf vl/b ;Demf}tfsf] xsdf ;DalGWft lgdf{0f Aoj:ffoL, cfk"lt{stf{, ;]jf k|bfos jf k/fdz{bftfn] of] pklgod k|f/De ePsf] PSsfO{; lbg leq Dofb yksf] nflu lgj]bg lbg' kg]{
;Demf}tfsf] cjlw yk;DaGwL Joj:yf lgj]bgdf Dofb yk ug{sf] nflu v'nfOPsf] sf/0f vl/b ;Demf}tf adf]lhd dgfl;a b]lvPdf ;f]sf] sf/0f v'nfO{ • z'? ;Demf}tf cjlwsf] kGw| k|ltzt ;Ddsf] cjlw;Ddsf] Dofb yk ug'{ kg]{ ePdf af]nkq :jLs[t ug]{ clwsf/Ln] • ;f] eGbf a9L kRrL; k|ltzt cjlw;Ddsf] Dofb yk ug{' kg]{ ePdf ljefuLo k|d'vn] yk ug{ ;Sg]5 . • plNnlvt cjlw eGbf a9L cjlwsf] Dofb yk ug{'kg]{ dgfl;a sf/0f ePdf ;DalGwt dGqfno jf lgsfosf] ;lrjn] yk ug{ ;Sg] Dofb yk ;DaGwL lg0f{o ;Demf}tf cjlwleq} ul/;Sg' kg]{ z'? ;Demf}tfsf] krf; k|ltzteGbf a9L x'g] u/L Dofb yk ug{ gkfOg]
;Demf}tfsf] cjlw yk;DaGwL Joj:yf ;+jt\ @)&^ ;fn h]7 @# ut] cl3 vl/b ;Demf}tf eO{ sfo{ ;DkGg x'g g;sL Dofb yksf] nflu lgj]bg k/]sf ;Demf}tfsf] xsdf k|fljlws k|ltj]bg ;d]tsf cfwf/df sfo{ k|ult / afFsL sfo{sf] ljZn]if0f u/L Dofb yk ubf{ ;Demf}tf adf]lhd sfo{ ;DkGg x'g ;Sg] b]lvPdf ;fj{hlgs lgsfo jf cfof]hgfnfO{ yk cfly{s Jooef/ gkg]{ u/L of] pklgod k|f/De ePkl5 ;DalGwt dGqfno jf lgsfosf] ljlzi7 >]0fL jf ;f] ;/xsf] clws[tn] a9Ldf Ps jif{sf] nflu Dofb yk ug{ ;Sg] Dofb yk ul/Psf] cjlwleq ;d]t ;Demf}tf adf]lhd sfd ;DkGg gug]{sf] xsdf sfo{ ;Dkfbg hdfgt tyf cGo s'g} hdfgt jf w/f}6L /fv]sf] eP ;f] ;d]t hkmt ul/g] sfd ;DkGg gePsf] sf/0faf6 x'g uPsf] xfgL gf]S;fgL ;d]t k|rlnt sfg"g adf]lhd c;'n pk/ ul/ lghnfO{ sfnf] ;"rLdf /fvL k|rlnt sfg"g adf]hd sf/afxL ul/g] pk/f]St adf]lhd Dofb yk gePdf ;f] ;Demf}tf cGTo ug'{ kg]{
k"j{ lgwf{l/t Ifltk"lt{ -Liquidated Damage_-lgod !@!_ ;Demf}tfdf k"j{ lgwf{l/t Ifltk"lt{sf ;DaGwdf b]xfosf] Joj:yf ug{ ;lsg] M cfk"lt{stf{sf] l9nfO{sf] sf/0fn] ;Demf}tfdf tf]lsPsf] Dofbdf sfd ;DkGg x'g g;s]df ;Demf}tf /sdsf] bz k|ltztdf gj9\g] u/L ;fwf/0ftof k|lt lbg ;Demf}tf /sdsf] z'Ggf bzdna z'Ggf kfFr -)=)%_k|ltzt k"j{ lgwf{l/t Ifltk"lt{ lbg' kg]{ t/ lghsf] sfa' aflx/sf] kl/l:ylt k/L jf s'g} ulNt jf x]nr]S¥|ofO{ geO{ sfo{;Dkfbg jf cfk"lt{ ug{ l9nf ePdf To:tf] Ifltk"lt{ ltg{ gkg]{, / k"j{ lgwf{l/t Ifltk"lt{ ltb{}df ;DalGwt cfk"lt{stf{ vl/b ;Demf}tf adf]lhdsf] sfo{ ;Dkfbg ug]{ bfloTjaf6 d'Qm x'g g;Sg] . dfldnf !M Ps cfk"lt{stf{n] l;+xb/af/sf] Ps dGqfnonfO{ eStk'/sf] snfTds O{6f cfk"lt{ ug]{ s/f/ ;Demf}tf u/]sf]df kf}if d;fGtdf a'emfpg' kg]{ O{6f a'emfpg g;s]sf] cj:yfdf t/fO{ aGbsf] sfa" aflx/sf] kl/l:yltsf] sf/0fn] ;dodf cfk"lt{ ug{ g;s]sf] egL lgj]bg lbPsf] 5, o; cj:yfdf ;f] cfk"lt{stf{nfO{ Ifltk"lt{ ltg{ gnufO{ Dofb yk ug{ ldN5 ls ldNb}g < dfldnf @M s/f/ ;Demf}tfdf dfO{n:6f]g $ j6f /x]sf]df k|To]ssf] Dofb km/s km/s /x]sf]n] z'?sf] dfO{n:6f]gsf] Dofb leq g;lsP ;f] sfdsf] /sdsf] !) k|ltzt gf3]df s] ug]{ <
Variations in Contracts Variation literally means change, alteration, modification Variations are the result of unforeseen circumstances in the implementation and administration of a contract. Variations allow: • Change and alterations to the Contract • Execution of unforeseen works Origin of variations Engineer to instruct the contractor about the variations in writing The Engineer can omit the work, but it cannot be done through other contractor during the operation of the contract.
Effects of Variations • Increase or Decrease in volume and nature of work • Satisfactory completion of the Contract • Effect on Project Cost • Effect on Time of Completion of the Contract • Claims • Compensation Events • Disputes Cost Time
vl/b ;Demf}tfubf{sf] avtk'jf{g'dfgug{ g;lsPsf] kl/l:ylt ;f] ;Demf}tfsfof{Gjogsf] qmddfl;h{gf e} e]l/Pzgcfb]z hf/L ug'{ kg]{ ePdftf]lsPsf] k|lqmof k"/f u/L hf/L ug'{ kg]{ lgdf{0f sfo{, dfn;fdfg jf cGo ;]jfsf] e]l/Pzg k|dfl0ft ug'{kg]{ ljj/0f M -s_ lgdf{0fsfo{, dfn;fdfg jf cGo ;]jfsf] 8«O{Ë, l8hfO{g tyf :k]l;lkms]zgcflbabNg' kg]{ jfgkg]{ / abNg' kg]{ ePdflgdf{0fsfo{sf] cfwf/e"tk|s[ltjf If]q kl/jt{g x'g] jfgx'g] s'/f -v_ e]l/P;gkl/df0fsf] k|fljlwsk'i6\ofO{ / sf/0f -u_ nfutcg'dfgdfk|efjkfg]{ eP;f]sf] k|ltzt -3_ :jLs[t ah]6 tyfsfo{qmddf k/] jfgk/]sf] s'/f e]l/P;g cfb]z hf/L ubf{ ljz]if1x¿sf] ;d"x dfkm{t cfjZos hfFra'em u/fO{ k|fKt l;kmfl/;sf] cfwf/df dfq hf/L ug{ ;Sg] e]l/Pzg M lgod !!*
vl/b ;Demf}tf ubf{sf avt k"jf{g'dfg ug{ g;lsPsf] kl/l:ylt >[hgf ePdf ;f]sf] :ki6 sf/0f v'nfO{ e]l/Pzg cfb]z hf/L ug{ ;Sg] e]l/P;g cfb]z kRrL; k|ltzt;Dd b]xfosf] clwsf/Ln] b]xfo adf]lhd e]l/Pzg cfb]z hf/L ug{ ;Sg] M kfFr k|ltzt;Dd /fhkqfFlst l4tLo >]0fL bz k|ltzt;Dd /fhkqfFlst k|yd jf ;f] ;/xsf] k|d'v kGw| k|ltzt;Dd ljefuLo k|d'v kGw| k|ltzt eGbf a9L kRrL; k|ltzt;Dd ;lrj jf ;f] ;/xsf] lgsfo k|d'v -@)&#=#=#) sf] k|yd ;+zf]wgn] yk _ klRr; k|ltzt eGbf a9L ;/sf/L ;fj{hlgs lgsfosf] xsdf dlGqkl/ifb\ cGo ;fj{hlgs lgsfosf] xsdf -;+:yfg, af]8{ kl/ifb\ cflb_ kGw| k|ltzt b]lv dflysf] xsdf ;f] lgsfosf] ;jf]{Rr sfo{sf/L lgsfo{ -;+rfns ;ldlt, sfo{sf/L ;ldlt cflb_ e]l/Pzg cfb]z -bkmf %$_
e]l/P;g cfb]z hf/L ubf{ b]xfo adf]lhd hf/L ug'{ kg]{5M -s_ ;DalGwt sfdsf] cfwf/e"t k|s[lt jf If]q kl/at{g gx'g] u/L ug'{ kg]{, -v_ ah]6sf] Joj:yf ePsf] x'g' kg]{ -u_ clwsf/ k|fKt clwsf/Lsf] l:js[tL lnPsf] x'g' kg]{ . nfut cg'dfg :JfLs[t ug]{ clwsf/L eGbf tNnf] txsf] clwsf/Ln] e]l/Pzg cfb]z hf/L ug{ gx'g] ;f7L nfv ?k}ofF;Ddsf] vl/b sfo{sf] kGw| k|ltzt eGbf dflysf] e]l/Pzg ljefuLo k|d'vn] hf/L ug{ ;Sg] dfldnf M ax'jlif{o cfof]hgf :jLs[lt ePsf] cJf:yf jf cy{ dGqfnon] >f]tsf] ;'lglZrttf u/]sf] eP jf nfut cg'dfgdf @% k|ltzt /sd yk u/L :jLs[t ul/Psf] eP ldNg] gldNg] <<< e]l/Pzg cfb]z -bkmf %$_
e]l/Pzg M dn]k k|ltj]bg ;fj{hlgs vl/b sfg"g / vl/b ;Demf}tfadf]lhd lgdf{0f sfo{sf] e]l/P;g hf/L ug{ ;Sg] Joa:yf eP tfklg • k"jf{g'dfg ug{ ;lsg] k|s[ltsf] sfo{df ;d]t e]l/P;g u/]sf], • clwsf/ k|fKt gePsf] txaf6 e]l/P;g yk u/]sf], • cfjZostf lgwf{/0f gu/L a9L ;fdu|L k|fKt x'g] u/L e]l/P;g u/]sf] • e]l/P;g cfb]z hf/L gu/L e'QmfgL lbPsf]
Price Adjustment : Philosophy Equitable Adjustment Contract Price Adjustment Shows additional coverage Better balance of rights or obligations between Employer and Contractor Invites competitive bidding Gives a Sense of security Leads to Economic Prices • The basic principle of Price Adjustment is to keep neither party to be left better or worse off than it was after formation of Contract.
d"No ;dfof]hg;DaGwL Joj:yf bkmf %%= vl/b ;Demf}tfdf cGoyf Aoa:yf ePsf]df afx]s afX| dlxgf eGbf a9L cjlwsf] vl/b ;Demf}tf sfof{Gjog ug{] s|ddf d"No ;dfof]hg ug{ cfjZos b]lvPdf clwsf/ k|fKt clwsf/Ln] d"No ;dfof]hg ug{ ;Sg] t/ ;fa{hlgs lgdf{0f sfo{ vl/b ubf{ /fli6«o :t/sf] af]nkq cfAxfg eO{ vl/b ;Demf}tf eO{ ;s]sf] ca:yfdf cK|Tofl;t ?kdf s'g} lgdf{0f ;fdu|Lsf] d"No ;flas d"Nosf] bz k|ltzt eGbf a9L 36a9 ePdf To;/L 36]sf] jf a9]sf] /sddf bz k|ltzt s6\6f u/L d"No ;dfof]hg ul/g] t/ lgDg cj:yfdf d"No ;dfof]hg ug{ ;lsg] 5}g M vl/b ;Demf}tf k|fKt ug]{ AolQmsf] l9nfO{sf] sf/0faf6 ;Demf}tf adf]lhdsf] sfd ;f] ;Demf}tfdf plNnlvt cjlw leq ;DkGg geO{ a9L ;do nfu]sf]] • Psd'i6 sfo{ ;Dkfbg -nDk ;d sG6«fS6_ jf • lglZrt ah]6sf] cfwf/df vl/b ;Demf}tf ePsf]
d"No ;dfof]hg;DaGwL Joj:yf -lgod !!(_ d"No ;dfof]hg ug{ ;lsg] s'/f vl/b ;Demf}tfdf pNn]v ug'{ kg]{ vl/b ;Demf}tfdf b]xfosf s'/fx? pNn]v ug{' kg]{ M • -s_ d"No ;dfof]hg ug]{ cj:yf, • -v_ lgwf{/0f ug]{ ;"q M ;"q lgwf{/0f ubf{ ;DkGg ePsf] sfddf nfu]sf] >d, ;fdu|L / pks/0fx?sf] dfq d"No ;dfof]hg x'g] u/L ug'[{ kg]{ • -u_ d"No ;dfof]hgsf]] clwstd /sd, • -3_ ;"qdf k|of]u ul/g] d"Nosf] ;+/rgf ->d, pks/0f, ;fdu|L, O{Gwgsf] d"No cflb_, • -ª_ k|To]s d"No ;+/rgfsf] d"No ;dfof]hg ug{ k|of]u ul/g] ;Dj4 d"No ;"rL -O{G8L;]h_ • -r_ d"No ;"rL pNn]v ug{ k|of]u ul/g] d'b«f / e'QmfgL lbg k|of]u ul/g] d'b|f jLrsf] ljlgdo b/sf] 36j9 dfkg ug]{ tl/sf, • -5_ d"No ;dfof]hg ;"q k|of]u ug{ lnOg] cfwf/ ldlt -a];nfOg 8]6_, • -h_ d"No ;dfof]hg ;"q nfu" x'g] ;dosf] cGt/fn, / • -em_ d"No ;dfof]hg ;"qsf] k|of]uaf6 b]lvg' kg]{ Go"gtd d"No a[l4 / d"No ;dfof]hg ;DaGwL k|fjwfg nfu" x'g k"/f x'g' kg]{ cGo zt{ tyf jGb]h .
Table of Price Adjustment Data[To be used if Price Adjustment is applicable as per GCC 53.1] *Normally following source of index shall apply. Public Entity shall choose applicable Index for each item. (a) Labor: "National Salary and Wage Rate Index"- "Construction Labor" of Nepal Rastra Bank or rate fixed by District Rate Fixation Committee (b) Material:"National Wholesale Price Index" - Construction Materials" of Nepal Rastra Bank (c) Equipment usage: "National Wholesale Price Index" - "Transport Vehicles and Machinery Goods" of Nepal Rastra Bank or "Fuel" Price fixed by Nepal Oil Corporation. ** Bidders proposed weightings should be within the range specified by the Employer in column - 5
Table of Price Adjustment Data[To be used if Price Adjustment is applicable as per GCC 53.6] * Major construction materials to be specified by Employer in column - 2. ** Base Price and source normally to be specified by Employer (or alternatively informed to be proposed by bidder) in column 4 and 5. Note: The base prices of the construction materials shall be taken as of 30 days before the deadline for submission of the Bid as quoted by the Bidder and verified by the Employer. For the purpose of calculation of price adjustment, the Ex-factory price of the same source shall be taken into consideration.
Price Adjustment : SBD(M) Cl=46 : A separate formula applies to each Contract currency: Pc = Ac + Bc Imc/Ioc, where: Pcis the adjustment factor for the portion of the Contract Price payable in a specific currency “c”. Ac and Bcare coefficients specified in the SCC, representing the nonadjustable and adjustable portions, respectively, of the Contract Price payable in that specific currency “c”; and Imc is the index prevailing at the end of the month being invoiced and Ioc is the index prevailing 30 days before bid opening for inputs payable; both in the specific currency “c”. The sum of the two coefficients Ac and Bc should be 1 (one) in the formula for each currency. Normally, both coefficients will be the same in the formulae for all currencies, since coefficient A, for the nonadjustable portion of the payments, is a very approximate figure (usually 0.15) to take account of fixed cost elements or other nonadjustable components. The sum of the adjustments for each currency are added to the Contract Price.
Price Adjustment If the contract is not subject to Price Adjustment pursuant to Sub-Clause46.1. [Insert Base Price of construction material that are applicable to the works and are considered for price adjustment ] Construction Base Source Material Price (Ex-factory ) (factory) I. Cement NRs………../ MT ii. Steel a)Reinforcement NRs………./ MT b) Structure NRs………./ MT iii.Brick Chimney NRs………./ No Machine Made NRs………./ No iv.CGI Sheets NRs………./Sqm v.Gabion wire NRs………./ MT vi.Bitumen NRs………./ MT vii.others The base prices of the construction materials shall be taken as of 30 days before the deadline for submission of the Bid. For the purpose of calculation of price adjustment, the Ex-factory price of the same source shall be taken into consideration
Price Adjustment (SBD(M) Cl=46 : ) For unexpected increase in price P =[R1 –(R0 ×1,10)]× Q For unexpected decrease in price P =[R1 –(R0 ×0.90)]× Q Where: “ P” is price adjustment amount “ R1” is the present price of the construction material “ R0” is the base price of the construction material “ Q“ is quantity of the construction material consumed in construction during the period of price adjustment consideration The Price Adjustment amount shall be limited to a maximum `of 25% of the initial Contract Amount unless otherwise is specified in the SCC. The Price Adjustment provision shall not be applicable if the contract is not completed in time due to the delay caused by the contractor or the contract is a Lump sum Contract or a Fixed Budget Contract.
Sources of Indices • Should be asked for to be submitted at the time of bid submission • Determined on the basis of availability and source of material • Import materials – indices are derived from their country of origin with source from official publication. Materials are e.g. expatriate labor,constructional plants, bitumen, cement, reinforcing steel, gabions etc. • Local materials -- indices are derived from employers country with source from official publication e.g. • Fuel :Nepal Oil Corporation • Cement :National Trading Limited • Steel :National Trading Limited • G I Wire National Trading Limited • Pipes :Source chosen by the Contractor approved by the Employer • Miscellaneous : Overall Consumer price index of the country (Nepal Rastriya Bank )
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Compensation Events (SBD Cl.43.) Compensation :Something given to compensate for loss , suffering or injury Events : A thing that happens or takes place The Employer : • Does not give access to a part of the Site by the Site Possession Date stated in the SCC. • Modifies the Schedule of Other Contractors in a way that affects the work of the Contractor under the Contract. • The Project Manager : • Orders a delay or does not issue Drawings, Specifications, or instructions required for execution of the Works on time. • Instructs the Contractor to uncover or to carry out additional tests upon work, which is then found to have no Defects. • Unreasonably does not approve a subcontract to be let.
Compensation Events (SBD Cl.43.) • Gives an instruction for dealing with an unforeseen condition and additional work required for safety or other reasons. • Unreasonably delays issuing a Certificate of Completion. Ground conditions are substantially more adverse than could reasonably have been assumed before issuance of the Letter of Acceptance . Other contractors, public authorities, utilities, or the Employer do not work within the dates and other constraints stated in the Contract, and they cause delay or extra cost to the Contractor. The advance payment is delayed. The effects on the Contractor of any of the Employer’s Risks.
Compensation Events (SBD Cl.43.) If information demonstrating the effect of each Compensation Event upon the Contractor’s forecast cost has been provided by the Contractor, it shall be assessed by the Project Manager, and the Contract Price shall be adjusted accordingly. If the Contractor’s forecast is deemed unreasonable, the Project Manager shall adjust the Contract Price based on the Project Manager’s own forecast. The Project Manager will assume that the Contractor will react competently and promptly to the event. Contractor shall not be entitled to compensation to the extent that the Employer’s interests are adversely affected by the Contractor’s not having given early warning or not having cooperated with the Project Manager.
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