Section Viii Price Variation Clause

Corrigendum No. I & II

Tender Specification No. e-APT-03/2008

The bidders are requested to note the following amendments to the Tender Specification.

Corrigendum No.I:

I.The Clause No. 1.2 : PRICE VARIATION CLAUSE under Section –II (Financial) in Volume –I may be read as follows:

“Clause No. 1.2.1 : Price Variation is applicable in respect of the items Cement, Reinforcement Steel and Earth flat, subject to the following conditions:”

All the other sub clauses (a) to (j) mentioned under this clause in the Tender Specification remain unaltered.

II.The following Price Variation Clause in respect of Supply of Transmission Line Tower Parts and Substation Structures is added under the Clause No. 1.2 : PRICE VARIATION CLAUSE under Section –II (Financial) in Volume –I

“Clause No. 1.2.2 :Price Variation is applicable in respect of TransmissionLineTower Parts and Substation Structures :

Quotations will be with prices subject to adjustment up or down as per specific variation formula with reference to the base prices of major raw-materials /components involved for tower parts which will be detailed in the bid along with the respective percentage costs in the composite price for the finished goods.

The Bidder shall quote according to IEEMA formula in force at the time of Bidding which will remain same through out the execution and completion of the order. (The responsive Bidder shall furnish copies of IEEMA circulars, duly notarized, and other relevant details every month during the execution of contract).

Price variation on tower parts upto maximum ceiling of 30% on plus (+) side and no ceiling on minus (-) side, over the quoted price will be allowed.

The base and final prices/ indices of raw-materials / components for steel & zinc and All India Average Consumer Price Index will be based on IEEMA formula. The basic price of raw materials so quoted will remain unaltered during the period of validity of Bids as well as during the execution of contract.

If the date of delivery as defined in the P.V. formula is beyond the contracted delivery date, the contracted delivery date or the actual delivery date whichever is advantageous to the Purchaser will form the basis for calculation of Price Variation.

Notwithstanding the formula applicable for regulating the price variation, if at any time any documentary evidence proof or certificates with regard to the price variation bills is required by the purchaser, the bidder shall have to furnish the same to the purchaser.

III.The following Price Variation Clause in respect of Supply of Conductor is added under the Clause No. 1.2 : PRICE VARIATION CLAUSE under Section –II (Financial) in Volume –I

“Clause No. 1.2.3 : Price Variation is applicable in respect of Supply of Conductor and the price shall be based on and subject to adjustment due to variations in the following factors:

i)E.C. Grade Aluminium: The ex-works cost of indigenous E.C. grade aluminium wire rod based on average price of M/s. Nalco, Balco, Hindalco, and Malco as given in CACMAI circulars prevailing as on 30 days prior to the Bid opening.

ii)HTGS wire: The ex-works cost of per MT of HTGS wire exclusive of duties and taxes prevailing as on 30 days prior to the Bid opening corresponding to 3.00 to 4.09mm designation. as given in CACMAI circulars prevailing as on 30 days prior to the Bid opening.

iii)The above basic prices of raw materials will remain unaltered during the execution of contract.

iv)For any variation up or down in the prices of raw materials as defined above, for every one rupee change in the rate of one MT of EC grade aluminium wire rod and HTGS wire the corresponding increase or decrease in price per KM of finished conductor allowable shall be as given below:

v)For the purpose of calculation of price variation the prices of HTGS wire and EC grade aluminium shall be taken as those prevailing on the first working day of the calendar month one month prior to the date of delivery.

vi)The Base and final prices/indices shall correspond to same manufacturers as given in the CACMAI.

vii)The proportionate taxes and duties on such increase or decrease in the price of conductor is to the APTRANSCO's account, as per actual on production of the gate pass relating to the consignments for which price variation is claimed.

viii)The date of delivery shall be the date of receipt of materials in good condition at destination stores (i.e. check measurement date as per Form-13) for the purpose of price variation calculations.

ix)If the delivery of the material is within the scheduled delivery period, the Price Variation applicable will be based on the actual delivery.

x)In case the purchaser advance the delivery, the price variation applicable will be based on the actual delivery.

xi)Irrespective of increase in the prices of raw materials, the Price Increase per KM of the Conductor in the Ex-works price will be limited to a maximum of 30% over the original Ex-works price mentioned above. However there is no ceiling for negative variation.

xii)The Price Variation amount can be claimed for each batch of supplies made from time to time (out of total quantity) and will be payable after due verification

xiii)In case of conductors, where the supplier makes his own arrangements to get the Rod made out of Aluminium Ingots, the prices of Aluminium Rod as per CACMAI mentioned above will only be taken into consideration for arriving at the price variation claims irrespective of whatever expenditure the supplier might have incurred in getting the ingot converted into Rod.

xiv)If the date of delivery as defined in the P.V. formula is beyond the contracted delivery date the contracted delivery date or the actual delivery date which ever is advantageous to the Purchaser will form the basis for calculation of price variation.

xv)Not withstanding the formula applicable for regulating the price variation, if at any time any documentary evidence proof or certificate in regard to the price variation bills is required by the Purchaser, the supplier will have to furnish the same to the Purchaser.

Corrigendum No.II:

The Clause No. 4 (b) (i) ‘Terms of Payment for Supply of Material/Equipment’, under Section-II ( Financial) of Volume-I of the tender specification is amended and the same may be read as follows:

Clause No. 4 (b) (i) ‘Terms of Payment for Supply of Material/Equipment’

100% Payment will be made within 45 days from the date of receipt of equipment / material at destination Stores / site in good condition (i.e. from check measurement date in Form-13). The concerned Assistant Executive Engineer/TLC will receive the equipment / material in full shape at site and the concerned Executive Engineer/TLC will make the check measurement.

Chief Engineer (Construction)