‘Sub-Clause 70.1—Increase or Decrease in Cost EXAMPLE Delete the text of the Sub-Clause and substitute Adjustments 10 the Contract Price shall be made in respect of vise or fall in the ost of lacal labour and specified materials as set out inthis Sub-Clause, (a) Local Workmen {i) For the purpose of this Sub-Clause “Local Workmen” means skilled, semi-skilled and unskilled workmen of all trades engaged by the Contractor on the Site for the purpose of or in connection with the Contract or engaged full time by the Contractor off the Site for the purpose of ar in connection with the Contract (by way of ‘lustration bur not tinitarion: workmen engaged ful time in any office, store, workshop or quarry) “Basic Rate” means the applicable basic minimum wage rate prevailing on the dace 28 days prior to the latest date for submission of tenders by reason of any National or Stare Statute, Ordinance, Decree or other Law or any regulations co bye-law of any local oF other duly constituted authority, or in order to Conform with practice amongst good employers generally in the area where the Works are to be carried out; and “Current Rare" means the applicable basic minimum wage rate for Local Workmen prevailing on any date subsequent to the date 28 days prior to the latess date set for submission of tenders by reason of any National or State Statute, Ordinance, Decree or ather Law or any regulation or bye-law of any local or other duly constinted authority, or in order to conform with practice ‘amongst good employers generally inthe area where the worksare to be carried out. (ii) The adjustment 10 the Comract Priee under the terms of this Sub-Clause hall be calculated by multiplying the difference berween the Basic and Current Rates for Local workmen by (a) the number of alt hours actually worked, and (b) i respect of those hows worked at overtime rates, by the product of the unaber of said hours and the percentage addition required by the law to be paid by the Contractor for overtime, Such adjustment may be either an addition to or a deduction from the Contract Price, (iti) No orher adjustment of the Coniract Price on account of fluctuation tn the remuneration of Local Workmen shall be made. (b) Specified Materials (i) For the purpose of shis Sub-Clause: ‘Specified Materials” means the materials stated in Appendix (insert reference) to Tender required om the Site for the execution and completion of the Works “Basie Prices” means the current prices for the specified materials prevaiting on the date 28 days prior to the latest date for submission of tenders: and “Current Prices” means the current prices for the specified materials prevailing at any date subsequent 1 the date 28 days prior to the faiest date for submission of tenders. (ii) The adjustment to the Contract Price under the terms of this Sub-Clause shall be calculated by applying the difference between the Basic and Current Prices (0 the quantity of the appropriate Specified Material which is delivered to the Site during the period for which the particular Currens Price is effective Such adjustment may be either an addition r or a deduction fram the Contract Price. armc ps 2u(iti) The Contractor shail use due diligence to ensure that excessive wastage of the Specified Materials shall not occur. Any Specified Materials removed froen ‘the Site shall be clearly idensified in the records required under paragraph (d) of this Sub-Clause. {iv) The provisions of shis Sub-Clause shall apply to fuels used in Contractor's Equipment engaged on the Site for the purposes af executing the Works, including vehicles owned by the Contractor (or hired by him under long term arrangements under which the Contactor is obligated fo supply fuel) engaged in transporting any staff, labour, Contractor's Equipment, Temporary Works, Plant or materials to and from the Site. Such fuels shall be clearly identified in the records required under paragraph (d) of this Sub-Clause. The provisions of this Sub-Clause shall not apply 10 any fuels sold or supplied to any employee of the Contractor or to any person for use in any morar vehicle not being used for the purpases of the Contract. (¥) The Contractor shall at alt times have regard to suitable markets and shal whenever buying materials a variation in the cost of which would give vise to an adjustment of the Contract Price under this Sub-Clause, be ditigent to buy or Procure the same at the most economical prices as are consistent with the due performance by the Contactor of his obligations under the Contract. Ifiat any time there shail have been any tack of diligence, default or negligence tn the part of the Coniractor, whether in observing the above requirements or ‘otherwise, then, for the purposes of adjusting the Contract Price puo'sian hereto, no account shall be taken of any increase in cost which may be catiributable to such lack of diligence, default or negligence and the amount by which any cost would have deen decreased but for such lack of diligence default or negligence shall be deducted from the Contract Price. (vi) No other adjustment ‘0 the Contact Price on account of fluctuation in the ‘cast of materials shall be made, (c) Overheads and Profits Excluded Indetermining the amount of any adjustment to the Contract Price pursuant to this Sub-Clause no account shall be taken of any overheads or profits. (dj Notices and Records The Contractor shalt forthwith, upon the happening of any event which may or may be likely to give rise to adjustment af the Consract Price pursuant to this Sub-Clause, give notice thereof 10 the Engineer and the Coniractor shall keep such books, accounts and other documentsand records asare necessary to enable adjustment under this Sub-Clause to be made and shall, at the request of the Engineer, furnish any invoices, accounts, documents or records so kept and such ther information as the Engineer may require, (e) Adjustment after Date of Completion Adjustment to the Contract Price. after the due date for completion of the whole af the Works pursuant to Clause 43, or after the date of completion of the whole of the Works certified pursuant to Clause 48, shall be made in aecordarice with Current Rates or Current Prices, as applicuble, ruling at the due date for completion or the date stated in the Taking-Over Certificate, whichever is the earlier (P) Determination of Adjustment to Condract Price The amount ofany adjustment to the Contract Price pursuant to this Sub-Clause shall be determined by the Engineer in accordance with the foregoing rules. enorEXAMPLE APPENDIX TO TENDER for use in conjunction with the second alternative SPECIFIED MATERIALS MATERIAL — UNIT PRICE AND TRANSPORT PRICE RAiNARES ‘LOCATION TOSITE DELIVERED Tose Bitaanen Diese! Perret Latics Comm Reinforcing ‘Slee! Explosives NOTES: 1. The Contractor shall provide copies of quotations to substantiate all prices included in the above table. 2. All subsequent price substantiation shall be from the same source as original unless otherwise agreed by the Engineer 4. The Contractor shall submit full explanation ond provide substantiating documentation for the mode of transport to Site he propases, Only te proposed documented mode of transport shell qualify for price adjustment. (Note: Materials staed in the Appendix to Tender should be those of which substantial quantities are involved.) ‘The third alternative is suitable where price adjustment is to be made through the ‘application of indices in a formula: ‘Sub-Clause 70.1 — Increase or Decrease in Cost EXAMPLE Delete the text of the Sub-Clause and substitute (a) Adjustments to the Contract Price in respect of rise and fall in the cost of abou" and materials and other matters affecting the cost of execution of the Works shail be calculated for each monsity staiement pursuant to Sub-Clause 60.1, the Statement at Completion pursuant to Sub-Clause 605 and the Pinal Statement pursuant to Sub-Clause 60.6 in accordance with the provisions of this Sub-Clause if there shall be any changes in the following Index figures compiled by (insert details of source of indices) and published by (insert details. of publication). (i) the Index of the cost of Labour in (insert name of country), {ii the Indes of the cost of (insert other factor, as relevant), oF (ii) the index ofthe cost of (insert other factor, as relevant), (6) For the purpase of this Sub-Clause: (i) “Base Index Figure” shatl mean the index figure applicable on the date 28 days prior to the latest date for submission of tenders, and ii) “Current index Figure” shall mean the indes-figure applicable on the ast day of the period to which the particular starement relates. Provided that in respeet of eny work the value of which is inebuded in any such ‘monthty statement (or Statement at Completion or Final Sratement) and whieh was execated after the due date (or extended date) for completion of the whole of the Works, pursuant to Clause 43, the Current fhutex: Figure shall be the index figure applicable on the aforesaid due date (or extended date) for completion of the whole of the Works. corioie 7 23(ii) “Effective Value” shalt be the difference between: a) The amount which is due to the Contractor under the provisions of Sub-Clauses 60.2, 605 or 608 (before deducting retention and exchuding ‘repayment of the advance payment) fess any amounts for? work executed under noninated Subcontracts ‘materials and Plant on the Site, as referred rai Sub-Clause 60.1 (e) dayworks, variations or any other items based on actual cost or current prices, and bonuses ifany) adjustments under Clause 70, and (b) The amount caleulated in accordance with (b) (ii) (a) of this Sub-Clause ‘and included in the last preceding statement. (c) The adjustment to the Contract Price shalt be calculated by multiplying the Effective Value by a Price Fluctuation Ractor which shall be the net sum of the products obtained by multiplying each of the proportions given in paragraph (dl) of this Sub-Clause by the following fraction: Carrent Index Figure ~ Base Index Figure Base Index Figure calculated using the relevanu index figures (a) For the purpose of calculating the Price Fluctuation Factor, the proportions referred to in paragraph (c) of this Sub-Clanse shall (irrespective of the actual constituents of the work) be as follows: 0. in respect of labour (and supervision) costs subject 10 adjustment by reference to the Index referred ton (a) i) of this Sub-Clause; 0. inrespect of bby reference to the Inddex referred to.in (a) (it) ofthis Sub-Clause; 0. in respect of by reference to the Index referred to in (a) (ill) ofthis Sub-Clause; 0. imvespect ofall other costs which shall not be subject to any adjustment; 1.00 Tota (e) Where the value of an Index is not known at the time of calculation, the larest available vatue shail be used dnd any adjustment necessary shall be made in subsequent monthly statements (Note: The number Of indices included under (a) of this Sub-Clause may be varied, if it is determined that a different number of factors should be separately identified, and in such ccase (d) of this Sub-Clause must be altered to be consistent.) Clause 72 ‘Sub-Clause 72.2 — Curreney Proportions Where it is decided that the rate or rates of exchange shall be established (tom a source other than the Central Bank of the country, the Sub-Clause may be varied. EXAMPLE Delete the words from “prevailing... * 1o the end of the sentence and substitute “stated in the Appendix to Tender eRDIC me