Court : Patna
J.B. Koshy, C.J.1. On 22.7.2007, the East Central Railway invited tenders for the construction of several residential units, staff quarters and other miscellaneous works at Sonepur/Hajipur. The estimated cost of the project was Rs. 106788840.20 paise. The tender stipulated price variation clause in Chapter - 3. Clause 34 of the said terms and conditions provides for price variation. Clause 34(A) is the general conditions for price variation. Clause 34(C) stipulates ceiling on price variation. As per Clause 34(C)(i), the adjustment ie. reimbursements/recovery based on price indices, shall be made only if to the extent the amount to be adjusted is in excess of 5% of the amount payable to the contractor as per accepted rates. As per Clause 34(C)(ii), the total amount of adjustments ie. increase/decrease in the payment to the contractor shall be limited to 10% ie. (15% - 5% (floor price)) of the amount finally payable to the contractor as per accepted rates for the contracts where the peri...
Tag this Judgment!