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State of Rajasthan - Section
Section 45 in General Rules and Directions for the Guidance of Contractors
45. - If during the progress of contract of value exceeding Rs. 5 lacs and where stipulated completion period is more than 12 months, the price of any materials incorporated in the work (not being materials supplied from the Department) and/or wages of labour increases or decreases and such increase/decrease exceeds 10% of the price and or wages prevailing at the date of opening of tender for the work, the amounts payable to the contractor for the work shall be adjusted for increase or decrease in the rates of labour and materials excepting those materials supplied by the Department on the basis of following formula.
Increase or decrease in the cost due to labour shall be calculated quarterly in accordance with the following formula:-| VL = 0.75| PL100| XR| (ILI-ILO)ILO |
| VL | = | increase or decrease in the cost of work during the quarterunder consideration due to change in rates for labour. |
| R | = | the value of the work done in Rupees during the quarter underconsideration. |
| ILO | = | the average consumer price index for industrial workers(wholesale prices) for the quarter in which tenders were opened(as published in Reserve Bank of India Journal for the area). |
| ILI | = | the average consumer price index for industrial workers(wholesale prices) for the quarter under consideration (aspublished in Reserve Bank of India journal for the area). |
| PL | = | percentage of labour components. |
| VM = 0.75| PM100| XR| (IMI-IMO)IMO |
| VM | = | increase or decrease in the cost of work during the quarterunder consideration due to change in the rates for material. |
| R | = | the value of the work done in Rupees during the quarter underconsideration. |
| IMO | = | the average wholesale price index (all commodities) for thequarter in which tenders were opened (as published in ReserveBank of India Journal for the area). |
| IMI | = | the average wholesale price index (all commodities) for thequarter under consideration (as published in Reserve Bank ofIndia Journal for the area) |
| PM | = | percentage of immaterial component excluding materialssupplied by the department at fixed rates. |