Office of the Engineer-in-Chief(R&B),

Administration & NABARD, Errummanzil, Hyderabad.

Circular Memo No.067252/TA1/AEE1/2005 Dated:23-4-2005.

Sub:- Revision of certain rates of the items of the Bridge works – Minutes of
meeting of committee of Chief Engineers R&B dated 16.4.2005 –
Communicated – Regarding.

Ref:- 1) Minutes of Meeting of Committee of Chief Engineers R&B

Dt.16.4.2005.

*****

While enclosing a copy of the reference cited, all the Superintending Engineers of R&B
Department are requested to prepare estimates of Bridges based on the new rates approved by
the Committee of Chief Engineers of R&B as per minutes enclosed. Regarding price
adjustment Government have been addressed for approval.
The bridges technically accorded but tenders not responded shall be revised based on
the new changes.

Encl.: As above.

Sd/-
For Engineer-in-Chief(R&B)Admn. & NABARD

To
All the Superintending Engineers of (R&B) Department
Visakhapatnam, Kakinada, Eluru, Vijayawada, Guntur, Nellore, Ongole, Chittoor, Cuddapah,
Kurnool, Khammam, Karimnagar, Nalgonda, Nizamabad, Warangal & Rural Circle,
Hyderabad.
The Superintending Engineer(R&B), Quality Control
The Superintending Engineer(R&B) Designs & Planning
The Deputy Chief Engineer(R&B) Roads
The Deputy Chief Engineer(R&B) Buildings
The Deputy Chief Engineer(R&B) NABARD
The Project Director APSHP
Copy communicated to the PS to Hon’ble Minister for R&B
Copy communicated to the Secretary to Government T R&B Department
Copy communicated to the Chief Engineer(R&B) Roads
Copy communicated to the Chief Engineer(R&B) Buildings
Copy communicated to the Chief Engineer(R&B) National Highways
Copy communicated to the Managing Director APRDC
Copy communicated to the Accountant General
All Technical Assistants
 MINUTES OF MEETING OF COMMITTEE OF CHIEF ENGINEERS,
R&B DEPARTMENT, MEETING ON 16.4.2005.
Subject: Revision of certain items of bridge work rates

The meeting is convened as per Government memo no.5126/RI/2005, dated 16.4.2005 to

study certain rates of bridges in view of no response to the tenders of bridges in the state.

1) It is observed that there has been no response in respect of tenders for construction of
bridges on State Roads of R&B Department.

2) During the past 3 months tenders have been invited for 18 bridges in the state and there
was no response for 15 bridges. The issue of lack of response for bridge work has been
examined in detailed and it is observed that it is due to following reasons.

i) Fluctuation of rates of Steel and Cement.

ii) Less Rates for well sinking and centering for cement concrete.

iii) Non provision of De-watering charges, vibration charges and water charges.

iv) Non provision for other contingencies like watch & ward, site office, staff
quarters, Traffic Management etc.,

v) Non Provision for LA & LI

vi) Non Provision for Q.C. charges, T & P etc to be spent by the contractor.

3) Under the present circumstances it is opined that a review has to be made regarding the
analysis of rates for various items of work being adopted at the time of preparation of
estimates.

4) On thorough examination of various issues involved the following suggestions are made
to over come the above issue.

a) The analysis of rates based on MORT&H standard data for bridge work which is
being adopted through out the country in respect of works on National Highways
include over head charges at 25% and contractor profit at 10%. But in the data
adopted in the R&B department for bridge works the over head charges at 25% and
contractor’s profit at 10% are not considered as per the Government instructions.
However the MORT&H data is adopted excluding over head charges and
contractor’s profit. Due to this the items which are contingent to the work shown
under the over head charges could not be made use of in the departmental estimates
for bridges.
b) Further, the Government has imposed a sealing of 5% in tender premium and due to
which the contractors could not quote their tenders considering all the expenditure
that are contingent to the work and not including in estimates.
5) Hence it is proposed to consider:

a) The present local market rates for steel and cement till the revision of SSR
for the year 2005-06 are to be adopted. The present market rate for Cement is
Rs.2,600/- per MT and for Steel it is varying from Rs.28,100/- to Rs.29,550/- per MT.
The quotations from VSP have been obtained for steel and from ACC, SAGAR
Cements for cements and enclosed herewith. It is decided now to take Rs.29,000/- per
MT for steel and Rs.2,600/- per MT for cement for preparation of estimates.

b) At present no de-watering charges are being added in bridge estimates. The

rates provided in MORT&H data are on percentage basic which are not workable.
Further they are irrational. Hence it is agreed to adopt de-watering charges as per SSR
2004-05 at Rs.83.50/cum of concrete wherever de-watering is required.

c) In the well sinking, the MORT&H data provides for Crane with grab bucket
of 0.75cum. capacity and accessories. In the present R&B data the hire charges of
Crane for lifting is considered as Rs.550/- per hour as against the hire charges of Crane
with Grab bucket i.e. Rs.2,500/- per hour as per SSR 2003-04. Further, it is also
noticed in SSR 2004-05 the item rate for Crane with Grab bucket is not provided.
The time required for sinking of 8 mts. dia well to a depth of 1m. is 4 (four) hours.
The difference of amount for 1m. sinking of well with Crane with Grab bucket and
Crane for lifting purpose is Rs.8,580/-. If it is updated to the present SSR rate, the
difference may go to Rs.10,000/- RM. Hence it is agreed to adopt the rate of Crane
with Grab Bucket at Rs.2500/- per hour since it is the lowest market rate. The market
rate as obtained from quotations is found as Rs.2,800/- to Rs.3,000/- per hour.
d) In the MORT&H data the provision towards water for mixing in concrete and
curing of concrete is not included. It is agreed to provide Rs.25/- per cum. of concrete
towards cost of water for mixing and curing including leads and lifts and other related
charges. This is arrived from local market rate and also based on CC items in
MORT&H data.
e) It is agreed to provide 13% towards LA and LI for all bridge works since the
labour is to be imported and amenities are to be provided for the labour working at site.
In MORT&H data this has been included in the over head charges. This will be
allowed subject to submission of a certificate from EE and SE concerned stating that
the labour are to be imported to the site.

f) The contractor has to spend towards Quality Control tests. This include
purchase and maintenance of QC instruments, cost of lab Technicians Minor T &P,
Survey instruments, Wastage of materials, that is used for testing etc. Hence it is
proposed to include 1% towards Quality Control in each data of CC and steel items.

g) The contractor has to spend certain amounts towards Site office, Watch &
Ward, Traffic management during construction which includes caution boards, sign
boards which has been considered under MORT&H data under over head charges.
Now it is proposed to provide 1% towards above provision in all data of the items of
bridge works.

h) In the MORT&H data the vibration charges for concrete items is also
included in the over head charges. Hence it is proposed to provide vibration charges as
per current SSR.
 i) In MORT&H data Form work was provided in terms of percentages, which
appears less and very approximate. In SSR specific rates are given for all form work
which appears rational and close to realistic market rates. Hence it is proposed to
provide centering charges given in the SSR for all concrete items wherever form work
is required in place of suggestive percentage of MORT&H data.

6) It is also noted that even for the small bridge works the increase or decrease in the rates
of steel, cement and bitumen has an effect on the rates of respective items. Hence it is
proposed to provide price adjustment clause for works costing more than Rs.50.00lakhs
and more than 6 months of period of construction. Hence it is proposed to include the
following in bid document.

“Every quarter the Committee of Chief Engineers of R&B Department shall

decide the rates of steel, cement and bitumen depending up on the market rates by
collecting appropriate quotations. The Committee shall sit on first working day of the
quarter.

The new rates of steel, cement and bitumen shall be incorporated in the respective
items of Technically sanctioned estimates.

The percentage of increase/decrease of the rates of the items involving steel,

cement and bitumen over the rates of the technically sanctioned data will be operated
on the agreement rates of respective items executed after the date of approval of new
rates by the Committee of Chief Engineers (R&B) and contractors shall be paid
accordingly”.

This will be recommended to Government to permit to provide in bid documents,

7) All the above rates are only for bridge works.

8) All the above items are approved in the Committee of Chief Engineers(R&B).

Engineer-in-Chief(R&B), Administration & NABARD,

Hyderabad
Chief Engineer(R&B), Roads.
Chief Engineer(R&B) Buildings
Chief Engineer(R&B), National Highways
Managing Director, APRDC, Ex-Officio Chief Engineer(R&B)
Superintending Engineer(R&B), Quality Control
Superintending Engineer(D&P)
Deputy Chief Engineer(R&B), Roads.
Deputy Chief Engineer(R&B) Buildings
Deputy Chief Engineer(R&B), NABARD
Project Director APSHP
 GOVERNMENT OF ANDHRA PRADESH
TRANSPORT, ROADS AND BUILDINGS (R.I) DEPARTMENT

Memo No.5126/R.I(2)/2005-2, Dated 30-8-2005

Sub:- R&B – Bridge Works – Price adjustment for Steel, Cement, bitumen
and diesel and for over head charges @ 15% + VAT – Accorded –
Regarding

Ref:- 1) From the ENC(R&B) Admn. Lr.No.67252/TA.1/ AEE1/2005,

dt.12.4.2005 and even number letters dt.23.4.2005,
6.7.2005 and 25.7.2005.

2) Government memo No.5126/RI(2)/2005-3, dt.12.5.2005

*****

The attention of the Engineer-in-Chief(R&B) Administration is invited to the

references cited and he is informed that Government hereby accept for price adjustment in
respect of steel, cement, bitumen and diesel for all the bridge works costing more than
Rs.50.00lakhs and to be completed with a time schedule of more than 6 months, subject to not
including the same in the estimate, as detailed below:-
a) For steel and cement, like in the World Bank works, the data updated by Price
Index given by the Director of Economics & Statistics, shall be followed and made
applicable on a quarterly basis both for increase as well as reduction, as the case
may be.
b) For bitumen and diesel, the information from IOC on a quarterly basis shall be
adopted.
2. Government hereby also accord permission for overhead charges @ 15% +VAT for the
above mentioned works.

3. This memorandum issues with the concurrence of the Finance Department vide their
U.O.No.7446/552/Expr.PW/A2/05, dt.10.8.2005.
BINOY KUMAR
SECRETARY TO GOVERNMENT
To
The Engineer-in-Chief(R&B) Administration, Hyderabad.
Copy to:
The P.S. to M(R&B),
The Finance (Expr.PW) Department.
The PS to Secretary to Government, TR&B
SF/SC
//FORWARDED BY ORDER//
SECTION OFFICER
 Office of the Engineer-in-Chief(R&B)Admn. & NABARD,
Errummanzil, Hyderabad.

Circular memo No.067252/TA2/AEE1/2005, Dated 5.9.2005

Sub:- R&B – Bridge Works – Price adjustment for Steel, Cement, bitumen and
diesel and for over head charges @ 15% + VAT – Accorded – Regarding

Ref:- 1) Circular memo No.067252/TA1/AEE1/2005, dt.23.4.2005.

2) Government memo No.5126/RI(2)/2005-5, dt.30.8.2005

(copy enclosed)

3) Government memo No.5126/RI(2)/2005-2, dt.16.4.2005.

*****

Government in the reference cited accepted for price adjustment in respect of Steel,
Cement, Bitumen and Diesel for all bridge works costing more than Rs.50.00lakhs and having
completion period more than 6 months, subject to not including the same in the estimate as
detailed below:

1) For Steel and Cement like in the World Bank works, the data updated by price
Index, shall be followed and made applicable on quarterly basis both for increase
as well as decrease, as the case may be.
2) For Bitumen and diesel, the information from IOC on a quarterly basis shall be
obtained and adopted.

Further Government in the reference cited also accorded permission for over head
charges @ 15% + VAT for the all bridge works.

It is informed that the provisions such as (1) 13% towards, LA & LI (2) 1% towards
Quality Control (3) 1% towards site office, watch and ward, traffic management (4) Water
charges of mixing and curing of concrete and (5) The hire charges for crane with grab bucket
which were approved in the Committee of Chief Engineers R&B Department on 16.4.2005 and
communicated vide reference 1st cited are disallowed now in view of the permission accorded
by the Government for adopting over head charges of 15%. VAT is to be added in addition to
15% of over head charges as per Govt. memo reference 2nd cited.
 However, the rates for (a) Cement (b) Steel (c) De watering charges (d) Vibration
charges and (e) Centering charges (f) Crane with Grab bucket are to be adopted as per SSR
2005-2006.

All the Superintending Engineers(R&B) are informed to follow the above instructions
while preparing the estimates for all the bridge works.

Encl.: As above.
Sd/-
For Engineer-in-Chief(R&B), Admn. & NABARD

To

All the Superintending Engineers (R&B) Department,

Visakhapatnam, Kakinada, Eluru, Vijayawada, Guntur, Nellore, Ongole, Chittoor, Cuddapah,
Kurnool, Khammam, Karimnagar, Nalgonda , Nizamabad, Warangal & Rural Circle,
Hyderabad..

The Superintending Engineer(R&B) Quality Control

The Superintending Engineer(R&B) Designs & Planning.
The Deputy Chief Engineer(R&B) Roads
The Deputy Chief Engineer(R&B) Buildings
The Deputy Chief Engineer(R&B) NABARD.
The Project Director APSHP
Copy communicated to the P.S. to Hon’ble Minister for R&B
Copy communicated to the Secretary to Government T R&B Department
Copy communicated to the Chief Engineer(R&B) Roads
Copy communicated to the Chief Engineer (R&B) Buildings
Copy communicated to the Chief Engineer(R&B) National Highways
Copy communicated to the Managing Director APRDC
Copy communicated to the Accountant General
All Technical Assistants
 GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

R&B - Road & Bridge Works - Price Adjustment for Steel, Cement, Bitumen & POL and
adoption of Overhead Charges - Accorded - Orders - Issued.

TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O. Ms. No. 35. Dated: 28-02-2006.

Read the following:

1. Govt. Memo. No. 5126/R.I(2)/2005-5, dated: 30-08-2005.

2. From the Engineer-in-Chief (R&B) Administration Letter No. 67252/TA1/AEE1/2005,
dated: 25-10-2005.

ORDER:

In the Government Memorandum 1 st read above, orders have been issued for adoption of
Price Adjustment Clause in respect of Steel, Cement, Bitumen and POL for all Bridge
Works costing more than Rs. 50.00 lakhs and to be completed within a time schedule of
more than 6 months. In supersession of the above instructions, the Government hereby
issue the following comprehensive orders:-

A) PRICE ADJUSTMENT:

1. This Price Adjustment Clause shall apply for Steel, Cement, Bitumen and POL for all
the road works & bridge works including ROBs/RUBs where the estimate contract value
is Rs. 50.00 lakhs and above and where the time schedule provided is 6 months and above.

2. Price adjustment shall apply only for the work carried out within the Agreement period
and shall not apply to work carried out beyond the agreed period of completion.

3. Price adjustment shall be calculated separately for the components of the payment for
work done in the manner explained in paras (5) to (8) below.

4. In the formula of Price Adjustment, R, the value of work shall exclude Seigniorage
charges, VAT and all other overhead charges.

5. Adjustment clause for cement component shall be as follows:

Price adjustment for increase or decrease in the cost of cement procured by the contractor
shall be paid in accordance with the following formula.

Vc= 0.85 x Pc/100 x R x (Ci - Co)/ Co

Vc= Increase or decrease in the cost of work done during the period under consideration
due to changes in the rates for cement.
Co= The All India Average Wholesale Price Index for cement on the day 28 days prior to
the closing date of submission of bids as published by the Ministry of Industrial
Development, Government of India, New Delhi.

Ci= The All India Average Wholesale Price Index for cement on the day 28 days prior to
the last date of the measurement recorded to which a particular bill payment is related, as
published by the Ministry of Industrial Development, Government of India, New Delhi.

Pc= Percentage of cement component of the work (to be worked out for each work and
provided for in the bid document).

6. Adjustment for steel component shall be as follows:

Price adjustment for increase or decrease in the cost of steel procured by the Contractor
shall be paid in accordance with the following formula.

Vs= 0.85 x Ps/100 x R x (Si - So)/ So

Vs= Increase or decrease in the cost of work done during the period under consideration
due to changes in the rates of steel.

So= The All India Average Wholesale Price Index for Steel on the day 28 days prior to the
closing date of submission of bids as published by the Ministry of Industrial
Development, Government of India, New Delhi.

Si= The All India Average Wholesale Price Index for Steel on the day 28 days prior to the
last date of the measurement recorded to which a particular bill payment is related, as
published by the Ministry of Industrial Development, Government of India, New Delhi.

Ps= Percentage of steel component of work (to be worked out for each work and provided
for in the bid document).

7. Adjustment clause for Bitumen component shall be as follows:

Price adjustment for increase or decrease in the cost of bitumen shall be paid in
accordance with the following formula.

Vb= 0.85 x Pb/100 x R x (Bi - Bo)/ Bo

Vb= Increase or decrease in the cost of work done during the period under consideration
due to changes in the rates of bitumen.

Bo= The Average Wholesale Price of bitumen at the refinery on the day 28 days prior to
date of submission of bids. The nearest refinery provided in the sanctioned estimate shall
be considered.

Bi= The Average Wholesale Price of bitumen at the refinery on the day 28 days prior to
the last date of measurement recorded to which a particular bill payment is related.

Pb= Percentage of bitumen component of the work (to be worked out for each work and
provided for in the bid document).
8. Adjustment clause for POL component shall be as follows:

Price adjustment for increase or decrease in the cost of POL shall be paid in accordance
with the following formula.
Vf= 0.85 x Pf/100 x R x (Fi - Fo)/ Fo
Vf= Increase or decrease in the cost of work done during the month under consideration
due to changes in the rate for POL.
Fo= The Average Wholesale Price of High Speed Diesel (HSD) at the existing consumer
pumps of BPC at Hyderabad on the day 28 days prior to date of submission of Bids.
Fi= The Average Wholesale Price of High Speed Diesel (HSD) at the existing consumer
pumps of BPC at Hyderabad on the day 28 days prior to the last date of measurement
recorded to which a particular bill payment is related.

Pf= Percentage of POL component of the work shall be 15%.

B)OVER HEAD CHARGES:

a) For Bridge works, the overhead charges shall be adopted as 19% including component
of VAT.
b) For Road works, the overhead charges shall be adopted as 10% including component of
VAT.
c) The components in the overhead charges include LA&LI/VAT/Sales Tax/
Insurance/Compensation/Site Supervision/Quality control charges and Bankers charges
etc., as specified in MORTH Standard Data Book. No additional payment or
reimbursement towards these components shall be claimed separately and none of them
shall figure as part of estimate separately.

2. The Engineer-in-Chief (R&B) Administration shall take necessary action in the matter.

3. This order issues with the concurrence of the Finance Department vide their
U.O.No.1201/106/Expr.PW/A2/06, dt. 24-2-2006.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

BINAY KUMAR
SECRETARY TO
GOVERNMENT

To,
The Engineer-in-Chief (R&B) Administration, Hyderabad .
Copy to:
The Accountant General, AP, Hyderabad .
The Finance (Expr.PW) Department.
The PS to Minister (R&B and Ports).
The PS to Secretary to Government, TR&B Department.
The Advisor, QC for R&B, Hyderabad .
SF/SC

//FORWARDED BY ORDER//

SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH
ABSTRACT

R&B - Adoption of price adjustment clause for Steel, Cement, Bitumen and POL for all
ongoing works - Accorded - Ordered - Orders - Issued

TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O. Ms. No. 73. Dated: 24-04-2006.

Read the following:

1. From the Engineer - in-Chief (R&B) Administration, Letter No. 67252 / TA1 / AEE1
/ 2005, Dt. 19-12-2005.
2. G.O.Ms.No. 35, TR&B (R.I) Department, Dt. 28-02-2006.

ORDER:

1. In the G.O. 2 nd read above, orders were issued to adopt price adjustment clause for
Cement, Steel, Bitumen and POL for all Road and Bridge works including ROBs/RUBs
where the estimate contract value is Rs.50.00 lakhs and above and where the time
schedule is 6 months and above.

2. Now, under the circumstances reported by the Engineer - in- Chief (R&B)
Administration, in his letter 1 st read above, Government after careful examination of
the matter, here by accord permission to adopt price adjustment clause for Steel,
Cement, Bitumen and POL for all ongoing / future works, subject to the following
conditions:-

i) Price adjustment shall be both for increase and decrease in the prices for the works
completed within the original agreement period.

ii) In addition, the price adjustment shall be for valid extension given for natural
calamities duly limiting to the actual period / days lost and for portion of work where
work is delayed due to land acquisition / shifting of utilities (this shall also be limited to
actual length affected).

iii) The price adjustment shall be effective for all on going works and all future works
for which final bills are not paid and from the date of agreement.

iv) The variation clause will be when the variation in rates is more or less than 5% of
the rate provided in the technical sanctioned estimate based on which the bids are
invited or All India wholesale Price Index as stipulated in G.O. 2 nd read above on the
date twenty eight days prior to closing date of submission of bids, whichever is
advantageous to the department.

v) The price adjustment clause will be applicable for all ongoing works irrespective of
the value of work and irrespective of agreement period specified in paras 2 (i) & (ii)
above. ‘
 vi) For works taken up under Externally Aided Projects, the guidelines specified
thereon are to be followed.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA

PRADESH)
BINAY KUMAR
SECRETARY TO
GOVERNMENT

To,

The Engineer-in-Chief (R&B) Administration, Hyderabad.

Copt to: The Accountant General, A.P., Hyderabad.
The PS to Spl. Secretary to Chief Minister.
The PS to Minister for R&B and Ports.
The Finance (Expr.PW) Department.
The Irrigation & CAD Department (for necessary action to issue similar orders for their works).
The PR & RD Department. (for necessary action to issue similar orders for their works).
The MA & UD Department. (for necessary action to issue similar orders for their works).
The Energy Department. PR & RD Department. (for necessary action to issue similar orders for their
works).

The Chairman. Builders' Association of India.

5 th Floor (Pent House).
Block-A, Santhi Sikhara Complex, Raj Bhavan Road , Somajiguda, Hyderabad .
The PS to Secretary to Govt., TR&B.
The Advisor, QC for R&B, Hyderabad .

//FORWARDED BY ORDER//
SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH

ABSTRACT
R&B - Application of price adjustment clause for Steel, Cement, Bitumen and POL to the
World Bank aided APERP Works - Permission - Accorded - Orders - Issued.

TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O. Ms. No. 123. Dated: 06-07-2006.

Read the following:

1. G.O.Ms.No. 35, TR&B (R.I) Department, dt: 28-02-2006.

2. G.O.Ms.No. 73, TR&B (R.I) Department, dt: 24-04-2006.

3. From the CE(R&B)&MD, APRDC, Letters No. MD-APRDC/Accts/ APERP/Price

Adjustment/2006, dt: 28-04-2006 and even number letter, dt: 16-05-2006

ORDER:

1. In the G.O.s. 1 st and 2 nd read above, orders were issued to adopt price adjustment clause
for Steel, Cement, Bitumen and POL for all ongoing / future Road and Bridge works including
ROBs / RUBs, except Externally Aided Projects, subject to certain conditions. In his letter 3 rd
read above, while explaining the details of the issue, the Managing Director, APRDC, has
requested to make applicable the orders issued vide G.Os. 1 st and 2 nd read above, to the
World Bank aided APREP works also.

2. Government after careful examination of the matter, hereby accord permission to make
applicable the orders issued in respect of adoption of price adjustment clause for Steel,
Cement, Bitumen and POL vide G.O. 2 nd read above, to the World Bank aided APERP
works also, subject to the following conditions:-

3. Shall be applicable for the works, for which final bills are not paid as on 31-03-2006 and for
which valid extension period is given (i.e., without liquidated damages), with the concent of
the contractor concerned.

4. To be ensured that no claims will be processed from works already concluded and bills
already paid.

5. The amount of escalation due to extending the provisions of G.O. 2 nd read above, shall
have to be met from the regular budget of R&B Department.

6. The Chief Engineer (R&B) & Managing Director, APRDC, shall take necessary action in
the matter.
7. This order issues with the concurrence of the Finance Department vide their U.O. No.
4778/378/A2/Expr.PWD/06, dt: 05-07-2006.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

T. CHATTERJEE
PRINCIPAL SECRETARY TO
GOVERNMENT
To,

The CE (R&B) & Managing Director, APRDC, Hyderabad .

Copy to:
The Engineer-in-Chief (R&B) Administration, Hyderabad .
The Accountant General, A.P., Hyderabad .
The Finance (Expr.PW) Department.
The PS to Prl. Secretary to Govt. (TC), TR&B.
The Advisor, QC for R&B, Hyderabad .

SF / SC
//FORWARDED BY ORDER//

SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH
ABSTRACT

Roads & Buildings – Adoption of Price Adjustment for Steel and Cement for
all ongoing works of Bridges, Roads and Buildings and other Civil Works of
all Departments – Further Orders – Issued.
----------------------------------------------
TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O.Ms.No.94 Dated:16.04.2008.
Read the following

1. G.O.Ms.No.35, T.R & B(R.I) Dept., Dt:28.02.2006.

2. G.O.Ms.No.73, T.R & B(R.I) Dept., Dt:24.04.2006.
3. G.O.Ms.No.123, T.R & B(R.I) Dept., Dt:06.07.2006.
4. G.O.Ms.No.233, T.R & B(R.I) Dept., Dt:20.11.2006.
5. G.O.Ms.No.175, T.R & B(R.I) Dept., Dt:19.02.2007.
6. Builders’ Association of India representation dated:11-04-2006.
7. Minutes of the Board of Chief Engineers, Dt:02.01.2008.
8. Minutes of the meeting held in the Chambers of Hon’ble CM on
09.04.2008 at 11.am.
***
O R D E R:

In the G.Os 1st to 5th read above, orders were issued according Price
Adjustment to all the works under the control of Roads & Buildings
Department viz. Roads, Bridges, Buildings and Civil Works for all ongoing
and future works for the items Steel, Cement, Bitumen, POL and other
items duly following the Price index rates and following the formula
mentioned therein.

2. The Builders’ Association of India, A.P.Centre have made

representation that, hike in steel and cement etc, are causing heavy losses
to them, hence it is not possible to take up the works and have requested
to issue orders allowing difference in estimate rate to monthly rates
instead of adopting Price Index Formula issued in G.O.Ms.No.35, T.R & B
Dept., Dt:28.02.2006, in respect of items Steel and Cement.

3. The I & CAD Dept. have placed the matter before the Board of Chief
Engineers. The Board of Chief Engineers have recommended for allowing
monthly price adjustment based on rates fixed by the Board of Chief
Engineers, provided that the agencies furnish monthly work done quantity
and measures/check measures by the concerned Departmental
Officers/EPC Agencies.
4. In the minutes of the meeting held on 09.04.2008 in the chambers of
Hon’ble Chief Minister, it has been decided to allow monthly Price
adjustment for Steel and cement. With regard to Bitumen and POL prices it
is not included in this scheme, as these are being corrected by the PSU Oil
companies every fortnight and being adopted by the Roads & Buildings
Dept.

5. Government after careful examination of the matter accept the

recommendations of the Board of Chief Engineers and minutes of meeting
held on 9-04-08 and hereby allow to adopt Price adjustment for steel and
cement every month in supersession of the orders issued in G.O.Ms.No.35,
T.R & B Dept., Dated: 28.02.2006 and formula used for adjustment based
on whole sale price index and co-efficient of 0.85 is now replaced by the
absolute variation between the estimated rate and the rate approved by
the Government based on the recommendation of Board of Chief Engineers
for the month starting from the 1st March 2008 subject to the following
conditions:-

i) The Board of Chief Engineers shall meet on the 5th of every month
and will recommend the new price to the Principal Secretary, R&B on
the next day of the review for approval starting from 5th May,2008.

ii) The Principal Secretary, R&B in consultation with the Secretary,

Finance (W&P) shall issue a Order on the settled new price every
month based on the Board of Chief Engineers recommendation.

iii) The BOCE shall collect quotations from ISI approved producers for all
categories of Steel including TMT and arrive at an average admissible
price to be applied for the month.

iv) The Board of Chief Engineers shall collect quotations from ISI
standards cement manufacturers and similarly average rates should be
adopted for the month.

v) For Indiramma housing programme, the required increase will be

RS.3,000 per unit for rural and urban individual housing. For G +,
Housing Board houses taken up by the A.P.State Housing Corporation
and Rajiv Swagruha programme the adjustment scheme will be
applicable to meet the price contingency.

vi) The Price adjustment shall not be limited to Rs.50.00 Lakhs and above
estimated projects and a time period of 6 months and above, but shall
be applied irrespective of cost estimates and time period.

vii) For the works taken up in externally aided projects, the guidelines
specified thereon are to be followed.
viii) The price adjustment shall be applicable for all ongoing and future
works. The price adjustment shall be applicable within original
contract period or period extended on grounds of the departmental
delays and valid reasons and shall not be applicable to the extensions
granted on account of the contractors fault as envisaged in G.O.94 of
I&CAD. The price adjustment shall be applicable from the date of
agreement for all those ongoing works where final bills are not taken
by the contractors as on the date of issue of these orders. Price
adjustment shall be applicable for actual components of items of
works actually carried out during the period of the bill. The above
orders are applicable for all contracted works of the Government of
Andhra Pradesh and Corporations, local bodies and Government
Undertakings, Tirumala Tirupathi Devasthanam, etc.

ix) The adjustment scheme will be applied in all cases where the
variation between the estimated rates and Board of Chief Engineers
approved rates (increase or decrease) is more than 5% for the
month.
6. All the Heads of Department/Corporations, Universities dealing with
PWD Works shall take action accordingly.

7. The above orders will come into effect from 01.03.2008.

8 This order issues with the concurrence of Finance Dept. vide their
U.O.No.11746-B/524/A2/Expr.PW/08, Dated: 16.04.2008.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

Dr.T.CHATTERJEE,
PRINCIPAL SECRETARY TO GOVERNMENT
To:
The all HODs connected with Engineering works..
Copy to:
The Housing, I & CAD, Panchayat Raj, Home, Higher Education,
School Education, Social Welfare, Tribal Welfare, Revenue,
M.A & U.D and H.M & F.W. Depts.
The ENC (AW) I&CAD, ENC(R&B) Admn. & NH,
The Builder’s Association of India,
A.P.Centre, Hyd.
The P.S to Prl. Secy. to Govt. (TC)
T.R & B Dept.
The Advisor, QC for R&B, Hyd.
The Technical Advisor,
Housing Dept. & School Education Dept.

//forwarded by order//

SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Roads & Buildings – Adoption of Price Adjustment for steel and Cement for all
ongoing works of Bridges, Roads and Buildings and other Civil works of all
Departments – Further Orders – Issued – Amendment – Issued.
------------------------------------------------------------------------------------------------
TRANSPORT, ROADS & BUILDINGS (R.I) DEARTMENT.

G.O.Ms.No. 109 Dated: 24.4.2008.

Read

1. G.O.Ms.No. 94, TR&B (R.I) Department, dt. 16.4.2008.

******
The following amendment to the G.O.Ms.No.94, TR&B (R.I)
Department Dated: 16.04.2008. is issued:
AMENDMENT.
For para 5(v) in the said G.O. the following shall be substituted:

(v) For Indiramma housing programme, the required increase will be Rs. 3,000
per unit for rural and urban individual housing. For G+ houses taken up by the
Housing Board, A.P.State Housing corporation and Rajiv Swagruha programme
the adjustment scheme will be applicable to meet the price contingency.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

Dr.T.CHATTERJEE,
PRINCIPAL SECRETARY TO GOVERNMENT

To
The All HODs connected with Engineering works
Copy to:
The Housing/I&CAD/Panchayat Raj/Home/ Higher Education/ School
Education/ Social Welfare/Tribal Welfare/Revenue/ MA & UD and HM &FW
Departments.
The ENC (AQ)I&CAD/ENC (R&B) Admn& NH
The Builder’s Association of India, A.P. Center, Hyderabad
The PS to Prl.Secy. to govt. (TC),TR&B Dept.,
The Advisor, QC for R&B, Hyderabad
The Technical Advisor, Housing Dept &
School Education Department

//FORWARDED::BY::ORDER//

SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH
ABSTRACT

Roads & Buildings – Adoption of Price Adjustment for Bitumen and POL
for all ongoing works of Bridges, Roads and Buildings – Further Orders –
Issued.
----------------------------------------------
TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O.Ms.No.252 Dated:28.08.2008.
Read the following

1. G.O.Ms.No.35, T.R & B(R.I) Dept., Dt:28.02.2006.

2. G.O.Ms.No.73, T.R & B(R.I) Dept., Dt:24.04.2006.
3. G.O.Ms.No.123, T.R & B(R.I) Dept., Dt:06.07.2006.
4. G.O.Ms.No.233, T.R & B(R.I) Dept., Dt:20.11.2006.
5. G.O.Ms.No.175, T.R & B(R.I) Dept., Dt:19.02.2007.
6. G.O.Ms.No.94, T.R & B(R.I) Dept., Dt:16.04.2008.
7. Builders’ Association of India representation Dt.:17-04-08.

***
O R D E R:
In the G.Os 1st to 5th read above, orders were issued according
Price Adjustment to all the works under the control of Roads & Buildings
Department viz. Roads, Bridges, Buildings and Civil Works for all ongoing
and future works for the items Steel, Cement, Bitumen, POL and other
items duly following the Price index rates and following the formula
mentioned therein.

2. In the G.O. 6th read above, Government issued orders to adopt price
adjustment for steel and cement every month in supersession of the
orders issued in the G.O. 1st read above, and formula used for adjustment
based on whole sale price index and co-efficient of 0.85 is replaced by the
absolute variation between the estimated rate and the rate fixed by the
Government.

3. The Builders’ Association of India, A.P.Centre have made

representation to adopt price adjustment for Bitumen and POL on par
with Steel and Cement as envisaged in G.O. 6th read above.

4. Government after careful examination of the matter hereby allow to

adopt Price adjustment for Bitumen and POL every fortnight in
supersession of the orders issued in G.O.Ms.No.35, T.R & B Dept., Dated:
28.02.2006 by replacing the co-efficient of 0.85 by “1” i.e. absolute
variation of the rate fixed by the Public Sector Undertakings (PSUs)
subject to the following conditions:-

i) For the price adjustment of Bitumen and POL, rate determined by

the PSUs may be allowed.

ii) The weight ages for different components taken together including
those for which price adjustment is not eligible should not exceed
100%.

iii) The final price adjustment amount should be subject to the

adjustment with reference to the amount arrived on completion of
work with price adjustment co-efficient of ‘1’ instead of 0.85.
 (Contd. 2 )
:: 2 ::

iv) The Price adjustment shall not be limited to Rs.50.00 Lakhs and
above estimated projects and a time period of 6 months and above,
but shall be applied irrespective of cost estimates and time period.

v) For the works taken up in externally aided projects, the guidelines

specified thereon are to be followed.

vi) The price adjustment shall be applicable for all ongoing and future
works. The price adjustment shall be applicable within original
contract period or period extended on grounds of the departmental
delays and valid reasons and shall not be applicable to the
extensions granted on account of the contractors fault as envisaged
in G.O.94 of I&CAD Dept. The price adjustment shall be applicable
for all ongoing works. Price adjustment shall be applicable for
actual components of items of works actually carried out during the
period of the bill. The above orders are applicable for all contracted
works of the Government of Andhra Pradesh and Corporations, local
bodies and Government Undertakings, Tirumala Tirupathi
Devasthanam, etc.

vii) This Order will apply only when the difference between the
estimated rates of POL and Bitumen and their current price is more
or less than 5%.

5. All the Heads of Department/Corporations, Universities dealing with

PWD Works shall take action accordingly.

6. The above orders will come into force with effect from 01.03.2008.

7. This order issues with the concurrence of Finance Dept. vide their
U.O.No.18817/876/A2/Expr.PWD/08, Dated: 04.07.2008.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

Dr.T.CHATTERJEE,
PRINCIPAL SECRETARY TO GOVERNMENT

To:
The all HODs connected with Engineering works..
Copy to:
The Housing, I & CAD, Panchayat Raj, Home, Higher Education,
School Education, Social Welfare, Tribal Welfare, Revenue,
M.A & U.D and H.M & F.W. Depts.
The ENC (AW) I&CAD, ENC(R&B) Admn. & NH,
The Builder’s Association of India,
A.P.Centre, Hyd.
The P.S to Prl. Secy. to Govt. (TC)
T.R & B Dept.
The Advisor, QC for R&B, Hyd.
The Technical Advisor,
Housing Dept. & School Education Dept.

//forwarded by order//

SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH
ABSTRACT

Roads & Buildings – Adoption of Price Adjustment for Steel and Cement for
all ongoing works of Bridges, Roads and Buildings and other civil works of all
Departments – Further Orders – Issued – Amendment – Issued.
-------------------------------------------
TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O.Ms.No.269 Dated:15.09.2008
Read:

G.O.Ms.No.94, T.R & B(R.I) Dept., Dt: 16.04.2008.

***
O R D E R:

The following amendment to the G.O.Ms.No. 94, T.R & B Dept., Dated:
16.04.2008 are issued.
AMENDMENT

For para 5 (viii) in the said G.O. the following shall be substituted:
ix) The price adjustment shall be applicable for all ongoing and future
works. The price adjustment shall be applicable within original
contract period or period extended on grounds of departmental delays
and with valid reasons and shall not be applicable to the extensions
granted on account of the contractors fault as envisaged in G.O. 94, of
I&CAD Dept. The price adjustment shall be applicable for ongoing
works. Price adjustment shall be applicable for components of works
actually carried out during the period of the bill. The above orders are
applicable for all contracted works of the Government of Andhra
Pradesh and Corporations, local bodies and Government Undertakings,
Tirumala Tirupathi Devasthanam, etc.

2. After para 5(ix), the following shall be added:-

Government also order that all the Heads of Departments/
Corporations/Local Bodies shall ensure that the payment for Steel/Cement,
where this G.O. is applicable, is limited to the lowest rate of invoice or rate
fixed by the price adjustment clause whichever is less.
3. The above amendment shall come into force with effect from 01.03.2008.
4. This order issues with the concurrence of Fin. Dept. vide their
U.O.No.21938-B/1053/A2/Expr.PW/08, Dt:07.08.2008.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

Dr.T.CHATTERJEE,
PRINCIPAL SECRETARY TO GOVERNMENT
To:
The all HODs connected with Engineering works.
Copy to:
The Housing, I&CAD, Panchayat Raj, Home Higher Education,
School Education, Social Welfare, Tribal Welfare,
Revenue,
M.A & U.D and H.M & F.W Depts.
The ENC(AW) I&CAD, ENC(R&B) Admn. & NH,
The Builders’ Association of India, Hyd.
The Advisor, QC for R&B, Hyd.
The Technical Advisor, Housing Dept. & School Education Dept.
The P.S. to Prl. Secy. to Govt. (TC), T.R & B Dept.

//forwarded by order//
SECTION OFFICER
 GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

R&B – Calculation format of Steel for Price Adjustment in lieu with

G.O.Ms.No.94, T.R & B Dept. – Clarification – Issued.
TRANSPORT, ROADS & BUILDINGS (R.I) DEPARTMENT

G.O.Ms.No. 81 Dated:25.02.2009.
Read the following:

1. G.O.Ms.No.94, T.R & B Dept., Dt:16.04.2008.

2. From the Builders’ Association of India representation
Dated:29.01.2009.
***
O R D E R:
The Builders’ Association of India in their representation at 1st read
above, have requested to issue clarification with regard to the formulae to
be applied to Steel and Cement also in addition to POL.

2. Government after careful consideration of the matter hereby clarify

that the price adjustment will be applicable to all the steel items for which
monthly review rates are being communicated by the Board Of Chief
Engineers. In all the estimates and agreements, unit weights in respect
of each steel item shall be specified and incorporated in the specification.
All the measured units in the measurement books shall be converted into
respective units as published by Board of Chief Engineers. The
conversion into weights shall be based on standard weights. The material
used shall also confirm to standard weights. The price adjustment will be
based on weight only, as the rates are fixed on weight basis.

3. In respect of overlaps and wastages in fabrication of steel, the

quantity for overlaps and wastages as specified in the data of the
sanctioned estimate shall be added to the quantity of the steel recorded
in the Measurement Books for the purpose of price adjustment.

4. All the Heads of Department/Corporations, Universities dealing with

PWD Works shall take action accordingly.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

Dr.T.CHATTERJEE,
PRINCIPAL SECRETARY TO GOVERNMENT
To:
The all HODs connected with Engineering works..
Copy to:
The Housing, I & CAD, Panchayat Raj, Home, Higher Education,
School Education, Social Welfare, Tribal Welfare, Revenue,
M.A & U.D and H.M & F.W. Depts.
The ENC (AW) I&CAD, ENC(R&B) Admn. & NH,
The Builder’s Association of India,
A.P.Centre, Hyd.
The P.S to Prl. Secy. to Govt. (TC)
T.R & B Dept.
The Advisor, QC for R&B, Hyd.
The Technical Advisor,
Housing Dept. & School Education Dept.
//forwarded by order//

SECTION OFFICER