FLUCTUATIONS

PURPOSE..

PROVIDES A MECHANISM FOR REIMBURSING CRs FOR CHANGES IN PRICES

OVER WHICH THEY HAVE NO CONTROL.
TERM FIXED PRICE IN CON CTs USUALLY INCLUDES FOR LIMITED FLUCS
TOO

HOW APPLIES.

JCT 98 ALLOWS FOR THREE LEVELS OF FLUCS

CLAUSE 37 SETS OUT 3 OPTIONS, IF NOT IDENTIFIED IN THE
APPENDIX CL. 38 WILL APPLY

CLAUSE - 38 - TAXES

RATES / CONTRIBUTIUONS / LEVES / TAXES IN EMPLOYMENT OF LABOUR

AND IN RATES OF DUTIES AND TAXES ON THE PROCUREMENT OF
MATERIALS. I.E. ONLY AMOUNTS PAYABLE = ARISING OUT OF ACT OF
PARLIAMENT OR DELEGATED LEGISLATION
NO METHODS FOR CALC SET OUT IN CLAUSE BASED ON MAN HOURS/
QUANTS OF MATS ETC

CLAUSE - 39 - TAXES / MARKET COSTS OF LABOUR AND

MATERIALS

INCLUDES ALL GOVT RELATED ISSUES IN CL. 38, BUT ALSO INCLUDES
LABOUR AND MATERIAL FLUCTUATIONS
OBVIOUS INCREASES NOT INCLUDED THERFORE % ADDITION IS AGREED
AND INCLUDED IN APPENDIX.
BASE COST FOR MOST USED MATS INCLUDE IN BQ, THESE THEN COMPARED
WITH ACTUAL INVOICED COSTS AND DIFFERENCE PAID

CLAUSE - 40 - ADJUSTMENT BY USE OF FORMULAE

NOT NECESSAIRILY TAKE ACCOUNT OF ACTUAL COSTS BUT IT SIMPLE TO

OPEATE AND CONSIDERED TO BE A FIAR ADJUSTMENT.
FORMULAE RULES USED IN MONTHLY CALC TO ADJUST PRICE
BASED ON VARIOUS CATEGORIES, Cr PRICE MUST BE BROKEN DOWN
ACCORDINGLY
TAKES ACCOUNT OF CLAUSES 38 AND 39
BASE MONTH TAKEN AT TIME OF TENDER, INDEX #/WORK CATEGORY
COMPARED WITH THAT AT THE TIME OF THE VALUATION, MULTIPLIED BY
THE AMOUNT OF WORK COMPLETED IN VALUATION, DIFFERENCE
(INCREASE OR DECREASE) PAID
FORMULAE PREPARED BY NEDO, MONTHLY INDICIES PUBLISHED BY HMSO,
CENT STATS = MATS, DEPT OF ENV = LABOUR INDICIES.