Construction Industry

Development Authority (CIDA)

CIDA FORMULA METHOD MCI

FOR ADJUSTMENTS TO
CONTRACT PRICE DUE TO
FLUCTUATION IN PRICES

CIDA Publication No — CIDA/ID/07

Second Edition —June 2008
 CONTENTS

Page

CONTENTS (i)

INTRODUCTION 1

ABBREVIATIONS 2

SECTION 1 - The Formula Method for Contracts Exceeding Rs. 10 million 3

SECTION 2 The Formula Method for Contracts Not Exceeding

Rs. 10 million (Simplified Formula) 11

ANNEXURES

ANNEX A A Suggested Method for Computation of Input

Proportions 17

ANNEX B • Specimen Calculation Sheet for Monthly Price Fluctuation

Claim 43

ANNEX C Example for Computation of Price Fluctuation for Works

Exceeding Rupees Five Million (>Rs. 10m) 45

ANNEX D Example for Computation of Price Fluctuation Using

Simplified Formula (<Rs. 10 m) 51

(i)
First Edition - January 1993
Revised Edition - September 1998
Second Edition - June 2008
ICI- AD FORMULA ME,T110D Introduction

INTRODUCTION

The ICTAD Formula Method for reimbursement of price fluctuation of materials, labour and
equipment in construction projects was introduced in January 1993. The Revised Edition
which was published in September 1998 introduced the simplified Formula Method tbr
contract values less than Rs. 5 million. With this Second Edition — June 2008, the applicable
li mit of the Simplified Formula has been increased to Rs. 10 million from the original value of
Rs. 5 million.

As in the previous edition, this publication will also illustrate in details the method of
application of the formula method and example for using the formula.

The publication is divided into two sections and Section 1 covers the Formula Method
applicable to contracts exceeding Rs. 10 million. Section 2 describes the simplified method of
the Formula Method for contracts not exceeding Rs. 10 million.

Due to the varied size and complexity of large projects, when using the method described in
Section 1, the input proportions shall be computed by the Employer and included in the
bidding documents. The simplified formula described in Section 2, recommended to be used
for small contracts, is based on same concepts as that for major contracts, but the input
proportions are built into the formula itself.

SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (lC'TAD)
ICTAD FORMULA METHOD Abbreviations

ABBREVIATIONS

Price adjustment for the period

Price index for input X, published by ICTAD

Ixb Base index for input X, published by ICTAD

Inc = Current index for input X

Mc 80% of the cost of the materials delivered to the site, to be used for permanent
works on current valuation

Mp 80% of the cost of the materials delivered to the site, to be used for permanent
works on previous valuation

Px Percentage cost contribution of input X

V Valuation of work done during the period concerned

Ve Cumulative value of certified work done up to current claim

Vp Cumulative value of certified work done up to previous claim

Vna Value of net non-adjustable element

Its Current Composite Index for the type of work published by ICTAD

Base Composite Index for the type of work published by ICTAD

SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (IC'TAD)
icrAp FORMULA METHOD Section I - The Formula Method for Contracts Exceeding Rs. 10 Million

SECTION 1

THE FORMULA METHOD FOR CONTRACTS

EXCEEDING RS. 10 MILLION

1.1 THE FORMULA

The Formula for the contracts above Rupees 10 m, when expressed mathematically
shall be as follows :

F 0.966 (V - Vna) Px (Ixe - Ixb)

100 all Ixb
inputs

1.2 VALUATION OF WORK FOR THE PERIOD (V)

The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the preVious bill.

Hence,

V = (V, + Mc) - (Vp + Mp)

1.3 NON ADJUSTABLE ELEMENT

Non-adjustable element shall be the items which will not be considered for price
adjustment and have been listed accordingly in the contract.

3
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I CTAD FORNIUI.A METHOD Section I - The Formula Method thr Contracts Fxceedint!. Rs. 10 Million

Three categories of items will be generally considered as non-adjustable element:

a. Items in the BOQ for which the expenditure will be fixed and will he
executed at early stages of the contract... Most of the preliminary items
fall under this category;

b. Provisional sum items; and

c. Extra works items for which the new rates are agreed or are priced at
Day-work rates.

The net Non- adjustable element for the current valuation is computed by deducting
the cumulative non adjustable element of the previous bill from the current cumulative
non adjustable element.

Hence,
if, Vnac cumulative value of work certified under items
specified as non-adjustable element up to the current
bill

Vnap cumulative value of work certified under items

specified as non-adjustable element up to the previous
bill

then,

Vna Vnac Vnap

SEi: 'ON D EDIT!ON, .1l;NE 2008 Institute for Construction Training and Development (IC I Al))
ICTAD FORMULA METHOD Section 1- The Formula Method for Contracts Exceeding Rs. 10 Million

1.4 INPUT PERCENTAGES (Px)

The percentage cost contribution of major materials, plant and labour to the contract
shall be listed in the bid document. It is suggested to exclude the less cost significant
items, in computing the input percentages, since the combined effect of such items will
be less than 10% of the cost of total inputs. Hence the total contribution of the major
inputs will be considered as 90%.

The computation of input proportions is based on the costing of major input items
required for the proposed construction. The costs will be calculated using the prices
that prevailed at the time of bidding. The cost of major inputs will be considered as
90% of the total cost. The total costs of all the inputs will be then derived by dividing
the cost of major inputs by 0.9. Input proportion of a particular input will be computed
as the ratio between the cost of the input and the cost of all inputs.

A suggested method for computing input percentages is illustrated in ANNEX A.

1.5 INDICES

The indices used in the formula shall be those published by the Institute for
Construction Training and Development (ICTAD). Monthly indices will be published
in Bulletin of Construction Statistics. The type of indices applicable to this Formula
shall be Materials (M indices), Labour (L indices) & Plant & Equipment (P indices).
When there are more than one index published for same input the appropriate index
shall be indicated in the bidding document. For example, four types of indices are
being published for cement: One based on ex-factory prices; one based on imported
cement; one for open market price; and the fourth for the weighted average.

5
SECOND EDITION,JUNE 2008 Institute for Construction Training and Development ( IC FAD)
ICTAD FORMULA METHOD Section 1 - The Formula Method for Contracts Exceeding Rs. 10 Million

1.5.1 LI, - BASE INDICES

Definition — Month;
For the purpose of base indices the month is defined as the time period between the
first and the last day of any month in the Gregorian calendar inclusive of the first and
the last day.

"Base Indices" shall be the indices for the inputs, prevailing for the Month, one Month
prior to the Month on which the last date for submission of Bids falls.

For example, if the bids were closed on any date of the month of September, the base
indices applicable shall be the indices published for the month of August of the same
year. If the relevant indices have been published at the time of preparation of the bid
document, the Employer may include same in the space provided in the Contract Data.

1.5.2 1,,, - CURRENT INDICES

Definition — Month;
For the purpose of current indices the month is defined as the time period between the
first and the last day of any month in the Gregorian calendar inclusive of the first and
the last day.

The "current index" of a particular input shall be the index published by ICTAD for
that input for the Month applicable as described below.

In the case of first monthly statement the current indices shall be taken as the indices
prevailing on the Month where the Start Date / Commencement Date falls. For any
other monthly statement or for the statement at completion the current indices shall be
taken as the indices prevailing for the Month where the first date of the current
valuation period falls.

6
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
R TAD FORMULA METHOD Section I - The Formula Method for Contracts Execedina Rs 10 Million

Example for use of current indices:

Details of monthly statements submitted by the contractor

month 1* month 2 month 3 month 4 month 5 month 6

Case a Claim 1 Claim 2 - - Claim 3 Final
Case b - Claim 1 Claim 2 - Final -
Case c Claim 1 Claim 2 I Claim 3 - Final _ - -

* month 1 (where Start Date / Commencement Date falls)

Applicable Current indices :

Claim 1 Claim 2 Claim 3 Final Claim

Case a month 1 month 2 month 3 month 6
Case b month 1 month 3 month 4
Case c month 1 month 2 month 2 month 3

1.6 ALLOCATION OF FUNDS FOR PAYMENT OF ESCALATION

To accommodate the price variation payments, it is necessary to include a price

contingencies item in the BOQ described as 'Allow for price contingencies'. The
amount can be worked out by studying the Cost Indices published by ICTAD for the
type of work.

1.7 METHOD OF COMPUTATION OF PRICE FLUCTUATION

The Formula is considered in two parts for the purpose of computations:

0.966 (V - V„„)
100 as the first part

and (Lc - Ixb)

all I xb as the second part
inputs

7
SECOND EDITION,JUNE 2008 Institute kir Construction Training and Development (I(' IAD I
IC'IAD FORMULA mrl'1iDD Section 1 - The Formula Method for Contracts Fxcecding Rs. 10 Million

Step 1: Valuation of work done during the period (V)

The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the previous bill.

Hence

V = (Vc Mc) - (Vp Mp)

Step 2: Excluding the non-adjustable element

The net Non- adjustable element for the current valuation is computed by deducting
the cumulative non adjustable element of the previous bill from the current cumulative
non adjustable element.

Hence,

if, Vnac - Cumulative Value of work certified under items specified as non-
adjustable element up to current claim

Vnap - Cumulative Value of work certified under items specified as non-

adjustable element up to previous claim.
then,

Vna = Vnac Vnap

8
SECOND EDITION, MINE 2008 Institute for Construction Training and Development (1CTAD)
ICTAD FORNIULA NIETHOD Section 1 - The Fonnirla Method Ibr Contracts I scced tnglts. NI ill ion

Step 3: Computation of first part of the Formula

Calculate the factor,

0.966 (V - Vim.)
100

Step 4: Base Indices

The information relevant to columns 1 & 2 of Annex B (sheet 2 of 2) is given with the
contract. The appropriate base indices with respect to each input can be entered in
column 3. Once these columns are filled the sheet could be used repeatedly for
computing price adjustment for all future price fluctuation claims.

Step 5: Current Indices

The appropriate current indices as described in Section 1.5.2 of this publication, can he
entered in column 4 of Annex B.

Step 6: Computation of second part of the Formula

The specimen computation sheet provided in ANNEX B (sheet 2 of 2) can be used to

compute the second part of the Formula.

a. The factOr Px(„c - Ixb) for each listed input will be

Ixb

computed and entered in the column 5 of the sheet.

b. Column 5 is totalled to obtain E Pxfj,c:ixb)

Ixb

9
sEcoNn EnrrioN, RINE 2008 Institute for Construction Training and Development (ICI Al))
I( 71'21.D FORNT1'IA Section 1 - The PomoIn Method for Contracts Excmdina Rs. 10 Million

Step 7: Computation of total price fluctuation

Multiplying the total obtained in Step 6 by the factor 0.966(V - Vila)

100

computed under Step 3, the price adjustment due for the current valuation could be
computed.

Step 8: Value Added Tax (VAT)

As in the case of any other payment made to the contractor the amount computed as
price adjustment shall be subjected to the VAT.

An example for computation of Price Fluctuation for Works exceeding Rupees 10 million is
given in Annex C.

10
SECOND EDITION„IUNE 2008 Institute for Construction Training and Development (ICTAD)
IC IAD FORMULA NI LTLIOD Section 2 - The Formula Method 14 Contracts not INecetlina Rs_ 10 Million

SECTION 2

THE FORMULA METHOD FOR CONTRACTS

NOT EXCEEDING RS. 10 MILLION
(Simplified Formula)

2.1 THE FORMULA

The Formula for the category of contracts up to Rupees Ten million, when expressed
mathematically is as follows:

F = 0.869 (V - Vna) *
Itb/
Itb

2.2 VALUATION OF WORK FOR THE PERIOD (V)

The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the previous bill.

V = (V, + M,) - (Vp + Mp)

2.3 NON ADJUSTABLE ELEMENT

Non-adjustable element shall be the value of work done under the items which will be
not considered for price adjustment and have been listed accordingly in the contract.

SECOND EDITION„DINE 2008 Institute for Construction Training and Development (ICTAD)
ICTAD FORNHILA METHOD Section 2 - The Formula Method for Contracts not Fxceeding Rs. 10 Million

Three categories of items will be generally considered as non-adjustable element:

a. Items in the BOQ for which the expenditure will be fixed and will be executed
at early stages of the contract. Most of the preliminary items fall under this
category;

b. Provisional sum items; and

c. Extra works items for which the new rates are agreed or are priced at Day-work
rates.

The net Non- adjustable element for the current valuation is computed by deducting
the cumulative non adjustable element of the previous bill from the current cumulative
non adjustable element.

Hence,
Vnac cumulative value of work certified under items
specified as non-adjustable element up to the current
bill

Vnap cumulative value of work certified under items

specified as non-adjustable element up to the previous
bill

then,

Vna Vnac Vnap

12
SECOND comoN, JIIINE 2008 Institute for Construction Training and Development (I(TAD)
ICTAD FORMULA METHOD Section 2 - The Formula Method for Contracts not Exceeding Rs. 10 Million

2.4 INDICES

The indices used in the formula shall be those published by Institute for Construction
Training and Development (ICTAD). Monthly indices will be published in Bulletin of
Construction Statistics. The type of indices applicable to this Formula shall be the
composite indices for type of work (T - indices)

2.4.1 Itb - BASE COMPOSITE INDICES

Definition — Month;
For the purpose of base composite indices the month is defined as the time period
between the first and the last day of any month in the Gregorian calendar inclusive of
the first and the last day.

"Base Composite Indices" shall be the indices for the type of work, prevailing for the
Month, one Month prior to the Month on which the last date for submission of Bids
falls.

For example, if the bids were closed on any date of the month of September, the base
composite indices applicable shall be the indices published for the month of August
of the same year. If the relevant indices have been published at the time of
preparation of the bid document, the consultant may include same in the space
provided in the Contract Data Sheet.

2.4.2 It, - CURRENT COMPOSITE INDICES

Definition — Month;
For the purpose of current composite indices the month is defined as the time period
between the first and the last day of any month in the Gregorian calendar inclusive of
the first and the last day.

The "Current Composite Indices" shall be the indices for the type of work for the
Month applicable as described below;

In the case of first monthly statement the current composite indices shall be taken as
the indices prevailing on the Month where the Start Date / Commencement Date falls.
For any other monthly statement or for the statement at completion the current
composite indices shall be taken as the indices prevailing for the Month where the first
date of the current valuation period falls.

13
SECOND EDITION, JUNE 2008 institute for Construction Training and Development (ICTAD)
UTAD FORNWIA NIETIIOD Section 2 - The Formula Method for Contracts not FNeeedini.i. Rs. ID Million

Example for use of current composite indices:

Details of monthly statements submitted by the contractor

month 1* month 2 month 3 month 4 month 5 month 6

Case a Claim 1 Claim 2 - - Claim 3 Final
Case b - Claim 1 Claim 2 - Final
Case c Claim 1 Claim 2 Claim 3 - Final - _1

* month 1 (where Start Date / Commencement Date falls)

Applicable current composite indices :

Claim 1 Claim 2 Claim 3 Final Claim

Case a month 1 month 2 month 3 month 6
Case b month 1 month 3 month 4
Case c month 1 month 2 month 2 month 3

23 ALLOCATION OF FUNDS FOR PAYMENT OF ESCALATION

The Contract Price need to be adjusted to accommodate the price variation payments.
To accommodate the price variation payments, it is necessary to include a Price
Contingencies item in the BOQ described as 'Allow for price contingencies'. The
amount can be worked out by studying the indices published by ICTAD on quarterly
basis for the type of work.

14
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development ( D
wrAD FORMULA nivriloo Section 2 - The Formula Mcihod for Contracts not Ixceeding Rs. I 0 Million

2.6 METHOD OF COMPUTATION OF PRICE FLUCTUATION

Step 1: Valuation of work done during the period (V)

The conditions of contract requires the contractor to submit monthly statements which
will also include the 80% of the cost of materials delivered to site for permanent
Works but are not incorporated in Works. Accordingly, valuation of work done during
the period concerned is computed by the difference of the cumulative certified work
done including the 80% of the cost of materials delivered to the site but has not been
incorporated in permanent works and corresponding cumulative payments certified up
to the previous bill.

Hence

V = + Mc) - (Vp Mp)

Step 2: Excluding the non-adjustable element

The net Non- adjustable element for the current valuation can be computed by
deducting the cumulative non adjustable element of the previous bill from the current
cumulative non adjustable element.

Hence,

if, Vnac - Cumulative Value of work certified under items specified as non-
adjustable element up to current claim

Vnap - Cumulative Value of work certified under items specified as non-

adjustable element up to previous claim.

then,

Vna = Vnac Vnap

15
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
I(TAD FORMULA NIETDOD Section 2 - The Formula Method 11)r Contraeh: tIOL I '%einclinia Its lo

Step 3: Computation of price fluctuation

a. Calculate the factor,

0.869 (V - Vna)

b. Using the appropriate base and current composite indices compute

Lb

c. By multiplying the results obtained from Step 'a' and Step `b' above the
price adjustment due for the current valuation can be computed.

Step 4: Value Added Tax (VAT)

As in the case of any other payment made to the contractor the amount computed as
price adjustment shall be subjected to the VAT.

An example for computation of Price Fluctuation for Works not exceeding Rupees 10 million
is given in Annex D.

16
SECOND EDITION„IUNE 2008 Institute for Construction Training and Development (ICTAD)
ICTAI) FORNIULA Nivriion Annex A

ANNEX A

A SUGGESTED METHOD FOR COMPUTATION OF INPUT

PROPORTIONS

A suggested method for computing input proportions for the BOQ given in Sheet No Al of
this Annex is given below. The BOQ consist of 169 work items and two contingency items.
The total contract sum is Rs. 11,555,005.55. The value of work item (excluding the
contingency items) is Rs. 10,504,550.50. The first step in computing input proportions will
be the identification of non-adjustable element.

Step 1: Identification of Non-adjustable element

The following are specified as Non-adjustable element for the reasons explained.

Item Al - Providing of a Performance Bond

Performance Bond is submitted at commencement of the contract.

Therefore it is not time dependent. Any cost associated with the
extension of the performance bond can be dealt with the contractors
claim for extension.

Item A2 - Providing an advance payment guarantee.

This item is also done at the commencement. Therefore its

expenditure is not time dependent.

Item A3 - Providing an Insurance Cover

Similar to Items Al & A2

Item A4 - Construction and maintenance of an office for Engineer

Providing the facility is done at commencement. Only the

maintenance of it (which is comparatively less) is time related.

17
SECOND EDITION. JUNE 21198 Institute Ibr Construction Training and Development ;ICIAD)
I CTAD FORMULA METHOD Annex A

Item A5 - Construction and maintenance of an office for the contractor

Similar to Item A4

Item A6 - Construction and maintenance of temporary stores

Similar to Item A4

Item A7 - Provide sanitary facilities for staff and workers

Similar to A4

Item A9 - Allow for stamp duty

This is a fixed sum incurred at commencement

B7 & B8 - Earth work support

Since the item has to be done only if directed by the Engineer, the
risk is passed to the bidder.

G3, G6, H30 & Ml - All provisional sum items

P1 & P2 - Contingencies items

When the non-adjustable element (which works out to about 5.7% in the example) is
reduced the total of the BOQ is adjusted to Rs. 9,767,815.50.

18
SECOND EDITION. MINE 2008 Institute for Construction Training and Development (1CTAD)
icrAn 1 01011;1A NW."1.110D Annex A

Step 2: Dis-regarding of items for which the breakdown of inputs cannot be

given easily

There may be some items in the BOQ, for which break down of inputs cannot be easily
worked out. Lump sum items is a good example for this. Due to the difficulty of estimating
the inputs for such items, they are disregarded in computing the input proportions. The
contribution from such items to price variation is considered as the weighted average of all
the other items. However, unlike the non-adjustable element these items are considered for
final computations of fluctuations.

The items disregarded for computation of inputs in the example selected are listed below
and are struck off from the BOQ in Sheet Al

A8, B9, F3, F4, Gl, G2, H21 - H24, H27 - 1129 and J1 - J5

The disregarded items in the BOQ contribute to about 3.6% of the value. This percentage
should not be a considerable amount. When the items are disregarded the total of the BOQ
reduces to Rs. 9,395,465.50.

Step 3: Grouping of items

When scrutinizing the balance items of the BOQ, it is seen that similar or marginally varied
items are listed separately. The inputs for these similar items will be either same or differs
marginally. Hence to facilitate the computations, those items are grouped together.

In some instances the same item when applying for different components is measured in
different units [example : RCC concrete in slab (CA8) and RCC concrete in beams (CA9)
measured in m2 and m3 respectively)]. These items were also grouped together by
converting the quantities in to a common unit.

19
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (IC'TAD)
I CFAD NIFFHOD Annex A

Sheet A2 indicate the grouped items, the common description, the quantity, the unit and the
amount against each group selected.

Important notes on grouped 130Q. (Sheet A2)

a. Marginally varied items are grouped together. (e.g. different in location, type of
finish)

b. No items are grouped when the mixing proportionate are different.

(e.g. 1:2:4 concrete is not grouped with 1:3:6 concrete)

c. Generally, inputs of the items grouped, should be similar [exception for that in the
example considered is in the case of DPC which needs an additional input (tar) but
is grouped under cement plaster due to the fact that only a small quantity of DPC is
involved].

d. Items, related to aluminium windows, PVC products and electrical installation are
grouped separately without indicating the quantity and the unit.

e. Since the input items of 1:2:4 (20 mm) concrete and 1:3:6 (40 mm) concrete differ
only from the aggregate size (apart from mixing proportions) and due to the reason
that a common index is being published for aggregate (metal) the two items are
considered as two sub-groups under the main group No. 3. Two sub-groups are
necessary due to the reason that vast variation of input proportions between the
items. Similarly cement plaster and lime plaster are also considered as sub-groups
under main group 8.

20
SECY)NIi EDITION, JUNE 2008 Institute ror Construction Training and Development (ICTAD)
icrAn FORMULA AW:11101) Annex A

24 main groups are identified. Sheet A2 indicate the main group no., the item numbers
allocated to the group, description, the cumulative quantity, unit selected, and the
cumulative amount under the each group.

Step 4: Identification of cost significant groups

The groups are re-arranged on the descending order against the amount and are shown in
Sheet A3 (The re-arranging is done purely for explanatory purpose and is not required in
actual computations). The 6th column represents the cumulative amount. The 7th and 8th
columns show the percentage of the cumulative amount and percentage of cumulative items
respectively.

When scrutinize the re-arranged items in Sheet A3 it is seen that;

a. about 9% of the items representing more than 28% of the cost.

b. about 20% of items representing 57% of the cost.

c. 80% of the cost represent by about 40% of the item,

d. To represent 90% of the cost about 60% of the items are needed.

The formula considered 90% of the inputs directly while the balance 10% of inputs are
considered indirectly.

Hence in the example under consideration the following are selected as cost significant
groups. (Falling around 90%)

a. Brick work

b. Asbestos roof with frame

c. Cement and lime plaster

d. Aluminium glazed windows

21
SECOND EDITION, JUNE 2908 Institute for Construction Trainine and Development (ICIAD)
wrAD FoRnitii.A Annex A

e. 1:2:4 & 1:3:6 concrete

f Internal Electrical Supply

g. Rubble masonry

h Earth excavation

Plywood doors

j. Reinforcement

k. Emulsion paint

1. PVC products

m. Ceramic floor tiles

n. Wall tiles

The groups selected represents 58.33% of the total and the cost contribution is 90.63%.

The selected cost significant groups are shown in Sheet A4.

Step 5 : Computation of input quantities

The next step in the process is to compute the quantities of inputs required for the selected
groups. This is done by using standard norms used in the industry. Sheet A5 (2 of 2)
indicates the quantity of inputs required for one unit of the representative items of the
groups.

Sheet A6 (Sheet 2 of 2) computes the quantity of inputs required for the items identified.
The total quantities'of each input are also shown at the bottom of the schedule.

22
SECOND EDrnON„.1 !LINE 2008 Institute ibr Construction Training and Development (ICTAD)
 ICTAD FORMULA METHOD Annex A

The cost of inputs for the following items are calculated based on the percentage
contribution of each input to the respective item. The specimen calculations are given in
Sheet No. A7,
a. Aluminum windows
b. PVC products
c. Internal electricity supply

Step 6: Contribution of inputs to the cost

The inputs computed under Step 5 are costed based on the prices of inputs considered while
preparing the estimate. The costs of inputs are shown in Sheet No. A8. The input items are
listed in Sheet No. A9 showing the percentage cost of contribution. It should be noted that
the total cost of selected inputs (Rs. 7,212,665.31) represent about 85% of the cost of
significant items in Sheet A4 (Rs. 8,515,361.00). (This difference is due to the overheads
. and profits included in the cost). The contribution from four of the items is below 0.50%.

Step 7: Computation of input proportions

The less cost significant inputs (say less than 0.50% contribution) are eliminated from final
computations and the balance items only are shown in Sheet No. A10. The total amount of
cost significant inputs is computed as Rs. 7,154,670.51. According to the concepts of the
formula this should represent only 90% of the cost of inputs. Hence the total cost of inputs
is estimated as Rs. 7,949,633.90 by dividing the 90% of cost by 0.9.

The input percentages of each input is then computed in relation to the total cost of inputs.

The final input proportions together with the reference indices are shown in Sheet No. Al 1.

23
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
 I(:TAD FOIRNIULA NIETHOD Annex A
Sheet A I
1 of 6

SUMMARY OF BOQ (SPECIMEN)

ITEM DESCRIPTION QTY UNIT RATE AMOUNT

A - PRELIMINARIES
NOTE

1. For items Al, A2 & A3 only the commission charged by

the bank/insurance agencies will be reimbursed subjected to
the maximum quoted.
2. For items A4 to A8 payments will be made as follows:
a. 50% of quoted amount on providing the facility.
b. Balance amount proportionate to the construction period.
1,--.--z:
-
: ::-.., :7-:-
Al Providing of a Performance Security item allow 15,000.00
A7 Providing an advance payment security item allow 10,000.00
A3 ProvidiogInsttranpe cover item ,allow 10,000,00
A4 Construction and maintenance of office loi' Engineer itcrii. • al lbw 20,000:00

AS Construction and maintenance of offke For Contractor item allow 20,000.00

A6 Construction and maintenance of temporary stores :itern • t).11 ow 20,660.00
. ,
A7 Provide sanitary facilities for staff and Workers ' ite m allow 25,000.00
A8 Provide construction manigernent-sewices. 9 *4m 20440-0,00 180,000.{}0
A9 Al low for stamp duty '
74
7.. .7 -, :77;-:=z7:; 71
' item al low _ 5.500.00
.
- A. ' 416100)
\V'''-
-

B - EARTH WORKS . ,....1 \ \

I \. \ \ \,'"
B-1- Glear-siteeed-eafting-avay \ \_) / item 10,000.00
. ,
B2 Excavate over site td rethove to soil.depth 150mm ave. 855.10 rn2 90.00 76,959.00
B3 Excavate for'Col11 !nn !Rases <lm depth 153.00 m3 550.00 84,150.00
.
B4 Excavate for collill'In bkseS >lm depth 76.50 m3 560.00 42,840.00
B5 Excavate for trenches <lm depth 340.00 m3 550.00 187,000.00
B6 Excavate for -trenches >lm depth 61.80 m3 560.00 34,608.00
-.A..1t-ti-f , . .,..
B7 Earthwork support .elitt dIrected only) 208.50 m2 500.00 - 104,250.00
B8 Earthwork support >lin (if directed only); ' 200.00 nit 550.00 110,000-00
13-9 ii-emeve-exeavated-matef-ial from site 600,0-0 m3 -1-00,00 60T00070-0
B10 Hard core filling and compaction 122.00 m3 700.00 85,400.00

C - CONCRETE WORKS

CA1 50mm thick conc. l:3:6-(40mm) under column footings 31.10 m2 450.00 13,995.00
CA2 100mm thick conc. 1:3:6-(40mm) under strip fdns 250.00 m2 900.00 225,000.00
CA3 75mm thick conc. 1:3:6 (25mm) for floors 431.10 m2 650.00 280,215.00
CA4 RCC 1:2:4 in column footings 2.50 m3 10,000.00 25,000.00
CA5 RCC 1:2:4 in ground beams 3.68 m3 10,000.00 36,800.00

25
SECOND EDITION, JtINE 2008 Institute for Construction Training and Development (ICI Al))
 I CTAD FORMULA M Elmo!)
Annex A
Sheet Al
2 of 6

ITEM DESCRIPTION QTY UNIT RATE AMOUNT

CA6 RCC 1:2:4 columns up to 1 st floor level 5.00 m3 11,000.00 55,000.00

st
CA7 RCC 1:2:4 columns from 1 floor level to roof 1.70 m3 11,500.00 19,550.00
st
CA8 RCC 1:2:4 for 125mm thick 1 floor slab 42.90 m2 1,300.00 55,770.00
st
CA9 RCC 1:2:4 for 1 floor beams 0.70 m3 10,500.00 7,350.00
CA 10 RCC 1:2:4 for lintels in ground floor 4.80 m3 10,500.00 50,400.00
CA11 RCC 1:2:4 in staircase and landing 2.00 m3 10,700.00 21,400.00
CB1 Formwork to sides of column footings 91.20 m2 450.00 41,040.00
CB2 Formwork to sides of column from ground to 1st floor level 56.20 m2 690.00 38,778.00
st
CB3 Formwork to sides of columns from 1 floor to roof 28.10 m2 700.00 19,670.00
CB4 Formwork to sofit of 1st floor slab 33.60 m2 690.00 23,184.00
CB5 Formwork to sides and sofits of 1st floor beams 15.00 m2 700.00 10,500.00
CB6 Formwork to sides and sofits of lintels 41.40 m2 680.00 28,152.00
CB7 Formwork to staircase 7.31 m2 750.00 5,482.50
CC1 10min Tor Steel in foundations 345.00 kg 115.00 39,675.00
CC2 10mm Tor Steel in columns 248.00 kg 115.00 28,520.00
CC3 10mm Tor Steel in 1 st floor slab 475.00 kg 115.00 54,625.00
CC4 10mm Tor Steel in linels 170.00 kg 115.00 19,550.00
CC5 10mm Tor Steel in staircase 180001 kg 1120.00 21,600.00
CC6 12mm Tor Steel in foundations 1 '120.00 18,000.00
CC7 12mm Tor Steel in columns \29 002 kg 35,400.00
st
CC8 12mm Tor Steel in l floor beams 175.0 kg 120.00 21,000.00
CC9 6mm Mild Steel in columns I '6,1.60 kg 115.00 18,515.00
CCU) 6mm Mild Steel in 1 st floor slab • 54.00 kg 115.00 6,210.00
CC 11 6mm Mild Steel in 1st floor bv.ani. 68.00 kg 115.00 7,820.00
CC12 6mm Mild Steel in tr. 71.00 kg 115.00 8,165.00
CC13 6rnm Mild Steel in 4ailyaie 28.00 kg 115.00 3,220.00
\ 1.)
D - MASONRY, WORKS
D1 Rubble masonry work•in1:5 cement sand in foundations 200.00 m3 2,800.00 560,000.00
D2 225mm briell,.ifork.'in 1:5 cement sand from DPC to 1st floor 823.20 m2 1,500.00 1,234,800.00
D3 225mm brick -17,76rk from DPC to 1st floor to roof 19.40 m2 1,600.00 31,040.00
D4 112mm brick work from DPC to 1st floor
27.51 m2 800.00 22,008.00
05 338x338mm brick work in columns from DPC to 1st fir 100.00 m 750.00 75,000.00
D6 3/4" thick DPC in 1:2 cement sand mortar 88.40 m2 500.00 44,200.00
D7 75min thick brick paving with cement sand mortar 255.00 m2 400.00 102,000.00

E - DOORS AND WINDOWS

E1 D1 type plywood door 900x2400mm with 100x75 frame S.: 17.00 nr 14,000.00 238,000.00
E2 D2 type plywood door 900x2400mm with 100x75 frame & 6 nr 14,500.00 87,000.00
E3 D3 type plywood door 1200x2400mm with 100x75 frame & 2 nr 15,000.00 30,000.00
E4 Aluminium glazed window type WI 3500x1800mm 6 nr 38,000.00 228,000.00
E5 Aluminium glazed window type W2 size 1900x1800mm 15 nr 20,000.00 300,000.00

26
SECOND EDIT ION, JUNE 2008 Institute for ConstrUction Training and Development (ICTAD)
 I( :TAD l'011:111.1„1 11.1L11101) Annex A
Sheet Al
3 of 6

ITEM DESCRIPTION QTY UNIT RATE AMOUNT

E6 Aluminium glazed window type W3 size 600x1800mm 1 nr 7,000.00 7,000.00

E7 Aluminium glazed window type W4 size 2500x1500mm 3 nr 25,000.00 75,000.00
E8 Aluminium glazed window type W5 size 1250x1200mrn 12 nr 10,000.00 120,000.00
F9 Aluminium glazed window type W6 size 1900x1200mm 2 nr 15,000.00 30,000.00
EIO Aluminium glazed window type W7 glazed 900x1000mm 3 nr 6,000.00 18,000.00
El I Aluminium glazed window type FW1 glazed 900x1200mm 3 nr 6,500.00 19,500.00

F - ROOF WORK
Fl Corrugatted asbestos roof on timber frame in ground fir 842.50 rn2 1,400.00 1,179,500.00

F2 Corrugated asbestos roof on timber frame in 1st firroof 62.50 m2 1,500.00 93,750.00
, • . - t . - t I efiF
13 Layin. 842.50 m2 500.00 Rate-enly
1=4-- Laying half round tiles at I si r 62.50 m2 550.00 Rate-en-ly
F5 Ridge tiles for ground floor roof 123.00 m 250.00 30,750.00
st
F6 Ridge tiles for 1 floor roof 24.00 m 260.00 6,240.00
F7 900mm wide vally gutter 34.00 in 2,000.00 68,000.00
F8 225mmx25mm valance board for ground floor roof 202.00 m 350.00 70,700.00
st
F9 225mmx25mm valance board for 1 floor roof 39.00 m 400.00 15,600.00

FIO 150mm wide square type PVC gutters for ground floor 202.00 m , 400.00 80,800.00
st
Fl 1 150mm wide square type PVC gutters for 1 floor 39.00 in '450.00 17,550.00
F12 PVC down pipes 240.041 m 250.00 60,000.00

G - CARPENTRY WORKS --
C-1- Weeden4i-ialeteonnteF 2-. ilf 3-000,00 (4O00:00
G2 Wooden-seiTYle-e-E-ou-nief -1- Br 5T000700 -5-,004:00
,
G3 Allow provisional suttl:'fa_r p. thO!-IPboart4 • Sum 100,000.00
G4 Timber railing for the Stair case ` item 20,000.00 20,000.00
05 Wooden railing to balcony 28.00 m 1,000.00 28,000.00
06 Allow pr4viSiOnal sum 1"or t i stage sum 50,000.00

H - PLUMBING-WORKS
HI 1/2" dia PVC pipe (type 1000) 38.00 m 100.00 3,800.00
H2. 3/4" dia PVC pipe (type 1000) 25.00 m 150.00 3,750.00
H3 1" dia PVC pipe (type 1000) 50.00 in 200.00 10 000.00
H4 1 1/2" dia PVC pipe (type 1000) 10.00 m 250.00 2,500.00
1-15 2" dia PVC pipe (type 1000) 20.00 m 150.00 3,000.00
H6 1/2x3/4" PVC reducer 8 nr 40.00 320.00
H7 1/2x3/4" PVC tee 6 nr 50.00 300.00
H8 3/4"xl" PVC reducer 5 nr 65.00 325.00
H9 1/2x1" PVC reducer 5 nr 60.00 300.00
HIO 1/2x I " PVC tee 5 nr 100.00 500.00
H11 3/4x1" PVC tee 5 nr 120.00 600.00
H12 1/2 PVC elbow 20 nr 25.00 500.00

27
;E('ONIII EDI" !ON- 20('S Institute for Construction Training and Development (ICI AD)
 ICIAD FORMULA INIETHOD Annex A
Sheet Al
4 of 6

ITEM DESCRIPTION QTY UNIT RATE AMOUNT

■ ,
H1 3 3/4 PVC elbow 15 nr 35.00 525.00
H14 1 PVC elbow 5 nr 50.00 250.00
H15 1 1/2 PVC elbow 5 nr 70.00 350.00
H16 2" PVC elbow .5 nr 90.00 450.00
H17 Imported low level closet 4 nr 15,000.00 60,000.00
H18 Supply and fix imported wash basin 6 nr 8,000.00 48,000.00
H 19 Supply and fix imported squatting pan 2 nr 3,000.00 6,000.00
H2O Supply and fix imported automatic flushing cistern 2 nr 10,000.00 20,000.00
I-I21- 1/2" dia bib taps 6 flf 500.00 3419040
1-122 1/2" kl-ia garden taps 2 m 600.00 -
h2•00.00
42-3 1/2" dia stop taps 6 fif 650,00 -3;900,00
H21 1" dia "ate valve 4- nr 750.00 740,00
H25 Supply and fix toilet paper holder 4 nr 500.00 2,000.00
H26 Supply and fix ceramic soap trays 4 nr 600,00 2,400.00
H27 Supply and fix toilet mirror 3 flf 4-700070.0 3,000.00
H28 Catch pit 6"x6" 8 flf 59000 4,000.00
1429 Construction of 6"x6" valve chamber -1- of ,--..,. 590,00 500.00
H30 Allow provisional sum for the water tank stfin ', allow 60,000.00
.• . \ \ --• .
,, \ .
J - DRAINAGE WORKS -\ ,,--.\
\ \ .,.. \ \4\ ,5:40c,In
4-1- Construct 0 - ;
42 Construct brick masonry manhole 450x150mm... • \ , \ * 4 4;000,00 20,000700
. ■ ■ \\ \ 1 ftf
43 - iele-609#00tniff -. ' , ' i, ., . 53000700 -1-0;000.00
.-
4-4 Construct brick masonry waste manhole 225 2251st -' 4 n 33000,00 12.000,00
„.
45 S- - . '. arilii_ile &00 fif 3,500.00 287040,00
J6 2" dia PVC waster water-pipe:. 35.00 m 350.00 12,250.00
J7 Supp. & lay100mm PVC pipes from filling-t6 manhole 28.00 m 650.00 18,200.00
J 8
100mm PV6.s4I pi pes m‘hple to septic tank 12.00 m 650.00 7,800.00
( \,.'

K - FINISIIES-_ \ ••■ .."

.
KI 16rnm thick cemcnt sand rendering in 1:3 cement sand 255 m2 3,000.00 765,000.00
mortar on brick paving
K2 16mm thick cement sand rendering in 1:3 cement sand 6.5 m2 170.00 1,105.00
Mortar on concrte slab
K3 16mm thick cement sand rendering in 1:3 cement sand 11.9 m2 180.00 2,142.00
mortar on staircase
K4 100mm thick cement & sand skirting in ground floor 67.00 m 120.00 8,040.00
st
K5 100mm thick cement & sand skirting in 1 floor 10.00 m 130.00 1,300.00
K6 100mm thick cement & sand skirting in stair case 17.00 m 140.00 2,380:00
K7 20mm thick cement sand plinth plaster in 1:3 mortar 175.80 m2 300.00 52,740.00
K8 Ceramic floor tile at ground floor 39.00 m2 1,500.00 58,500.00
K9 Ceramic floor tile at entrance step 23.60 m2 1,600.00 37,760.00
K10 Ceramic floor tile at 1st floor 27.90 m2 1,600.00 44,640.00
Kll 100mm thick ceramic tile skirting in ground floor 235.00 m 300.00 70,500.00
I

28
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
 I C l'AD FORNIUIA NIEHIOD Annex A
Sheet Al
5 of 6

ITEM DESCRIPTION QTY UNIT RATE AMOUNT

•
K12 100mm thick ceramic tile skirting in 1 st floor 30.00 in 350.00 10,500.00
K13 20rnm 1:1:5 lime, cement and sand plaster to external walls 546.00 m2 150.00 81,900.00
in ground floor
K14 20mm 1:1:5 lime, cement and sand plaster to external walls 32.00 m2 160.00 5,120.00
st
in 1 floor
K15 20mm thick 1:1:5 lime, cement sand plaster to internal walls 795.00 m2 170.00 135,150.00
in ground floor
K16 20mm thick 1:1:5 lime, cement sand plaster to internal walls 29.10 m2 180.00 5,238.00
st
in 1 floor
Ki 7 20mm 1:1:5 lime, cement sand plaster to isolated columns in 48.40 m2 190.00 9,196.00
ground floor
K18 20mm 1:1:5 lime, cement sand plaster to isolated columns in 17.30 m2 200.00 3,460.00
1st floor
K19 20mm 1:1:5 lime, cement sand plaster to reveals in ground 188.00 m 80.00 15,040.00
floor
K20 Glazed wall tile lining to toilets 53.70 m2 1,500.00 80,550.00
K21 Glazed wall tile lining to kitchen 67.50 m2 1,500.00 101,250.00
K22 12mm thick 1:3 cement sand plaster o sofit of slabs and 40.00 m2 -'''!, 250.00 10,000.00
,- \.
beams
K23 12min thick 1:3 cement sand plaster to under side of 1,0,0t1...-\ in2 250.00 2,500.00
staircase and - \ ' ,
• \
L - PAINTING s '
-
1:1 ' Weather sheild paint to external walls in ground_ floor ' ' 576.00
• m2 170.00 97,920.00
St
L2 Weather sheild paint to external walls in 1 floor, ., - 12.00 m2 180.00 5,760.00
L3 Emulsion paint to internal walls in, grckind floor \ \ 873.40 m2 160.00 139,744.00
st :
L4 Emulsion paint to internal walls ip.I fipo ) \ \''''' 63.70 m2 170.00 10,829.00
- -
L5 Emulsion paint to styff 1.-.9tVab \ c \,,./ 40.00 m2 190.00 7,600.00
L6 Emulsion paiiiito ecIeN:slabl•Anall2parns 10.00 m2 190.00 1,900.00
L7 Enamel p4intitO:doori ard wind8sks 325.50 m2 200.00 65,100.00
\ N.
L8 Enamel paint-to valande and barge board 110.00 m2 210.00 23,100.00
1 -

M - LANDSCAPING
MI Allow provisional sum for landscaping • sum 100,000.00
- .
!iiiii;Si•.:

N - ELECTRICAL INSTALLATION
NI D Board 24 way with isolator, ELCB, 2 Nr 15amp MCB, I nr 30,000.00 30,000.00
N2 D Board 36 way with isolator, ELCB, 3 Nr 15amp MCB, I nr 30,000.00 30,000.00
N3 D Board 36 way with isolator, ELCB, 3 Nr 15amp MCB, 1 nr 30,000.00 30,000.00
N4 100mmx2000mm GI earth electrode 1 nr 1,000.00 1,000.00
N5 4x7/1.044mm PVC cable 300.00 m 500.00 150,000.00
N6 Supply & fix spot light 23 nr 800.00 18,400.00
N7 4' long 40 watts single fluorescent fitting 83 nr 2,500.00 207,500.00
N8 Supply & fix pendant lamp 18 nr 1,000.00 18,000.00

29
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
 I(TAI) FORNIULA Annex A .
Sheet Al
6 of 6

ITEM DESCRIPTION QTY UNIT RATE AMOUNT

N9 5 amp switch socket outlet 25 nr 1,000.00 25,000.00

N10 15 amp switch socket outlet 8 nr 1,500.00 12,000.00
N11 56" ceiling fan and regulator 10 nr 6,000.00 60,000.00
N12 Testing the electrical installation item 500.00 500.00
N13 Allow sum for the supply sum 50,000.00
SUB TOTAL 10,357,565.50

72 - 4
- ' 'i '431,4; ' - • '''sl." - R*-4'O * - ''' '-'''Z'r:. J-I''' ';'114-°'-- C'11:'.4 t . r" * ' '''-''`'S 0 8 8•28
. ---- ' f-L',Z._
177.?
TOTAL 11,393,322.05
Total, less non-adjustable element 9,767,815.50
Total, less non-adjustahle element & dis-regarded items 9,395,465.50

• \
s
••,

\ \

• ,\ \\ !\
( \

30
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (1CTAD)
ICTAD FORMULA METHOD Annex A

Sheet A2

GROUPED BOQ

GROUP ITEMS DESCRIPTION QTY UNIT AMOUNT

NO
1 B2-B6 Earth excavation 882.57 m3 425,557.00
3
2 B10 Earth filling 122.00 m 85,400.00
3
3 CA1 - CA3 . 1:2:4(20) Concrete 25.74 m 790,480.00
CA4 - CAll 1:3:6(40) Concrete 58.89
4 CB1 - CB7 Form Work 272.81 m2 166,806.50
5 CC1 - CC13 Reinforcement 2420.00 kg 282,300,00
3
6 D1 Rubble masonry 200.00 m 560,000.00
3
7 D2 - D5 Brick work 204.09 m 1,362,848.00
2
8 D6, K1-K7, K22-K23 Cement plaster 596.00 m 1,144,511.00
K13-K19 Lime plaster 1482.03
2
9 D7 Brick paving 255.00 m 102,000.00
10 El - E3 Plywood doors 25.00 rri \ 355,000.00
11 E4 - Ell Aluminium glazed windows , 797,500.00
12 Fl - F2 Asbestos roof with frame 905.06 On` 1,273,250.00
13 F5 - F6 Ridge tiles .-'. \ 1400 • ._. '‘ 36,990.00
\ '
14 F7 Valley gutters , ',„ 3400 `, m 68,000.00
15 F8 - F9 Valance board \ ' 241.00 m 86,300.00
16 F10-F12, Hl-H16, J6-J8 PVC Pr6cluctS.) ‘ 1 --
- 224,070.00
17 G4 - G5 Timbet railing` 48,000.00
,„- ,
18 H30 Surn foi: water tank , 60,000.00
, \
19 H17-H20, H25-H2e Sanitary fittingi 138,400.00
: , 2
20 K87-K12, C4ernic floor tiles 117.00 m 221,900.00
. „ 2
21 14:1:x1c21 , Wall tiles 121.20 m 181,800.00
2
22 Ll 'I LE „ Emulsion paint 1595,10 m 263,753.00
2
23 L7 -i_ , Enamel paint 435.50 m 88,200.00
24 N1 - N1'3 Internal electrical supply 632,400.00

TOTAL 9,395,465.50

31
SECOND EDII ION, JUNE 2008 Institute for Construction Training and Development (10 AD)
 Will:11V Y1111010:I (IV.L.)1
CONTRIBUTION FROM GROUPS TO THE TOTAL
'N;01.1.11(11 (IN;

% OF
SR. GROUP ITEMS DESCRIPTION AMOUNT CUMULATIVE CUMULATIVE CUMULATIVE GROUP
NO NO ' AMOUNT AMOUNT
1 7 D2 - D5 BriCkWork ,-' 1.362,848.00 1,362,848.00 14.51 % 4.17 % (1/24x 100)
2 12 Fl - F2 ASbestos roof ,with frame 1,273,250.00 2,636,098.00 28.06 % 8.33 % (2/24 x 100)
3 8 D6, K1-K7, K22-K23 Cement plaster-- 1,144,511.00 3,780,609.00 40.24 % 12.50 % (3/24 x 100)
4 11 E4 - Ell Alumihitin glazed Windows 797,500.00 4,578,109.00 48.73 % 16.67 % (4/24 x 100)
5 3 CA1 - CA3 Concrete 790,480.00 5,368,589.00 57.14 % 20.83 % (5/24 x 100)
6 24 N1 - N13 Internal elearical supply..:, 632,400.00 6,000,989.00 63.87 % 25.00 % (6/24 x 100)
7 6 D1 Rubble masonry ' 560,000.00 6,560,989.00 69.83 % 29,17 % (7/24 x 100)
8 1 B2-B6 Earth excavation-- \ 425,557.00 6,986,546.00 74.36 % 33.33 % (8/24 x 100)
9 10 El - E3 Plywood doors \ w..'' • 355,000.00 7,341,546.00 78.14 % 37.50 % (9/24 x 100)
10 5 CC1 - CC13 Reinforcement --' .-282,300.00 7,623,846.00 81.14 % 41.67 % (10/24 x 100)
11 22 L1 - L6 Emulsion paint - ..-263,753.00 7,887,599.00 83.95 % 45.83 % (11/24 x 100)
--4
12 16 F10-F12, H1-H16, J6-J PVC Products 224,070.00 8,111,669.00 86.34 % 50.00 % (12/24 x 100)
13 20 K8 - K12 Ceramic floor tiles ,2212900.00 8,333,569.00 88.70 % 54.17 % (13/24 x 100)
14 21 K20 - K21 Wall tiles - 181,800.00 8,515,369.00 90.63 % 58.33 % (14/24 x 100)
--=-=
15 4 CB1 - CB7 Fotrri Work :--
. 166-806.50
_ , 8,682,175,50 92.41 % 62.50 % (15124 x 100)
f
16 19 H17-H20, H25-H26 Sanitary fittings 138,400.130. 8,820,575.50 93.88 % 66.67 % (16/24 x 100)
- (17/24 x 100)
17 9 D7 Brick paving •:
, 102..000
. .00 , 8,922,575.50 94.97 % 70.83 %
.18 23 L7 - L8 Enamel paint 88,200.00 9,010,775.50 95.91 % 75.00 % (18/24 xx 100)
19 15 F8 - F9 Valance board 86,300.00 . 9,097,075.50 96.82 % 79.17 % (19/24 x 1001
-
20 2 B10 Earth filling 85-,406.00' 9,182,475.50 97.73 % 83.33 % (20/24 x 100)
21 14 F7 Valley gutters 68,000:00 9,250,475.50 98.46 % 87.50 % (21/24 100)
22 18 H30 Sum for water tank 60,000.30 9,310,475.50 99.10 % 91.67 % (22/24 x 100)
23 17 G4 - G5 Timber railing 48,000.00 9,358,475_50 99.61 % 95.83 % 23/24 x 100)
24 13 F5 - F6 Ridge tiles 36,990.00 9.395,465.50 100.00 % 100.00 % (24/24 x 100)
9,395,465.50
SECOND EDITION, MINE 2008

(1011113111 Nall■1110:1 (1111

COST SIGNIFICANT GROUPS

GROUP
NO ITEMS ' DESCRIPTION QTY UNIT AMOUNT
NO c .
-
/ 3
1 1 B2-B6 Earth excavation-'.. 882.57 m 425,557.00
--- 3
2 3 CA1 - CA3 1:2:4(:21) Concrete '1, 25.74 m 790,480.00
CA4 - CAll 1:3:6(40) Concrele 58.89
-
3 5 CC1 - CC13 Reinforcement 2420.00 kg 224,070.00
3
4 6 D1 Rubble maSonii - 200.00 m 560,000.00
3
\ 204.09 m 1,362,848.00
5 7 D2 - D5 Brick work ---
i _ 2
6 8 D6, K1-K7, K22-K23 Cement plaster \ cl \ . 596.00 m 1,273,250.00
. _
K13-K19 Lime plaster ,,,,,,,,,,,--\, 1655.80
2
7 10 El - E3 Plywood doors • ___. 25.00 m 355,000.00
.... ,,
8 11 E4 - Ell Aluminium glazed window - --- 797,500.00
2
9 12 Fl - F2 Asbestos roof with frame A
93,5.00 m 1,144,511.00

10 16 F10-F12, H1-H16, J6-J PVC Products ._. - -..

-:"--------- 263,753.00
_.---- 2
11 20 K8 - K12 Ceramic floor tiles ..- -117.06. m 221,900.00
2
12 21 K20- K21 Ceramic floor tiles _ -, ,-,': -1.21.26 m 181,800.00

13 22 Ll - L6 Emulsion paint 1529:'40 )- m2 282,300.00

14 24 N1 - N13 Internal electrical supply „, _ 632,400.00

TOTAL 8,515,369.00
SECOND EDITION, JUNE 2008

(1011.1.31A V11:111i110:l
NORMS FOR COMMON ITEMS

Heavy equipment
.-- .

Small equipment
Unskilled labour
Skilled labour

Metal 20mm

Metal 40mm
SR

1 Cement
Group „„„„ _,-- „ -0 ,
c .0
0 0
no Description Unit 4.taritity':- `13
(0 cc 8

1
day . day hr hr 50kg m^ Md. Mj 0 nr
3 „.
1 1 Earth excavation m 1 .----- ' 0.40 \ 0.60 0.10
3
2 3 1:2:4(20) Concrete m 1 \._ „s \ 2:65 ,,,,,,6.20 0.83 7.00 0.20 0.97
\ ,,, „-
1:3:6(40) Concrete ,---0-.56
-
3,,40 0.12 5.10 0.55 1.02
': .------- \- -)
3 5 Reinforcement kg 1 \ 0:02\ _,„,0.02
3 --... ,"
4 6 Rubble masonry m 1 1.41 2:12 1.76 0.03 1.30
3 ----- ,„----
5 7 Brick work m 1 1.t0 _, --1:60 0.82 0.40 540
m2
6 8 Cement plaster 1 0.11 - ccfd _ , 0.15 0.02
.-
Lime plaster 0.11 ';- 0:13 -`"--
-,r- ', 0.09 0.02
2 . -- ' _ '
7 10 Plywood doors m 1 0.50 0.40 „-- - - - -
-- ,
8 11 Alumin. glazed windows . - ---

9 12 Asbestos roof with fram m2 1 0.10 0.15

,.. ,..._ „
10 16 PVC Products _ .._ --- .,-
2
11 20 Ceramic floor tiles m 1 0.43 0.38 \--- 7'
" ' ---\ 0.13 0.02
2
12 21 Ceramic wall tiles m 1 0.43 0.46 0.24 0.02
2
13 22 Emulsion paint m 1 0.10
14 24 Internal electrical supply -
 SE( ONI)EnrnoN,JUNE 2008

(10111.1.311ti 1111111110:1 (IV I ,)I

NORMS FOR COMMON ITEMS ( ............ contd.)

Door & window fitt.

sbes Roof sheet
Timber class 1
SR \
No

Wall paint

R/F steel
Pigment
Group

o
no Description Unit Quantity ,
_ m-4— ,, m 8
m' m-

I
_ kg m' kg IV kg nr
3 .
1 1 Earth excavation m
3
2 3 1:2:4(20) Concrete m 1 - .- -
1:3:6(40) Concrete
3 5 Reinforcement kg 1 N., ......,) - 1.16
3
4 6 Rubble masonry m 1
3
Brick work m 1 ,.. - , '\ .
f.7 5 7 _„
2
6 8 Cement plaster m 1 ■
Lime plaster 2.00

7 10 Plywood doors m2 1 0.90 67°26 _

. -- 1.50

8 11 Alumin. glazed windows

9 12 Asbestos roof with fram m2 1 0.012k 1.17
H
10 16 PVC Products
2
rig .
11 20 Ceramic floor tiles m 1 1.10 0.20
2
12 21 Ceramic wall tiles m 1 0.50 1.10
2

0
13 22 Emulsion paint m 1 0.25
0
14 24 Internal electrical supply
SECOND EDITION, JUNE 2008

I
QUANTITY OF INPUTS IVHOJ
I
VII

Heavy equipment
Small equipment
N

Unskilled labour
Skilled labour

Metal 20mm

Metal 40mm
SR RIA
-
No cu

Cement
DO
Group -- a3

Bricks
0 .0

-
no Description Unit

Quantity
day,,,, day day hr 50kg m4 m4 m4 m' nr
3 ...---
1 1 Earth excavation m 862:'51 35343 \ 529.54 88.26
3
2 3 1:2:4(20) Concrete m 2\74 \
65.64 159.59 21.36 180.18 5.15 24.97
-
1:3:6(40) Concrete 58.89 --32.98... --260.23 7.07 300.34 32.39 60.07
3 5 Reinforcement kg 2420.00 '' 8 : 1`...--41i.40
2
3
4 6 Rubble masonry m 200.00 282.00 __.424160`., 352.00 6.00 260.00
...- ... --
3
5 7 Brick work m 204.09 224.59- -106.14 167.35 81.64 110209
2
-
6 8 Cement plaster m 596.00 65.56 ,„ - 96'.36 \ 89.40 11.92
Lime plaster 1482.03 163.02 .,-,-492.66.7„ .- 133.38 29.64
2 .- ..,._
',..
7 10 Plywood doors m 25.00 12.50 1,0.00-- ,
8 11 Alumin. glazed windows
9 12 Asbestos roof with fram m2 905.00 90.50 135.70 \ -
10 16 PVC Products
2
11 20 Ceramic floor tiles m 117.00 50.31 44.46 ,, 15.21 2.34
2
12 21 Ceramic wall tiles m 121.20 52.12 55.75 29.09 2.42
m
m2
13 22 Emulsion paint 1595.10 159.51
14 24 Internal electrical supply .
TOTAL QUANTITY 1 1600.06 2201.88 28.43 88.26 1266.95 171.50 24.97 60.07 260.00 110209
fD
 800Z :MN NO11103 (1X1033S

If110110:1 fly.
QUANTITY OF INPUTS ( .............. . contd.)

Door & window Fitt.

,

Asbes. Roof sheet

Timber class 1
SR
No

Wall paint
-0 TI.) a)

Floor tile
-0

Pigment
a)
Group 11) ....

L-
no Description Unit QuantOr•'.-.::-, a ug
' -1
m' m' kg m` kg It kg nr m`
3
1 1 Earth excavation m 882.5;
3 ,---- •
2 3 1:2:4(20) Concrete m 25,74-_ -\,.....=>
1:3:6(40) Concrete 58.89 .
-
3 5 Reinforcement kg 2420.00 i-, .:-, .:
c 2807.20
3
4 6 Rubble masonry m 200.00 N--

3 _-
5 7 Brick work m 204.09
2 ;...
Institute for Construction Training and Development (ICIAD)

6 8 Cement plaster m 596.00

Lime plaster 1482.03 2964.06
7 10 Plywood doors 1 m
2
25.00 22.50 -
6. 6: -
, -- 37.50
8 11 Alumin. glazed windows
9 12 Asbestos roof with fram m2 905.00 10.86 .4050:k -"'
__,,\
10 16 PVC Products
2
Ceramic floor tiles m 117.00 .._•-,-
,-- 7-1----,\ 129 23.40
11 20 '''''-.
2
12 21 Ceramic wall tiles m 121.20 60.60 133.32
2
13 22 Emulsion paint m 1595.10 398.78
14 24 Internal electrical supply .... . _

TOTAL QUANTITY 22.50 11.36 1058.85 2964.06 129 84.00 398.78 2807.20 37.50 133.32

co
sooz aNtar Wonlaa amoaas

(10H13141 V11110103 (MIDI

-
COST (6F.41 TS FOR THE SPECIAL ITEMS

Group Description Total - Tolal - Cost of Al Cost of Cost of Cost of Cost of Cost of Remarks
No Amount —cost after work PVC elec. fittn. elec. Wire skilled lab. unsk. Lab.
Rs. s- ridiratH &p., -75% of cost * 70% of cost * 50% of cost * 20% of cost *
a b=ax75%_,--- bx75% c=bx70% cl =bx50% e=bx20%
_\__::,
lab 25% *
11 AluminiuM windows 797,500.00 598,125:00 448;693.75 119,625.00 29,906.25 sk:un = 4:1
lab 30% *
CI )
16 PVC Products 263,753.00 197,814. (------E 138,470.33 29,672.21 29,672.21 sk:un = 1:1
..--"\
lab 30% *
24 Internal electrical suppl 632,400.00 474,300.00 \--------- ---\ 237,150.00 94,860.00 94,860.00 47,430.00 sk:un = 2:1
V)

CD
CS'
TOTAL Rs. 448,W.75 _7:L138,470.33 237,150.00 94,860.00 244,157.21 107,00846

0
C

2 Note * These percentages were arrived using the experience and can bevaried-de\p_Oding on the nature of work

Or
a

G.
s7)
tc

(-3 co
X
6 00
ICTAD FORMULA METHOD Annex A

Sheet A8

COST OF INPUTS

No Input Qty Unit Price* Amount Total

ICTAD Name of input
No Amount
1 M4 Cement 1266.95 50kg 700.00 886.867.45 886,867.45
3
2 M6 Rubble 260.00 m 1,000.00 260,000.00 260,000.00
3 M7 Metal (3/4") 24.97 .3 1,600.00 39,948.48

Metal (1D 60.07 1,400.00 84,094.92

Total M7 124,043.40 124,043.40

4 M8 Sand 171.50 m3 2,500.00 428,745.25 428,745.25
5 M9 Brick 110209 nr 6.00 661,251.60 661,251.60
6 M12 Lime 2964.06 kg 60.00 177,843.60 177,843.60
7 M13 R/f steel 2807.20 kg 105.00 294,756.00 294,756.00
2
8 M16 Asbestoes roof 1058.85 m 325.00 , 344,126.25 344,126.25
9 M20 PVC pipe from Annex 7 138,470.33 138,470.33
10 M22 General timber 11.36 m 3
6,700.00 76,112.00 76,112.00
2
11 M23 Timber products 22.50 m 1,275.00 28,887.6 A 28,687.50
12 M25 D & W fittings 38 nr 175.00 \ 6,882.50\ 6;562.50
,

13 M26 Electrical wiring from Annex 7 ,,j, 94,886.00 'C94;860.00

14 M27 Wall paint 398.78 Itr \580,'00\ 231\289:'50 '''231,289,50
'
15 M32 Floor tile 128.70 L, 1,\00k00 ' t 141:670:00 141,570.00
._,
16 M33 wall tile 133(32 \ m2 ,. 700.00 . 93,324.00 93,324.00
'
17 M35 Colured pigment 84.00 , kg 540:00 45,360.00 45,360.00
18 M36 Aluminium work ., ftvrril, Aririex 7 448,593.75 448,593.75
, _..
19 M38 Electrical fittirigs , from Annex 7 237,150.00 237,150.00
20 L1 / Skilled lab-our 400.06 day 650.00 1.040.040.11
i ,
from Annex 7 244,157.21

_ Total L1 1,284,197.32 1,284,197.32

21 L3 Unskilled labour 2201.881 day I 450.00 990,844.61

from Annex 7 107,008.46

Total L3 1.097,853.07 , 1,097,853.07

22 P1 Small equipment 28.43 hr 800.00 22,744.80 22,744.80
23 P2 Heavy equipment 88.26 hr 1,000.00 88,257.00 88,257.00

TOTAL 7,212,665.31

* Price - one month prior to submission of Bid

39
SECOND EDITION„IUNE 2008 Institute for Construction Training and Development (ICTAD)
IC:l'AD1:012NIULA Num , Annex A

Sheet A9

CONTRIBUTION OF INPUTS TO THE COST

(Showing the amount with respect to each Input)
.__ .
No ICTAD Bulletin Name of input Amount Percentage
No

1 M4 Cement 886,867.45 12.30 %

2 M6 Rubble 260,000.00 3.60 %

3 M7 Metal 124,043.40 1.72 %

4 M8 Sand 428,745.25 5.94 %

5 M9 Brick 661,251.60 9.17 %

6 M12 Lime 177,843.60 2.47 %
7 M13 Rif steel 294,756.00 4.09 %
8 M16 Asbestoes roof 344,126.25\ ' 4.77 %
, v
9 M20 PVC pipe 138*70.33 1.92
^
10 M22 General timber \ 76,112.06\ ' 1.06 %
11 M23 Timber products 28,6 50 0.40 %
12 M25 t & W fittings_ \ • 6,562,50 0.09 %
\
13 M26 Electrical vifirilig 94,860.00 1.32 %
14 M27 Wall paint 231,289.50 3,21 %
15 M32 Fl6pr the 141,570.00 1.96 %
.,--\.
16 M33 Wall .) 93,324.00 1.29 %
;-
17 M35 Colured pigment 45,360.00 0.63 %
18 ',M36 Aluminium work 448,593.75 6.22 %
19 M38 Electrical fittings 237,150.00 3.29 %
20 L1 Skilled labour 1,284,197.32 17.80 %
21 L3 Unskilled labour 1,097,853.07 15.22 ')/0
22 P1 Small equipment 22,744,80 0.32 %
23 P2 Heavy equipment 88,257.00 1.22 %

TOTAL 7,212,665.31 100.00 %

40
SL('OND EDITION, JUNE 2008 Institute for Construction Training and Development (ICI Al))
IC.TADFoRA1111,1 Nivriion Annex A

Sheet A I 0

CONTRIBUTION OF INPUTS TO THE COST

(After eleminating of inputs for which the contribution is less than 0.50%)

No ICTAD Bulletin Name of input Amount Percentage

No
1 M4 Cement 886,867.45 11.16 %
2 M6 Rubble 260,000.00 3.27 %
3 M7 Metal 124,043.40 1.56 %
4 M8 Sand 428,745.25 5.39 %
5 M9 Brick 661,251.60 8.32 %
6 M12 Lime 177,843.60 2.24 %
7 M13 R/f steel 294,756.00 3.71 %
8 M16 Asbestoes roof 344,1i6.6 4.33 %
9 M20 PVC pipe c 1$,470.3 1.74 %
10 M22 General timber \. 76:,,112):e. , 0.96 %
11 M26 Electrical wiring 94;gs0.a0 1.19 %
12 M27 Wall paint _,_, ,‘ 21 289.50 2.91 %
.."
13 M32 Floor tile c -\\ ' 141,570.00 1.78 %
14 M33 • Wail tiI4„ 93,324.00 1.17 %
-
15 M35 ''', COTOUrea\ piqrriekt 45,360.00 0.57 %
16 M36 V) 1 Alur at ium work 448,593.75 5.64 %
1
17 (\,,- r‘/O'S Erectfical fittings 237,150.00 2.98 %
18 1.1 ' Skilled labour 1,284,197.32 16.15 %
19 _L3 Unskilled labour 1,097,853.07 13.81 %
20 P2 Heavy equipment 88,257.00 1.11 %

SUB TOTAL * 7,154,670.51 90.00 %

GRAND TOTAL ** 7,949,633.90 100.00 %

The Sub Total amount of Rs. 7,154,670.51 is considered as 90% of the cost

**
Hence, Grand Total is computed by multiplying the Sub Total by a factor of [100/90]

41
SECOND EDITION„IIIINE 2008 Institute for Construction Training and Development ( ICTAD)
1(:1',.■1) lq.)IZNIULA NIETIRM Annex A

Sheet A I 1

FINAL INPUT PROPORTIONS FOR THE CONTRACT

ICTAD Bulletin Name of input .Amount Percentage

No

M4 Cement 886,867.45 11.16 %

)
M6 Rubble 260,000.00 3.27 `/0
M7 Metal 124,043.40 1.56 %
M8 Sand 428,745.25 5.39 %
M9 Brick 661,251.60 8.32 %
M12 Lime 177,843.60 2.24 %
M13 Rif steel 294,756.00 3.71 %
M16 Asbestoes roof 344,126.25 ci" 133 ok
\

M20 PVC pipe 138,470.33 , 's t.74 °A

M22 General timber 76,41?.00-, 4:96 °A
,,
M26 Electrical wiring 94\860\00 j, ' „, ,..1:'19
, \ \
M27 Wall paint \,234,2q9.5p
,
. 2.91 %
M32 Floor tile ;- ‘,. ■ , 1'41';,ViT:Ob 1.78 %
M33 Wall tile \ 63,324.00 1.17 %
M35 Coloured pigment 45,360.00 0.57 %
M36 AlUmihium work 448,593.75 5.64 %
M38 • Electrical fittings 237,150.00 2.98 %
L1 Skilled labour 1,284,197.32 16.15 %
L3 Unskilled labour 1,097,853.07 13.81 %
P2 Heavy equipment 88,257.00 1.11 %

9 0. 0 0 %

42
SECOND EDITION, JUNE 2008 Institute for Construction Training and 1)evelopment (1(2.1 Al))
IC LAD FORNIMA N1ETDOD Annex B

ANNEX B
Sheet I of 2

SPECIMEN CALCULATION SHEET FOR MONTHLY

PRICE FLUCTUATION CLAIM

1.0 Price adjustment computation for the valuation No.

2.0 Previous Valuation

a. Date

b. Cumulative value of certified work done Rs.

c. Cost of material at site Rs.

d. Cumulative cost of non-adjustable element Rs.

3.0 Current Valuation

a. Date

b. Cumulative value of certified work done Rs.

c. Cost of materials delivered to site Rs.

d. Cumulative cost of non adjustable element Rs.

e. Indices applicable for current valuation

(month/year)

4.0 Computation of V - V.

V - Vna (3b + 3c - 3d)-(2b + 2c - 2d)

5.0
100

43
SECOND EDITION„D.INE 2008 Institute for Construction Training and Development (ICIAD)
ICTAD FORMULA METHOD Annex B

ANNEX B
Sheet 2 of 2

6.0 Computation of E
all
1)111 1
1j
71
Ixb (refer the table below)
inputs

7.0 Price Adjustment for the Current Valuation

Step 5 x Step 6

8.0 The above sum should be subjected to payment of VAT as any other payment made to
the contractor

Specimen calculation sheet for step 6.0

1 2 3 4 5
Name of input Input percentage Base index Current Index Px (Iv; - lxb)
(Px) (Lb) (L,c) Ixb

Total Sum

44
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (IC FAD)
icrikh FORMULA NIETOOD Annex C

ANNEX C
Sheet C

EXAMPLE FOR COMPUTATION OF PRICE FLUCTUATION FOR

WORKS EXCEEDING RUPEES TEN MILLION (>RS. 10M)

The example given below illustrate the computation of price fluctuation for two interim
bills. The data given below includes the General Contract data required for computations
and the details of interim claim Nos. 1, 3 & 4.

CONTRACT DATA

Total Contract Sum Rs. 15,647,281.26

Date of Closing Bids 13-Feb-2007

Date of commencement of Works 04-May-2007

CLAIM NO. 1

Date of Submission 05-July-2007

Value of Certified Work done (cumulative) Rs. 1,248,634.51

80% of Cost of Material at site Rs. 50,000.00

Value of Non-adjustable Element (cumulative) Rs. 90,500.00

CLAIM NO. 3

Date of Submission 07-Aug-2007

Value of Certified Work done (cumulative) Rs. 5,702,864.53

80% of Cost of Material at site Rs. 70,000.00

Value of Non-adjustable Element (cumulative) Rs. 90,500.00

CLAIM NO. 4

Date of Submission 08-Dec-2007

Value of Certified Work done (cumulative) Rs. 8,864,251.54

80% of Cost of Material at site Rs. 40,000.00

Value of Non-adjustable Element (cumulative) Rs. 108,335.00

45
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development I AD1
I(' FAD 111:11101) Annex C

Sheet C2

Computation Sheet (Claim No. 01)

1.0 Price adjustment computation for the valuation No. 01

2
.0 Previous Valuation

a. Date NA

b. Cumulative value of certified work done NA

c. Cost of material at site NA

d. Cumulative value of non-adjustable element NA

3.0 Current Valuation

a. Date 05-July-2007

b. Cumulative value of certified work done Rs. 1,248,634.51

c. Cost of material at site Rs. 50,000.00

d. Cumulative value of non adjustable element Rs. 90,000.00

e. Month applicable for Current Indices May-2007

f. Month applicable for Base Indices Jan-2007

4.0 Computation of V - Vna.

V - V na = (3b + 3c - 3d)-(2b + 2c - 2d) Rs. 1,208,134.51

5.0 0.966(V - V im) Rs. 11.670.58

100

6.0 Computation of

E Lb) • 2.40
Ixn
(See Sheet C3)

7.0 Price Adjustment for the current valuation

= Step 5 x Step 6
= 11,670.58 x 2.40 Rs. 28,009.39

46
SECOND EDITION, JUNE 2098 Institute lor Construction Training and Development (ICI Al))
 I("l'AI)1, 01tMULA NIE1'I101) A11110.\

Sheo C.;

Computation of Z PX ( - Lh) for Claim no 01

100

Input % Base Index Current Index

Input No Name of Input (PO . (Lb) (lxc) Pvfly,-L)
lx1)
Jan-07 May-07

M4 Cement 11.16 352.4 353.6 0.04

M6 Rubble 3.27 387.0 396.5 0.08

M7 Metal 1.56 208.3 223.5 0.11

M8 Sand 5.39 1430.1 1444.9 0.06

M9 Brick 8.32 771.6 760.1 -0.12

M12 Lime 2.24 319.4 336.0 0.12

M13 R/f steel 3.71 294.8 043.7 0.62

(
M16 Asbestoes roof 4.33 223.7 ,-.\
„„
; 39;0 0.30

M20 PVC products 1.74 427.9 ' , 1 427.9 0.00

-- ,
\
M22 General Timber 0.96 , '\\ 649.5 ',671.4 0.03
, 1
M26 Electrical wiring 11\9 „ 402:5 350.8 -0.15

Wall paint \
; 2,91 ' ,-3\
\:, ,\ 400 424.5 0.18
M27
\
\ -)
M32 Floor tile " \\- 1 1.48 \ -- 143.1 149.6 0.08

M33 Wall tile-. - 1. )1.17- 226.2 261.9 0.19

M35 _ Colg,ur 1.grtaen‘. \''.--\ '' ''i0.57 225.6 226.3 0.00

/ \ -
M36 (\„AluminiuM work1. ,- 5.64 291.4 293.3 0.04
. \ \
M38 \ _Elect. Fittings 2.98 140.8 142.0 0.03

L1 \ Sktifled labour 16.15 290.1 295.6 0.31

L3 Unskilled labour 13.81 320.1 331.0 0.47

P2 Heavy equipment 1.11 238.4 249.3 0.05

90.00 Sum 2.40

47
OND EDIT ION. JUNE20(18 institute !Ur Construction '! raininit. and 1)evelopment (I(' I \ I))
ICTAD FORNIULA METHOD Annex C

Sheet C4

Computation Sheet (Claim No. 04)

1.0 Price adjustment computation for the valuation No. 04

2.0 Previous Valuation

a. Date 07-Aug-2007

b. Cumulative value of certified work done Rs. 5,702,864.53

c. Cost of material at site Rs. 70,000.00

d. Cumulative value of non-adjustable element Rs. 90,500.00

3.0 Current Valuation

a. Date 18-Dec-2007

b. Cumulative value of certified work done Rs. 8,864,251.54

c. Cost of material at site Rs. 40,000.00

d. Cumulative value of non adjustable element Rs. 108,335.00

e. Month applicable for Current Indices Sep-2007

f. Month applicable for Base Indices Jan-2007

4.0 Computation of V - Vna•

V- = (3b + 3c - 3d)-(2b + 2c - 2d) Rs. 3,113,552.01

5.0 0.966(V - V1,4) Rs. 30,076.91

100

6.0 Computation of

Px (1xc - [ N O 4.95
Ixb
(See Sheet C5)

7.0 Price Adjustment for the current valuation

F = Step 5 x Step 6
= 30,076.91 x 4.95 Rs. 148,880.70

48
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
 I(' l'AI)1:012.11U1,,■ Annex ('

Sheet C5

Computation of E P, ( - ) for Claim no 04

100

Input % Base Index Current Index

Input No Name of Input (Px) • (ixb) (lxc) Pr(IrAvh)

Jan-07 Sep-07 Ixb

M4 Cement 11.16 352.4 368.9 0.52

M6 Rubble 3.27 387.0 401.8 0.13

M7 Metal 1.56 208.3 227.4 0.14

M8 Sand 5.39 1430.1 1475.4 0.17

M9 Brick 8.32 771.6 764.2 -0.08

M12 Lime 2.24 319.4 341.3 0.15

M13 R/f steel 3.71 294.8 ,397.2 1.29

M16 Asbestoes roof 4.33 223.7 , < ( ' 45..9 0.43

, , \
M20 PVC products 1.74 427.9 ' ' ', 438.i 0.04
,- 1 ' \

M22 General Timber 0.96 649.5 ' 6 9 -0.01

M26 Electrical wiring .t19 '16 \ .- ' 355.7 -0.14

M27 Wall paint i91. ':\ 400 424.5 0.18

M32 Floor tile ' , 1.k8 \ '--- 143.1 158.3 0.19

, 1 s_ ,
M33 Wall tile-, ' . 0 11.17 226.2 321.4 0.49

M35 ,._...._- /
coio,ur ..iiicinent
..., . . 0.57 225.6 227.1 0.00
7 \ ,,5---
, ,,-
M36 i -Aluminiutii works,, 5.64 291.4 296.0 0.09
M38 ,E16ict. Fitti:ngs 2.98 140.8 144.4 0.08
:
L1 skilled labour 16.15 290.1 299.2 0.51
L3 Unskilled labour 13.81 320.1 335.3 0.66
P2 Heavy equipment 1.11 238.4 264.6 0.12

90.00 Sum 4.95

49
Si (1)>;T.) 11)1-'10N, .11:NE 2003 Institu1 ,2 for Construction Trailing and Developmen1 (IC I-,\1)).
 FORMULA NI El i101) Annex D

ANNEX D
Sheet D

EXAMPLE FOR COMPUTATION OF PRICE FLUCTUATION USING

SIMPLIFIED FORMULA (<Rs. 10 M)

The example given below illustrate the computation of price fluctuation for two interim bills
using simplified formula. The data given below includes the General Contract Data
required for computations and the details of interim claim Nos. 1, 3 & 4.

CONTRACT DATA
Total Contract Sum Rs. 4,327,355.33
Date of Closing Bids 13-Feb-2007
Date of commencement of Works 04-May-2007
Type of Work Average office building
CLAIM NO. 1
Date of Submission 05-July-2007
Value of Certified Work done (cumulative) Rs. 767.885.73
80% of Cost of Material at site Rs. 50,000.00
Value of Non-adjustable Element (cumulative) Rs. 15,000.00
CLAIM NO. 3
Date of Submission 07-Aug-2007
Value of Certified Work done (cumulative) Rs. 2,135,133.27
80% of Cost of Material at site Rs. 70,000.00
Value of Non-adjustable Element (cumulative) Rs. 15,000.00
CLAIM NO. 4
Date of Submission 08-Dec-2007
Value of Certified Work done (cumulative) Rs! 3,995,333.27
80% of Cost of Material at site Rs. 40,000.00
Value of Non-adjustable Element (cumulative) Rs. 15,000.00

Indices for Average office building — (Table 5 — "Non Residential Building" of ICTAD
Publication; Bulletin of Construction Statistics)
January 2007 - 366.5
May 2007 381.3
September 2007 - 399.0

5I
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (ICTAD)
[(MAD FORNRIA NiFFIIOD Annex I)

Sheet D2

Computation Sheet (Claim No. 01)

1.0 Price adjustment computation for the valuation No. 01

2.0 Previous Valuation

a. Date - NA

b. Cumulative value of certified work done NA

c. Cost of material at site NA

d. Cumulative value of non-adjustable element NA

3.0 Current Valuation

a. Date 05-July-2007

b. Cumulative value of certified work done Rs. 767,885.73

c. Cost of material at site Rs. 50,000.00

d. Cumulative value of non adjustable element Rs. 15,000.00

e. Month applicable for Current Indices May-2007

f. Month applicable for Base Indices Jan-2007

4.0 Computation of V -

V - V,-,a = (3b + 3c - 3d)-(2b + 2c - 2d) Rs. 802,885.73

5.0 0.869(V - Vim) Rs. 697,707.70

6.0 Computation of

- Itb) = (381.3 - 366.5) 0.040

lib 366.5
(See Sheet C3)

7.0 Price Adjustment for the current valuation

F = Step 5 x Step 6
= 697,707.70 x 0.04 Rs. 27,908.3 1

52
SECOND EDITION, Rm. 2008 Institute for Construction Training and Development (ICI AD)
icrAD FORNIULA NII:1110D Annex D

Sheet D3

Computation Sheet (Claim No. 04)

1.0 Price adjustment computation for the valuation No. 04

2.0 Previous Valuation

a. Date 07-Aug-2007

b. Cumulative value of certified work done Rs. 2,135,133.27

c. Cost of material at site Rs. 70,000.00

d. Cumulative value of non-adjustable element Rs. 15,000.00

3.0 Current Valuation

a. Date 08-Dec-2007

b. Cumulative value of certified work done Rs. 3,995,333.27

c. Cost of material at site Rs. 40,000.00

d. Cumulative value of non adjustable element Rs. 15,000.00

e. Month applicable for Current Indices Sep-2007

f. Month applicable for Base I ndices Jan-2007

4.0 Computation of V - Vna

V - Vna = (3b + 3c - 3d)-(2b + 2c - 2d) Rs. 1,830,200.00

5.0 0.869(V - Vna) Rs. 1,590,443.80

6.0 Computation of

Litc - = (381.3 - 366.5) 0.089

Itb 366.5
(See Sheet C5)

7.0 Price Adjustment for the current valuation

F = Step 5 x Step 6
= 1,590,443.80 x 0.089 Rs. 141,549.50

53
SECOND EDITION, JUNE 2008 Institute for Construction Training and Development (1C'TAD)