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OFFICE MEMORANDUMNo.DGW/MAN/167A

ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS

NIRMAN BHAVAN, NEW DELHI DATED: 18.02.2009_

Subject: Amendment of section 32.8, 32.9 and 32.10 containing Clause 10C,

10CA and 10CC of CPWD Wor ks Manual-2007

Modifications done vide OM No. DGW/MAN/167 dt. 1.12.08 to para 32.8, 32.9

and 32.10 of CPWD Works Manual 2007 are hereby withdrawn with immediate effect.

The re-modified provisions of these paras shall be as under which shall be applicable

only in respect of the new contracts and shall not be applicable to contracts already drawn

or where tenders have already been received and not finalized

Existing Provision Modified Provision32 .8 Claus e 10 (C) of Form s n o. CPWD 7 an d

8

1) Claus e 1 0(C) provides for re-im bu rsem en t

to contractor due to increas e/ decrease caused

as a direct result of coming into force of any

fresh law or statutory rule or order (but not

du e to any cha nges in sa les tax/ VAT), in th e

price of material incorporated in the works

(excluding the materials covered under clause

10CA) an d/ or wages of labou r increased over

prices/ wages prevailin g at the time of the las tstipulated date of receipt of tenders including

extensions, of any, for the work during

contract period including the justified period

extended under the provisions of clause 5 of

the contract without any act ion under clause

2. The increase should not be at tr ibutable to

delay in the execution of the contract within

the control of the contra ctor.

2) The operation of the clause includes the

increase as well as decrease in price of

ma terials an d/ or the wages of labour.

3) To ensure uniformity in working out the

rates so payable, following procedure shall befollowed:

(i) Materials:

The Increased / Decreased rates of ma terial(s)

shall be approved by Zonal Chief Engineer.

Payment/ Recovery shall be ma de by

Engineer-in-Charge on the basis of theoretical

consumption of material(s) multiplied with

difference in cost of such material(s) as

32 .8 Clause 1 0(C) of Form s n o. CPWD 7 an d

8

1) Clause 10(C) provides for re-imbursement

to contractor due to increase/ decrease cau sed

as a direct result of coming into force of any

fresh law or statutory rule or order (but not

du e to any cha nges in sa les ta x/ VAT), in th e

price of material incorporated in the works

(excluding the materials covered under clause

10CA) an d/ or wages of labou r increased over

prices/ wages prevailing at th e time of the laststipulated date of receipt of tenders including

extensions, of any, for the work during

contract period including the justified period



2. The increase should not be at tr ibutable to

delay in the execution of the contract within

the control of the contra ctor.

2) The operation of the clause includes the

increase as well as decrease in price of

ma terials an d/ or the wages of labour .

3) To ens u re u niformity in working out the

rates so payable, following procedure shall befollowed:

(i) Materials:

The Increased/ Decreased rates of ma terial(s)

shall be approved by Zonal Chief Engineer.

Paymen t/ Recovery sh all be made by Engineer-

in-Charge on the basis of theoretical

consumption of material(s) multiplied with

difference in cost of such material(s) as


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prevailing at the time of receipt of tender and

increased / decreased ra tes a s approved by

Zonal Chief Engineer.

(ii) La bou r:

The increase/ Decrease sha ll be approved and

Paid/ Recovered by Enginee r-in-Ch arge on the

ba sis of Incre ase/ Decreas e of wages of labourcoming into force as per fresh law or sta tu tory

ru le or order.

4) Clause 10(C) forms .. in the

na tu re of an equ itable reimbu rsemen t.

5) The claim for increase increased over the

prices/ wages prevailin g at the time of the las t

stipulated date of receipt of tenders including

extensions, if any, for the work duringcontract period including the justified period



2, shall be payable which shall be limited to

the prices/ wages prevailing at the t ime of

stipulated date of completion or as prevailing

for the period under consideration, whichever

is less .

This clause shall not be applicable where

claus e 10CC is app licable.

32 .9 Claus e 1 0 (CA) of Form s n o. CPWD 7

a n d 8

(1) Clause 10 CA provides

cons titu ting su bs tan tial

pa rt of the work.

The NIT approving authority may consider

bringing materials like cement, steel,

structural steel , b i tumen etc. under the ambit

of this claus e. Su ch list of m aterials (otherthan Cement, Steel reinforcement bars and

structural steel) shall be got approved from

ADG concerned, who shall have full powers for

su ch approval . The material , the est imated

cost of which is less th an 5% of estima ted cost

of work and the materials l ike sand, stone

etc., the prices of which vary from place toplace, need not be considered. The items

which are su pplied by the departmen t a t fixed

price to the contractor shall also not be

considered.

(2) All India Whole Sale Price indices for

various materials (except Cement, Steel

reinforcement bars of structural steel) as

published regularly by Economic Advisor to

Government of India, Ministry of Commerce

prevailing at the time of receipt of tender and

increase d/ decreased rates as approved by

Zona l Chief Engin eer.

(ii) La bou r:

a) The increas e/ Decrease sha ll be approved

an d Paid/ Recovered by Engineer-in-Cha rge on

the basis of Increase/ Decrease of wages oflabour coming into force as per fresh law or

sta tu tory rule or order.

b) The Inc r ease / D ec rease labour sh a l l be

c o n s i d e r e d o n t h e m i n i m u m d a i l y w a g e s i n

rupees i f any unsk i l l ed adu l t mazdoor ,

f i xed unde r any l aw o r s t a t u t o ry ru l e o r

o rde r .

4) Clause 10(C) forms .. in the

na tu re of an equ itable reimbu rsemen t.

5) The claim for increase over and above the

prices/ wages prevailing at th e time of the last

stipulated date of receipt of tenders including

extens ions , if an y, for the work du ring cont ractperiod including the justified period extended

un der the provisions of clau se 5 of the contract

without any act ion under clause 2, shal l be

payable which shall be limited to the

prices/ wages prevailing at th e time of

stipulated date of completion or as prevailing

for the period under consideration, whichever

is less .

This clause shall not be applicable where

claus e 10CC is app licable.

32 .9 Clause 10 (CA) of Form s n o. CPWD 7

a n d 8

(1) Clause 10 CA provides

constituting substantial part

of the work.

The NIT approving authority may consider

bringing materials like cement, steel,

structural steel , b i tumen etc. under the ambit

of th is claus e. Su ch list of m aterials (other

than Cement, Steel reinforcement bars and

structural steel) shall be got approved from

ADG concerned, who shall have full powers for

su ch approval . The material, the est imated

cost of which is less than 5% of estimated cost

of work and the ma terials l ike s an d, stone etc. ,

the prices of which vary from place to place,need not be considered. The item s which are

supplied by the department at fixed price to

the con tractor sh al l also not be considered.

(2) All India Whole Sale Price indices for

various materials (except Cement, Steel

reinforcement bars of structural steel) as

published regularly by Economic Advisor to

Government of India, Ministry of Commerce

and Industry available at their website


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and Industry available at their website

http.eaindustry.nic.in and price indices forcement, steel reinforcement and structural

steel as issu ed u nder the a uth ority of Director

General (Works) CPWD consideration

whichever is lesser. sh all be followed. In case,

for a particular material, price indices is notbeing published by Ministry of Commerce and

Industry, the price indices of nearest similar

m ate rial sh all be followed. List of m ate rials

for which this clause is a pplicable a nd nea rest

similar ma terial sh al l be indicated in s chedule

F of GCC while finalizing NIT of a work as

illus tra ted below.

Clau se 10 CA

Material covered

un der th is c laus e

1. Cement

2. Steel reinforcement

bars

3. Structu ral steel

4 ..

5 ..

Nearest

ma terial other

then Cement

reinforcement

b ar s an dst ructura l s teel

for wh ich All

India Whole

sa le Price

Index is to be

followed

1 ..

2 ..

3 ..

4 ..

5 ..

(3) The base price for Cement, Steel

reinforcing bars and structural steel for Delhi

including Noida, Gurgaon Faridabad and

Gha zibad s ha ll be issued by Director General

(Works) and for other places shall be issued

by concerne d Zona l Chief Engineer. Base

prices for other materials covered under

clause 10CA shall be issued by concerned

Zona l Chief Engineer. This clau se sha ll be

ap plicab le for all the contra cts.

32.10 Clause 10(CC) of Forms no. CPWD 7

a n d 8

1) This clause provides for variation in

contract amount due to variat ions in price of

ma terials, POL an d/ or wages of labou r

required for execution of work (not for the

materials supplied or services rendered at

http.eaindustry.nic.in and price indices forcement, steel reinforcement and structural

steel as issu ed u nder the a u thori ty of Director

General (Works) CPWD consideration

whichever is lesser. shall be followed. In case,

for a particular material, price indices is not

being published by Ministry of Commerce andIndustry, the price indices of nearest similar

m at erial sh all be followed. List of m ate rials for

which this clause is applicable and nearest

similar material shall be indicated in schedule

F of GCC while finalizing NIT of a work as

illus tra ted below;

Clau se 10 CA

Material covered

un der th is c laus e

1. Cement

2. Steel

reinforcement

bars

3. Structu ral steel

4..

Nearest

ma terial other

then Cement

reinforcement

b ar s an ds t ru c tu ra l

steel for

which All

India Whole

sa le Price

Index is to be

followed

1 ..

2 ..

3 ..

4 ..

Base

Pr ice

of all

t h e

m a t e rials

cove r

e d

u n d e r

c l ause

10CA*

* Base Pr ice of a l l the mater ia l s coveredu n d e r c l a u s e 1 0 C A i s t o b e m e n t i o n e d a t

t h e t i me o f approva l o f NIT.

(3) The base price for Cement, Steel reinforcing

bars and structural steel for Delhi including

Noida, Gu rgaon Fa ridab ad a nd Gh azibad s ha ll

be issued by Director General (Works) and for

other places shal l be issued by concerned

Zona l Chief Engineer. Base prices for other

materials covered under clause 10CA shall be

issued by concerned Zonal Chief Engineer.

This clause shall be applicable for all the

contracts.

32 .10 Claus e 1 0(CC) of Form s n o. CPWD 7

a n d 8

1) This claus e p rovides for variation in contra ct

amount due to variations in price of materials,

POL an d/ or wages of labour r equired for

execution of work (not for the materials

su pplied or s ervices ren dered at fixed price in


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fixed price in accordance with clauses 10 and

34 and excluding materials covered under

claus e 10CA), su bject to certain conditions .

2) Clause 10(CC) will be applicable in

contracts where the stipulated period for

complet ion is more than 1 8 month s.

3) Payment under clause 10(CC). for t h e p eriod u n der

cons idera tion whichever is less er.

(4) Where provisions of clause 10CC are

applicable, provisions of clause 10C will not

be applicable but provisions of clause 10CA

will be a pplicable.

32 . 10 . 1 P re -de t e rmi na t i on o f a l l

com ponen t s a ff ec t i ng c lause 1 0(C C)

1) The components of materials, excludingmaterials covered under clause 10CA, labour

and P.O.L. for every work have to be pre-

determined and incorporated in the schedule

E. For this pu rpose, the works, sha ll be

classified broadly as under:

(i) Building works including sanitary and

water su pply.

(ii) Road works and pavement works in

airfields.

(iii) Development works.

(iv) Carriage works.

(v) Internal electrical installations.

(vi) Exter n al electrica l works.(vii) Supplying and installation of machinery,

like li fts , su b-stat ions , pu mp sets etc.

2) In t h e c a se of .. variou s

cat egories of civil works :

Cate gory of

workCement

+ Steel +

Material*

Labou r P.O.L.

Buildings

75% 25% --

Road Works

&

pavementsin airfields

90% 5% 5%

External

sewerage 90% 10% -

External

water

supply

95% 5% -

Bridgework/

accordance wi th c lauses 10 and 34 and

excluding materials covered under clause

10CA), s u bject to certain conditions .

2) Clause 10(CC) will be applicable in contracts

where the stipulated period for completion is

more than 18 months .

3) Payment under clause 10(CC). for the period under

cons idera tion whichever is less er.

(4) a ) Where provisions of clause 10CC are

applicable, provisions of clause 10C will not be

applicable but provisions of clause 10CA will

be ap plicable.

b) Where provis ions of c lause 10CC are

no t app l i cab le , p rov is i ons o f c l ause 10 C and

10 CA wi ll becom e ap pl icable .

32 . 10 . 1 P re -de t e rmi na t i on o f a l l

com ponen t s a ff ec t i ng c lause 1 0(C C)

1) The components of materials, excludingmaterials covered under clause 10CA, labour

and P.O.L. for every work have to be pre-

determined and incorporated in the schedule

E. For th is purpose, the works, sha ll be

classified broadly as under:

(i) Building works inclu ding san itary an d wa ter

supply.

(ii) Road works and pavement works in

airfields.

(iii) Development works.

(iv) Carriage works.

(v) Internal electrical installations.

(vi) Exter n al electrica l works.(vii) Supplying and installation of machinery,

like li fts , su b-stat ions , pu mp sets etc.

2) In the case of .. various

ca tegories of civil works :

Cate gory of

workCement

+ Steel +

Material*

Labour P.O.L.

Buildings

75% 25% --

Road Works

&

pavementsin airfields

90% 5% 5%

External

sewerage 90% 10% -

External

water

supply

95% 5% -

Bridgework/


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Base Pr ice of Cem en t : (M)

n) Les s C os t o f r e i n fo r cemen t

ba r s

Q uan t i t y o f r e i n fo r cemen t ba r s b rough t

a t s i t e f o r bona f i de use i n t he w ork

dur i ng t he qua r t e r X B ase Pr i ce o f

re inforce m en t bars : (N)o) Les s cos t o f s t r u c t u r a l s t ee l

Q u a n t i t y o f S t r u c t u r a l S t e e l b ro u g h t a t

s i t e f o r bona f i de use i n t he w ork dur i ng

t h e q u a r t e r X B a s e P r i c e o f S t r u c t u r a l

Steel: (O)

p) Les s cos t o f o t he r ma t e r i a l cove red

un de r c l ause 10 C A

Q uan t i t y o f such Mat e r i a l/ Ma t e r i a ls

b r o u gh t a t s i t e f o r b o n a fi d e u s e i n t h e

w or k d u r i n g t h e q u a r t e r c o v e re d u n d e r

c lause 10 CA X Base Pr ice of such

Mater ia l / Mater ia l s : (P)

Cost of work for which es calation/ de-esca lation is app licable :W = R (K + L) (M+N+O+P)

4) All India Wholesale Price Index for civil

Execu tive E n gineer s

un der th eir ju risdict ion.

5) Copies of all sanctions issued by

. accepted by the Chief

Engineer.

m ) Cost of work for which esca lation/ de-es ca lation is a pp lica ble (M)

W = M (K + L)

4) All India Wholesale Price Index for civil

Execu tive E n gine er s

un der th eir ju risdict ion.

5) Copies of all sanctions issued by

. accepted by the Chief

Engineer.

- sd -

Superintending Engineer (C&M)

Issued from file No. CSQ/CM/M/16(1)/2008

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