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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and 32.10 of CPWD Works Manual 2007 are hereby withdrawn with immediate effect.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
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 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
extended under the provisions of clause 5 of
the contract without any act ion under clause
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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