PMC💰 Contract & BillingPrice Escalation Calculation

Price Escalation Calculation

form
PMC-BIL-FRM-003·v1.0-beta·⚠ Beta — review before use

This form is used to calculate the price adjustment (escalation or de-escalation) for materials and labour based on the contract formula. It's the hisaab for how much extra money the contractor gets (or gives back) because of changes in the price of cement, steel, fuel, and labour wages.

ReferencesCPWD Manual (Vol II) - Appendix 11 (Guidelines for Price Adjustment)FIDIC Red Book (1999) Sub-Clause 13.8 [Adjustments for Changes in Cost]FIDIC Red Book (2017) Sub-Clause 13.7 [Adjustments for Changes in Cost]Reserve Bank of India (RBI) Bulletins for Wholesale Price Index (WPI) and Consumer Price Index (CPI)
Download
📍 When to use this template
  • Typically prepared and submitted along with each Running Account (RA) Bill.
  • Triggered when the contract includes a Price Variation Clause (PVC) and the project duration crosses the base date.
  • Filled by the Contractor's billing engineer and verified by the PMC/Client's Quantity Surveyor (QS).
Sections & fields
Preview of the template structure. Download Excel to fill on site.
1Header / Project Information9 fields
Project Name
_____________
Contract / Package No.
_____________
Document Reference No.
_____________
RA Bill No.
_____________
Date of Calculation
_____________
Period of Calculation (From/To)
_____________
Prepared By (Contractor)
_____________
Verified By (PMC)
_____________
Approved By (Client)
_____________
2Contractual Basis & Base Indices9 fields
Relevant Contract Clause No. for PVC
_____________
Base Date for Indices
_____________
Source of Indices (e.g., RBI Bulletin, Labour Bureau)
_____________
Fixed Component Percentage (%)
_____________
Weightage for Labour (W_L)
_____________
Weightage for Cement (W_C)
_____________
Weightage for Steel (W_S)
_____________
Weightage for POL/Fuel (W_F)
_____________
Weightage for Other Materials (W_O)
_____________
3Value of Work Done4 fields
Gross Value of Work Done in this RA Bill (As per MB)
_____________
Value of Secured Advance (if any, to be excluded)
_____________
Value of Non-escalable Items (e.g., Preliminaries, specified items)
_____________
Net Value of Work Done for Escalation Calculation (V)
_____________
4Labour Escalation Calculation5 fields
Labour Component Weightage (W_L)
_____________
Base Labour Index (L₀)
_____________
Current Labour Index (L₁)
_____________
Escalation Formula Used (e.g., V * W_L * (L₁ - L₀) / L₀)
_____________
Calculated Labour Escalation / De-escalation Amount
_____________
5Cement Escalation Calculation5 fields
Cement Component Weightage (W_C)
_____________
Base Cement Index (C₀)
_____________
Current Cement Index (C₁)
_____________
Escalation Formula Used (e.g., V * W_C * (C₁ - C₀) / C₀)
_____________
Calculated Cement Escalation / De-escalation Amount
_____________
6Steel Escalation Calculation5 fields
Steel Component Weightage (W_S)
_____________
Base Steel Index (S₀)
_____________
Current Steel Index (S₁)
_____________
Escalation Formula Used (e.g., V * W_S * (S₁ - S₀) / S₀)
_____________
Calculated Steel Escalation / De-escalation Amount
_____________
7POL (Fuel) Escalation Calculation5 fields
POL Component Weightage (W_F)
_____________
Base POL Index (F₀)
_____________
Current POL Index (F₁)
_____________
Escalation Formula Used (e.g., V * W_F * (F₁ - F₀) / F₀)
_____________
Calculated POL Escalation / De-escalation Amount
_____________
8Summary & Attachments8 fields
Total Labour Escalation
_____________
Total Cement Escalation
_____________
Total Steel Escalation
_____________
Total POL Escalation
_____________
Gross Total Escalation for the Period
_____________
Net Payable Escalation Amount (to be carried to RA Bill)
_____________
Attached RBI Bulletin / Index Publication Reference
_____________
Remarks / Notes
_____________
💡 Sample filled excerpt
Section: Steel Escalation Calculation | Steel Weightage (W_S): 15% | Base Steel Index (S₀): 112.5 (Jan-2022) | Current Steel Index (S₁): 121.0 (Mar-2023) | Net Value of Work (V): ₹25,00,000 | Calculated Escalation: ₹25,00,000 * 0.15 * (121.0 - 112.5) / 112.5 = ₹28,333.33
⚖ Compliance notes
  • Fulfills the Price Variation Clause (PVC) as per the specific contract agreement, often based on CPWD or FIDIC models.
  • Calculation methodology must align with CPWD General Conditions of Contract (GCC) Clause 10C/10CC or FIDIC Sub-Clause 13.7/13.8.
  • Essential for statutory and internal audits to verify correct payment against price fluctuations.
  • Mandatory submission with each RA Bill if the contract allows for price escalation.