Where there is an agreement under the contract, the material price in the construction chart budget shall, in the absence of an agreement in the contract, be calculated at the market price at the base date and, if the parties cannot agree on the market price, at the information price at the base date, not at the market or information price at the time the construction chart was prepared。
Adjustments arising from fluctuations in market prices, which are contracted to be performed in accordance with the contractual principles and which are not agreed in the contract, may be adjusted in accordance with the terms of the “general contract for construction projects (model text) gf-2020-0216 and the “general contract regulation for construction projects t/cceas 001-2022”。
General contracting contract for construction projects (model text) gf-2020-0216
13. 8 adjustments arising from market price fluctuations
13. 8. 1 if the main engineering materials, equipment and labour prices exceed the contractually agreed range by comparison with the base period price at the time of the solicitation, the parties adjust them in the manner agreed in the contract。
13. 8. 2 this agreement applies where the consignor and the contractor have agreed in the terms of the exclusive contract to use the price index weights table。
13. 8. 2. 1 the parties may include in annex 6 some of the main engineering materials, engineering equipment, labour prices and other costs that they consider should be adjusted to market prices. ]
Price index weighting table
And calculate the difference and adjust the contract price in accordance with the following formula:
(1) price adjustment formula
In formula p- - price differences to be adjusted
The amount of work done to which the contractor is entitled in the po-payment certificate. This amount shall not include price adjustments, retention and payment of non-qualified quality assurance funds, payment of advance payments and withholding. Article 13
Changes and adjustments
(b) where agreed variations and other amounts have been valued at current prices, they are also excluded
A - value weights (i. E., weights that are not transferred)
B1; b2; b3; bn - the variable weight of the adjustable factors (i. E., the weight of the reversible elements) is the proportion of the adjustable factors to the total bid proposal in the tender letter, and a+b1+b2+b3+... +bn=1
Ft1; ft2; ft3; ftn - the current price index of the adjustable factors, which refers to the price index of the adjustable factors for the 42 days preceding the last day of the payment certificate period
F01; f02; f03; f0n - the basic price index of the adjustable factors, which refers to the price index of the adjustable factors at the base date。
The adjustable factors, values and variable weights in the above price adjustment formula, as well as the basic price indices and their sources, are agreed upon in the price indices and weight tables appended to the tender letter. The price index shall be preceded by the price index provided by the sector concerned, as set out in the appendix to the bid letter, and in the absence of the price index, it may be replaced by the price provided by the sector concerned。
(2) provisional determination of adjustment differences
If the current price index is not available for the calculation of the adjustment difference, the last price index may be used for the time being and adjusted for the actual price index in subsequent payments。
(3) adjustment of weights
Under paragraph 13. 1
Grantor's power of change
The agreed changes resulted in unreasonable weights in the original contract, adjusted by the engineer in consultation with the contractor and the contractor。
(4) price adjustments after delays in construction by the contractor
Where work is not completed within the agreed completion period for the reasons given by the contractor, the lower of the two price indices, the original completion date and the actual completion date, shall be used as the current price index for work that continues after the original agreed completion date。
(5) price adjustments after delays due to the awarding agent
For work that continues after the original agreed completion date, the higher of the two price indices, the agreed completion date and the actual completion date, should be used as the current price index when using the price adjustment formula under paragraph (1) of this paragraph。
13. 8. 2. 2 costs that are not included in the price index weight tables are not adjusted for market changes。
13. 8. 3 if the parties agree to adjust the contract price by other means, the exclusive contractual terms and conditions shall prevail。
Agreement between t/cceas 001-2022 on the general contract regulation for construction projects:
Particular emphasis is placed on:
The use of the master contract model, without agreement on the price index weight table in the contract, may be considered as not adjusting the contract price to market price fluctuations。
When market prices fluctuate beyond the foreseeable limits, the contracting parties may re-negotiate the contract price or change it in accordance with the provisions of the law relating to changing circumstances。
