Steel Authority of India Limited (SAIL)
SAIL Standard Bidding Document (SBD), updated September 2024 — Civil Engineering Works
Civil engineering works including necessary supplies and dismantling
Review: The supplied SBD 2024 extract gives cement commodity 1.3.12.05. A SAIL tender-hosted SBD dated December 2022 gives 1.3.13.05. These are different document versions; this record follows the supplied 2024 value. Confirm the commodity number in the signed tender before choosing an index series.
- Formula
- P = P₀ × [0.35 +0.25 ×+ 0.10 ×+ 0.30 ×]
P = P₀ × [0.35 + 0.25(RBIᵢ(cement)/RBI₀(cement)) + 0.10(RBIᵢ(steel)/RBI₀(steel)) + 0.30(LTR/LTO)]
- Clause and base date
- GCC Sub-Clauses 11.3.3, 11.4 and 11.5; Contract Agreement Sub-Clause 2.3; Appendix 4, Sub-Clauses 1.0–2.8
Use the Base Date recorded in the signed Contract Agreement, Sub-Clause 2.3. The SBD template gives seven days before the last date for submission of the price bid or updated price bid as its standard wording; confirm the completed agreement. - Adjustment frequency
- Statements are submitted after the first six months from the Effective Date and every six months thereafter. Payment follows the contract payment terms.
- Ceiling
- GCC Sub-Clause 11.4.1 sets a cumulative ceiling of plus or minus 15% of Basic Price for heads in Sub-Clause 11.3.3. The remaining ceiling depends on prior adjustments and the signed contract; this calculator does not apply a remaining-cap amount.
Applicability, variable definitions, index sources, and exclusions
- Appendix 4, Sub-Clause 2.8 applies to civil engineering works including necessary supplies and dismantling, unless the contract specifies otherwise.
- GCC Sub-Clause 11.3.3 provides for the listed price-adjustment heads when the contractual Time for Completion exceeds 12 months, unless specifically indicated otherwise in the contract.
- GCC Sub-Clause 11.5.1 limits adjustment to the part of the facilities executed within the scheduled Time for Completion. Other delay situations are treated separately under Sub-Clause 11.5.
- For a contract with Time for Completion of 12 months or less, do not assume that the standard clause applies; check whether the signed contract specifically provides otherwise.
- The first price-adjustment statement is submitted after six months from the Effective Date; later statements are submitted every six months, with supporting break-up and documents.
- P: Revised price after adjustment, excluding taxes and duties.
- P₀: Original price for the civil engineering work on the Base Date, excluding taxes and duties.
- RBIᵢ: Current RBI wholesale price index selected for the execution period under Appendix 4.
- RBI₀: RBI wholesale price index for the applicable commodity on the Base Date.
- LTR: Applicable minimum unskilled-worker wage on the actual execution date or scheduled completion date, whichever is earlier; the stated employer labour-rate alternative may apply.
- LTO: Applicable minimum unskilled-worker wage on the Base Date; the stated original employer labour-rate alternative may apply.
- RBIᵢ(cement) / RBI₀(cement): Wholesale price index for cement, lime and plaster; commodity 1.3.12.05 per the supplied SBD 2024 extract; coefficient 0.25.
- RBIᵢ(steel) / RBI₀(steel): Wholesale price index for mild steel — long product; commodity 1.3.14.04 per the supplied SBD 2024 extract; coefficient 0.1.
- LTR / LTO: Minimum rate for an unskilled worker at the SAIL plant premises or mines, based on the applicable Gazette notification; the SBD also permits stated employer circular/letter rates; coefficient 0.3.
- Excluded / condition: Prices for items quoted in foreign currency are not subject to price adjustment under Appendix 4.
- Excluded / condition: The labour component is payable pro rata for the lower of the quantity in the agreed bar chart and the actual quantity executed.
- Excluded / condition: For work beyond scheduled completion, index selection and eligibility depend on the reason for delay and the relevant provisions of GCC Sub-Clause 11.5.
- Excluded / condition: Taxes and duties are excluded from P₀ and P; applicable taxes on the escalation amount are handled separately under GCC Sub-Clause 11.4.3.