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CONTRACT PRICE ADJUSTMENT SCHEDULE

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1.   Contract Price Adjustment Factor
2.   Assessment of amount subject to adjustment
3.   Reduction of CPAF after Due Completion Date
4.   Special materials
5.   Assessment of indices if certificates are not issued monthly

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1. Contract Price Adjustment Factor

In accordance with Clause 49(2), the value of each certificate issued in terms of Clause 52(1) shall be increased or decreased by the amount obtained by multiplying "Ac", defined in Clause 2 of this Schedule, by the Contract Price Adjustment Factor, rounded off to the fourth decimal place, determined according to the formula:

in which the symbols have the following meanings:

"x" is the proportion of "Ac" which is not subject to adjustment. Unless otherwise stated in the Appendix this proportion shall be 0,15.

"a", "b", "c" and "d" are the co-efficients determined by the Engineer and specified in the Appendix, which are deemed, irrespective of the actual constituents of the work, to represent the proportionate value of labour, plant, materials (other than "special materials" specified, in terms of Clause 49(3), in the Appendix) and fuel respectively. The arithmetical sum of "a", "b", "c" and "d" shall be unity.

"L" is the "Labour Index" and shall be the actual Wage Rate index for all workers in the civil engineering industry (weighted average for all areas) as published in the Statistical News Release (P0142.2) of the Central Statistical Service.

"P" is the "Plant Index" and shall be the "Civil Engineering Plant Index" as published in the Statistical News Release (PO 142.2) of the Central Statistical Service.

"M" is the "Materials Index" and shall be the "Price Index of Civil Engineering Materials", as published in the Statistical News Release (PO 142.2) of the Central Statistical Service.

"F" is the "Fuel Index" and shall be the weighted average of the fuel indices for "Diesel, before deduction of refund" and "Diesel, after deduction of refund" as published in the Statistical News Release (PO 142.2) of the Central Statistical Service for the "Coast" or "Witwatersrand". The weighting ratio and the use of the "Coast" and "Witwatersrand" indices shall be as specified by the Engineer in the Appendix. Unless otherwise specified by the Engineer in the Appendix, the weighting ratio shall be 1 to 1.

The suffix "o" denotes the basic indices applicable to the base month, which shall be the month prior to the month in which the closing date for the tender falls.

The suffix "t" denotes the current indices applicable to the month in which the last day of the period falls to which the relevant payment certificate relates.

If any index relevant to any particular certificate is not known at the time when the certificate is prepared, the Engineer shall estimate the value of such index. Any correction which may be necessary when the correct indices become known shall be made by the Engineer in subsequent payment certificates.

2. Assessment of amount subject to adjustment

For the purpose of calculating the adjustment to the value of the relevant certificates, the amount "Ac" shall be determined by the formula:

Ac=T-S-D-E-G-Ap

in which formula the symbols have the following meanings:

"T" is the summation of the total value of the

(i) Preliminary and General items,
(ii) work done and the
(iii) materials on Site

as certified in the payment certificate under consideration without any deduction whatsoever and before any adjustment made in terms of this Schedule.

"S" is the aggregate of (i), (ii), (iii) and (iv), referred to below, and included in "T":

(i) the amounts actually expended and substituted for any Prime Cost Sums;
(ii) the value of any work done by Nominated Subcontractors;
(iii) the value of any work done against Provisional Sums;
(iv) the value of any extra or additional work;

where special arrangements for price adjustments in respect of those amounts were made and recorded at the time the work was ordered.

"D" is the value of work included in "T" and done at new rates fixed in terms of Clauses 40(I) and 40(2), where those rates are not based on labour, plant or materials costs in force at the time of tendering. Generally new rates may be based on current costs and de-escalated to the base month of the indices, in which case work done at these rates shall not be included in the value of "D".

"E" is the amount included in "T" and paid for any daywork executed at cost plus percentage allowances as set out in Clause 40(4).

"G" is the amount included in "T" for materials classified and dealt with as "special materials" in terms of Clause 49(3).

"Ap" is the summation of all "Ac" amounts determined in terms of Clause 2 of this Schedule for all certificates preceding in time the certificate under consideration.

3. Reduction of CPAF after Due Completion Date

Save only for additional work or variations ordered to be carried out after the Due Completion Date, the Contract Price Adjustment Factor to be applied to certificates relating to work done or materials supplied after the Due Completion Date shall be half the factor calculated by inserting in the formula referred to in Clause 1 of this Schedule the indices Lt, Pt, Mt and Ft applicable at the Due Completion Date.

4. Special materials

(1) The price of each "special material" specified in the Appendix shall be increased or decreased by the net amount of any variation incurred after the date of the tender on the basis set out in the Appendix, provided that any claim for adjustment in terms hereof shall be substantiated by the submission of acceptable invoices and any other supporting documents which the Engineer considers necessary for that purpose, and provided also that no further adjustment be permitted to the price of any "special material" after the Due Completion Date unless such material forms part of any additional work or variation ordered to be carried out after that date.

(2) For the purpose of Sub-Clause (1), "the net amount of any variation" in respect of a particular material referred to as a "special material" in terms of Clause 49(3) shall be calculated by multiplying the difference between the rate or price entered in the Appendix by the Contractor for that material and the equivalent rate or price actually paid by the Contractor for the material by the quantity of the material in question.

5. Assessment of indices if certificates are not issued monthly

If more than one month intervenes between the month applicable to any payment certificate and the month applicable to the immediately succeeding payment certificate, then the indices "Lt", "Pt", "Mt" and "Ft" applicable to such succeeding payment certificate shall each be taken as the arithmetic mean, rounded off to the second decimal place, of the relevant indices applicable to the month of measurement and to such intervening months.

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