Calculation Of Price Escalation

                                                                                                                                                             

Due to the time and inflation in common, the price of labour, material and plant will be vary. When contractor price the BOQ, that price of those things and when the project is going on the price of labour, material and plant will change. Normally it is rising. For that contractor can claim from the client because that is not the price of particular things that contractor used during the tendering period.

In this case consultant have to identify the special materials, which the prices of them have changed. In the contract document of the project, consultant state the input percentages of various materials which are being used in the project like skilled labour, unskilled labour, cement, reinforcement and etc. those are the materials which affect to the project considerably.

Therefore in the construction projects, the price adjustment will be done for most cost effective items. Those are identified as major items during tendering stage by the consultant quantity surveyor. Normally in a construction project, the involvement of major items for the construction project is in between 75% and 90% in cost wise.