we provide Expert services to engineering contractors
Specialized in Price Adjustment, Variation Statements, Preparation of IPC, Implementation Schedule and Technical & Financial Bids
Calculation of Price Adjustment
Many contractors are often unaware of the Pakistan Engineering Council (PEC) regulations regarding price escalation, leading to financial setbacks. Understanding where and how these rules apply is crucial, especially during the current economic crisis in Pakistan. Submitting the Interim Payment Certificate (IPC) with appropriate price escalation adjustments can safeguard against significant losses. But don't worry we are here to help you.
Preparation of IPC
Do you lack the professional staff needed to prepare the Interim Payment Certificate (IPC) in accordance with contract requirements, risking financial loss from delayed payments? We offer expert IPC preparation services, ensuring all submissions are accurate and timely. Our professional approach safeguards contractors from financial setbacks, allowing them to focus on their core business while we handle the complexities of contract compliance. Let us help protect your financial interests with our reliable IPC services.
Variation of quantities is a common occurrence in projects, but documenting and obtaining approval for these changes requires expertise. We specialize in providing this service to our valued clients, ensuring all variations are accurately documented. Our professional handling of quantity variations allows you to maintain a hassle-free workflow on site, keeping your projects on track and within budget. Trust us to manage the complexities of project variations so you can focus on successful project execution.
Variation Statements
Implementation Schedule
Need a work schedule or implementation schedule on Primavera for your bid or contract agreement?
Frequently asked questions
What is price adjustment in contracts??
Price adjustment in contracts refers to the increase or decrease of the contract price to account for changes in the cost of inputs, such as materials, labor, pol etc. Price adjustment encourages bidders to quote their prices as per present situation without worrying about future inflation. Similarly it provides ease of mind to the employer that if prices are decreased in future he will get some savings in the project cost. This is a win-win situation for both employer and bidder.
What is escalation?
Escalation is the process of increasing the bill amount of work done to compensate the contractor for the rise in costs of materials, labor, or other inputs during execution of the project. This increases completion cost of the project beyond the agreed amount.
What is de-escalation?
De-escalation is the opposite of escalation; it refers to reducing the bill amount of work done if the costs of materials, labor, or other inputs decrease during execution of the project. This reduces completion cost of project and saving comes to the employer.
Give some example of price adjustment.
Assume that a bidder quotes his prices in Jan 2024. The work is awarded to him in February, 2024. He completes the work in December, 2025 in the allowed completion time. During the execution of the project cost of different inputs increased. Will he get the desired profit at the end of project? No
Similarly assume that for the same project, cost of inputs decreased during the execution of the project. At the end in this case the contractor will get more profit but the employer will be at lost because the cost project was reduced due to reduction in rates.
When you under above two situations it is obvious that there should be some conditions i.e if price of inputs increase employer will compensate the contractor but if price of inputs decrease the cost of project i.e contract amount payable to contractor will be reduced. These conditions are called Price Adjustment. When this clause is included in the bidding document, the bidder will quote present prices and employer will approve considering the present situation.
Who we are?
We are professional engineers providing engineering services to contractors in calculating escalation of their projects, calculation of weightages of adjustable items, preparation of variation statements, IPC, expert opinion in contractual issues and litigations.
How we work?
We provide services both online and on site. For calculation of price adjustment/escalation we just need certain data in pdf format or as questionnaire. You may need to pay little amount as a security. Once we finalize our working you we will proceed further by mutual agreement.
What is the standard rule/policy of price escalation in Pakistan?
In Pakistan, the standard rule/policy of price escalation is formulated by Pakistan Engineering Council (PEC). PEC has prepared standard guidelines and documents for calculation of price adjustment.
How much does it cost?
Our pricing changes case to case depending upon the nature of work, type of project, escalation amount we calculate. To get exact assessment you can provide certain details on our official email i.e. escalationcalculator@gmail.com
What is price adjustment formula?
Pn=A+b(Ln/Lo)+c(Mn/Mo)+d(Nn/No).......
Where
Pn = Price Adjustment factor
A = Fixed portion/non-adjustable portion
b, c, d, ….. = weightages of different elements of contract
(only those having weightage of 3% or above)
Ln, Mn, En…… = Current Rate (Price in the month falling on the 28th day prior to the work done date)
Lo, Mo, No…….= Base Rate (Price in the month falling on the 28th day prior to the deadline of bid submission)