Bills & payments
Price Escalation Calculator — CPWD Clause 10CC Price Variation Formula
Long-duration works contracts often compensate the contractor for rising costs through a price variation clause, such as CPWD's clause 10CC. Escalation is worked out separately for each component — materials, labour, cement, steel, fuel — using published price indices.
For each component the formula is V = W × X% × (current index − base index) ÷ base index, where W is the value of work done in the period and X% is that component's share. Enter your values and indices to see the claim.
Work done in the period
Usually the quarter's gross work done, less items paid separately (e.g. cement or steel issued by the department, extra items at market rates).
Some contracts pay escalation only beyond a floor. 0 if the whole variation is paid.
Components and indices
Share (X) of each component is fixed in the agreement. Base index = month the tender was due; current = the period's average.
- 0%
CPI-IW (Labour Bureau)
- 0%
WPI — Cement
- 0%
WPI — Steel / bars & rods
- 0%
WPI — All commodities
- 0%
WPI — High speed diesel
Shares total 85% · the remaining 15% is the fixed, non-adjustable part.
Escalation payable
₹0
How this is worked out
For each component: V = W × X/100 × (Iᵢ − I₀) / I₀, where X is its share, I₀ the base index and Iᵢ the average index for the period. The components are added together.
If prices fall, the same formula gives a negative amount that the department recovers.
Frequently asked questions
What is the clause 10CC escalation formula?
For each cost component, V = W × X% × (Ci − Co) ÷ Co, where W is the value of work done in the period, X% is the component's share of the work, Co is the base index (usually at the date of tender) and Ci is the average index for the period.
Which indices are used for price escalation?
Usually the Wholesale Price Index (WPI) published by the Office of the Economic Adviser for materials, cement, steel and fuel, and the Consumer Price Index for industrial workers (CPI-IW) for labour. Your contract names the exact indices.
Figures are for planning. The conditions in your tender document or contract always take precedence.
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