Common use of AHR ITEMS Clause in Contracts

AHR ITEMS. In item rate contract where the quoted rates for the items exceed 50% of the estimate rates, such items will be considered as Abnormally High Rates (AHR) items and payment of AHR items beyond the SOR stipulated quantities shall be made at the lowest amongst the following rates: I) Rates as per SOR, quoted by the Contractor/Bidder. II) Rate of the item, which shall be derived as follows: a. Based on rates of Machine and labour as available from the contract (which includes contractor’s supervision, profit, overheads and other expenses). b. In case rates are not available in the contract, rates will be calculated based on prevailing market rates of machine, material and labour plus 15% to cover contractor’s supervision profit, overhead & other expenses. Shall be as stipulated ▇▇▇▇▇▇▇▇ ▇▇ to ITB herewith.

AHR ITEMS. In item rate contract where the quoted rates for the items exceed 50% of the estimate rates, such items will be considered as Abnormally High Rates (AHR) items and payment of AHR items beyond the SOR stipulated quantities shall be made at the lowest amongst the following rates: I) Rates as per SOR, quoted by the Contractor/Bidder. II) Rate of the item, which shall be derived as follows: a. Based on rates of Machine and labour as available from the contract (which includes contractor’s contractor‟s supervision, profit, overheads and other expenses). b. In case rates are not available in the contract, rates will be calculated based on prevailing market rates of machine, material and labour plus 15% to cover contractor’s contractor‟s supervision profit, overhead & other expenses. Shall be as stipulated ▇▇▇▇▇▇▇▇ ▇▇ Annexure II to ITB herewith.