Escalation in Construction Costs definition
Escalation in Construction Costs means escalation in the construction cost resulting from increase in the cost of construction inputs like steel, cement, fuel and other building materials and labour shall be borne by the Allottee. 60% of sale price shall be treated as construction cost for the purpose of computation of escalation which shall be payable by the Allottee at the time of offer of possession of the said Apartment. Escalation shall commence from the date of issuance of letter of allotment by the Developer and closing date thereof shall be the date of offer of possession by the Developer to the Allottee. The respective RBI indices for steel, cement and POL (petrol, oil & lubricants) shall be considered for the purpose. For other materials, the Wholesale Price Index(WPI) of All commodities shall be applied. For labour, Consumer Price Index for industrial workers of Delhi published by RBI shall be applied. Components of steel, cement, other construction materials, POL and labour in the construction cost shall be 15%, 10%, 40%, 5% and 30% respectively. Escalation shall be computed on monthly basis on prorata construction cost and shall be recovered by the Developer from the Allottee at the time of offer of possession of the Apartment. It is further agreed by the Allottee that if at any point during the period of construction, RBI stops publishing the WPI due to any reason(s), the Base WPI as well as the Escalated WPI shall be derived from alternative indexed rates published by the Government of India or any national institute of repute.
Escalation in Construction Costs means escalation in the construction cost resulting from increase in the cost of construction inputs like steel, cement, fuel and other building materials and labour shall be borne by the Allottee. 60%