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SOP 2018 rate cut calculator
Short answer
Up to 125% of the agreement quantity is paid at the full rate. The part from 125% to 140% is paid at 98% and the part above 140% at 96%. Items under 1% of the agreement value use 200% and 300% instead.
What are you checking?
Value in the agreement
You will be paid
₹6,71,850.00
₹3,150.00 less than the full rate · 150.0% of agreement
| Slab | Rate paid | Value | Paid |
|---|---|---|---|
| Up to 125% | 100% | 5,62,500.00 | 5,62,500.00 |
| 125% to 140% | 98% | 67,500.00 | 66,150.00 |
| Above 140% | 96% | 45,000.00 | 43,200.00 |
| Total | 6,75,000.00 | 6,71,850.00 | |
Every RA bill, done for you: PRIME ERP applies these slabs on each bill and variation statement, per schedule group for SOR items. Start 14-day free trial
The slabs
| Executed, as % of agreement | Normal item | Minor-value item |
|---|---|---|
| Full rate | Up to 125% | Up to 200% |
| 98% of rate | 125% to 140% | 200% to 300% |
| 96% of rate | Above 140% | Above 300% |
| GM approval needed | Above 150% | Above 300% |
Questions
What is the SOP 2018 rate reduction?
When the executed quantity of an item goes above 125% of the agreement quantity, the part from 125% to 140% is paid at 98% of the agreement rate and the part above 140% at 96%.
Does the cut apply to the whole quantity?
No. Only the quantity inside each slab is reduced. Everything up to 125% keeps the full rate even after the item crosses 125%.
What is a minor-value item?
An item whose agreement value is under 1% of the total agreement value. For it the slabs move to 200% and 300%.
Are SOR items checked one by one?
No. Scheduled (SOR) items are checked on the schedule group as a whole, so use the schedule values. Non-scheduled (NS) items are checked one by one.