NATIONAL HIGHWAY AUTHORITY OF INDIA vs M/S. PROGRESSIVEMVR(JV)

The Supreme Court addressed the interpretation of sub-clause 70.3 of the Conditions of Particular Application (COPA) in contracts awarded by the National Highway Authority of India (NHAI) for road construction. The Court held that the price adjustment formula must consider the base rates of materials like bitumen, cement, and steel as prevailing 28 days prior to bid submission, clarifying that these rates are essential for calculating the actual percentage of costs. The judgment emphasized the need for clarity in contract terms to ensure fair execution and compliance with the agreed-upon pricing mechanisms.