Construction Planning and Management
During the construction period, price variation clause in contracts caters to

Variation in cost in materials element, labour element and petrol-oil-lubricant element
Rate of inflation
Increase in rates of only important materials
Variation in total cost of the project on an ad hoc basis

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Construction Planning and Management
Sinking fund is

Raised to meet maintenance costs
The fund for rebuilding a structure when its economic life is over
The total sum to be paid to the municipal authorities by the tenants
A part of the money kept in reserve for providing additional structures and structural modifications

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