A price adjustment clause, also known as a price variation or indexation clause, provides a structured method for managing potential changes in price over the contract's duration. This clause ensures that any price increase must be based on predefined and agreed-upon criteria, such as inflation rates or cost indices. This prevents arbitrary or unexpected price increases from the supplier.
[Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 4, Section 4.2.1 – Pricing schedules and contractual provisions relating to pricing., , , , ]
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