Base year and escalation Sample Clauses
The 'Base year and escalation' clause establishes a reference year (the base year) for certain costs or prices in a contract and sets out how those amounts will be adjusted over time, typically to account for inflation or changes in market rates. In practice, this clause might specify that rent, service fees, or other recurring charges will increase annually by a fixed percentage or in line with a published index, starting from the base year amount. Its core function is to ensure that payments remain fair and reflect economic changes over the contract term, thereby protecting both parties from the effects of inflation or cost fluctuations.
Base year and escalation. The base year shall be taken as (particular year to be mentioned) Following enhancement factors will be used for the costs of works executed and the financial figures to a common base value for works completed in India. Year before Multiplying factor One 1.10 Two 1.21 Three 1.33 Four 1.46 Five 1.61 Applicant should indicate actual figures of costs and amount for the works executed by them without accounting for the above mentioned factors. In case the financial figures and value of completed works are in foreign currency, the above enhanced multiplying factors will not be applied. Instead, current market exchange rate (State Bank of India BC selling rate as on the last date of submission of the bid) will be applied for the purpose of conversion of amount in foreign currency into Indian rupees.
Base year and escalation. The base shall be taken as 2015-2016 following enhancement factor will be used for the cost of work executed and the financial figure to a common base value for work completed. Year before Multiplying factor One 1.10 Two 1.21 Three 1.33 Four 1.46 Five 1.61 Tenderer shall indicate actual figure of cost and amount for the work executed by them without accounting for the above mentioned factors.