Cost Fluctuations Sample Clauses
The Cost Fluctuations clause defines how changes in the prices of materials, labor, or other project-related costs are managed during the term of a contract. Typically, this clause outlines whether and how contract prices may be adjusted if market rates for key inputs rise or fall, and may specify thresholds, indices, or procedures for requesting adjustments. Its core function is to allocate the risk of unpredictable cost changes between the parties, ensuring that neither side is unfairly disadvantaged by significant market volatility.
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Cost Fluctuations. 12.8.1 Cost fluctuations must be treated as a Variation where allowed for in the Subcontract Specific Conditions and must be calculated as provided for in the Head Contract.
Cost Fluctuations. 5.1 The Original Contract Price shall be adjusted for any increase in the cost of subcontractors or materials that could not reasonably have been foreseen by the Builder at the time this Contract is signed by the Builder, and which would otherwise have the effect of eroding the Builder’s profit margin. The Builder must be able to substantiate the increase by reference to written evidence such as quotations or invoices, both of the subcontractor or supplier pricing that formed the basis of the Original Contract Price, and the increased price of the same item. The Builder shall whenever reasonably practicable, resist any price increases and procure subcontracts and materials on the basis of fixed prices that cannot be increased during the course of the Building Work.
5.2 The Original Contract Price shall be adjusted to include any increases or decreases in Goods and Services Tax (“GST”) that come into effect after this Contract is signed by the Builder, unless the parties have expressly agreed in writing that the Original Contract Price already allows for any such increase or decrease in GST.
Cost Fluctuations. International businesses may face higher production or transportation costs due to exchange rate fluctuations or taxes imposed by foreign countries on imported goods.
Cost Fluctuations. 12.8.1 (a) Cost fluctuations shall not be paid:
Cost Fluctuations. 5.1 The Original Contract Price shall be adjusted for any increase in the cost of subcontractors or materials that could not reasonably have been foreseen by the Builder at the time this Contract is signed by the Builder, and which would otherwise have the effect of eroding the Builder’s profit margin. The Builder must be able to substantiate the increase by reference to written evidence such as quotations or invoices, both of the subcontractor or supplier pricing that formed the basis of the Original Contract Price, and the increased price of the same item. The Builder shall whenever reasonably practicable, resist any price increases and procure subcontracts and materials on the basis of fixed prices that cannot be increased during the course of the Building Work.
5.2 If the subcontractor or supplier pricing that formed the basis of the Original Contract Price decreases for any reason (other than rebates or discounts provided to the Builder as a result of such factors as loyalty, volume of business, enticement to form a new or long term trading relationship, or membership of a trade association or cooperative company), the Original Contract Price shall be adjusted downwards accordingly.
5.3 The Original Contract Price shall be adjusted to include any increases or decreases in Goods and Services Tax (“GST”) that come into effect after this Contract is signed by the Builder, unless the parties have expressly agreed in writing that the Original Contract Price already allows for any such increase or decrease in GST.
Cost Fluctuations. 5.4.1 If after the date of this Agreement the making of any statute, regulation or bylaw, or the imposition by Government or by a local authority of any royalty, fee or toll increases or decreases the Cost to NZTA of performing the contract, such increase or decrease not being otherwise provided for in the contract, the effect shall be treated as a Variation.
5.4.2 A cost fluctuation adjustment shall be paid in accordance with the provisions of Appendix A unless otherwise provided in the Special Conditions.
5.4.3 Claims for Cost fluctuation adjustments in accordance with this clause may be submitted by NZTA to the Principal each month in writing and a detailed summary of all such claims shall be submitted with the final invoice.