Common use of Preventative Maintenance Services Clause in Contracts

Preventative Maintenance Services. a. MAXIMUM PERCENTAGE INCREASE: The CONTRACTOR and the CITY have agreed to establish a maximum percentage increase for each subsequent year after the first year of the Agreement. The CONTRACTOR shall be responsible for providing written documentation supporting the requested increase to the CONTRACT ADMINISTRATOR in accordance with the Price Adjustment terms stated in this Article. The annual maximum percentage increase is defined as five percent (5%) b. The CITY will allow one (1) price adjustment in each subsequent year after the first year of the Agreement. It will be at the CITY’s discretion to continue each subsequent year of the Agreement. However, additional consideration by the CITY may be given for extreme and unforeseen volatility in the marketplace as specified in section relating to “Equitable Adjustments”. c. Price adjustments after the first year of the Agreement will be allowed, but shall not exceed the maximum five percentage (5) increase allowed by the Agreement. The requested adjustment must be submitted to the CONTRACT ADMINISTRATOR accompanied by substantiating proof of necessary increase (i.e. inflationary surge in fuel, wages, insurance or an unexpected cost increase from a supplying aggregate mine). In this event, written justification itemizing the adjustments and stating the percentage of increase must be forwarded to CONTRACT ADMINISTRATOR. CONTRACT ADMINISTRATOR will compare the requested price increase with the CPI index (Urban Consumers) South Region percent of change for the past twelve (12) months immediately preceding the date of written request. If justified and approved, this request will become effective thirty (30) days from the date the notice was received by CONTRACT ADMINISTRATOR from the CONTRACTOR for all purchases and services ordered after the effective date (thirty (30) days from City receipt of request). If the CONTRACTOR fails to justify the requested increase, CITY reserves the right to reject the price increase and cancel the balance of the contract.