Common use of Escalation/De-escalation Clause Clause in Contracts

Escalation/De-escalation Clause. In the event that prevailing market conditions warrant an adjustment in bid prices contained in the contract, the following escalation/de- escalation clause shall be the only clause applicable or acceptable: 1. Contractor shall give written notice to the Purchasing Agent of any proposed changes from contract prices not less than thirty (30) calendar days prior to the effective date of said price changes. 2. Such notice must be accompanied by a certified copy of the supplier's advisory or notification to the contractor of price changes. 3. No price escalation will be authorized in excess of the amount of the increase referred to on the supplier's notice. 4. Purchasing shall issue a contract Addendum with revised pricing upon receipt and approval. The Addendum will be executed by both parties for the remaining term of the contract. 5. The approved price change shall be honored for all orders received by the contractor after the effective date of such price change. 6. Approved price changes are not applicable to orders already issued and in process at time of price change. 7. Purchasing reserves the right to audit and/or examine any pertinent books, documents, papers, records or invoices relating directly to the contract transaction in question after reasonable notice and during normal business hours. 8. The Purchasing Agent retains the right to determine whether or not such proposed price changes are in the best interests of the City/County. 9. If in the opinion of the Purchasing Agent any proposed increase is found unacceptable, the Purchasing Agent reserves the right to cancel the contract upon thirty (30) calendar days written notice. 10. Contractors must tie any price change clause to an industry-wide or otherwise nationally recognized index, or some other form of verifiable document. Contractor will put the Purchasing Agent on the mailing lists for such publication so that the Purchasing Agent can monitor said changes. Such membership will be no cost to the Owners.