Common use of REVISION OF PRICES Clause in Contracts

REVISION OF PRICES. Prices shall be fixed and not subject to revision for the orders issued during the first year of duration of the contract. From the beginning of the second year of duration of the contract, prices may be partially revised upwards or downwards each year, where such revision is requested by one of the contracting parties by registered letter no later than three months before the anniversary of the date on which it was signed. Orders are issued on the basis of prices in force at the date of their signature. Such prices are not subject to revision. This revision shall be determined by the trend in the harmonised consumer price index for the country of origin of the services offered for the month in which the validity of the tender expires, expressed in euro and published for the first time by the Office for Official Publications of the European Communities in the Eurostat monthly bulletin (Theme 2 - Economy and Finance, Collection Detailed tables, Money, finance and the euro: Statistics). Revision shall be calculated in accordance with the following formula: Pr = Po (0,2 + 0,8 Ir ) Io where: Pr = revised price; Po = price in the original tender; Io = consumer price index for the country of origin of the services offered for the month in which the validity of the tender expires; Ir = index for the month corresponding to the date of receipt of the letter requesting a revision of prices.