Typically, an escalation clause
will not cover such items as monetary fluctuations in international exchange rates, loss of volume discounts, the bankruptcy of a key supplier, and changes in building codes.
call for the rent of a newspaper publisher to increase to the same extent that inflation causes operating expenses for running the building to increase.
In this regard, the Supreme Court held that there is nothing inherently wrong with escalation clauses
, which maintain fiscal stability and retain the value of money in long-term contracts.
Shrewsbury Public Schools have a contract with local company AA Transportation that does not include an escalation clause
There has been more than one lease agreement which has had its escalation clause
, or pro rata billing formula modified so as to conform to the inflexibility of a packaged program.
Notes: The term of the bid will be from April 1, 2016 through March 31, 2017 with no escalation clause
The rating takes into consideration the company's long track record in the wagon manufacturing industry, its current healthy order-book position which provides visibility of its revenues, embedded escalation clause
in existing contracts partially mitigating raw material risk and the favourable outlook for wagon industry given the significant capital expenditure planned by the Indian Railways.
Changes that Fitchburg requested include: a five-year contract eliminating the option years, removal of the fuel escalation clause
, and installation of cameras on all of the buses.
This evolution of the CPI escalation clause
resulted in the following 2 examples which were widely used: (Illustration of standard CPI clause with two choices of limiting clauses.
Offer conditions for entire duration of the framework agreement (first year fixed, then repricing according to Bidder escalation clause
and interest rate hedging surcharge) -
ICRA's ratings on OICL continue to factor in its limited project execution track record in the construction industry, its limited net-worth which constrains it to bid for larger and more complex projects, the highly competitive nature of the construction industry and its exposure to volatility in commodity prices for the contracts which do not have a raw-material price escalation clause
The industry is looking for an escalation clause
," Higbee said.
is not applicable for this tender.
It is necessary to have a clearly worded escalation clause
in the lease, and then to ensure that the calculations adhere completely to the terms of this clause.
There is also a royalty payment escalation clause
in the agreement should the price of gold exceed US $300 per ounce.