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What Is Price Adjustment in Public Contracts?
This is a UK procurement term. A contract mechanism letting prices change over time on a defined basis, such as an inflation index.
How does price adjustment usually work?
Prices are reviewed at set intervals using an agreed formula or index, such as the Consumer Prices Index, so they keep pace with costs.
Can prices be changed without a clause?
Only within the limits on contract modifications. A clear price adjustment clause in the original contract is the safest route.
Why should suppliers check for it?
On long contracts, the absence of a price adjustment mechanism means the supplier carries the risk of rising costs.
