Common use of Escalation Clause Clause in Contracts

Escalation Clause. The Annual Broker Service Fee, Commission Percentage, Maximum Annual Commission, and Additional Services hourly rates shall remain fixed through the three-year term of the Agreement. In the event the parties mutually agreed to extend the Agreement, the maximum escalation rate for the Annual Broker Service Fee and the Additional Services hour rates shall be no more than 5 percent for year 4 and for year 5. The Commission Percentage and Maximum Annual Commission shall remain unchanged. Invoices and Payment Procedures: All invoices shall be sent to the RMD. Invoices for the quarterly service fee, computed as one-fourth of the Annual Broker Service Fee, shall be paid within seven days after receipt of a correct invoice and approval by the RMD. Invoices for premiums shall be paid within seven days after receipt of acceptable insurance documents and approval by the RMD. The invoices shall be deemed to be correct and approved unless written objection is received by Contractor within ten days of receipt of the invoices by the City. Payments to the Contractor will be by electronic payment, whenever practicable for the City.