Common use of Method to Calculate Adjustments in Contract Price Clause in Contracts

Method to Calculate Adjustments in Contract Price. Determination of the method to be used to calculate adjustments in the Contract Price shall be at the sole discretion of the AGENCY. The use by the CONTRACTOR of the Total Cost Method (calculating the total sum of expenses incurred on the project, less amounts paid, marked up by overhead and profit) of pricing changes and claims is expressly prohibited (provided however, the AGENCY may use a “make whole” analysis to determine the reasonableness of the CONTRACTOR’s claim). One of the following methods shall be used: A. Unit Price Method; B. Firm Fixed Price Method (also known as Lump Sum); or C. Time and Materials Method.

Method to Calculate Adjustments in Contract Price. Determination of the method to be used to calculate adjustments in the Contract Price Sum shall be at the sole discretion of the AGENCY. The use by the CONTRACTOR of the Total Cost Method (calculating the total sum of expenses incurred on the projectProject, less amounts paid, marked up by overhead and profit) of pricing changes and claims is expressly prohibited (provided however, the AGENCY may use a “make whole” analysis to determine the reasonableness of the CONTRACTOR’s claim). One of the following methods shall be used: A. Unit Price Method; B. Firm Fixed Price Method (also known as Lump Sum); or C. Time and Materials Method.