Common use of Variation of Price Clause in Contracts

Variation of Price. 40.1 The contract price shall be unchanged for a period of two years from the commencement date. Not more than two months before the expiry of two years from the commencement date, either party may serve on the other a notice of variation of the contract price to take effect on the second anniversary of the commencement date. 40.2 The contract price shall be varied by a percentage that equals the percentage change between the opening index and the index contained within Schedule 2 (costs) for the month of the second anniversary of the commencement date. 40.3 No price variation shall be retrospective, save that the price variation may be retrospective where it has not been possible to ascertain the appropriate index before the variation is to take effect. 40.4 The Contractor may propose price reductions at any time. 1. Introduction 2. Background 3. Appeal Board membership 4. Appeal Board accommodation 5. Appeal Board administration 6. Legal advice and post-decision casework 7. Financial aspects of the contract 8. Monitoring of the contract Appendix 1: Questions to be referred to the Selected Medical Practitioner Appendix 2: Judicial review of board decisions Appendix 3: Format of reports Definitions