12 Miss. Code. R. 6-3.116.04.3 - Fixed-Price Contract with Price Adjustment

(1) A fixed-price contract with price adjustment provides for variation in the contract price under special conditions defined in the contract. Bid proposals and contracts may include price adjustment clauses with relation to the cost to the contractor based upon a nationally published industry-wide or nationally published and recognized cost index. The bid proposal and contract documents utilizing a price adjustment clause shall contain the basis and method of adjusting unit prices for the change in the cost of such commodities, equipment and public construction. State agencies shall submit proposed specifications containing price adjustment clauses to the Office of Purchasing, Travel and Fleet Management f or review and approval prior to soliciting bids. An adjustment would be implied in the authority for change orders as would be applicable to construction contracts.

(2) If the contract permits unilateral action by the contractor to bring about the condition under which a price increase may occur, the contract shall reserve to the State the right to reject the price increase and terminate without cost the future performance of the contract. The contract shall also require that notice of any such price increase shall be given within such time prior to its effective date as is specified in the contract.

Notes

12 Miss. Code. R. 6-3.116.04.3

Adopted 1/1/2018