Contract Price Adjustment Clauses: Index-Linked Formulas, Base Dates, Caps & Floors, Thresholds and Multi-Year Escalation
Apply and check price adjustment clauses in supply and service contracts: fixed plus index-linked shares, base-month lags, caps, floors and thresholds, pass-through surcharges and the budget impact across a contract portfolio, with every cell checked as you go.
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About this course
This course works through the price adjustment clauses of fictional supply and service contracts in a spreadsheet. You apply the index formula P = P₀ × (a + b × M/M₀ + c × L/L₀) and check that the shares add up to 1, find the right base and review index months with EOMONTH and XLOOKUP, clip changes with caps, floors and a cumulative cap using MIN and MAX, apply thresholds and sharing bands with IF and ABS, look up energy surcharge bands and alloy pass-through amounts, compare fixed escalation with an index path, recompute a supplier's price letter to find overcharges, and finish with the budget impact by category and a chart.
Lessons
- The Adjustment Formula: Fixed, Material and Labour Shares Pro
- Base Dates, Review Dates and Index Lags Pro
- Caps, Floors and Collars – Per Year and Cumulative Pro
- Thresholds and Sharing Bands Pro
- Surcharge Tables and Pass-Through Amounts Pro
- Fixed Escalation vs Index-Linked: Which Is Cheaper? Pro
- Checking a Supplier's Price Claim Pro
- Portfolio Impact: Budget Effect by Category and a Chart Pro