Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

If the living wage increases during the term of a contract, can the contractors submit a request for a contract price increase?

April 26, 2017contract contractors increase increases Living price request submit term Wage

0

Posted

If the living wage increases during the term of a contract, can the contractors submit a request for a contract price increase?

1 Answer

0

Posted

No. Bidders/Offerors typically have to project inflation costs over the term of multi-year contracts; this is simply another situation of when they will have to do that. Moreover, if a contract includes a provision for price revision based upon changes in the Consumer Price Index (CPI), since changes in the living wage are indexed to changes in the CPI, a CPI adjustment would automatically allow for recouping some/all of the living wage adjustment.