Q. Is there a clause to be used by contractors referred to as a cost escalator, to factor in materials increases during the term of the contract? If so, where could I find the standard verbiage and/or guidelines?
A. You may want to refer to the Federal Acquisition Regulations (FAR), Subpart 16.203 "Fixed-price contracts with economic price adjustment" and the related contract clause language in FAR 52.216-2,3,4. These FAR provisions and contract clauses are not required to be followed by FTA grantees but they may prove helpful in structuring contract language for specific contingencies, like steel prices. The FAR may be accessed online at http://www.arnet.gov/far/.
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