Variation On Price Clause Definition
A variation on price clause is a contractual provision that allows for the prices in the contract to be adjusted based on changes in costs or other conditions. This type of clause is often used in construction contracts, where the cost of materials and labor can fluctuate over the course of the project.
The variation on price clause typically sets out how the prices will be adjusted, and may include a mechanism for resolving disputes if the parties cannot agree on the new prices. This type of clause can protect both buyers and sellers from unexpected cost increases, and can help to ensure that a project remains affordable for both sides.
