(1) Subject to paragraph (2) a procurement
contract may provide for the possibility of price adjustment to take into
account changes in economic circumstances.
(2) No price adjustment shall be allowed
unless specific provisions are made in the procurement contract.
(3) No
price adjustment shall be allowed during the period of delay in performance if
the delay is caused by the supplier or contractor.
(4) Where the procurement contract provides
for the possibility of price adjustment, the contract shall specify the
conditions, such as increases or decreases in the cost of materials, labour,
and energy, in which price adjustment is permitted, the formulas and indices to
be referred to in order to determine whether economic conditions have altered
to a significant enough degree to justify a price adjustment and to identify
the amount of increase or decrease, the frequency with which price adjustments
may be implemented, and the procedures to be followed.
(5) Where the contractor fails to complete
the works to be carried out under the work schedule within the time limit as
specified in the contract due to unjustified delays and taking more time than
that was prescribed to complete such a work, the price as referred to in
paragraph (1) shall not be increased.