General construction contract will determine the price per unit. This means that the company will have to absorb the risk side construction cost. In some cases, there may be conditions, construction contracts, increasing the price reduced from the price per unit change of the values determined by the construction materials price adjustment formula (Escalation Formula), for example, a contract of employment of certain government contracts. However, in order to adjust the price according to a formula that calculated the contractors are only some of the items and materials are subjected to price increases in the first part does not exceed 4 percent of such items before. Excess of four percent, so the price can be adjusted.
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