SECTION 99

(1) The conditions for revising and updating prices shall be clearly stipulated in the initial contract. (2) Any contract with revisable price should include: a) a single price revision formula applicable on all goods or services; b) either several complete, independent formulas, each one of them applicable to a good or service whose price is separate in the contract; c) or a formula by currency of payment, if there are several, using the indexes of the country of origin of the inputs. (3) The revision formulas must include a fixed part equal at least to 0.15 (zero point one five). (4) The revision threshold shall be the percentage from which a change in the overall contract amount shall give rise to a price review. (5) The adjustment margin shall be the share of the increase that shall be borne, in any case, by the contractor, or of the decrease which, inversely, shall to the contractor’s benefit. (6) The adjustment margin shall always be lower than or equal to the revision threshold. (7) The adjustment margin shall be deducted from the revision coefficient. (8) The revision coefficient shall apply to: a) Goods and services delivered during the month; any deductions to work conducted under State control, to allowances and reimbursement of advance payments on the revised amount; b) penalties; c) Interest on overdue payments. (9) It shall be forbidden to introduce a price revision clause by way of amendment into a contract awarded on the basis of a firm price. (10) Where a contract includes a price revision clause, it should specify the date of establishment of the initial price, as well as the terms for revision of the said price. (11) The updating formula drawn up in accordance with this Article shall not include an adjustment margin. (12) Prior to any payment, the body in charge of the regulation of public contracts shall, in collaboration with the Contracting Authority and the other government institutions concerned, audit the statements of amounts due resulting from the revision and updating of prices duly approved by the Contract Engineer and the Contract Manager. It shall have 15 (fifteen) working days to give its opinion upon receiving the file. (13) In any case, price revision or updating shall be capped at 25% (twenty five percent) of the contract amount; otherwise the contract shall be terminated, except where there is a special dispensation by the Chairperson of the Board of Directors. (14) Nevertheless, where the two parties do not wish to terminate the contract, they may either agree to execute the contract in full to amount of this threshold, or to change the price updating formula through an amendment to comply with the threshold defined above, or to open negotiations to set new, reduced prices.