Is Basic price variation is beneficial for a contract or not? If yes, then explain it how?

Question

Accepted Answer

Yes, basic price variation is beneficial for a contract.

Basic price variation allows for adjustments to be made to the contract price based on changes in market conditions or material costs.
This helps to ensure that the contractor is not unfairly burdened with unexpected costs and can maintain profitability.
It also provides a level of transparency and accountability in the contract, as both parties are aware of the potential for price adjustments.
For example, if the cost of steel increases significantly during the course of the project, the basic price variation clause would allow for an adjustment to be made to the contract price to reflect this change.
This can help to prevent disputes and ensure that the project is completed on time and within budget.

Accepted Answer

Beneficial in term low rate where basic rate difference payable. And where basic rate on higher side these are beneficial where an extra items generated.

Is Basic price variation is beneficial for a contract or not? If yes, then explain it how?

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