Contract clause under which the price adjusts regularly, by a fixed percentage or tied to an index. Over the years, a major cost driver.
A price escalation clause (Preisgleitklausel) adjusts the price of a contract regularly during its term, either by a fixed percentage or tied to an index. Such clauses are common in maintenance contracts because wages and materials change. Over many years it is one of the biggest cost drivers, because each increase builds on the one before. The price in year five therefore depends heavily on the clause, not just on the quoted price in year one.
Legally, the German Price Clause Act prohibits clauses that make the amount of a monetary debt depend directly and automatically on the price or value of goods or services that are not comparable (§ 1(1)). Exempt are, among others, discretionary adjustment clauses, parity clauses and cost element clauses (§ 1(2)). In maintenance contracts, the cost element clause is the normal case: the price follows the development of costs that directly affect the contractor's own costs, such as wages or material prices. If the service company drafted the clause in advance, it is subject to standard terms control. It has to be clear and comprehensible and may not unreasonably disadvantage the other party (§ 307 BGB).
A few points help when you review it. Check which reference value applies and whether it can be followed, which point in time serves as the starting value, how often the price is adjusted, whether the adjustment also works downward when costs fall, whether there are caps, and whether the service company must announce and calculate the increase in advance. If one of these is missing, the invoice cannot be verified. You should object in writing to increases that do not follow from the agreed formula. vi reads the clause in the contract and compares it with the invoice.
What matters
- Find the clause in the contract and note the reference value, starting value and adjustment rhythm.
- Make sure the adjustment also works downward and has caps.
- Recalculate every increase using the formula before you pay.
- Compare contracts across sites so that unusual rates stand out.
- When renewing, negotiate the clause together with the base price.
Suppose the service company announces a price increase at the turn of the year. The contract ties the price to an index with a fixed reference date in the previous year. The operator sees that the company calculated the increase from a different reference date and that the rate is higher than the change in the index. He asks for the calculation in writing.
In the original wording
“The prohibition under paragraph 1 does not apply to clauses […] under which the amount owed depends on the development of the prices or values of goods or services to the extent that these directly affect the creditor's own costs in providing the consideration (cost element clauses)”
Unofficial translation
“An unreasonable disadvantage may also result from the provision not being clear and comprehensible.”
Unofficial translation
In vi
- Service contracts: Scope, price and deadlines of every contract at a glance