This agreement incorporates a supplies escalation clause to account for any unforeseen increases in the cost of supplies necessary for the execution of the project.

 

This clause establishes a mechanism that ensures fair and reasonable compensation for any additional expenses incurred due to supply price fluctuations. The following provisions outline the conditions and procedures related to the supplies escalation clause:

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1. Trigger Event: The trigger event for the supplies escalation clause shall be a significant increase in the cost of supplies, defined as a percentage increase exceeding 4% over the initial supply cost stated in the contract. This trigger event may be influenced by factors such as market conditions, inflation rates, or any other circumstances beyond the control of either party.

2. Notification: Once Temecula Valley Landscaping is aware of the trigger event, we shall promptly notify our customer in writing. The notice shall explain the increased costs and provide supporting documentation, such as invoices and receipts.

3. Evaluation and Negotiation: Upon receipt of the notification, both parties shall review the increased costs collaboratively. They will negotiate in good faith to determine a fair and reasonable adjustment to the contract price that reflects the actual cost escalation.

4. Cost Adjustment: If both parties agree on the adjusted cost, the contract price shall be revised accordingly, and the adjusted amount shall be added to the original contract value separately. This amount will be added to the contract "in writing" separately on the page with an agent from Temecula Valley Landscaping's signature and date and the client's signature and date.

5. Dispute Resolution: In the event of a disagreement regarding the adjusted cost, both parties have to agree to cancel the contract without prejudice to resolve the dispute promptly and fairly.

6. Time Extension: If the supply escalation leads to delays in project completion, both parties shall negotiate and agree upon a reasonable extension of the project timeline to accommodate the additional time required.

7. Documentation: All adjustments made under the supplies escalation clause shall be documented in writing and signed by both parties as an amendment to the original contract.

8. Applicable Law: The supply escalation clause shall be governed by the laws of Jurisdiction. Any disputes arising from interpreting or implementing this clause shall be subject to the exclusive jurisdiction of the courts.

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Both parties acknowledge the need for this supply escalation clause to ensure the continued viability and successful execution of the project in the face of unpredictable supply cost fluctuations. 

 

By incorporating this clause, the parties seek to foster a collaborative and fair approach to addressing significant supply cost increases, thereby maintaining a mutually beneficial and long-lasting working relationship.