(A) An escalator clause may be included in bids and bid specifications established for town projects.
(B) The escalator clause may allow bidders to:
(1) Increase contract unit prices in an amount equal to the bidder’s increase in cost of materials and supplies occurring after the date on which the bid is originally submitted, if the bidder agrees to inform the Council of any corresponding decrease in the bidder’s cost of materials and submits verification acceptable to the Council at least once a month that the price to the bidder from the bidder’s regular sources of supply has been increased or decreased; and
(2) Reserve the right to allocate their product to their customers in a fair and equitable manner due to the reduction of the allocation from the source of supply to the bidder in accordance with mandatory allocation directives issued by the state or federal governments.
(Prior Code, § 34.02)