economic adjustment clause

https://acornmetric.com/s/nOK-dnza5XRgCrA60-8Kq

An economic adjustment clause is a contract provision that allows for price or payment changes based on fluctuations in key economic indicators, like inflation or material costs. It's often used in long-term agreements to protect both parties from unforeseen financial shifts, ensuring the deal remains fair over time. For example, a construction contract might include one to adjust payments if steel prices spike unexpectedly.