The Stealth Bomber of Automatic Rate Increases

stealth bomber dropping moneyThe other day we quoted a full maintenance contract to a local school.  They called back and said “I really don’t want to keep using Bigg Elevator, but their rate is $20/month less than yours.” Rather than price match, I asked to see a copy of the contract with the names and rates redacted.

Sure enough, as I expected, at the bottom of page 4 was this little stealth clause that is, unfortunately, quite common among the Bigg Elevators and their ilk:

“The price in section 1.3 shall be adjusted annually on January 1 of each year of the Agreement.  100% of the current price will be increased or decreased by the percent increase or decrease in the labor cost.  The labor cost is the sum of the straight time hourly rate plus the cost of fringe benefits paid to elevator mechanics in the locality the equipment is maintained.” Click here for the English translation. 

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