(1) The public entity shall set out in in the procurement contract that price adjustment may be made.
(2) In providing for the price adjustment in the procurement contract, the following matters shall also be set out:
(a) Circumstances in which price adjustment may be made,
(b) The formula to determine it,
In determining a formula pursuant to this clause, the formula shall be so determined as to adjust the price only of the labor, materials and equipment used in the work completed,
(c) Maximum amount of price adjustment,
(d) Component of price to be used in the formula under clause (b) (the price of labor, equipment, materials, fuel etc.),
(e) The relevant price indices to be used to adjust each price component,
(f) The manner of measuring the fluctuation of exchange rate between the currency to be used to mention price indices and the currency to be used for making payment,
(g) Baseline date to be taken for the application of the price adjustment formula,
(h) Interval of time for the application of the price adjustment formula, and
(i) Minimum price escalation to be demonstrated by the application of the price adjustment formula and other conditions and restrictions to be fulfilled for the application of the provision relating to price adjustment.
(3) The maximum amount of price adjustment to be made pursuant to this Rule shall not generally be more than twenty five percent of the original contract price. The procurement contract may provide that if the amount of price adjustment exceeds that price, the public entity may terminate the procurement contract or negotiate with the construction entrepreneur, supplier, service provider or consultant in order to limit the contract price within the approved budget or may pursue other measures or that additional budget shall be arranged.