Contract Price Adjustment Regulations in Spain

Article 103: Contract Price Adjustment Conditions

Requirements for conducting appropriate price revisions:

1. The price review will take place when 20% of the contract has been executed and one review year has elapsed.
2. No price adjustment for fee-for-lease contracts, lease with option to purchase, or minor contracts.
3. The contract documents will detail the specific review formula and may specify conditions for its application.

Article 104: Price Adjustment System & Formulas

1. The price review is carried out with official formulas determined by the contracting authority. The Council of Ministers may adopt these formulas based on the report of the Advisory Board on Administrative Contracting.
2. The formulas reflect the contract price based on labor and basic elements. They are published in the BOE and reviewed at least every 2 years. The contract documents will specify the most appropriate formula type for the contract. Other formulas may be imposed if none match the contract's characteristics (subject to Council of Ministers approval).
3. The applied revision formula is fixed for the duration of the contract review period and determines the price at each reporting date relative to the bid submission date and the award date.
4. The Government Commission for Economic Affairs approves the monthly price indexes (published in the BOE), reflecting market fluctuations.

Article 105: Price Revision Formula Criteria

Criteria for Formula Application in Price Review:

Formulas for calculating review coefficients must be applied at each date prior to the date specified in Article 104.3, with the results applied to the net amount of services provided, in accordance with the review law.

Article 106: Price Adjustment Procedure

When formulas are used for reviewing contracts and supplies, the review coefficient resulting from these formulas is applied to the net price of the service provided.

Article 107: Delayed Performance Price Revision

Criteria for Price Revision in Cases of Delayed Performance:

The price indices to be considered are those accrued up to the dates specified in the contract for timely delivery. However, if the actual period yields a lower ratio, the latter shall apply.

Article 108: Payment of Price Adjustments

The amount of price revisions will be paid via discount certificates or, exceptionally, during the final settlement of the contract, if not already included.