How to correctly prescribe future prices under the contract, taking into account a possible increase?

Question

Law in IT

Good afternoon.
I am nearing completion of the signing of the contract for the development of the site. Payment will be in installments every month. The contract and prices were discussed even before the current geopolitical conditions. Now it is not known whether to raise prices and by how much. After all, prices haven't gone up yet. What about the contract? At current prices, I normally requested. But if now, within a couple of weeks or a month, prices rise by 50%, respectively, I will have to somehow increase the price, which we will fix in a few days. Here's how to write it? Yes, you can specify in the contract, they say in 2 months to the price + 20%. But I do not know either the timing or the exact growth in%. What to do? And I don’t want to overestimate too much, the client is normal, why am I going to deceive him, adding + 150% to the price purely because of reinsurance ...

Answer 1

Keep in mind that your counterparty also does not know where the ruble will collapse in the near future, and he may simply not be able to afford a surprise of + 150%, so, for example, he can simply refuse a hard peg to the dollar and go look for a more accommodating performer.
Tour operators, for example, who are heavily dependent on currencies in their work, in times of high volatility provided for items like "the cost of services may be revised if the dollar rises above 5% of the exchange rate at the time of the conclusion of the contract."

Answer 2

Break down the work into stages with price approval before the start of each stage.

Answer 3

write down the calculation in grams of gold

Answer 4

If the contract is in dollars or in euros, then there is no reason to raise the price

Answer 5

If you do not want to become attached to the dollar, then you can become attached to official inflation, such as if there is an excess over the same period last year, then recalculate by the same percentage. For example, last year in March inflation was 0.7%, if this year it is 10%, then the difference is 9.3% to the amount of the payment stage.
The inflation rate more accurately reflects the purchasing power of the ruble, since the attitude towards the dollar is often determined by financial speculation, forward-looking expectations, politics, and so on. And here everything is simple and more objective: the prices in the country for a number of goods and services have increased, the price in the invoice for payment has increased.

Answer 6

Explain to yourself, to me and the customer what kind of costs in developing a site are so dependent on the dollar exchange rate or the inflation rate within 2-4 months?
Do we use imported raw materials? Are we burning scarce diesel for electricity? Or pay in dollars to rent a cottage in Hawaii?
A communal apartment cannot grow in price several times in six months.
The growth in the cost of buckwheat and iPhones is purely your headache. And you will not pass it on to the customer.
You can bargain, but keep in mind that the Customer is also now living in a situation of uncertainty.
There is a risk that he will not be able to pay you / even the current price will bite.
And on the topic:
Think about how to reduce the requirements so that the project on the site becomes shorter in time.
Agree and implement such a truncated but working version.
Upon completion of the first project, you will start (if you have the strength and means) to bargain and start a new stage.