Economic Adjustment Clause Voyage

How an Economic Adjustment Clause Protects Government Contractors from Inflation

When you sign a fixed-price contract with a government agency, you are locking in costs for materials, labor, and overhead that may stretch months or even years into the future. That works fine in stable times. But when inflation spikes, those locked-in prices can turn a profitable deal into a money-losing obligation. I have seen this happen more than once over my years advising contractors. The tool that can keep you solvent is the economic adjustment clause. Government co