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Commercial Contracts podcast - Costs, RPI and COGS - cost charging mechanisms examined in light of inflation
Episode six of our Commercial Contracts podcast focuses on the thorny issue of inflation and costs, RPI and Cost of Goods Sold (COGS) from the perspective of standard terms and conditions, master services agreements and outsourcing arrangements. Beverley Flynn, head of commercial and technology is joined by commercial partner, Charlie Maurice to discuss this topical issue and the options available.
In these cost-pressured times we discuss:
- Pricing clauses in contracts and issues to consider from both customer and supplier perspectives
- How contract prices are often recalculated, including the various indices (e.g. RPI, CPI) used to do so and some of the differences between them
- Issues with RPI and the latest on its replacement as an official measure of inflation
- Rise in COGS and trends we are seeing in the market following material events such as Brexit and the effect of Covid