Prohibited Provisions

Prohibited Provisions. A. Price Escalation Clauses: Inclusion of provisions which allow for contract price adjustments based upon significant changes in underlying costs during the contract time is prohibited, except in Term Contracts [Job Order Contracts], where use of a nationally published industry-wide cost index has been determined by the DFA, consistent with MISS. CODE ANN. § 31-7-13(n), to be permitted for quarterly pricing updates. Contracts including Guaranteed Maximum Price [GMP] provisions may not include a price escalation clause but may include a Contractor Contingency which can be utilized by the Contractor to cover cost increases due to material tariffs, labor shortages, natural disasters, material scarcity, inflation, legislative changes or other causes, subject to the percentage or stipulated contingency limit in the Contract. B. Penalty and Bonus Clauses: Except where specifically authorized by statute, inclusion of clauses which assess penalties for delay are prohibited. Clauses for liquidated damages as provided for in Rule 4.6 are not considered penalties. C. Shared Savings Clauses: Except where specifically authorized by MISS. CODE ANN., or where legislation authorizing project specifically allows, inclusion of shared savings clauses in a Guaranteed Maximum Price Agreement which provide additional compensation to Contractor for completion of a project under budget from such savings is prohibited.