> When long term contracts are signed, none of the parties expects costs to
> remain static for the entire period of the contract.
True, but in most commercial long term contracts, where a cost
increases by a factor way in excess of any predictable influence, that
aspect of the contract is renegotiated in some way.
A predictable increase such as due to inflation would normally not be
a reason for a contract variation, but a government levy that could
not have been predicated at the time the deal was struck and which
increased fule costs by 33% is a different matter which would
definitely, and justifiably, be subject to negotiation.
Cheers,
Bill
Bill Bolton billbolton@onaustralia.com.au
Sydney, Australia