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Fixed Escalation vs Index-Linked: Which Is Cheaper?

Lesson 6 of 815 minLab

This lesson is part of the course

In this lesson

You compare two offers for a five-year contract – a fixed yearly escalation and an index-linked price on a fictional index scenario – year by year and in total, and decide which is cheaper.

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Lessons in this course

  1. The Adjustment Formula: Fixed, Material and Labour SharesLab15 min Locked
  2. Base Dates, Review Dates and Index LagsLab15 min Locked
  3. Caps, Floors and Collars – Per Year and CumulativeLab16 min Locked
  4. Thresholds and Sharing BandsLab16 min Locked
  5. Surcharge Tables and Pass-Through AmountsLab16 min Locked
  6. Fixed Escalation vs Index-Linked: Which Is Cheaper?Lab15 min Locked
  7. Checking a Supplier's Price ClaimLab17 min Locked
  8. Portfolio Impact: Budget Effect by Category and a ChartLab17 min Locked