Rise and Fall

An agreed method of upward or downward adjustment to a contract sum to allow for fluctuations in the cost of labour and/or materials during the construction period, mainly to reimburse the contractor for any additional costs incurred that could not be foreseen or quantified at the time of signing the contract. Cost adjustments are made according to a `rise and fall' formula stipulated in the contract, generally based on monthly industry figures released by a recognised authority. In New Zealand, rise and fall is also called 'Fluctuations`.