Bid Opening - Refuse & Yard Waste Bins - Toter LLC

Home Browse Search

Toter. Built for Extremes' Toter Index Formula Pricing: Quarterly Adjustments For supply contracts with a term of greater than two (2) years, Toter will adjust prices in accordance with its index formula program, as detailed below. • The objective/intent of index formula pricing is to provide complete transparency in price adjustments going forward. • Index formula pricing is intended to be fair to both seller and buyer. This is achieved with the use of publicly published indexes, and formula compositions that represent the product/s being purchased. • Different formulas may be used for different product types purchased. • Index formula pricing is widely accepted and commonly employed for the management of prices of resin -based products, within the plastics industry. • Toter's processes, including its index formula program, are subject to internal and external audits. Formula Composition • The formula inputs and percentage weightings of each input represents the product make-up. Formula Calculation/Methodology — Quarterly Adjustments • The percentage price change will be based on the (3)-month average (Measurement Period) of the input indexes, and the weightings as detailed in the formula composition. • The effective date for the new prices will be (1.5) months after the end of the Measurement Period. This is because there is always a lag of approximately (3) weeks to the settlement of index prices following the end of each calendar month. That is, January's index price is generally not settled until the third week in February. • Non -market adjustments (NMA) are adjustments/resetting of prices by index publishers and do not represent actual change in prices (increases/decreases) to resin buyers. As such, NMA's will be ignored or reversed out of the data. • Due to the formula composition and weighting having been agreed upfront between seller and buyer, the indexes are independently published and available to both seller and buyer, no notice of price changes will be provided prior to the implementation of formula price changes. The effective dates for the new prices will be detailed in the formula/s. However, Toter will endeavor to provide as much notice of price changes as possible.