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Legal Focus

 
22Mar

Cost Sharing and Openings Clauses in Transportation Service Agreements

As school transportation contractors enter into bid season, it is in the interest of the contractor to price competitively; however, contractors should be careful to consider the possibility of changes to their operational costs during the term of the contract. Currently, there is much discussion at the state and federal level on laws that could affect costs for transportation contractors, such as laws related to changes in infrastructure and school bus safety equipment. In the event that such changes occur during the term of a contract, you want to have language that addresses the issue in advance. This article will discuss cost sharing and openings clauses that can be used as contractors bid new contracts and enter into renewals.

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