> It does make a bit of sense to break a (relatively) wildly changing cost like fuel out of the fixed portion of the contract. Totally agree. Interestingly as

> It does make a bit of sense to break a (relatively) wildly changing cost like fuel out of the fixed portion of the contract. Totally agree. Interestingly as a consumer, the only time I've seen this is on my garbage collection when I moved to a new city. I've seen contracts arranged as "Market index price per pound of $commodity plus _x_ per pound for processing". If you're worried about costs varying significantly, you can go hedge the commodity. I've also heard of "transportation costs paid by supplier up to _x_, with all costs in excess split 50/50 with the customer" as a way of keeping incentives aligned but sharing risk.