Basisgaranti

Basisgaranti, or basis guarantee, is a contractual provision that guarantees a defined basis for calculations used in a contract. The basis is a reference value such as a price, index, currency, or other benchmark. The purpose is to reduce price or performance uncertainty arising from market fluctuations over a defined period.

Contexts where basisgaranti is used include procurement contracts, commodity trading, construction projects, energy supply, and some financial derivatives. The basis value is fixed at contract inception or tied to a specified date, and the agreement prescribes how adjustments are calculated if the underlying reference changes. Common methods include fixing the basis to a nominal amount, linking it to a published index or market price, applying caps and floors, or using a formula that specifies adjustments based on observed data. Data sources, update frequency, and adjustment dates are typically detailed in the contract.

Advantages of basisgaranti include greater predictability for budgeting and financing, and reduced counterparty risk related to cost volatility. Disadvantages include potential mispricing if the chosen basis does not reflect actual costs, administrative burden, and the risk of disputes over data sources, calculation methods, or adjustment triggers. The net effect depends on the contract terms and market conditions.

Example: A manufacturing contract fixes the base price of copper to the average price index for copper from a recognized index for the month of delivery, with a cap of 8% and a floor of -6%. Another arrangement ties the basis to a consumer price index with semiannual recalculation.