Use case · Contract indexation
Make contract price-adjustment windows visible and actionable
Contract indexation is operational only when the signed clause, referenced series, base period, lag, threshold, cap or floor, notice window, and affected commercial records agree. Northra is designed to assemble those elements into a reviewable action path while keeping clause interpretation and customer action under human authority.
- Content owner
- Northra
- Last reviewed
- 2026-08-03
Trigger
When this workflow starts
A scheduled review date approaches, a referenced index changes, or a contract event opens a price-adjustment opportunity or obligation.
Operational gap
Why the manual path breaks down
Clause terms are commonly stored as document text while market observations, account conditions, and renewal calendars live elsewhere. Spreadsheet trackers can show a date, but they rarely preserve the exact contract version, calculation basis, source observation, and approval trail as one object.
Required evidence
Inputs that must be named before analysis
- INPUT 01The signed contract version and the approved extraction or human-confirmed representation of the relevant clause.
- INPUT 02Reference series, base value or period, comparison period, lag, formula, threshold, cap, floor, rounding, and currency rules where applicable.
- INPUT 03Notice period, permitted effective date, renewal timing, and required communication or approval path.
- INPUT 04The affected product, account, current commercial terms, volume basis, and accountable owner.
Decision path
A reviewable workflow, not an automatic action
- 01
Pin the governing evidence
Identify the signed contract and clause version that applies to the product, account, and period under review.
Evidence retained: Document identifier, version, page or section reference, extraction status, and human confirmation.
- 02
Resolve the calculation basis
Match the permitted series and periods, then apply the clause-defined lag, threshold, cap, floor, or rounding rules deterministically.
Evidence retained: Series observations, dates, units, currency, formula version, and calculation trace.
- 03
Test the window
Determine whether the adjustment is eligible now, upcoming, expired, or blocked by missing evidence.
Evidence retained: Eligibility state, notice deadline, effective-date range, and reason for refusal or review.
- 04
Join commercial context
Attach the affected account, product, current condition, volume basis, and ownership without changing the contract result.
Evidence retained: Scoped source records, as-of date, owner, and reconciliation state.
- 05
Approve the next step
Present the permitted action and evidence for human review before any export or customer communication.
Evidence retained: Decision, approver, rationale, timestamp, and exported artifact version when approved.
Decision output
What the owner receives
A clause-backed adjustment brief containing the governing evidence, calculation trace, eligibility and timing state, affected commercial scope, uncertainty, and owner decision. It does not replace legal interpretation or the signed agreement.
Human gate
Where authority remains
A qualified business owner verifies that the correct contract and commercial context were used. Legal or contract specialists remain responsible where interpretation is disputed or the clause is ambiguous.
Uncertainty
What the result must not hide
- A machine-extracted clause stays unconfirmed until a person accepts the relevant fields and source location.
- Conflicting amendments or missing schedules block a definitive eligibility result.
- Unavailable or unlicensed reference observations are shown as missing rather than substituted silently.
- An eligible adjustment is an available action, not proof of customer acceptance or realized value.
Measurement
How to tell whether the workflow created value
Sources and boundaries
Public references used on this page
- Producer Price Indexes (opens in a new tab)
U.S. Bureau of Labor Statistics. Example of a public, versioned price-index source; a customer pilot uses only agreed series and licence terms.
- Industrial producer price index overview (opens in a new tab)
Eurostat. Public context for how producer-price movements are defined and published.
- Northra trust center
Northra. Public operating boundaries for source traceability, data handling, bounded AI, and human authority.
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