The tier clause in contracts provides protection against possible changes to which of the following?

The correct answer is: A. The value of materials, labour and other expenses.

A tier clause is a type of contract clause that protects the contractor from unexpected changes in the cost of materials, labor, and other expenses. This is important because it can help to ensure that the contractor is able to complete the project on time and within budget.

The tier clause typically specifies a certain percentage or amount that the contractor can be reimbursed for if the cost of materials, labor, or other expenses increases. This can be a valuable tool for contractors, as it can help to protect them from financial losses if the cost of doing business increases unexpectedly.

Here is a brief explanation of each option:

• Option A: The value of materials, labour and other expenses. This is the correct answer, as the tier clause protects the contractor from unexpected changes in the cost of these items.
• Option B: Contract value. The tier clause does not protect the contractor from changes in the contract value. This is because the contract value is typically set at the beginning of the project and is not subject to change unless both parties agree.
• Option C: Percentage of profit. The tier clause does not protect the contractor from changes in the percentage of profit. This is because the percentage of profit is typically set at the beginning of the project and is not subject to change unless both parties agree.
• Option D: None of the above. This is the incorrect answer, as the tier clause does protect the contractor from changes in the value of materials, labor, and other expenses.