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Defence Reform Act 2014
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Changes over time for: Section 16
Version Superseded: 05/12/2014
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- 14/07/2014- Amendment
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- 19/01/2024- Amendment
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16Pricing of contracts: supplementaryU.K.
This section has no associated Explanatory Notes
(1)Single source contract regulations may specify circumstances in which, if the Secretary of State and the primary contractor so agree—
(a)the price determined in accordance with section 15 is to be taken as a target price, and
(b)the total price payable under the contract is subject to adjustment by reference to any difference between—
(i)the amount of the primary contractor's actual allowable costs under the contract, and
(ii)the amount of the estimated allowable costs used for the purpose of determining the target price.
(2)The amount of any adjustment by virtue of subsection (1)(b) must be determined—
(a)by agreement between the Secretary of State, or an authorised person, and the primary contractor, or
(b)by the SSRO, where the matter is referred to it by the Secretary of State, an authorised person or the primary contractor.
(3)Section 21 (final price adjustment) does not apply to a contract in a case where an agreement of a kind mentioned in subsection (1) has effect.
Commencement Information
I1S. 16 in force at 14.7.2014 for specified purposes by S.I. 2014/1751, art. 4(c)
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