- Latest available (Revised)
- Point in Time (01/08/2018)
- Original (As made)
Version Superseded: 01/09/2019
Point in time view as at 01/08/2018. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
There are outstanding changes not yet made by the legislation.gov.uk editorial team to The Single Source Contract Regulations 2014. Any changes that have already been made by the team appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
17.—(1) Where the outturn profit rate exceeds the contract profit rate, the final price adjustment is to be calculated in accordance with whichever of paragraphs (2) to (4) applies.
(2) Where the difference is at least 5% but less than 10%, the contract price is decreased by an amount equal to 25% of the outturn profit which exceeds excess level 1.
(3) Where the difference is at least 10% but less than 15%, the contract price is decreased by an amount equal to the total of—
(a)50% of the outturn profit above excess level 2; and
(b)25% of the outturn profit above excess level 1 (but excluding the outturn profit which is above excess level 2).
(4) Where the difference is at least 15%, the contract price is decreased by an amount equal to the total of—
(a)75% of the outturn profit above excess level 3;
(b)50% of the outturn profit above excess level 2 (but excluding the outturn profit which is above excess level 3); and
(c)25% of the outturn profit above excess level 1 (but excluding the outturn profit which is above excess level 2).
(5) Where the outturn costs exceed the contract price, the contract price is increased by the total of—
(a)an amount equal to 25% of that excess up to the loss level; and
(b)an amount equal to 50% of any such excess above the loss level.
(6) In this regulation—
(a)“excess level 1” means the contract profit which would have been achieved under the contract (before the application of the final price adjustment) if—
(i)“AC” in the formula in regulation 10(1) were the outturn costs; and
(ii)the contract profit rate were 5 percentage points higher;
(b)“excess level 2” means the contract profit which would have been achieved under the contract (before the application of the final price adjustment) if—
(i)“AC” in the formula in regulation 10(1) were the outturn costs; and
(ii)the contract profit rate were 10 percentage points higher;
(c)“excess level 3” means the contract profit which would have been achieved under the contract (before the application of the final price adjustment) if—
(i)“AC” in the formula in regulation 10(1) were the outturn costs; and
(ii)the contract profit rate were 15 percentage points higher;
(d)“loss level” means the loss which the primary contractor would have made under the contract (before the application of the final price adjustment) had the outturn costs been 5% higher than the contract price;
(e)“outturn costs” means the amount of the primary contractor's actual costs under the contract which meet the requirements set out in section 20(2)(a) to (c);
(f)“outturn profit” means the difference between the contract price and the outturn costs;
(g)“outturn profit rate” means the outturn profit, expressed as a percentage of the outturn costs;
(h)references to “the difference” are to the difference between the outturn profit rate and the contract profit rate;
(i)references to the contract profit rate or contract price exclude any amount resulting from step 5 of regulation 11 (incentive adjustment);
(j)references to actual costs or the contract price exclude any liquidated damages or interest on overdue payments payable under the terms of the contract.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: