[F1SCHEDULEU.K.Re-determination of contract price

Textual Amendments

[F2PART 2U.K.Re-determination of price using a default pricing method]

Textual Amendments

Change to a contractual requirementU.K.

Change to a contractual requirement: contract or F3... component not using cost-plus methodU.K.

7.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a F4... component of the contract, and

(b)the [F5default] pricing method used for the contract or F6... component (as the case may be) is not the cost-plus method.

(2) The price payable in respect of the [F7pricing] amendment must be determined in accordance with the following formula and may be a negative amount—

where—

(a)

“CPR” is the contract profit rate for the [F8pricing] amendment, and

(b)

“AC” means the amount (which may be a negative amount) by which the [F9pricing] amendment will change the original allowable costs.

(3) For the purposes of sub-paragraph (2), “original allowable costs” means the allowable costs under the contract or F10... component, as determined for the purposes of calculating the original contract price.

(4) The price payable under the amended contract is the total of—

(a)the original contract price, and

(b)the price payable in respect of the [F11pricing] amendment.

Textual Amendments

Change to a contractual requirement: contract or F12... component which uses cost-plus method – distinguishable costsU.K.

8.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a F13... component of the contract,

(b)the [F14default] pricing method used for the contract or F15... component (as the case may be) is the cost-plus method, and

(c)the allowable costs resulting from the [F16pricing] amendment can be distinguished from the original allowable costs.

(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or F17... component before the contract is amended.

(3) The price payable in respect of the [F18pricing] amendment is to be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F19pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs resulting from the [F20pricing] amendment, as determined in accordance with the cost-plus method.

(4) The price payable under the amended contract is the total of—

(a)the original contract price, and

(b)the price payable in respect of the [F21pricing] amendment.

Textual Amendments

Change to a contractual requirement: contract or F22... component which uses cost-plus method – costs not distinguishableU.K.

9.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a F23... component of the contract,

(b)the [F24default] pricing method used for the contract or F25... component (as the case may be) is the cost-plus method, and

(c)the allowable costs resulting from the [F26pricing] amendment cannot be distinguished from the original allowable costs.

(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or F27... component before the contract is amended.

(3) The price payable in respect of the [F28pricing] amendment is to be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F29pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs under the contract, or F30... component, after the time of agreement, as determined in accordance with the cost-plus method.

(4) For the purposes of sub-paragraph (3), no account is to be taken of any costs incurred by the primary contractor before the contract is amended.

(5) The price payable under the amended contract is the total of—

(a)the price payable under the contract on or before the time of agreement, and

(b)the price payable in respect of the [F31pricing] amendment.]

Textual Amendments