Explanatory Notes

Defence Reform Act 2014

2014 CHAPTER 20

14 May 2014

Commentary on Sections

Part 2: Single Source Contracts

Section 22: Recovery of unpaid amounts

78.The SSRO may make determinations that result in an adjustment to the price payable under a QDC – in relation to specific elements of the contract profit rate (section 18(3)(b)), the allowable costs under a QDC (section 20(6)), or as a result of a final price adjustment (section 21(3)(b)). Section 22 provides for the enforcement of these determinations by allowing for the amount due from one party to the other to be treated as a debt due (subsection (4)).

79.Where any amount is not paid by its payment date (determined by the SSRO in making its determination) then interest will be charged from that date (subsection (2)).