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[F1SCHEDULEU.K.Re-determination of contract price

Textual Amendments

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

Textual Amendments

Change of [F3default] pricing methodU.K.

Textual Amendments

Amendment of the [F4default] pricing method used for a qualifying defence contractU.K.

4.—(1) This paragraph applies where the proposed pricing amendment will change the [F5default] pricing method used for the contract to another [F5default] pricing method (the “new [F5default] pricing method”).

(2) The price payable in respect of the pricing amendment must be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F6pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs after the time of agreement, determined in accordance with the new [F7default] pricing method.

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

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

(b)the price payable in respect of the [F8pricing] amendment.

Textual Amendments

Amendment of a [F9default] pricing method used for a F10... component of a contractU.K.

5.—(1) This paragraph applies where the proposed pricing amendment will change the [F11default] pricing method used for a F12... component of the contract to another [F11default] pricing method (the “new [F11default] pricing amendment”).

(2) The price payable in respect of the pricing amendment must be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F13pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs under the F14... component after the time of agreement, determined in accordance with the new [F15default] pricing method.

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

(a)the price payable for performance under the contract (other than performance under the relevant F16... component),

(b)the price payable for performance under the relevant F17... component on or before the time of agreement, and

(c)the price payable in respect of the [F18pricing] amendment.]

Textual Amendments