F1SCHEDULERe-determination of contract price
PART 2Re-determination of price using a default pricing method
Change to an element of allowable costs
Amendment affecting a defined element of allowable costs
6.
(1)
This paragraph applies where—
(a)
the proposed pricing amendment will change a defined element of allowable costs under the contract or a F2... component of the contract, and
(2)
In this paragraph “qualifying F5default pricing method” means a pricing method described—
(a)
in regulation 10(4) (firm pricing method),
(b)
in regulation 10(5) (fixed pricing method),
(c)
in regulation 10(9) and (10) (volume-driven pricing method), or
(d)
in regulation 10(11) (target pricing method).
(3)
The price payable in respect of the F6pricing amendment must be determined in accordance with the following formula—
(4)
The price payable under the amended contract is the total of—
(a)
the original contract price less the adjustment amount, and
(b)
the price payable in respect of the F10pricing amendment.
(5)
For the purposes of sub-paragraph (4), “the adjustment amount” is the amount of the original contract price which can be attributed to the defined element of allowable costs that is being changed.