Paragraph 1

For the purposes of this Schedule—

• “apportioned notional premium” means the amount equal to the value of the product of—

  $$12\times \genfrac{}{}{0.1ex}{}{\mathrm{NP}}{\mathrm{M}}$$

  where—

  • NP means the notional premium;

  • M means the total number of months in the contract period;

• “credit” means for any year of the contract the amount mentioned in paragraph (2)(a);

• “fee” means for any year of the contract the amount mentioned in paragraph 2(b);

• “saving” means the amount mentioned in paragraph 2(c)(i), adjusted in accordance with paragraph 3 for each year of the contract other than the first;

• “difference” means the amount mentioned in paragraph 2(c)(ii), adjusted in accordance with paragraph 3 for each year of the contract other than the first;

• “contract period” means the period during which the work is to be carried out;

• “month” includes any month which is incomplete at the date when the contract period expires;

• “year” includes any year which is incomplete at the date when the contract period expires.