Regulation 17 Calculation of final price adjustment

50% of the outturn profit above excess level 2; and

25% of the outturn profit above excess level 1 (but excluding the outturn profit which is above excess level 2).

75% of the outturn profit above excess level 3;

50% of the outturn profit above excess level 2 (but excluding the outturn profit which is above excess level 3); and

25% of the outturn profit above excess level 1 (but excluding the outturn profit which is above excess level 2).

an amount equal to 25% of that excess up to the loss level; and

an amount equal to 50% of any such excess above the loss level.

“excess level 1” means the contract profit which would have been achieved under the contract F7or component (before the application of the final price adjustment) if—

“excess level 2” means the contract profit which would have been achieved under the contract F8or component (before the application of the final price adjustment) if—

“excess level 3” means the contract profit which would have been achieved under the contract F9or component (before the application of the final price adjustment) if—

“loss level” means the loss which the primary contractor would have made under the contract F10or component (before the application of the final price adjustment) had the outturn costs been 5% higher than the contract price;

“outturn costs” means the amount of the primary contractor's actual costs under the contract F11or component which meet the requirements set out in section 20(2)(a) to (c);

“outturn profit” means the difference between the contract price and the outturn costs;

“outturn profit rate” means the outturn profit, expressed as a percentage of the outturn costs;

references to “the difference” are to the difference between the outturn profit rate and the contract profit rate;

references to the contract profit rate or contract price exclude any amount resulting from step F123 of regulation 11 (incentive adjustment);

references to actual costs or the contract price exclude any liquidated damages or interest on overdue payments payable under the terms of the contract.

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