# The Single Source Contract Regulations 2014, Paragraph 8: Change to a contractual requirement: contract or ... component which uses cost-plus method – distinguishable costs


(1) This paragraph applies where—
(a) the proposed pricing amendment will change a contractual requirement of the contract or of a ... component of the contract,
(b) the default pricing method used for the contract or ... component (as the case may be) is the cost-plus method, and
(c) the allowable costs resulting from the pricing amendment can be distinguished from the original allowable costs.
(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or ... component before the contract is amended.
(3) The price payable in respect of the pricing amendment is to be determined in accordance with the following formula—
(CPR×AC)+ACwhere—
(a)“CPR” is the contract profit rate for the pricing amendment, and
(b)“AC” means the primary contractor’s allowable costs resulting from the pricing amendment, as determined in accordance with the cost-plus method.
(4) The price payable under the amended contract is the total of—
(a) the original contract price, and
(b) the price payable in respect of the pricing amendment.

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Source: https://www.legislation.gov.uk/uksi/2014/3337/schedule/paragraph/8 (the official version)
Page: https://openlegislation.uk/single-source-contract-regulations-2014/schedule/paragraph-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.