For NEC3 TSC Option A, the first bullet of Clause X1.3 states that “Defined Cost current at the time of assessing the compensation event adjusted to base date by dividing by one plus the PAF for the last assessment of the amount due.”
As the payment is assessed monthly, should the above Defined Cost be adjusted monthly as well? The formula will be somehow as following:
Amount due for price adjustment = change of Defined cost * PAF in current month / (1+PAF in last month)
Or should there be only one adjustment of the Defined Cost to base level which is based on the assessment date of the compensation event?
As the payment is assessed monthly, should the above Defined Cost be adjusted monthly as well? The formula will be somehow as following:
Amount due for price adjustment = change of Defined cost * PAF in current month / (1+PAF in last month)
Or should there be only one adjustment of the Defined Cost to base level which is based on the assessment date of the compensation event?