I encountered a problem while dealing with the adjustment calculation under X1.3. As the adjustment shall be made at the time the compensation event is assessed and this assessment takes a period of time, so at which timeline of this period of time should we base on when determine the PAF used to convert the Defined Cost to base date level?
For example, we give an instruction to quote on 1st of November and the Contractor provides the quote on 14th of November and the assessment date of IP is on 7th November. If we consider 1st of November as the timeline, then the PAF used in October’s IP will be used in the adjustment calculation. However, if we consider 14th of November as the timeline, the PAF used in November’s IP will be used then.
For example, we give an instruction to quote on 1st of November and the Contractor provides the quote on 14th of November and the assessment date of IP is on 7th November. If we consider 1st of November as the timeline, then the PAF used in October’s IP will be used in the adjustment calculation. However, if we consider 14th of November as the timeline, the PAF used in November’s IP will be used then.