Not really sure what the problem is here. The Contractor put forward their target price without X1 so they have taken the risk in inflation - but under option C even this is a shared risk as they will be paid "actual cost" which would include any inflation figures. However this would eat into any "gain share" entitlement at the end.
If there is a compensation event - this would be assessed at forecast Defined Cost - which would naturally allow the Contractor to assess any cost which would include any increases due to inflation. The original contract works they can not claim an increase for, but any compensation events that would come out within the assessment.
If there is a compensation event - this would be assessed at forecast Defined Cost - which would naturally allow the Contractor to assess any cost which would include any increases due to inflation. The original contract works they can not claim an increase for, but any compensation events that would come out within the assessment.