Common use of Underspend Clause in Contracts

Underspend. Where there is a forecast underspend in an element of the operational budget, the first priority for use of the forecast underspend shall be to offset any forecast overspend within the operational budget. If a total underspend remains to be forecast, the Integration Joint Board should forecast the retention of the underspend, except where material errors in the assumptions are made in the method to determine the payment for the function. In these circumstances the payment for this element should be recalculated using the revised assumptions.