Common use of Variation of Price Clause in Contracts

Variation of Price. a. The prices stated in the Schedule of Requirements are FIXED at 20 November 2023 price levels. The prices do not include provision beyond this date for increases or decreases in the market price of the Articles being purchased. Any such variation shall be calculated in accordance with the following formula: V = P (a+b (Oi/O0)) - P Where: V represents the variation of price P represents the FIXED price as stated in the Schedule of Requirements O represents the index Top Level SPPI, Sections H to U excl. Section K O0 represents the average OUTPUT Price Index figure for the base period Oi represents the average OUTPUT Price Index figure for the period in which variation is being made a represents the Non- Variable Element (NVE) b represents the Variable Element a+b=1 b. The Index referred to in Clause 1 above shall be taken from the following Tables: ONS - Top Level SPPI, Sections H to U excl. Section K c. Indices published with a ‘B’ or ‘F’ marker, or a suppressed value, in the last 3 years are not valid for Variation of Price clauses and shall not be used. Where the price index has an ‘F’ marker or suppression applied to it during the term of the Contract, the Authority and the Contractor shall agree an appropriate replacement index or indices. The replacement index or indices shall cover, to the maximum extent possible, the same economic activities as the original index or indices. d. In the event that any material changes are made to the indices (e.g. a revised statistical base date) during the period of the contract and before final adjustment of the final contract price, then the re-basing methodology outlined by the Office for National Statistics (ONS, the series providers) to match the original index to the new series shall be applied. e. In the event the agreed index or indices cease to be published (e.g. because of a change in the Standard Industrial Classification) the Authority and the Contractor shall agree an appropriate replacement index or indices, which shall cover to the maximum extent possible the same economic activities as the original index or indices. The methodology outlined by the Office for National Statistics used for rebasing indices (as in Clause d above) shall then be applied. f. Notwithstanding the above, any extant index / indices agreed in the Contract shall continue to be used as long as it is / they are available and subject to ONS revisions policy. Payments calculated using the extant index / indices during its / their currency shall not be amended retrospectively as a result of any change to the index or indices. g. The Contractor shall notify the Authority of any significant changes in the purchasing / manufacturing plan on the basis of which these provisions were drawn up and agreed, or of any other factor having a material bearing on the operation of these provisions such as to cause a significant divergence from their intended purpose, in order that both parties may consider whether any change in this provision would be appropriate. h. Prices shall be adjusted taking into account the effect of the above formula as soon as possible after publication of the relevant indices or at a later date if so agreed between the Authority and the Contractor. Where an index value is subsequently amended, the Authority and the Contractor shall agree a fair and reasonable adjustment to the price, as necessary. i. Claims under this Condition shall be submitted to the Bill Paying Branch, certified to the effect that the “requirements of this Clause [insert the VOP clause number]” have been met.

Variation of Price. a. The prices stated in the Schedule of Requirements are FIXED at 20 November 2023 May 2025 price levels. The prices do not include provision beyond this date for increases or decreases in the market price of the Articles being purchased. Any such variation shall be calculated in accordance with the following formula: V = P (a+b (Oi/O0)) - P P b. Where: V represents the variation of price P represents the FIXED price as stated in the Schedule of Requirements O represents the index Top Level SPPI, Sections H to U excl. Section K Producers Price Index G6T3 O0 represents the average OUTPUT Price Index figure for the base period April 2023 to March 2024 (as above) Oi represents the average OUTPUT Price Index figure for the period in which variation is being made April 2024 to March 2025 a represents the Non- Variable Element (NVE) which shall be 10% of P b represents the Variable Element which shall be 90% of P a+b=1 b. The Index referred to in Clause 1 above shall be taken from the following Tables: ONS - Top Level SPPI, Sections H to U excl. Section K c. Indices published with a ‘B’ or ‘F’ marker, or a suppressed value, in the last 3 years are not valid for Variation of Price clauses and shall not be used. Where the price index has an ‘F’ marker or suppression applied to it during the term of the Contract, the Authority and the Contractor shall agree an appropriate replacement index or indices. The replacement index or indices shall cover, to the maximum extent possible, the same economic activities as the original index or indices. d. In the event that any material changes are made to the indices (e.g. a revised statistical base date) 26 during the period of the contract and before final adjustment of the final contract price, then the re-basing methodology outlined by the Office for National Statistics (ONS, the series providers) to match the original index to the new series shall be applied. e. In the event the agreed index or indices cease to be published (e.g. because of a change in the Standard Industrial Classification) the Authority and Contract Pricing the Contractor shall agree an appropriate replacement index or indices, which shall cover to the maximum extent possible the same economic activities as the original index or indices. The methodology outlined by the Office for National Statistics used for rebasing indices (as in Clause d 46.7 d. above) shall then be applied. f. Notwithstanding the above, any extant index / indices agreed in the Contract shall continue to be used as long as it is / they are available and subject to ONS revisions policy. Payments calculated using the extant index / indices during its / their currency shall not be amended retrospectively as a result of any change to the index or indices. g. The Contractor shall notify the Authority of any significant changes in the purchasing / manufacturing plan on the basis of which these provisions were drawn up and agreed, or of any other factor having a material bearing on the operation of these provisions such as to cause a significant divergence from their intended purpose, in order that both parties may consider whether any change in this provision would be appropriate. h. Prices shall be adjusted taking into account the effect of the above formula as soon as possible after publication of the relevant indices or at a later date if so agreed between the Authority and the Contractor. Where an index value is subsequently amended, the Authority and the Contractor shall agree a fair and reasonable adjustment to the price, as necessary. i. Claims under this Condition shall be submitted to the Bill Paying Branch, certified to the effect that the “requirements of this Clause [insert the VOP clause number]” 46.7 have been met.

Variation of Price. a. Variation of Price is applicable to option years 6 – 8 only. The prices stated in the Schedule of Requirements are FIXED at 20 November 2023 Contract Award price levels. The prices do not include provision beyond this date for increases or decreases in the market price of the Articles being purchased. Any such variation shall be calculated in accordance with the following formula: V = P (a+b (Oia+b(Oi/O0)) - P Where: V represents the variation of price P represents the FIXED price as stated in the Schedule of Requirements O represents the index Top Level SPPI, Sections H to U exclK38D - Other manufactured goods. Section K O0 represents the average OUTPUT Price Index figure for the base period Jan 2025 to Jan 2026. Oi represents the average OUTPUT Price Index figure for the period in which variation is being made Jan 2025 to Jan 2026. a represents the Non- Non-Variable Element (NVE) = of 0.1 b represents the Variable Element a+b=1 b. of = 0.9 a+b=1 The Index referred to in Clause 1 47.3b above shall be taken from the following Tables: OUTPUT Price Index - e.g. ONS - Top Level SPPIPublication MM22 Table 2 'Price Indices of UK OUTPUT: All Manufacturing and Selected Industries', Sections H to U exclor, Table 4 'Price Indices of Products Manufactured in the UK'. Section K c. Indices published with a ‘B’ or ‘F’ marker, or a suppressed value, in the last 3 years are not valid for Variation of Price clauses and shall not be used. Where the price index has an ‘F’ marker or suppression applied to it during the term of the Contract, the Authority and the Contractor shall agree an appropriate replacement index or indices. The replacement index or indices shall cover, to the maximum extent possible, the same economic activities as the original index or indices. d. . In the event that any material changes are made to the indices (e.g. a revised statistical base date) during the period of the contract and before final adjustment of the final contract price, then the re-basing methodology outlined by the Office for National Statistics (ONS, the series providers) to match the original index to the new series shall be applied. e. . In the event the agreed index or indices cease to be published (e.g. because of a change in the Standard Industrial Classification) the Authority and the Contractor shall agree an appropriate replacement index or indices, which shall cover to the maximum extent possible the same economic activities as the original index or indices. The methodology outlined by the Office for National Statistics used for rebasing indices (as in Clause d 4 above) shall then be applied. f. . Notwithstanding the above, any extant index / indices agreed in the Contract shall continue to be used as long as it is / they are available and subject to ONS revisions policy. Payments calculated using the extant index / indices during its / their currency shall not be amended retrospectively as a result of any change to the index or indices. g. . The Contractor shall notify the Authority of any significant changes in the purchasing / manufacturing plan on the basis of which these provisions were drawn up and agreed, or of any other factor having a material bearing on the operation of these provisions such as to cause a significant divergence from their intended purpose, in order that both parties may consider whether any change in this provision would be appropriate. h. . Prices shall be adjusted taking into account the effect of the above formula as soon as possible after publication of the relevant indices or at a later date if so agreed between the Authority and the Contractor. Where an index value is subsequently amended, the Authority and the Contractor shall agree a fair and reasonable adjustment to the price, as necessary. i. . Claims under this Condition shall be submitted to the Bill Paying Branch, certified to the effect that the “requirements of this Clause [insert the VOP clause number]” 47.3 have been met.

Variation of Price. (VOP) a. The prices stated in the Schedule of Requirements are FIXED at 20 November 2023 Year 1 price levels. The prices do not include provision beyond this date for increases or decreases in the market price of the Articles being purchased. Any such variation shall be calculated in accordance with the following formula: V = P (a+b (Oia+b(Oi/O0)) - P Where: V represents the variation of price P represents the FIXED price as stated in the Schedule of Requirements O represents the index Top Level SPPI, Sections H to U excl. Section K [Electrical Equipment (G6VF)] O0 represents the 12-month average OUTPUT Price Index figure for the base period TBC on Contract Award (as above) Oi represents the 12-month average OUTPUT Price Index figure for the 12-Month period in which variation is being made prior to year application of the VOP (as above) a represents the Non- Non-Variable Element (NVE) b represents the Variable Element a+b=1 b. The Index referred to in Clause 1 54a. above shall be taken from the following Tables: OUTPUT Price Index - e.g. G6VF ONS - Top Level SPPI, Sections H to U excl. Section K Publication MM22 Table 2 'Producer price inflation time series (MM22)’. c. Indices published with a ‘B’ or ‘F’ marker, or a suppressed value, in the last 3 years are not valid for Variation of Price clauses and shall not be used. Where the price index has an ‘F’ marker or suppression applied to it during the term of the Contract, the Authority and the Contractor shall agree an appropriate replacement index or indices. The replacement index or indices shall cover, to the maximum extent possible, the same economic activities as the original index or indices. d. In the event that any material changes are made to the indices (e.g. a revised statistical base date) during the period of the contract and before final adjustment of the final contract price, then the re-basing methodology outlined by the Office for National Statistics (ONS, the series providers) to match the original index to the new series shall be applied. e. In the event the agreed index or indices cease to be published (e.g. because of a change in the Standard Industrial Classification) the Authority and the Contractor shall agree an appropriate replacement index or indices, which shall cover to the maximum extent possible the same economic activities as the original index or indices. The methodology outlined by the Office for National Statistics used for rebasing indices (as in Clause d d. above) shall then be applied. f. Notwithstanding the above, any extant index / indices agreed in the Contract shall continue to be used as long as it is / they are available and subject to ONS revisions policy. Payments calculated using the extant index / indices during its / their currency shall not be amended retrospectively as a result of any change to the index or indices. g. The Contractor shall notify the Authority of any significant changes in the purchasing / manufacturing plan on the basis of which these provisions were drawn up and agreed, or of any other factor having a material bearing on the operation of these provisions such as to cause a significant divergence from their intended purpose, in order that both parties may consider whether any change in this provision would be appropriate. h. Prices shall be adjusted taking into account the effect of the above formula as soon as possible after publication of the relevant indices or at a later date if so agreed between the Authority and the Contractor. Where an index value is subsequently amended, the Authority and the Contractor shall agree a fair and reasonable adjustment to the price, as necessary. i. Claims under this Condition shall be submitted to the Bill Paying Branch, certified to the effect that the “requirements of this Clause [insert the VOP clause number]56” have been met.

Variation of Price. a. The prices stated in the Schedule of Requirements are FIXED at 20 November 2023 xxx price levels. The prices do not include provision beyond this date for increases or decreases in the market price of the Articles being purchased. Any such variation shall be calculated in accordance with the following formula: V = P (a+b (Oi/O0)) - P P b. Where: V represents the variation of price P represents the FIXED price as stated in the Schedule of Requirements O represents the index Top Level SPPIG6WH - Motor Vehicles, Sections H to U excl. Section K Trailers and Semi-Trailers for Domestic Market, G72N - Other Transport Equipment for Domestic Market and G6T3 - Fabricated Metal Products, Except Machinery and Equipment O0 represents the average OUTPUT Price Index figure for the base period March 2023 to February 2024 (as above) Oi represents the average OUTPUT Price Index figure for the period in which variation is being made March 2024 to February 2025 a represents the Non- Variable Element (NVE) which shall be 10% of P b represents the Variable Element which shall be 90% of P a+b=1 b. The Index referred to in Clause 1 above shall be taken from the following Tables: ONS - Top Level SPPI, Sections H to U excl. Section K c. Indices published with a ‘B’ or ‘F’ marker, or a suppressed value, in the last 3 years are not valid for Variation of Price clauses and shall not be used. Where the price index has an ‘F’ marker or suppression applied to it during the term of the Contract, the Authority and the Contractor shall agree an appropriate replacement index or indices. The replacement index or indices shall cover, to the maximum extent possible, the same economic activities as the original index or indices. d. In the event that any material changes are made to the indices (e.g. a revised statistical base date) 26 during the period of the contract and before final adjustment of the final contract price, then the re-basing methodology outlined by the Office for National Statistics (ONS, the series providers) to match the original index to the new series shall be applied. e. In the event the agreed index or indices cease to be published (e.g. because of a change in the Standard Industrial Classification) the Authority and Contract Pricing the Contractor shall agree an appropriate replacement index or indices, which shall cover to the maximum extent possible the same economic activities as the original index or indices. The methodology outlined by the Office for National Statistics used for rebasing indices (as in Clause d 46.5 d. above) shall then be applied. f. Notwithstanding the above, any extant index / indices agreed in the Contract shall continue to be used as long as it is / they are available and subject to ONS revisions policy. Payments calculated using the extant index / indices during its / their currency shall not be amended retrospectively as a result of any change to the index or indices. g. The Contractor shall notify the Authority of any significant changes in the purchasing / manufacturing plan on the basis of which these provisions were drawn up and agreed, or of any other factor having a material bearing on the operation of these provisions such as to cause a significant divergence from their intended purpose, in order that both parties may consider whether any change in this provision would be appropriate. h. Prices shall be adjusted taking into account the effect of the above formula as soon as possible after publication of the relevant indices or at a later date if so agreed between the Authority and the Contractor. Where an index value is subsequently amended, the Authority and the Contractor shall agree a fair and reasonable adjustment to the price, as necessary. i. Claims under this Condition shall be submitted to the Bill Paying Branch, certified to the effect that the “requirements of this Clause [insert the VOP clause number]” have been met.