14 Jan 2016
"At Crossrail we have administered NEC3 Contracts with Secondary Option X1 clauses using the BCIS Price Adjustment Formulae Indices (PAFI). By using the BCIS Indices we have been able to procure contracts where inflation is identified as an Employers risk which could otherwise have been priced by our Tier 1 Contractors at a potentially high risk premium. The biggest benefit of using the BCIS Price Adjustment Formulae Indices is that it promotes a collaborative commercial arrangement between the project manager and contractor by setting out in the contract tender process exactly how the impact of inflation will be measured and how the Contractor will recover costs through the administration of a periodic Price Adjustment.” Read the full case study
The indices can help you too:
- Get the best price and ensures smooth delivery of payments and projects
- Reduce negotiation time by using ‘industry standard’ indices
- Saves you time by reducing the complexity of contracts and frameworks
- Monitor inflation by choosing from a basket of relevant indices
- Gives you the option to obtain bespoke forecasting as a cost prediction
- Achieve flexibility and accurate forward planning based on price adjustments that take into account future variations
- Help you to pre-qualify costs at the tender stage if there is a ‘Inflation Adjustment clause’ in the contract
- Allows the management of inflationary risk and can offer increased cost certainty at the budgeting stage, procurement stage and final account.
Benefits of the indices for the client:
- Allows a simple way to administer ‘standard contract clauses’
- Gives a flexible way to models inflation to the project cost
- Easy management when working with a number of contractors
- Helps remove the risk of inflation when working on long term projects, making cost prediction robust.
Benefits of the indices for the contractor:
- Allow contractors and sub-contractors to submit competitive tenders in the safe knowledge that any increases in underlying costs will be reimbursed.
- Will help ensure contractors are protected from inflation and offer the best current price
- Ensures contractors manage costs at early stage using indices to model a cost for a scheme, client or developer
- Saved contractors time supplying current prices at tender stage.
Why use PAFI?
- Provides an independent reliable data source which is a ‘industry standard’
- Is the most common method of allowing for inflation
- PAFI is a credible speedy way of calculating and reimbursing fluctuations in costs
- Promotes a collaborative commercial arrangement between the client and the contractor
- Aids transparency between client and contractors, fairly distributing risk
- Will help you to mitigate inflationary risk throughout the project, making your cost prediction more robust.
Our customers include:
|Institution of Civil Engineering
||Warwickshire Country Council
||Anderton Concrete Products Ltd
||Price (incl. VAT)
|Professional Practice 2-3 users
|Professional Practice 4-9 users
|Professional Practice 10-49 users
|Professional Practice over 50 users
Buy online today or phone +44 (0)24 7686 8433.
If you are an Educational Establishment or Corporate firm please call +44 (0)24 7686 8433.
- The price is based on the number of people you have in your organisation, not the number of users.
What to expect after you have paid online
- You will be sent an email confirming your order.
- Once the order is processed, you will receive a unique activation code via email (usually takes 2 working days), with links to access the product.
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