# NEC TSC: Is price adjustment under X1 monthly or annual?

**URL:** <https://reachback.builtintelligence.com/t/nec-tsc-is-price-adjustment-under-x1-monthly-or-annual/4210>\
**Category:** Secondary X, W and Y options\
**Created:** [25 July 2017 11:15 UTC](https://reachback.builtintelligence.com/t/nec-tsc-is-price-adjustment-under-x1-monthly-or-annual/4210 "2017-07-25T11:15:25Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![robert81](https://avatars.discourse-cdn.com/v4/letter/r/838e76/32.png) [@robert81](https://reachback.builtintelligence.com/u/robert81)\
**Post date:** [25 July 2017 11:15 UTC](https://reachback.builtintelligence.com/t/nec-tsc-is-price-adjustment-under-x1-monthly-or-annual/4210/1 "2017-07-25T11:15:25Z")

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We have a NEC3 option A TSC contract to deliver planned and reactive works. The assessment interval for payment is monthly. Is the contractor allowed to adjust his valuations monthly under secondary clause X1. Extract from contract below:

The proportions used to calculate the Price Adjustment Factor are:

```
0.57	linked to the index for People…..……………………….
0.35	linked to the index for Plant and Materials..……..
0.08	linked to the index for Equipment……………………….
	________
1.00

```

• The base date for indices is July 2016  
• The indices are those prepared by: The Office for National Statistics (ONS)

Element Proportion Index  
People 0.57 EARN01 Average Earnings Index for the Private Sector  
Plant and Materials 0.35 Consumer Price Index  
Equipment  
0.08 Consumer Price Index

I would have thought this would be reviewed annually at anniversary of contract and not monthly.

Many thanks

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**Author:** ![Jon\_Broome](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/jon_broome/32/192_2.png) [@Jon\_Broome](https://reachback.builtintelligence.com/u/Jon_Broome)\
**Post date:** [25 July 2017 11:32 UTC](https://reachback.builtintelligence.com/t/nec-tsc-is-price-adjustment-under-x1-monthly-or-annual/4210/2 "2017-07-25T11:32:19Z")

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In the unamended contract, the adjustment is made when a referenced index is updated - see clause X1.2.

Often this is changed to make it an annual adjustment.