We have an NEC3 Option A contract with a price adjustment formula. This operates on the basis that the Contractor is partly recompensed for inflation. Partly because 15% is fixed.
Now the additional cost to the Employer due to the contract Price Adjustment (CPA) is relatively high and especially so now that the works have been delayed and the Contractor has been awarded an Extension of Time. (That is by the way).
The situation is that the Contractor is also now in delay and as a result his payments in accordance with the Activity Schedule are being processed 3 and sometimes 4 months later than planned. This results in additional outlay by the Employer for payments being made with added CPA. i should mention, that the Project is not in Europe and that inflation in the country concerned is considerably more.
The question I would like to ask is whether the Employer has the right under the NEC3 to apply the CPA to the period when payment should have been due rather than when it actually is?
Presently I can see no grounds either in clause 25 nor 50 nor 60.