have a situation where. X1.1 (a) and (b) were deleted and replaced so that the base Date Index and the Latest Index are the final index available 5 months before the price adjustment date.
The contractor has requested a variation on the basis that the contract is no longer viable because of price increases and changes to fuel legislation, arguing that the above method does not reflect the changing market conditions and the associated increase in the cost base. Effectively, they want to adjust prices based on the difference between the BCIS Base Date Index and the Latest available index for that month. Contractually, there is no entitlement to this change.
How does X1 for inflation work in respect of current CE’s and what impact would this change have on assessment of CE’s.
X2 is also selected but has anyone accepted this for recent changes to fuel legislation?
Without the change could the contractor argue that the contract has become impossible. This is a high threshold but has anyone had any experience of someone successfully arguing something is commercially impossible?
Any thoughts much appreciated.