What would an example of the amount due adjusted for inflation look like (for Options C and D)?
Assuming the increase in the Price for Work Done to Data for the assessment is £10,000 and the Price Adjustment Factor is 0.05 (i.e. 5% inflation since the base date):
PWDD (1 - 1÷1+PAF) – (PWDD×PAF) ÷(1+PAF) i.e. (10,000×0.05)÷1.05 = 476.19 The sum of £476.19 plus any correcting amount resulting from the second bullet point, is the price adjustment amount for the assessment and is added to the total of the Prices. The result of this calculation at each assessment is added to the total of the Prices to maintain comparability with the final Payment for Work Done to Date.