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Contract Price Adjustment Provisions
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CPAP Indices Application Manual
for use with P0151 indices
published by Statistics South Africa
 
 
 
CONTRACT PRICE ADJUSTMENT PROVISIONS (CPAP)
 
Background and Objective
The formula adjustment provision provides for the needs of contractors who require a clear-cut, agreed escalation recovery formula method to avoid dissension and disputes with employers and subcontractors and to provide reasonable reimbursement for price fluctuations. A workable formula method of contract price adjustment simplifies accounting procedures and generally provides for acceptable reimbursement.
 
The CPAP reflects price changes as closely as possible within the philosophy of an index-based system. Users must bear in mind that a formula cannot precisely reflect actual cost fluctuations on a contract or any particular element of work. The CPAP is designed to simplify adjustment procedures while providing a level of recompense accepted as fair to employer, contractor and subcontractor.
 
Authorship
The CPAP Committee claims authorship of this work. All rights are reserved.
 
 


Work Groups Composition and Weightings of Sub-indices
(current as at January 2017)