Fluctuations Flashcards
What is Fluctuations option A?
Taxes, Levies and duties
What is fluctuations option B?
Labour, material and taxes
What is fluctuations option C?
Adjustment based on indices
What is excluded from fluctuations option A and B?
Dayworks, changes to VAT, any changes to levies payable under the industrial training act 1982
Why isn’t VAT included under fluctuations option A and B?
It can be recorded as input tax which can be offset against the output tax they must pay on their sales
What is a change that would be captured under fluctuations option A?
Change to import duty
How are subcontracts affected by fluctuations option A and B?
The clause must be replicated within the subcontract, with any net effect forming part of the main contract adjustment
Under Fluctuations option A and B, if there is an adjustment caused from a subcontract, how often must these differences be evidenced?
Weekly, signed by the contractor
When do fluctuations adjustments stop
After the completion date/PC
What changes to labour are covered by Fluctuations option B?
Changes to labour rates (including transport allowances) or labour benefits (such as A/L)
Who makes the labour changes referenced within fluctuations option B?
Construction Industry Joint Council
What changes to materials are captured under fluctuations option B?
Changes to market rates which can be evidenced to and agreed with the QS
What outlines the rules for JCT fluctuations option C?
JCT formula rules
What items are excluded from Fluctuations Option C?
Prime Cost Sums
Dayworks
Items required to be brought from outside the UK with no further work to them
Design work under CDP
Actual losses
What is an example formula under JCT Fluctuations Option C?
(New-Old)/Old
