1.5  Indexation

In this Contract, save where otherwise provided, references to amounts expressed to be "indexed" are references to such amounts, multiplied by:

where Index1 is the value of [index/indices selected] most recently published prior to the relevant calculation date and Index2 is the value of [index/indices selected] on the Price Reference Date.6

Guidance drafting as follows:

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5  If RPIX is the index used, then this can be defined as the index published in Table RPO5 (RPI all items - excluding Mortgage Interest Payment (RPIX) reference CHMK published by the Office for National Statistics or failing such publication or in the event of a fundamental change to the index, such other index as the parties may agree, or such adjustments to the index as the parties may agree (in each case with the intention of putting the parties in no better nor worse position than they would have been had the index not ceased to be published or the relevant fundamental change not been made) or, in the event that no such agreement is reached, as may be determined in accordance with Schedule 22 (Dispute Resolution Procedure). See HMT's Application Note "Interest Rate & Inflation Risks in PFI Contract" May 2006.  The Payment Mechanism should set out the indexation mechanism to be applied and (to the extent applicable to a project) which index is to apply to which element of the Unitary Charge and those sums identified in the Contract as subject to indexation (e.g. Deduction caps, sums in Schedule 10 (Required Insurance).

6  This is the date by reference to which the prices expressed in this Contract to be indexed are fixed, often the bid date.