Adjustments in Respect of the Final Month

When a one month time lag is required in the application of the Unavailability and Service Performance Deductions then there needs to be a mechanism for recovering any Deductions that are earned or adjustments that are due in the Final Month of the Contract Period.  The approach is to hold back a deposit that is equal to the average of the previous six months of deductions. The deposit is deducted from the penultimate month's Monthly Unitary Charge as surety against the deductions or adjustments that may be due for the Final Month.  If the deductions or adjustments for the Final Month are less than the deposit, then the Authority will pay the difference back to the Contractor within 10 days of the expiry of the Project Agreement and if the deductions or adjustments are greater than the deposit, then the Contractor will pay the Authority the difference within 10 days of the expiry of the Project Agreement.