Adjustment Formula
3.4 Each failure to comply with the requirements of PS3 Performance Target B shall lead to an Adjustment to the Monthly Payment in accordance with the following formula:
= | Y x M | |
Where: | ||
Y | = | £50 (Indexed); |
= | the relevant Multiplier from PS3 Table 2 below; and | |
X | = | is 1 or 2 or 4 or 10 or 20 Business Days (or in respect of a Snagging Item any other period prescribed by the Independent Certifier) as determined by the type of Fault defined in Table 3 (PS3 Rectification Period) set out in paragraph 13.1 of the Output Specification. |
An Adjustment shall be made where a failure to comply with the requirements of the PS3 Performance Target B exists in any Month irrespective of whether such failure is rectified in that Month. Where a failure to comply with the requirements of the PS3 Performance Target B is not rectified in any Month the Business Days required to calculate the Multiplier in PS3 Table 2 shall be based on the period until end of the Month for which the Adjustment is being calculated.
PS3 Table 2
1≤ X <2 | 2≤ X <4 | 4≤ X <10 | 10≤ X <20 | 20≤ X | Multiplier (M) |
Business Days (whole or part of days rounded up) in excess of X | |||||
1 | 1 | 1 | 2 | 3 | 1 |
2 | 2 | 2 | 4 | 6 | 2 |
3 | 3 | 3 | 6 | 9 | 4 |
≥4 | ≥4 | ≥4 | ≥8 | ≥12 | 8 |
3.5 In PS3 Table 2, the Multiplier for an Adjustment for any Fault or Snagging Item shall be the single M factor corresponding to the number of Business Days in excess of the relevant X until the Fault or Snagging Item is rectified.
3.6 For the avoidance of doubt, if the Fault or Snagging Item continues into the following Month (or beyond) the Adjustment for that (and each following) Month (until the Fault or Snagging Item is rectified) shall be calculated as in paragraph 3.4, with the relevant M factor being calculated in accordance with PS3 Table 2 and the number of Business Days in such Table 2 continuing to be based upon the date and time that the Fault or Snagging Item was first notified or first came to the attention of the Service Provider (that is the M factor shall continue to increase until it reaches eight (8), or remain at eight (8) and shall not be reduced by virtue of the commencement of the following Month).
3.7 The sum of the Adjustments for all failures to comply with the requirements of PS3 Performance Target B shall be the total Adjustments under the Adjustment formula set out in paragraph 3.4 of Part 1 of this Payment Mechanism for the Month.