2.6  Adjustments in respect of the Final Month

2.6.1  Where a one month time lag is required in the application of the Unavailability and Service Failure Deductions, then the following mechanisms shall apply for recovering any Deductions that are earned or adjustments that are due in the final month of the Contract Period:

[(a)  In respect of the penultimate Contract Month of the Service Period, the Authority shall make Deductions (if any) from the Unitary Charge that are calculated in accordance with this payment mechanism and, in addition, shall deduct the Deductions Deposit;

(b)  The Deductions Deposit is the sum of the Deductions for the current Contract Month and the five previous Contract Months, divided by six;

(c)  If the amount of the Deductions in the final month is less than the Deductions Deposit, the Authority shall pay the difference between the two amounts to the Contractor within thirty (30) days of the expiry of the Project Agreement;

(d)  If the amount of the Deductions in the final month is more than the Deductions Deposit, the Contractor shall pay the difference between the two amounts to the Authority within thirty (30) days of notification by the Authority of the amount due;

(e)  If the amount of the Deductions in the final month is equal to the Deductions Deposit, no payment shall be made by either party.]

or

2.6.1  Where the Authority is able to remove the need for a time-lag, then the following mechanisms shall apply:

[(a)  In relation to Service Failure Deductions and Unavailability Deductions the Contractor has a cut-off of two Business Days before the end of the Contract Month to collate and check the Deductions for inclusion in the monthly invoice. For each subsequent Contract Month following the first Contract Month after commencement of the Service the Contractor is required to include two Business Days from the prior month when calculating Deductions and adjustments. This means that the calculation of Service Failure Deductions and Unavailability Deductions is on a monthly basis with a lag of two Business Days.

(b)  In the final month the Contractor must include a calculation of Deductions for the full Contract Month based on the cut-off of two (2) Business Days being removed. The final month will therefore include Deductions for that Contract Month along with Deductions for the two (2) Business Days not included on the previous Contract Month's invoice, where this is appropriate.]