The contract director's regular reporting should provide sufficient information on payment calculations to validate the amount payable. The following table sets out key issues to be considered in reporting on payment calculations.
Issues to be considered | Tools or processes |
How are the base amounts payable under the contract determined? How are the payments indexed to reflect inflation or other price changes? How does the payment mechanism determine abatements for under-performance? What other payment adjustments are required under the contract? | Payment mechanism - the payment mechanism contained in the project deed and other relevant project contracts Financial models - the private party's financial model for the project and any model developed by the government party for calculation of payments Price indexes - any price indexes required for indexing of payments in accordance with the project deed and other relevant project contracts |