“…it promotes a collaborative commercial arrangement between the project manager and contractor…”
“At Crossrail we have administered NEC3 Contracts with Secondary Option X1 clauses using the BCIS Price Adjustment Formulae Indices (PAFI). By using the BCIS Indices we have been able to procure contracts where inflation is identified as an Employers risk which could otherwise have been priced by our Tier 1 Contractors at a potentially high risk premium. The biggest benefit of using the PAFI is that it promotes a collaborative commercial arrangement between the project manager and contractor by setting out in the contract tender process exactly how the impact of inflation will be measured and how the Contractor will recover costs through the administration of a periodic Price Adjustment”
Robert Stockwell
Programme Cost Manager
Crossrail