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A cost increase and a right to change

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the contract price are different

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questions.

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In Episode Three, we looked at what to

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monitor.

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Now we ask what that evidence can

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support.

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Our teaching scenario allows roughly a

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year for proposal preparation, award and

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mobilisation, followed by three

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fixed-price years and two optional

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one-year extensions.

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The first possible price review is in

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year four, if the contract allows it.

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This is not a universal United Nations

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rule.

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Check when the contractual clock starts,

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where mobilisation falls, and whether an

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option is exercised.

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Neither an extension nor a price

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increase is guaranteed.

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Before preparing a negotiation chart,

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locate the governing contract, its

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incorporated statement of work, price

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schedule and amendments.

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Read the order of precedence.

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Identify any adjustment mechanism,

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eligible costs, reference period, notice

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deadline, supporting documents and

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approval route.

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Does the provision use an index formula,

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a negotiated review, or another defined

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method?

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Who is authorised to approve the

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outcome, and from which date could it

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apply?

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If the mechanism is unclear, obtain

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contract-specific clarification.

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A useful management dashboard is not, by

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itself, a contractual claim.

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Keep operational forecasting and the

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formal price-review process connected,

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but distinct.

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Build the comparison around the same

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obligation.

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For food, match specification, origin,

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pack size, quantity and delivery terms.

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The F A O Food Price Index describes a

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basket of international commodity

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prices; it does not quote your

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particular delivered product.

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For fuel, match grade, market, taxes and

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currency.

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For freight, compare equipment and every

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transport leg, including inland

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delivery.

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For insurance, compare the cover,

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exclusions and deductible as well as the

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premium.

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Record quotation validity and index

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publication dates.

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Where a proxy is imperfect, say so.

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Check that fuel or insurance has not

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already been included elsewhere in the

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delivered price.

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Next, separate the reasons costs

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changed.

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Paying a higher unit price is different

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from buying more, changing the product

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mix, losing stock or delivering

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inefficiently.

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Currency movements and freight changes

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also need distinct treatment.

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In a purely invented example, a

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component costs forty units within a

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total of one hundred.

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If its actual cost rises ten per cent

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and everything else stays unchanged, the

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new total is one hundred and four, not

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one hundred and ten.

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That arithmetic explains exposure.

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It is not a contract adjustment formula,

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and it does not establish an entitlement

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to charge four per cent more.

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Keep mobilisation separate from

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recurring operating costs.

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Where the statement of work prices

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mobilisation as a one-off item, do not

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automatically repeat that charge at an

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extension or price review.

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Readiness milestones can help

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demonstrate delivery, but payment

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follows the agreed payment terms.

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A change in location, capacity or

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service scope may need a separate

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contractual assessment.

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Establish what changed, who instructed

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it, its evidenced cost and the required

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authorisation.

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Do not assume every amendment creates a

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fresh mobilisation payment.

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Equally, do not confuse a properly

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authorised scope change with the routine

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price-review date in our teaching

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scenario.

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Evidence should support options, not just a
request for a higher price.

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Consider buying black pepper from one production
lot to cover several

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years.

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Where the contract permits, this might reduce
purchasing and testing

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costs per kilogram.

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But first validate consumption patterns, demand
variability and the firm

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contract period.

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Compare those savings with financing, storage,
shelf-life and

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surplus-stock risks.

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Coordinating supply across locations may also
help, provided

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traceability and each contract's testing
requirements remain satisfied.

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One lot does not automatically mean one test
covers every delivery.

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Optional extensions are not guaranteed demand.

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Compare bulk purchasing with phased deliveries,
while maintaining

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compliance and continuity.

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Present a concise, traceable evidence

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pack.

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State the contractual basis, baseline,

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comparison period and requested

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effective date.

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Explain each cost driver, the supporting

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records, the calculation method and its

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limitations.

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Separate eligible effects from items

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that need further clarification.

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Include alternatives considered and

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explain how service performance and

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compliance will be maintained.

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Check that records agree across

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procurement, operations, quality and

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finance.

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Follow the contract's approval and

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documentation requirements before

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applying a changed price.

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An informal operational discussion

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should not be treated as authority to

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amend the contract.

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Keep the decision, correspondence and

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approved baseline together for future

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review.

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Across this series, the sequence has

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been consistent: price the complete

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obligation, choose relevant evidence,

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monitor actual exposure, and prepare any

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review within the contract's rules.

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Good analysis improves a decision; it

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does not replace contractual authority.

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Which part of your evidence is hardest

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to reconcile: supplier prices, freight,

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currency, or operational variance?

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Share a general question, without

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disclosing confidential information.

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If these lessons are useful, you are

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welcome to subscribe or follow JPV NEXA.

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For tailored support, visit our website.

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Agree confidentiality arrangements

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before sharing sensitive documents.

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This is independent educational

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commentary, not legal advice or

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institutional endorsement.