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Formula Rules meaning

What does Formula Rules mean?
In jct building contracts, Formula rules are the JCT’s published methodology for adjusting the Contract Sum to reflect cost fluctuations when Fluctuations option C (Formula Adjustment) is selected. They set out an indices-based mechanism to calculate additions or deductions for movements in labour, materials and plant costs after the Base Date, using prescribed work categories, weightings and published indices. The Rules are a contractual tool (not defined by legislation) and apply across the JCT suite where Option C is incorporated. Practically, the contractor prepares calculations in accordance with the Rules; the employer’s QS/administering party reviews them and the resulting adjustment is included in interim certificates. The Rules operate alongside, but are distinct from, valuation of variations and from Fluctuations Options A and B. Usage is consistent in England & Wales and Northern Ireland. In Scotland, equivalent provisions appear in SBCC contracts, which mirror the JCT approach. In Ireland, the term applies only where a JCT form is used; standard RIAI and public works forms have their own price variation mechanisms. The applicable edition is the set of Formula Rules current at the Base Date specified in the contract.
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NEWS
Weekly local government law round-up: case law, regulations and policy across procurement, governance, education, housing, social care, health, finance, environment and planning—26 June 2025

In this issue: Public procurement Governance Education Social housing Children's social care Social care Healthcare Local government finance Environmental law and climate change Planning Daily and weekly news alerts New and updated content Public procurement Damages are an adequate remedy in a procurement dispute despite no sufficiently serious breach (Millbrook Healthcare Ltd v Devon County Council) In Millbrook Healthcare Ltd v Devon County Council, the Technology and Construction Court (TCC) determined that, at the interim stage of a procurement claim, whether a breach is “sufficiently serious” is not directly relevant to the question of adequacy of damages; damages can still be the proper remedy. The TCC reviewed established authorities confirming that damages are available in procurement challenges only where the contracting authority’s breach is “sufficiently serious”, a test grounded in EU law. The issue was recently examined in Braceurself v NHS England, where the TCC held that the “sufficiently serious” assessment...

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NEWS
UK and EU financial services weekly regulatory update: FCA/PRA activity, Consumer Duty, enforcement, capital markets/MiFID II, payments, ESG and sanctions, plus insurance, banking and crypto—1 August 2024

In this issue: UK, EU and International regulators and bodies Authorisation, approvals and oversight Prudential standards Operational resilience Financial crime and sanctions Consumer protection Conduct obligations Complaints, redress and claims handling Investigations, enforcement and disciplinary action Capital markets regulation Sustainable finance and ESG Banks and mutuals MiFID II Consumer credit, mortgages and home finance Insurance regulation Payment services and systems Fintech and cryptoassets Financial Services Enforcement Database Intraday news alerts Daily and weekly news alerts New and updated content Dates for your diary UK, EU and International regulators and bodies Evaluation of the PRA’s approach to its secondary competitiveness and growth objective released. The Prudential Regulation Authority (PRA) has issued a review of its secondary competitiveness and growth objective (SCGO), indicating that major recent work—such as the initial roll-out of the Basel standards and its Solvency UK review—has helped to support growth...

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NEWS
Local government weekly legal highlights: cases, legislation and policy across procurement, children, education, licensing, housing, governance, finance, environment and planning (England and Wales), 13 February 2025

In this issue: Public procurement Children's social care Education Licensing Social housing Local authority prosecutions Governance Local government finance Social care Environmental law and climate change Planning Daily and weekly news alerts New and updated content Public procurement CCS launches new procurement tools for electric vehicle infrastructure Crown Commercial Service (CCS) has rolled out a toolkit to help local authorities navigate procurement for electric vehicle infrastructure (EVI). Developed with the Department for Transport and other collaborators, the package includes configurable template documents for open-market procurement of on-street EVI services, together with draft terms and conditions. The materials are designed to reduce complexity, reflect government guidance and reinforce good practice. In addition, CCS has produced a distinct set of documents to cater for the upcoming Procurement Act 2023 regulations, which will apply from 24 February 2025, enabling compliance with the present and future regimes. See: LNB News 11/02/2025 17 and LNB...

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PRACTICE NOTES
Judicial Tenders in Scottish Civil Litigation: Drafting, Lodging, Withdrawal and Acceptance, and the Expenses, Interest and CRU Implications

Civil justice reform: Consult our Practice Note, Civil justice reform in Scotland—virtual hearings and electronic submission of documents, for advice on the present rules and procedures of the Scottish civil courts regarding remote hearings and the digital signing, sending and lodging of documents. The Practice Note also addresses the approach to making and/or answering a judicial tender in proceedings involving a single pursuer and a single defender in Scotland today...

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PRACTICE NOTES
UK Construction Law Glossary: F—Facilities Management, FIDIC, Final Account, Fitness for Purpose, Force Majeure, Frameworks and Funding

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Facilities management Facilities management contracting is, at its core, a commercial services contract arrangement, covering ‘Hard FM’ (relating to the upkeep and fabric of a building, for example mechanical and electrical systems), ‘Soft FM’ (relating to in-building support functions such as cleaning, security and helpdesk services) or ‘Total FM’ (which can combine a number of hard and soft facilities management services), as required within buildings. See subtopic: Facilities management for construction lawyers. Fédération Internationale des Ingénieurs-Conseils (FIDIC) The International Federation of Consulting Engineers. FIDIC issues a suite of standard-form contracts for deployment on international construction projects. In common usage, ‘FIDIC’ typically refers to that family of contracts rather than the institution itself. See subtopics: FIDIC contracts 2017 onwards and FIDIC contracts pre-2017 editions in practice by practitioners. Feed-in tariff The Feed-in tariff (FIT) scheme—also sometimes known as the...

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PRACTICE NOTES
Community Infrastructure Levy (CIL) in England: calculating chargeable amounts, indexation and floorspace deductions; mixed-use and phased schemes; outline and section 73 permissions; transitional provisions

Introduction The Community Infrastructure Levy (CIL) is a tariff charged on development. Its statutory footing sits in Part 11 of the Planning Act 2008 (PA 2008), which authorises the Secretary of State to make regulations to provide for CIL’s imposition. Those rules were introduced as the Community Infrastructure Levy Regulations 2010 (the CIL Regulations), SI 2010/948. CIL covers both England and Wales, though this Practice Note addresses only the method for calculating CIL in England for any planning permission issued on or after 1 September 2019 (or a liability notice, whenever served, relating to such a permission). For assistance on working out the CIL sum payable in Wales, and in England for a permission granted before 1 September 2019 or a liability notice, whenever served, for such a permission, see Practice Note: Community Infrastructure Levy (CIL)—calculating CIL in Wales. Context No single provision in the CIL Regulations, SI 2010/948 neatly sets out the precise circumstances in which CIL liability is triggered. Nevertheless, this can be inferred from...

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Q&As
Is child maintenance ever linked to contact where PWC prevents it?

The statutory formula for child maintenance under the Child Support Act 1991 (CSA 1991) The statutory formula for child maintenance under the Child Support Act 1991 (CSA 1991) does not link the amount payable to whether the paying parent has contact with the children, other than insofar as the shared care rules operate. Under CSA 1991, s 3(5), it is recognised that, for the purposes of the Act, there can be more than one person with care in relation to the same qualifying child. The Child Support Maintenance Calculation Regulations 2012, SI 2012/2677, reg 46(2), further provide that any calculation must be grounded in the number of nights the non-resident parent is expected to care for the qualifying child overnight during the 12 months commencing on the effective date of the relevant calculation decision. The Child Maintenance Service (CMS) retains a discretion to take into account a shorter timeframe where appropriate in making that assessment...

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Q&As
Old statement of truth on witness statement post‑Apr 2020: struck out?

Changes to CPR PD 22 took effect on 6 April 2020. The revisions modified the mandated wording for the statement of truth that authenticates documents to be deployed in civil proceedings. Nevertheless, under both the old and new versions the signatory must still confirm their belief that the 'contents' of the pertinent documents are true—or, under the updated formula, that the 'facts stated' in the relevant document are true...

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