06 November, 2025
Following a review and consultation with stakeholders, a new updated range of inflation percentages for the price variation mechanism will range from 3-6% with the default value remaining at 5%.
New price variation clauses in the Public Works Contracts (PW-CF 1 to PW-CF 6 inclusive) were introduced on the 24 June 2023. Contracting Authorities were provided the opportunity to set the threshold on the project to identify the level of inflationary risk to be retained/priced by the tenderer. The contracts originally provided for a range of inflation percentages from 3%-10% with a default value of 5%.
Updated workbooks and guidance on how to use them are available under Pillar 3 of the CWMF. Updated Forms of Tender and Schedule are available under their respective contract types located under Pillar 1 of the CWMF.
These changes relate to new contracts rather than existing contracts.