The new provisions relating to inflation adjustment are contained in the amended forms of Conditions of Engagement (COE1 and COE2). They apply to contacts awarded pursuant to tenders received on or after the 10 October 2024 Contract.

The Conditions of Engagement – Fee Adjustment Factor (COE-FAF) is a composite factor that has been developed for use with COE1 and COE2. 

COE FAF Tool

COE Fee Adjustment Factor Methodology

COE FAF Additional Guidance

COE FAF Worked Example

TIME STAMPS in linked Video Above:

• Summary: 0.03
• Guidance Documents – 0.23
• Familiarisation with Workbook – 0.57
• Background – 1.27
• What you will Need – 2.10
• Lump Sum Demonstration – 4.18
• Percentage Fee Demonstration – 9.00
• Overview – 12.16
• Glossary of Terms – 13.19
• CWMF Website – 13.28
• Video Ends: 13.40