The Missing 10%

As indicated yesterday there is quite a bit of, presumably corporate target instigated, activity to reconcile contracts by March 06. We are currently running a couple of IRs in this regard one with an interesting “entire agreement” point arising out of Tuckers & Others arbitration result on cost neutrality.
We have also had a number of phone calls on the subject. Of particular interest to CDS suppliers is the issue of to what percentage the contract should be balanced. It was one of the selling points of the new scheme that firms would be paid up to 10% more than their contract payments to compensate for the WIP impact of the new scheme. The firms we are speaking to are being told that their contracts must absolutely balance and the 10% is not to be allowed.
Anyone out their with similar experience and perhaps a positive outcome?
We obviously are resisting this.

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