When you use a base amount indexation method or an indexation based on index groups, you can specify a correction factor for the indexation percentage in the Correction factor % field at Contracts > Contract details > Contract lines.

During indexation, the calculated indexation percentage is multiplied by the correction factor. The resulting percentage is then evaluated against the defined minimum and maximum indexation values and used to index the amount in the contract line.

In the following scenarios, the correction factor is 80%, the minimum indexation value is 3%, and the maximum indexation value is 6%.

The calculated indexation percentage is 3.5%. After applying the correction factor, the corrected indexation percentage is 2.8% (80% × 3.5%).

This percentage is below the minimum indexation value. The amount in the contract line is indexed by the minimum value (3%). Because the minimum indexation value is applied, Planon redefines the base values for future indexations:

The calculated indexation percentage is 6.4%. After applying the correction factor, the corrected indexation percentage is 5.02% (80% × 6.4%). This percentage falls between the minimum and maximum indexation values. The amount in the contract line is indexed by 5.02%.

The calculated indexation percentage is 4.1%. After applying the correction factor, the corrected indexation percentage is 3.3% (80% × 4.1%). This percentage is above the minimum indexation value. The amount in the contract line is indexed by 3.3%.

The calculated indexation percentage is 10.3%. After applying the correction factor, the corrected indexation percentage is 8.2% (80% × 10.3%). This percentage exceeds the maximum indexation value. The amount in the contract line is indexed by the maximum value (6%).

Because the maximum indexation value is applied, Planon redefines the base values for future indexations.