CCM10460 - Penalties and Interest: Calculation of interest – Delay in settlement

The calculation of the interest will rarely be completely precise because you will be guessing at the date on which the first payment will become due and payable. However, you should use your best judgement to arrive at the interest due. If there is a short delay in obtaining the letter of offer the interest calculation will have been understated but it will not be worth inviting a further letter of offer in most cases. Where the delay is substantial you and your manager will need to consider whether to revise the interest charge and invite a fresh letter of offer.

If interest is to be included in a letter of offer you will need to refer to it in the letter of offer. The template for the letter of offer provides these words as optional text.