Common use of Calculation of Rates Clause in Contracts

Calculation of Rates. Subject to Item 5(c) of Schedule 1, the calculation of Rates for Timber hauled from respective Harvest Sites will be determined in accordance with the following paragraphs: (a) For each Harvest Site, the distance by each road class, as defined in Item 5(f) of Schedule 1, of the cheapest most practical route as defined by VicForests from Harvest Site to Delivery Site irrespective of vehicle configuration will be calculated and the total distance from Harvest Site to Delivery Site will be determined. (b) The haulage distance to each destination from a Harvest Site will be determined as a weighted average distance regardless of the number of landing sites. (c) Calculation 1. Road class component The road class component of the Rate is calculated by adding the product of a road class distance and its corresponding Base Rate, as defined in Item 5(a) in Schedule 1, across all road classes according to the following formula: Road class component (in $/Tonnes) = (Distance A class x A class Base Rate) + (Distance B class x B class Base Rate) + (Distance C class x C class Base Rate) + (Distance D class x D class Base Rate) (d) Calculation 2. Distance adjustment factor An adjustment to the road class component is obtained from the haulage distance loading adjustment schedule in Item 5(e) of Schedule 1 using the total distance (rounded down to the nearest whole kilometre). (e) Calculation 3. Add on From time to time VicForests may determine that under certain circumstances an additional amount may be required to be paid to the contractor. This amount will be considered an ‘add on’, and included in the rate calculations pursuant to clause (f) Rate in $/Tonne = Road class component + (Distance adjustment factor x Road class component) + Add On.

Calculation of Rates. Subject to Item 5(c) of Schedule 1, the The calculation of Rates for Timber hauled from respective Harvest Sites will be determined in accordance with the following paragraphs: (a) For each Harvest Site, the distance by each road class, as defined in Item 5(f5(c) of Schedule 1, of the cheapest most practical route as defined by VicForests from Harvest Site to Delivery Site irrespective of vehicle configuration will be calculated and the total distance from Harvest Site to Delivery Site will be determined. (b) The haulage distance to each destination from a Harvest Site will be determined as a weighted average distance regardless of the number of landing sites. (c) Calculation 1. Road class component The road class component of the Rate is calculated by adding the product of a road class distance and its corresponding Base Rate, as defined in Item 5(a) in Schedule 1, across all road classes according to the following formula: Road class component (in $/Tonnes) = (Distance A class x A class Base Rate) + (Distance B class x B class Base Rate) + (Distance C class x C class Base Rate) + (Distance D class x D class Base Rate) (d) Calculation 2. Distance adjustment factor An adjustment to the road class component is obtained from the haulage distance loading adjustment schedule in Item 5(e5(b) of Schedule 1 using the total distance (rounded down to the nearest whole kilometre). (e) Calculation 3. Add on From time to time VicForests may determine that under certain circumstances an additional amount may be required to be paid to the contractor. This amount will be considered an ‘add on’, and included in the rate calculations pursuant to clause (f) Final Rate in $/Tonne = Road class component + (Distance adjustment factor x Road class component) + Add On.