Common use of CHANGES IN CLASS AND RULES Clause in Contracts

CHANGES IN CLASS AND RULES. If, after the date provided for in Article 1 (b) (ii) of this Contract, any requirements as to Class or as to the above specified rules and regulations with which the construction of the Vessel is required to comply are altered or changed by the Classification Society or bodies authorized to make such alterations or changes, either of the parties hereto, upon receipt of due notice thereof, shall forthwith give notice thereof to the other party in writing. Thereupon, within fifteen (15) working days after receipt of the said notice from the Builder or giving the same to the Builder, the Buyer shall advise the Builder as to the alterations and changes, if any, to be made on the Vessel which the Buyer, at its sole discretion, shall decide. The Builder shall not be obliged to comply with such alterations and/or changes if the Buyer fails to notify the Builder of its decision within the time limit stated above or if such alterations and/or changes are not compulsory under the relevant rules, regulations or requirements. The Builder shall comply promptly with the said request of the Buyer, provided that the Builder and the Buyer shall first agree to: (i) any reasonable increase or decrease in the Contract Price of the Vessel that is occasioned by the cost of such compliance, (ii) any reasonable extension or advancement in the Delivery Date of the Vessel that is occasioned by such compliance, (iii) any reasonable increase or decrease in the deadweight and/or cubic capacity of the Vessel, if such compliance results in any increase or reduction in the deadweight, (iv) adjustment of the speed requirements, if any, and fuel oil consumption, (v) any other reasonable alterations in the terms of this Contract, or of the Specifications or Plans, or both, if such compliance makes such alterations of the terms necessary. If the parties are unable to agree any of the above, the parties may by mutual agreement refer the dispute to a third party expert as may be mutually agreed between the parties hereto and who shall act as an expert and not as arbitrator and whose decision shall be final, conclusive and binding on the parties hereto. Any delay in the construction of the Vessel caused by the Buyer’s delay in making a decision or agreement as above shall constitute a permissible delay under this Contract. Such agreement by the Buyer shall be effected in the same manner as provided above for modification and change of the Specifications and Plans. When reasonably required by the Buyer, the Builder shall furnish reasonable information relating to the cost break down in respect of the modifications referred to in this Article. The agreed extra cost or credit as a result of the modifications under this Article shall be paid upon acceptance and delivery of the Vessel together with the final instalment.