Common use of COST OVERRUN Clause in Contracts

COST OVERRUN. 8.2.1 In the event that at any time a Cost Overrun exists that is greater than [***], Owner shall be permitted by written notice to Contractor to reduce the Contractor’s Margin for all purposes hereunder as follows: (a) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; (b) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; or (c) if the Cost Overrun is greater than [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]. 8.2.2 Owner shall be permitted to reduce the Contractor’s Margin pursuant to Section 8.2.1 more than once if following Owner’s first delivery of a notice pursuant to Section 8.2.1 a Cost Overrun increases to exceed the next then applicable threshold set forth therein. Each reduction of Contractor’s Margin effected pursuant to Section 8.2.1 shall be applied both retroactively and prospectively, and all payments by Owner of Contractor’s Margin made prior to such reduction shall be retroactively adjusted to be equal to an amount calculated using the reduced Contractor’s Margin. In such event, without prejudice to Section 41.7, Owner may deduct from any amounts owed to Contractor hereunder an amount equal to the positive difference between the amount of the Contractor’s Margin previously paid to Contractor pursuant to Section 6.2 calculated using the previously applicable Contractor’s Margin and the amount of the Contractor’s Margin previously paid to Contractor as recalculated using the reduced Contractor’s Margin. Each notice delivered by Owner pursuant to Section 8.2.1 shall include Owner’s supporting calculations of the amount of the relevant Cost Overrun and, if applicable, the amount of such positive difference to be deducted from amounts owed to Contractor. 8.2.3 Within [***] days following the Final Completion Date, Owner shall calculate and deliver to Contractor written notice of the amount by which the Total Costs exceed the Target Price, if any, as of the Final Completion Date, such notice to include Owner’s supporting calculations of the amount of such excess. 8.2.4 The Parties acknowledge and agree that the remedies set forth in this Section 8.2 (a) are reasonable and appropriate measures of the damages for the circumstances described herein and do not represent a penalty, and (b) constitute Owner’s sole remedies for the Total Costs exceeding the Target Price.

COST OVERRUN. 8.2.1 In the event that at any time a Cost Overrun exists that is greater than [***], Owner shall be permitted by written notice to Contractor to reduce the Contractor’s Margin for all purposes hereunder as follows: (a) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; (b) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; or; (c) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; and (d) if the Cost Overrun is greater than [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]. 8.2.2 Owner shall be permitted to reduce the Contractor’s Margin pursuant to Section 8.2.1 more than once if following Owner’s first delivery of a notice pursuant to Section 8.2.1 a Cost Overrun increases to exceed the next then applicable threshold set forth therein. Each reduction of Contractor’s Margin effected pursuant to Section 8.2.1 shall be applied both retroactively and prospectively, and all payments by Owner of Contractor’s Margin made prior to such reduction shall be retroactively adjusted to be equal to an amount calculated using the reduced Contractor’s Margin. In such event, without prejudice to Section 41.7, Owner may deduct from any amounts owed to Contractor hereunder an amount equal to the positive difference between the amount of the Contractor’s Margin previously paid to Contractor pursuant to Section 6.2 6.3 calculated using the previously applicable Contractor’s Margin and the amount of the Contractor’s Margin previously paid to Contractor as recalculated using the reduced Contractor’s Margin. Each notice delivered by Owner pursuant to Section 8.2.1 shall include Owner’s supporting calculations of the amount of the relevant Cost Overrun and, if applicable, the amount of such positive difference to be deducted from amounts owed to Contractor. 8.2.3 Within [***] days following the Final Completion Date, Owner shall calculate and deliver to Contractor written notice of the amount by which the Total Costs exceed the Target Price, if any, as of the Final Completion Date, such notice to include Owner’s supporting calculations of the amount of such excess.] 8.2.4 The Parties acknowledge and agree that (a) the Dollar values in Sections 8.2.1 and 8.2.3 are subject to adjustment pursuant to Section 4.1.4 and (b) the remedies set forth in this Section 8.2 (a) are reasonable and appropriate measures of the damages for the circumstances described herein and do not represent a penalty. 8.2.5 The Parties acknowledge that the Dollar values in Section 8.2.1 reflect necessary adjustments relating to the cost of Performance and Payment Bonds, aggregate and (b) constitute Owner’s sole remedies the aboveground fuel pipe for the Total Costs exceeding Phase 1 Work (excluding for this purpose LPS4) which were not included within the Target Price.proposal set forth in Exhibit Z.

COST OVERRUN. 8.2.1 In the event that at any time a Cost Overrun exists that is greater than [***], Owner shall be permitted by written notice to Contractor to reduce the Contractor’s Margin for all purposes hereunder as follows: (a) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; (b) if the Cost Overrun is greater than [***] but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; (c) if the Cost Overrun is greater than [***], but less than or equal to [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]; orand (cd) if the Cost Overrun is greater than [***], the Contractor’s Margin shall be reduced by applying a Margin Percentage of [***]. 8.2.2 Owner shall be permitted to reduce the Contractor’s Margin pursuant to Section 8.2.1 more than once if following Owner’s first delivery of a notice pursuant to Section 8.2.1 a Cost Overrun increases to exceed the next then applicable threshold set forth therein. Each reduction of Contractor’s Margin effected pursuant to Section 8.2.1 shall be applied both retroactively and prospectively, and all payments by Owner of Contractor’s Margin made prior to such reduction shall be retroactively adjusted to be equal to an amount calculated using the reduced Contractor’s Margin. In such event, without prejudice to Section 41.7, Owner may deduct from any amounts owed to Contractor hereunder an amount equal to the positive difference between the amount of the Contractor’s Margin previously paid to Contractor pursuant to Section 6.2 6.3 calculated using the previously applicable Contractor’s Margin and the amount of the Contractor’s Margin previously paid to Contractor as recalculated using the reduced Contractor’s Margin. Each notice delivered by Owner pursuant to Section 8.2.1 shall include Owner’s supporting calculations of the amount of the relevant Cost Overrun and, if applicable, the amount of such positive difference to be deducted from amounts owed to Contractor. 8.2.3 Within [***] thirty (30) days following the Final Completion Date, Owner shall calculate and deliver to Contractor written notice of the amount by which the Total Costs exceed the Target Price, if any, as of the Final Completion Date, such notice to include Owner’s supporting calculations of the amount of such excess. 8.2.4 The Parties acknowledge and agree that (a) the Dollar values in Sections 8.2.1 and 8.2.3 are subject to adjustment pursuant to Section 4.1.4 and (b) the remedies set forth in this Section 8.2 (a) are reasonable and appropriate measures of the damages for the circumstances described herein and do not represent a penalty, and (b) constitute Owner’s sole remedies for the Total Costs exceeding the Target Price.