Cost Planning Clause Samples

Cost Planning. The Managing Contractor must: (a) plan the project in consultation with the Principal's Representative and provide estimates of and costings for the construction and commissioning phase of the project; (b) within 7 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing), prepare for the approval of the Principal's Representative a cost breakdown structure; (c) within 28 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing), prepare for the approval of the Principal's Representative a cost plan which sets out the Managing Contractor's proposed packaging of the subcontracts of the project and includes: (i) a cost analysis in respect of each part of the work under the Contract including a detailed break-up by reference to each separate subcontract package (a scope work breakdown structure), of the costs for construction and commissioning which must set a budget (including a contingency) for each subcontract package (a scope cost breakdown structure); (ii) a map linking the benchmark cost breakdown structure to the scope work and cost breakdown structures; (iii) the cash-flow requirements of the project; and (iv) a reconciliation of the various elements of the cost plan against the Target Budget for the project, and once this cost plan is approved by the Principal's Representative it will be referred to as the "Cost Plan"; (d) institute a system of cost control (including monthly reports to the Principal setting out the cost to date, forecast cost to complete and forecast cost at completion) and, together with the Principal's Representative, review and, where approved by the Principal's Representative, amend the Cost Plan to take account of any item affecting or likely to affect any component of the Cost Plan, and advise the Principal's Representative as to the alternative steps available where: (i) the tenders for any part of the Reimbursable Services which are to be performed by a subcontractor exceed the amount included for that work in the Cost Plan; or (ii) the costs incurred in respect of any Reimbursable Services (including under any Approved Subcontract Agreement) exceed the amount allowed for the particular Reimbursable Services in the cash-flow which forms part of the Cost Plan or the forecast final costs of that Reimbursable Works appear likely to exceed the total amount allowed for that work (including the contingency)...