Common use of Deficiency in variable Loads Clause in Contracts

Deficiency in variable Loads. Pursuant to the Specifications, the Jacking Variable Load shall be 2,268 metric tons (“MT”), the Drilling Variable Load shall be 3,401 MT, and the Floating Variable Load shall be 2,268 MT. The Jacking Variable Load, the Drilling Variable Load, and the Floating Variable Load are hereafter also referred jointly or separately as the “Variable Loads”. If either one or more of the Variable Loads are not achieved, the Purchase Price may, subject to the decision of Buyer and as an alternative to Buyer requiring the deficiency to be remedied, be reduced as follows: (a) For each full MT reduction in the Floating Variable Load of more than 100MT but maximum 200MT, a reduction of the Purchase Price with US$15,000 per MT of reduced capacity after giving an allowance to Builder of 100MT, (b) For each full MT reduction in the Jacking Variable Load of more than 100MT but maximum 200MT, a reduction of the Purchase Price with US$15,000 per MT of reduced capacity after giving an allowance to Builder of 100MT. Pacific Class® 400 Rig Construction Contract (PPl Hull No. P2047)