Common use of Economic Reinstatement Test During Construction Clause in Contracts

Economic Reinstatement Test During Construction. Project Co may, by notice to the Authority, terminate this Agreement if: (a) prior to the Service Commencement Date one or more Schools suffer damage or destruction that is likely to cost more than $5 million (Index Linked) to repair, replace and restore; and (b) on the date determined (in accordance with this Agreement) to be the revised Service Commencement Date following such reinstatement (the “Forecast Service Commencement Date”) the Project Reinstatement Ratio (as defined below) would be less than 1.05. If this Agreement is terminated in accordance with this Section 6.8, the Authority will pay compensation to Project Co in accordance with Section 4 of Schedule 9 [Compensation on Termination].

Economic Reinstatement Test During Construction. ‌ Project Co may, by notice to the Authority, terminate this Agreement if: (a) prior to the Service Commencement Date one or more Schools suffer the Facility suffers damage or destruction that is likely to cost more than $5 million (Index Linked) to repair, replace and restore; and (b) on the date determined (in accordance with this Agreement) to be the revised Service Commencement Date following such reinstatement (the “Forecast Service Commencement Date”) the Project Reinstatement Ratio (as defined below) would be less than 1.05. If this Agreement is terminated in accordance with this Section 6.8, the Authority will pay compensation to Project Co in accordance with Section 4 of Schedule 9 [Compensation on Termination].

Economic Reinstatement Test During Construction. Project Co may, by notice to the Authority, terminate this Agreement if: (a) prior to the Service Commencement Date one or more Schools suffer the Facility suffers damage or destruction that is likely to cost more than $5 million (Index Linked) to repair, replace and restore; and (b) on the date determined (in accordance with this Agreement) to be the revised Service Commencement Date following such reinstatement (the “Forecast Service Commencement Date”) the Project Reinstatement Ratio (as defined below) would be less than 1.05. If this Agreement is terminated in accordance with this Section 6.8, the Authority will pay compensation to Project Co in accordance with Section 4 5 of Schedule 9 [Compensation on Termination].