Innovation and Value Engineering Clause Samples
The Innovation and Value Engineering clause establishes a framework for encouraging and managing improvements or cost-saving measures during a project. It typically allows contractors or suppliers to propose alternative methods, materials, or processes that could enhance efficiency, reduce costs, or improve quality, subject to the client's approval. This clause ensures that both parties can benefit from innovative solutions while maintaining project objectives, ultimately fostering continuous improvement and optimizing project value.
Innovation and Value Engineering. Project Co may submit an Innovation Proposal for consideration by the Authority in accordance with Schedule 6 [Changes, Minor Works and Innovation Proposals].
Innovation and Value Engineering. Design-Builder may at any time submit a proposal to the City (an “Innovation Proposal”) to implement modifications to the Project or the Project Requirements, including through innovation or value engineering, for the purpose of achieving efficiencies, reducing the Payments or the overall cost to the City of the Infrastructure or the operation or Maintenance of the Infrastructure or realizing other benefits. An Innovation Proposal must:
(a) be originated and initiated solely by Design-Builder without the involvement of the City or any City Person; and
(b) offer savings, innovations, efficiencies or other benefits that are not otherwise called for or provided by this Agreement.
Innovation and Value Engineering. Project Co may submit an Innovation Proposal for consideration by BC Hydro in accordance with Schedule 12 [Changes].
Innovation and Value Engineering. Project Co may at any time submit a proposal to the City (an “Innovation Proposal”) to implement modifications to the Project or the Project Requirements, including through innovation or value engineering, for the purpose of achieving efficiencies, reducing the Construction Payments or the overall cost to the City of the Infrastructure or the operation or Maintenance of the Infrastructure or realizing other benefits. An Innovation Proposal must:
(a) be originated and initiated solely by Project Co without the involvement of the City or any City Person; and
(b) offer savings, innovations, efficiencies or other benefits that are not otherwise called for or provided by this Agreement.
Innovation and Value Engineering. (a) Project Co acknowledges that the City at all times desires to reduce the Monthly Service Payments and the overall cost to the City of the System, the Works and the Maintenance Amended and Restated Project Agreement Ottawa Light Rail Transit Project REDACTED Execution Version CONFIDENTIAL AND PROPRIETARY Page 151 CAN: 26350049.2 BD-#30398459-v2 Services, and Project Co agrees to cooperate, explore and work with the City in investigating and considering innovation and value engineering and other cost saving measures.
(b) If an innovation and value engineering proposal is at any time and from time to time originated and initiated solely by Project Co, Project Co may make a proposal (the “Innovation Proposal”) by notice to the City.
(c) The Parties agree that the subject of an Innovation Proposal shall not include:
(i) any Variation Enquiry initiated by the City;
(ii) any Variation resulting from a Change in Law; or
(iii) any change to the City Activities.
(d) The Innovation Proposal must:
(i) set out sufficient detail to enable the City to evaluate the Innovation Proposal in full;
(ii) specify Project Co’s reasons and justification for proposing the Innovation Proposal;
(iii) request the City to consult with Project Co with a view to deciding whether to agree to the Innovation Proposal and, if so, what consequential changes the City requires as a result;
(iv) indicate any implications of the Innovation Proposal, including a difference between the existing and the proposed requirements of this Project Agreement, and the comparative advantages of each to Project Co and the City;
(v) indicate, in particular, whether an increase or decrease to the Monthly Service Payments is proposed, and, if so, give a detailed cost estimate of such proposed change;
(vi) indicate if there are any dates by which a decision by the City must be made;
(vii) indicate the capital cost of the Innovation Proposal, including the cost of financing; and
(viii) include such other information and documentation as may be reasonably requested by the City to fully evaluate and consider the Innovation Proposal.
(e) The City shall, acting in good faith, evaluate the Innovation Proposal, taking into account all relevant issues, including whether:
(i) a change in the Monthly Service Payments will occur; Amended and Restated Project Agreement Ottawa Light Rail Transit Project REDACTED Execution Version CONFIDENTIAL AND PROPRIETARY Page 152 CAN: 26350049.2 BD-#30398459-v2
(ii) the Innovation Prop...
Innovation and Value Engineering. Operations Co may submit an Innovation Proposal for consideration by the Authority in accordance with Schedule 6 [Changes, Minor Works and Innovation Proposals] to the Project Agreement. For greater certainty, Innovation Proposals will be approved or rejected by the Authority in accordance with the requirements of Schedule 6 [Changes, Minor Works and Innovation Proposals] to the Project Agreement, and such approval or rejection will be binding on Project Co and Operations Co. 34985-2017 25902380.4 Amended and Restated Project Implementation Agreement NG-KIH Project