Common use of Installation of Facilities Clause in Contracts

Installation of Facilities. Utility agrees that it will, as soon as necessary material and labor are available and necessary permits, licenses, other governmental authorizations, easements and rights of way in form satisfactory to Utility have been executed by Applicant and delivered to Utility, commence and prosecute to completion with all reasonable diligence the work upon the Total Facilities. Utility reserves the right to make such changes in design or materials as it may deem necessary. If such change results in a 10% or greater increase in the Estimated Cost, Utility shall give written notice to Applicant of the amount of such cost increase and will demand an additional deposit to cover the increased cost. If within ten (10) days of giving such notice of cost increase, Applicant gives Utility written notice to discontinue such work upon the Total Facilities or fails to provide the additional required deposit, Utility shall discontinue the same and shall forthwith refund to Applicant the unexpended portion, if any, of Applicant's deposit. If Applicant does not give Utility written notice to discontinue such work within ten (10) days after such notice of cost increase, Utility may proceed with such work at its option. Within sixty (60) days after Utility has ascertained its actual costs of installing the New Facilities, it will provide Applicant with a statement of the same showing in reasonable detail the costs incurred for material, labor and other direct and indirect costs, overheads and total costs, or unit costs or contract costs, whichever are appropriate. If such actual construction costs shall not have been determined within one hundred twenty (120) days after completion of construction work, a preliminary determination of actual costs shall be submitted, based upon the best available information at that time. Upon completion of the work upon the Total Facilities, if the actual total installed cost thereof including applicable income taxes is greater or less than the total amount deposited by Applicant hereunder, the difference shall forthwith be paid by Applicant to Utility or refunded by Utility to Applicant as the case may be. It is expressly agreed that there shall be included in said actual total installed cost any sums paid for materials used in such work upon the Total Facilities by reason of price increases applicable to such materials. If Utility shall, for its own uses, replace any portion of the Old Facilities with a pipe or pipes of larger size (oversizing), then the current difference in price to Utility between such smaller and larger pipe shall be excluded from said actual total installed cost. However, if such oversizing is the result of Applicant's service requirements, then such costs will be included in the actual total installed cost. Subject to the provisions of this paragraph, no other refund will be made to Applicant for any sums deposited or to be deposited by Applicant with Utility hereunder except pursuant to the terms of Paragraph 5.

Installation of Facilities. Utility agrees that it will, as soon as necessary material and labor are available and necessary permits, licenses, other governmental authorizations, easements and rights of way in form satisfactory to Utility have been executed by Applicant and delivered to Utility, commence and prosecute to completion with all reasonable diligence the work upon the Total FacilitiesService. Utility reserves the right to make such changes in design or materials as it may deem necessary. If such change results in a 10% or greater increase in the Estimated Cost, Utility shall give written notice to Applicant of the amount of such cost increase and will demand an additional deposit to cover the increased cost. If within ten (10) days of giving such notice of cost increase, Applicant gives Utility written notice to discontinue such work upon the Total Facilities Service or fails to provide the additional required deposit, Utility shall discontinue the same and shall forthwith refund to Applicant the unexpended portion, if any, of Applicant's deposit. If Applicant does not give Utility written notice to discontinue such work within ten (10) days after such notice of cost increase, Utility may proceed with such work at its option. Within sixty (60) days after Utility has ascertained its actual costs of installing the New FacilitiesService, it will provide Applicant with a statement of the same showing in reasonable detail the costs incurred for material, labor and other direct and indirect costs, overheads and total costs, or unit costs or contract costs, whichever are appropriate. If such actual construction costs shall not have been determined within one hundred twenty (120) days after completion of construction work, a preliminary determination of actual costs shall be submitted, based upon the best available information at that time. Upon completion of the work upon the Total FacilitiesService, if the actual total installed cost thereof including applicable income taxes is greater or less than the total amount deposited by Applicant hereunder, the difference shall forthwith be paid by Applicant to Utility or refunded by Utility to Applicant as the case may be. It is expressly agreed that there shall be included in said actual total installed cost any sums paid for materials used in such work upon the Total Facilities Service by reason of price increases applicable to such materials. If Utility shall, for its own uses, replace any portion of the Old Facilities with a pipe or pipes of larger size (oversizing), then the current difference in price to Utility between such smaller and larger pipe shall be excluded from said actual total installed cost. However, if such oversizing is the result of Applicant's service requirements, then such costs will be included in the actual total installed cost. Subject to the provisions of this paragraph, no other refund will be made to Applicant for any sums deposited or to be deposited by Applicant with Utility hereunder except pursuant to the terms of Paragraph 5.