Procedure for Scope Changes. As soon as Contractor becomes aware of any circumstances which Contractor has reason to believe may necessitate a Scope Change, Contractor shall issue to Owner a Scope Change Order Notice at Contractor's expense. All Scope Change Order Notices shall include documentation sufficient to enable Owner to determine (a) the factors necessitating a Scope Change; (b) the impact which the Scope Change is likely to have on the Contract Price and the Payment and Milestone Schedule; (c) the impact which the Scope Change is likely to have on the Project Schedule, the Construction Progress Milestone Dates and the Guaranteed Completion Dates; (d) the impact which the Scope Change is likely to have on the Performance Guarantees; and (e) such other information which Owner may reasonably request in connection with such Scope Change in order to determine the above factors and impacts (including, with respect to Scope Changes involving price changes under the provisions of Section 12.8(c) or (d), material and labor cost information); provided, that if such information is proprietary to Contractor, then Contractor shall, at Owner's option, divulge such information on a 109 confidential basis to an independent auditor selected by agreement between the Parties in order to verify to Owner that the information and documentation provided by Contractor regarding the impact of the Scope Change is correct, rather than divulging such information to Owner. If such independent auditor confirms such information and documentation to be correct, Owner shall bear the costs of such independent auditor; otherwise, the costs of such independent auditor shall be borne by Contractor. If Owner desires to make a Scope Change, in response to a Scope Change Order Notice or otherwise, it shall submit a Scope Change Order Request to Contractor. Contractor shall promptly review the Scope Change Order Request and notify Owner in writing of the options for implementing the proposed Scope Change (including, if possible, any option that does not involve an extension of time) and the effect, if any, each such option would have on the Contract Price, the Guaranteed Completion Dates, the Construction Progress Milestone Dates, the Payment and Milestone Schedule, the Project Schedule and the Performance Guarantees. Contractor shall provide cost, schedule and performance level guarantee impacts to Owner for Scope Changes proposed by Owner, including furnishing to Owner a statement, setting forth in detail, a breakdown by trades and work classifications. Owner may, but shall not be obligated to, issue a Scope Change Order covering such proposed Scope Change, in which event the contents of Contractor's notice described in this Section 12.3 shall be binding on Owner (except as otherwise provided in the following sentence) and Contractor. In the event Owner disagrees with Contractor's statement of the effect of such Scope Change on the Contract Price, the Guaranteed Completion Dates, the Construction Progress Milestone Dates, the Project Schedule or the Performance Guarantees, Owner may proceed with issuance of the Scope Change Order, in which case Contractor shall proceed in accordance therewith, and the dispute shall be resolved as provided in Article 21 hereof.
Appears in 3 contracts
Samples: Engineering, Procurement and Construction Services Agreement (Aes Ironwood LLC), Engineering, Procurement and Construction Services Agreement (Aes Ironwood LLC), Engineering, Procurement and Construction Services Agreement (Aes Ironwood LLC)
Procedure for Scope Changes. 12.2.1 As soon as reasonably possible, but in no event later than fifteen (15) days after Contractor becomes aware of any circumstances which Contractor has reason to believe may necessitate constitute a Scope Change, Contractor shall issue to Owner Client a Scope Change Order Notice at Contractor's ’s expense. All Scope Change Order Notices shall include preliminary documentation sufficient to enable Owner Client to determine (ai) the factors necessitating the possibility of a Scope Change; (bii) the impact which the Scope Change is likely to have on the Contract Price and the Payment and Milestone SchedulePrice; (ciii) the impact which the Scope Change is likely to have on the Project Schedule, the Construction Progress Milestone Dates scheduling and the Guaranteed Completion Dates; (d) the impact which the Scope Change is likely to have on the Performance Guarantees; and (eiv) such any other information adjustments to this Agreement which Owner may reasonably request in connection with such Scope Change in order to determine the above factors and impacts (including, with respect to Scope Changes involving price changes under the provisions of Section 12.8(c) or (d), material and labor cost information); provided, that if such information is proprietary to Contractor, then Contractor shall, at Owner's option, divulge such information on believes should be made as a 109 confidential basis to an independent auditor selected by agreement between the Parties in order to verify to Owner that the information and documentation provided by Contractor regarding the impact result of the Scope Change is correct, rather than divulging such information to Owner. Change.
12.2.2 If such independent auditor confirms such information and documentation to be correct, Owner shall bear the costs of such independent auditor; otherwise, the costs of such independent auditor shall be borne by Contractor. If Owner Client desires to make a Scope Change, Change in response to a Scope Change Order Notice or otherwise, it shall submit a Scope Change Order Request to Contractor. Contractor shall promptly review the Scope Change Order Request and notify Owner Client promptly in writing of the options for implementing the proposed Scope Change (including, if possible, any option that does not involve an extension of time) and the effect, if any, each such option would have on the Contract Price, the Guaranteed Completion Dates, the Construction Progress Milestone Dates, the Payment and Milestone Schedule, the Project Schedule Schedule, or the Project Guarantees, or any other such part of this Agreement as may be affected. The preparation and the Performance Guarantees. Contractor provision of information to Client in response to Scope Change Order Request shall provide costbe at Contractor’s expense if such Scope Change Order Request is issued in response to a Scope Change Order Notice issued by Contractor.
12.2.3 If a Scope Change is in order, schedule and performance level guarantee impacts to Owner for Scope Changes proposed by Owner, including furnishing to Owner a statement, setting forth in detail, a breakdown by trades and work classifications. Owner may, but Client shall not be obligated to, issue a Scope Change Order covering such proposed Scope ChangeOrder, in which event the contents of Contractor's notice described in this ’s response to a Scope Change Order Request pursuant to Section 12.3 12.2.2 shall be binding on Owner (except as otherwise provided in the following sentence) and Contractor. In the event Owner Client disagrees with Contractor's ’s statement of the effect of such Scope Change on any one or more of the Contract Price, the Guaranteed Completion Dates, the Construction Progress Milestone DatesPayment Schedule, the Project Schedule or Schedule, the Performance Project Guarantees, Owner or any other such part of this Agreement as may be affected, Client may proceed with issuance of to issue the Scope Change Order, in which case Contractor shall proceed Order in accordance therewith, and the dispute with Section 12.7.
12.2.4 Client shall be resolved as provided in Article 21 hereofissue a Scope Change Order for each Scope Change.
Appears in 2 contracts
Samples: Engineering, Procurement and Construction Agreement (BioFuel Energy Corp.), Engineering, Procurement and Construction Agreement (BioFuel Energy Corp.)
Procedure for Scope Changes. (a) As soon as Contractor becomes aware of any circumstances which Contractor has reason to believe may necessitate a Scope Change, Contractor shall issue to Owner a Scope Change Order Notice at Contractor's expense. All Scope Change Order Notices shall include documentation sufficient to enable Owner to determine (ai) the factors necessitating a Scope Change; (bii) the impact which the Scope Change is likely to have on the Contract Price and the Payment and Milestone Schedule; (ciii) the impact which the Scope Change is likely to have on the Project Schedule, the Construction Progress Milestone Dates and the Guaranteed Completion Dates; (div) the impact which the Scope Change is likely to have on the Performance Guarantees; and (ev) such other information which Owner may reasonably request in connection with such Scope Change in order to determine the above factors and impacts (including, with respect to Scope Changes involving price changes under the provisions of Section 12.8(c) or (d)) hereof, material and labor cost information); provided, that if such information is proprietary to Contractor, then Contractor shall, at Owner's option, divulge such information on a 109 confidential basis to an independent auditor selected by agreement between the Parties in order to verify to Owner that the information and documentation provided by Contractor regarding the impact of the Scope Change is correct, rather than divulging such information to Owner. If such independent auditor confirms such information and documentation to be correct, Owner shall bear the costs of such independent auditor; otherwise, the costs of such independent auditor shall be borne by Contractor. .
(b) If Owner desires or is required to make a Scope Change, in response to a Scope Change Order Notice or otherwise, it shall submit a Scope Change Order Request to Contractor. Contractor shall promptly review the Scope Change Order Request and notify Owner in writing of the options for implementing the proposed Scope Change (including, if possible, any option that does not involve an extension of time) and the effect, if any, each such option would have on the Contract Price, the Guaranteed Completion Dates, the Construction Progress Milestone Dates, the Payment and Milestone Schedule, the Project Schedule and the Performance Guarantees. Contractor shall provide cost, schedule and performance level guarantee impacts to Owner for Scope Changes proposed by Owner, including furnishing to Owner a statement, setting forth in detail, a breakdown by trades and work classifications. Owner may, but shall not be obligated toto (except and only as specifically provided in Sections 12.2(ii) and 12.12 hereof), issue a Scope Change Order covering such proposed Scope Change, in which event the contents of Contractor's notice described in this Section 12.3 shall be binding on Owner (except as otherwise provided in the following sentence) and Contractor. In the event Owner disagrees with Contractor's statement of the effect of such Scope Change on the Contract Price, the Guaranteed Completion Dates, the Construction Progress Milestone Dates, the Project Schedule or the Performance Guarantees, Owner may (and with respect to matters addressed in Sections 12.2(ii), 12.5 and 12.12 hereof, shall) proceed with issuance of the an interim Scope Change OrderOrder (an "INTERIM SCOPE CHANGE ORDER") on such terms and conditions as Owner deems to be warranted, in which case Contractor shall proceed in accordance therewith, and the dispute as to the effect of such Scope Change shall be resolved as provided in Article 21 hereof.
Appears in 1 contract
Samples: Engineering, Procurement and Construction Services Agreement (Aes Red Oak LLC)
Procedure for Scope Changes. As soon as 13.3.1 Within ten (10) days after the Turnkey Contractor first becomes aware of any circumstances which the Turnkey Contractor has reason to believe may necessitate constitute or justify a Scope Change, the Turnkey Contractor shall issue to Owner the MEP Participants a Scope Change Order Notice at the Turnkey Contractor's ’s sole expense. All Scope Change Order Notices shall include preliminary documentation sufficient to enable Owner the MEP Participants to determine (ai) the factors necessitating the possibility of a Scope Change; (bii) the impact, if any, which the Scope Change may have on the Lump Sum Fixed Price; (iii) the impact which the Scope Change is likely to may have on the Contract Price scheduling and the Payment and Milestone Schedule; (c) the impact which the Scope Change is likely to have on the Project Schedule, the Construction Progress Milestone Dates and the any Guaranteed Completion Dates; (d) the impact which the Scope Change is likely to have on the Performance GuaranteesDate; and (eiv) such other information which Owner the MEP Participants may reasonably request in connection with such Scope Change in order to determine the above factors and impacts (including, with respect to Scope Changes involving price changes under the provisions of Section 12.8(c) or (d), including material and labor cost information); provided, that if such information is proprietary to Contractor, then Contractor shall, at Owner's option, divulge such information on a 109 confidential basis to an independent auditor selected by agreement between .
13.3.2 If the Parties in order to verify to Owner that the information and documentation provided by Contractor regarding the impact of the Scope Change is correct, rather than divulging such information to Owner. If such independent auditor confirms such information and documentation to be correct, Owner shall bear the costs of such independent auditor; otherwise, the costs of such independent auditor shall be borne by Contractor. If Owner desires MEP Participants desire to make a Scope Change, Change in response to a Scope Change Order Notice or otherwise, it they shall submit a Scope Change Order Request to the Turnkey Contractor. The Turnkey Contractor shall promptly review the Scope Change Order Request and notify Owner the MEP Participants in writing of the available options for implementing the proposed Scope Change (including, if possible, any option that does not involve an extension of time) and the effect, if any, each such option would have on each of the Contract Lump Sum Fixed Price, the Guaranteed Completion Dates, the Construction Milestone/Progress Milestone Dates, the Payment and Milestone Schedule, the Project Work Schedule and and/or the Performance GuaranteesGuaranties. Contractor Such notice shall provide also describe the cost, schedule and performance level guarantee guaranty impacts to Owner for of the MEP Participants’ Scope Changes proposed by Owner, including furnishing to Owner Change Order Request and shall include a statement, setting forth in detail, a detailed breakdown by trades and work classifications. Owner may, but The MEP Participants shall not be obligated to, issue reimburse the Turnkey Contractor for any agreed costs incurred by the Turnkey Contractor in developing a Scope Change Order covering such proposed Request initiated by the MEP Participants.
13.3.3 If the MEP Participants agree that a Scope Change, Change is in which event order and accept the contents of Turnkey Contractor's notice described in this Section 12.3 shall be binding on Owner (except as otherwise provided in the following sentence) and Contractor. In the event Owner disagrees with Contractor's ’s statement of the effect of such Scope Change on the Contract Lump Sum Fixed Price, the Guaranteed Completion Dates, the Construction Milestone/Progress Milestone DatesPayment Schedule, the Project Work Schedule or and/or the Performance GuaranteesGuaranties, Owner may proceed with issuance of the MEP Participants shall issue a Scope Change Order, in which case Contractor event the contents of the Turnkey Contractor’s response to a Scope Change Order Request pursuant to Section 13.3.2 shall be binding on the Turnkey Contractor. In the event the MEP Participants disagree with the Turnkey Contractor’s statement of the effect of such Scope Change on any one or more of the Lump Sum Fixed Price, the Guaranteed Completion Dates, the Milestone/Progress Payment Schedule, the Work Schedule and/or the Performance Guaranties, the MEP Participants may proceed to issue the Scope Change Order in accordance therewith, and the dispute with Section 13.9.
13.3.4 The MEP Participants shall be resolved as provided in Article 21 hereofissue a Scope Change Order for each Scope Change.
Appears in 1 contract
Samples: Turnkey Agreement