Prolonged Disruption Sum calculation Sample Clauses
The Prolonged Disruption Sum calculation clause defines how compensation or payments are determined in the event of an extended interruption to services or operations. Typically, this clause outlines the method for quantifying losses or additional costs incurred due to disruptions that exceed a specified duration, such as calculating sums based on daily rates or actual expenses. Its core function is to provide a clear and fair mechanism for addressing financial consequences of prolonged disruptions, ensuring both parties understand their potential liabilities and entitlements.
Prolonged Disruption Sum calculation. In respect of each Week during which any Prolonged Disruption continues, the Prolonged Disruption Sum shall be calculated in accordance with the following formula: = × × where: PDA is the Prolonged Disruption Amount; S is one quarter of the number of Services operated during the 4 Weeks immediately before the first Week of the Prolonged Disruption over that part of the CVL subject to the Prolonged Disruption; and M is the multiplier set out in the table below in respect of that Week of the Prolonged Disruption: Week 1 1 Week 3 2 Week 4 3 Week 5 to 13 2 Week 14 to 26 1.5