Common use of Valuation and Payments for Reductions or Avoided Costs Clause in Contracts

Valuation and Payments for Reductions or Avoided Costs. (a) If a Change Order involves any reductions in the Project, the Project Requirements, the O&M, or the O&M Requirements, and results in net savings in costs (in the context of a reduction in the Project or the Project Requirements having regard, without limitation, to any reasonable make whole premiums, hedging or other breakage costs, or prepayment fees, and all reasonable redemption implementation costs reasonably incurred by the Contractor as a result of any adjustments to debt service payments) to the Contractor for completing the Project or performing the Project Requirements, the O&M, or the O&M Requirements, then the value of all such savings shall be reflected in a lump sum payment to the Province or in adjustments to the Capital Payments and/or the O&M Payments to the extent as determined by the parties, acting reasonably.