Budget Policy Clause Samples

Budget Policy. The Operating Budget and the Capital Budget and the related ServCo staffing levels for each Contract Year shall be designed to be adequate in both scope and amounts to reasonably assure that the Service Provider is able to carry out the related Operations Services in accordance with the Contract Standards and have a reasonable opportunity to earn Incentive Compensation under the Performance Metrics. The Parties further acknowledge and agree that it may, from time to time, be necessary or appropriate to amend or otherwise adjust a Consolidated LIPA Budget, as well as the Performance Metrics, as a result of Force Majeure, LIPA Fault, Non-Storm Emergency Events, other reasonably unanticipated events or additional requirements imposed by LIPA on the Service Provider after approval of the relevant Budget, which have resulted (or are expected to result) in schedule delays or increased work scope or costs.

Budget Policy. The Budgets and the related ServCo staffing levels for each Contract Year shall be designed to be adequate in both scope and amounts to reasonably assure that Operator is able to carry out the related O&M Services in accordance with the Contract Standards and have a reasonable opportunity to earn the Incentive Fee for achieving the Performance Metrics. The Parties further acknowledge and agree that, from time to time, it may be necessary or appropriate to amend or otherwise adjust the Performance Metrics or the Budgets as a result of (i) Force Majeure Events, (ii) Owner Fault, (iii) Outage Events or (iv) additional requirements imposed by Owner, Administrator or any other Governmental Body after approval of the Budgets, in the case of each of clauses (i) to (iv), which (A) have resulted (or are reasonably likely to result) in schedule delays or increased work scope or costs and (B) are not be attributable to Operator’s gross negligence or willful misconduct. Operator shall provide notice to Administrator and PREB promptly following the occurrence of an event contemplated above and the Parties shall, in good faith and acting reasonably, consider necessary adjustments to the Performance Metrics or the Budgets that are based on rates that are reasonable and customary.