Common use of Budget Policy Clause in Contracts

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.