Common use of Indirect Effects Clause in Contracts

Indirect Effects. The potential indirect economic effects of construction activities are estimated using an input-output (I-O) model of the Ketchikan Gateway Borough economy, available from the Minnesota IMPLAN6 Group. The company uses a large number of data sources to construct economic models of the economy of each state, county, or borough in the U.S. The I-O model captures the inter-industry transactions generated by the construction firms and their suppliers and the additional economic activity generated by household and government spending that will result construction of an alternative. When money enters an economy, it affects more than the initial recipient. When a bridge or road is built in Alaska, construction firms are the direct beneficiaries. The construction firms, in turn, buy supplies from other Alaska firms and hire workers. The shops selling the supplies make additional purchases, as do the project workers. A large share of local purchases may also be transferred out of the local economy by out-of-state purchases. The money spent locally on the project flows through the economy until it is dissipated by these out-of-region purchases. This is often called the multiplier effect. The effects of purchases from suppliers outside the state are excluded from the estimates. I-O 6 Impact analysis for planning models do not indicate the period of time when the effects of the initial spending will be felt throughout the economy. Because subsequent rounds of spending may be spread out over several years, the total effect suggested by the I-O models may not be realized in the initial year. The money that goes directly to the construction firms is part of the direct effect of the construction activities. Those effects are provided in the previous section. The additional rounds of spending caused by construction firm expenditures are part of the subsequent indirect and induced effects, which are often collectively referred to as secondary effects. It is typical that much of the secondary effect from any project occurs through expenditures by households and the government. The data shown in Sections 0 through 0 were estimated using the Ketchikan Gateway Borough I-O model.

Indirect Effects. The potential indirect economic effects of construction activities activities, including right-of-way acquisition, are estimated using an input-output (I-O) model of the Ketchikan Gateway Borough economy, available from the Minnesota IMPLAN6 IMPLAN7 Group. The company uses a large number of data sources to construct economic models of the economy of each state, county, or borough in the U.S. United States. The I-O model captures the inter-industry transactions generated by the construction firms and their suppliers and the additional economic activity generated by household and government spending that will result from construction of an alternative. When money enters an economy, it affects more than the initial recipient. When a bridge or road is built in Alaska, construction firms are the direct beneficiaries. The construction firms, in turn, buy supplies from other Alaska firms and hire workers. The shops selling the supplies make additional purchases, as do the project workers. A large share of local purchases may also be transferred out of the local economy by out-of-state purchases. The money spent locally on the project flows through the economy until it is dissipated by these out-out- of-region purchases. This is often called the multiplier effect. The effects of purchases from suppliers outside the state are excluded from the estimates. I-O 6 Impact analysis for planning models do not indicate the period of time when the effects of the initial spending will be felt throughout the economy. Because subsequent rounds of spending may be spread out over several years, the total effect suggested by the I-O models may not be realized in the initial year. The money that goes directly to the construction firms is part of the direct effect of the construction activities. Those effects are provided in the previous section. The additional rounds of spending caused by construction firm expenditures are part of the subsequent indirect and induced effects, which are often collectively referred to as secondary effects. It is typical that much of the secondary effect from any project occurs through expenditures by households and the governmentgovernments. The data indirect effects shown in Sections 0 through 0 the following subsections were estimated using the Ketchikan Gateway Borough IMPLAN I-O modelmodel for the Ketchikan Gateway Borough.