Overhead - Catastrophe Clause Samples
The "Overhead - Catastrophe" clause defines how overhead costs are calculated and reimbursed in the event of a catastrophic incident, such as a natural disaster or large-scale loss. Typically, this clause specifies the percentage or method by which contractors or service providers can claim additional overhead expenses related to emergency response, cleanup, or reconstruction efforts. For example, it may allow for a higher overhead rate than usual to account for the increased complexity and urgency of catastrophe-related work. The core function of this clause is to ensure that parties are fairly compensated for the extra administrative and logistical burdens that arise during catastrophic events, thereby facilitating a more effective and timely response.
Overhead - Catastrophe. To compensate Operator for overhead costs incurred in the event of expenditures resulting from a single occurrence due to oil spill, blowout, explosion, fire, storm, hurricane, or other catastrophes as agreed to by the Parties, which are necessary to restore the Joint Property to the equivalent condition that existed prior to the event causing the expenditures, Operator shall either negotiate a rate prior to charging the Joint Account or shall charge the Joint Account for overhead based on the following rates:
(1) 5% of total costs through $100,000; plus
(2) 3% of total costs in excess of $100,000 but less than $1,000,000; plus
(3) 2% of total costs in excess of $1,000,000. Expenditures subject to the overheads above will not be reduced by insurance recoveries, and no other overhead provisions of this Section III shall apply.
Overhead - Catastrophe. To compensate Operator for overhead costs incurred in the event of expenditures resulting from a single occurrence due to oil spill, blowout, explosion, fire, storm, hurricane, or other catastrophes as agreed to by the Parties, which are necessary to restore the Joint Property to the equivalent condition that existed prior to the event causing the expenditures, Operator shall either negotiate a rate prior to charging the Joint Account or shall charge the Joint Account for overhead based on the following rates: