Common use of Overspend Clause in Contracts

Overspend. 16.1 If POV becomes aware that other than in relation to and arising from approved Additional Production Services, the total cost is likely to exceed the POV Budget POV shall forthwith: 16.1.1 prepare and submit to PEAK a full statement of account containing details of costs incurred but not yet paid for and an estimate of costs likely to be incurred to complete the rendition of the Production Services; 16.1.2 submit detailed proposals for reducing the cost of the items allowed for in POV Budget; 16.1.3 comply with any reasonable directions given by PEAK to reduce any expense. 16.2 If, following the procedures set out above, there shall continue to be overspend or likely overspend, then POV shall be solely responsible for and pay for all such overspend unless the overspend was due to events or circumstances entirely outside the control of POV and POV has complied with Clause 16.1 in which event PEAK shall pay for any such overspend, or shall be entitled to take-over or abandon production of the Programme in accordance with cause 15 hereof. 16.3 In the event that the Production Schedule is extended or delayed by reason of any default of POV, then POV shall pay or reimburse PEAK for all additional costs reasonably incurred by PEAK as a direct result thereof. Any amounts so payable shall be paid promptly on presentation of an invoice.

Overspend. 16.1 If POV CHF becomes aware that other than in relation to and arising from approved Additional Production Services, the total cost is likely to exceed the POV CHF Budget POV CHF shall forthwith: 16.1.1 prepare and submit to PEAK a full statement of account containing details of costs incurred but not yet paid for and an estimate of costs likely to be incurred to complete the rendition of the Production Services; 16.1.2 submit detailed proposals for reducing the cost of the items allowed for in POV CHF Budget; 16.1.3 comply with any reasonable directions given by PEAK to reduce any expense. 16.2 If, following the procedures set out above, there shall continue to be overspend or likely overspend, then POV CHF shall be solely responsible for and pay for all such overspend unless the overspend was due to events or circumstances entirely outside the control of POV CHF and POV CHF has complied with Clause 16.1 in which event PEAK shall pay for any such overspend, or shall be entitled to take-over or abandon production of the Programme in accordance with cause 15 hereof. 16.3 In the event that the Production Schedule is extended or delayed by reason of any default of POVCHF, then POV CHF shall pay or reimburse PEAK for all additional costs reasonably incurred by PEAK as a direct result thereof. Any amounts so payable shall be paid promptly on presentation of an invoice.