Common use of OWNER'S CHANGES Clause in Contracts

OWNER'S CHANGES. (a) At any time prior to issuing the Take Over Certificate, Owner may instruct Owner's Changes. Contractor shall promptly implement any such Owner's Change. (b) If Owner requests a proposal in respect of a contemplated Owner's Change, or if Contractor is of the view that an instruction given by Owner comprises an Owner's Change, the following provisions shall apply: (i) within 14 days after Owner's request, or such longer period as Owner allows, Contractor shall prepare and submit to Owner a detailed proposal relating to the contemplated Owner's Change, including: (1) a description of how the Change would be implemented, including (where relevant) the proposed design and/or work to be performed; (2) any additional Cost or Cost saving and Contractor's proposal for any adjustment to the EPC Contract Price for such Cost (and if relevant Supplier's proposal for any adjustment in the Supply Contact Price under the Supply Contract) as a result; (3) any additional time that would be involved or any time saving and Contractor's proposal for any adjustment to the Scheduled Take Over Date as a result; (4) Contractor's proposal for any consequential adjustment to the programme, construction method statement and the Milestone Payment Schedule; and (5) advice as to the effect of the Owner's Change on the ability of Contractor to perform its obligations under this EPC Contract; (6) advice as to the effect of the Owner's Change on the Supply Contract and/or the Equipment; (ii) Contractor and Owner shall then take reasonable steps to reach agreement on the Owner's Change. Upon agreement being reached Owner may then issue an instruction to Contractor to implement the Owner's Change. Any such agreement shall be conditional upon Owner being able to reach an agreement with the Supplier for any related change under the Supply Agreement and upon terms acceptable to Owner (acting reasonably); (iii) no agreement between Owner and Contractor as to the terms upon which an Owner's Change may be implemented shall have any contractual or other legal effect unless it is in writing and a written instruction to implement the Owner's Change has been issued pursuant to this clause; (iv) any such written agreement shall be binding upon Contractor and Owner according to its terms and Contractor will have no further or other entitlement under this EPC Contract in respect of such Owner's Change; (v) if the parties fail to reach agreement within 7 days Owner may either: (1) instruct Contractor under paragraph (a) to implement the Owner's Change in which case the parties shall resolve any Dispute regarding the extension of time, compensation or other issues regarding such Change in accordance with ARTICLE 16 (Dispute Resolution); or (2) choose not to proceed with the Owner's Change, in which event Contractor shall have no claim of any kind whatsoever arising out of or in connection with the request for the proposal. If Owner elects to not proceed with the Owner's Change, Owner reserves the right, subject to the terms of this EPC Contract, to proceed with the work behind the proposed Change directly or through a third party.