Common use of Procedure For Variation Clause in Contracts

Procedure For Variation. (a) If State Govt. requires a Variation in accordance with Sub-Clause 12.1(a) or State Govt. agrees to the Concessionaire‟s proposed Variation in accordance with Sub- Clause 12.1(b), State Govt. shall issue a notice specifying in reasonable detail the works and services contemplated by such Variation (the „Variation Notice‟). (b) Upon receipt of a Change in Scope Notice, the Concessionaire shall, with due diligence, provide to State Govt. such information as is necessary, together with preliminary documentation in support of: (i) the impact, if any, which the Variation is likely to have on the completion of the Project Milestones if the proposed works or services are required to be carried out during the Construction Period; (ii) the cost to the Concessionaire of complying with such Variation Notice (including, without limitation, material and labour cost information furnished in accordance with the then current schedule of rates applicable to the works assigned by State Govt. to its contractors, including the premium on such rates); and (iii) the options suggested for implementing the proposed Variation and the effect, if any, each such option would have on the costs and time for the implementation thereof, including a detailed breakdown by work classifications. (c) In the event that the Variation has been initiated by State Govt., the costs of providing the information and documentation referred to in Sub-Clause 12.2(b), shall be reimbursed to the Concessionaire by State Govt. to the extent such costs are certified to be reasonable by the Project Engineer . (d) Upon receipt of the information and documentation in the event that State Govt. decides to proceed with the Change in Scope, it shall convey to the Concessionaire: (i) its preferred option as referred to in Sub-Clause 12.2(b)(iii); and (ii) in the case of Additional Major Works, its proposed method of compensation for consideration by the Concessionaire. (e) The Parties shall, with assistance of the Project Engineer, agree on the terms for additional compensation for completing the Variation in accordance with the principle set out in Clause 12.3 - Compensation for Variation. (f) Upon reaching an agreement on the terms of additional compensation for completing the Variation, State Govt. shall issue an order (the “Variation Order‟), requiring the Concessionaire to undertake the Variation. In the event that the Parties are unable to agree as to the additional compensation payable, the Parties may proceed in accordance with Sub-Clause 12.2(g) below. (g) A Variation Order shall be effective and binding upon mutual agreement between the Parties. Notwithstanding a dispute regarding cost and time for implementation of such Variation Order, the Parties may agree that the Concessionaire is to proceed with the performance of such Variation Order. Pending resolution of any dispute, State Govt. shall pay to the Concessionaire upon completion of work pursuant to such Variation Order, an amount equal to the costs that are certified by the Project Engineer to be reasonable plus one-half the difference between the amount certified by the Project Engineer and the amount claimed by the Concessionaire with final adjustments to be made in accordance with the resolution of the dispute under the dispute resolution procedure set out in Section 34. (h) The provisions of this Agreement, insofar as they relate to the construction of the Works, shall apply mutatis mutandis to the works undertaken by the Concessionaire under this Section 12.

Procedure For Variation. (a) If State Govt. requires a Variation is approved in accordance with Sub-Clause 12.1(a) or State Govt. agrees to the Concessionaire‟s proposed Variation in accordance with Sub- Clause 12.1(b)12.1 above, State Govt. Grantor ULB shall issue a notice specifying in reasonable detail the works and services contemplated by such Variation (the „Variation Notice‟). (b) Upon receipt of a Change in Scope Variation Notice, the Concessionaire shall, with due diligence, provide to State Govt. Grantor ULB such information as is necessary, together with preliminary documentation in support of: (i) the impact, if any, which the Variation is likely to have on the completion of the Project Milestones if the proposed works or services are required to be carried out during the Construction Period; (ii) the cost to the Concessionaire of complying with such Variation Notice (including, without limitation, material and labour cost information furnished in accordance with the then current schedule of rates applicable to the works assigned by State Govt. to its contractors, including the premium on such rates)Notice; and (iii) the options suggested for implementing the proposed Variation and the effect, if any, each such option would have on the costs and time for the implementation thereof, including a detailed breakdown by work classifications. (c) In the event that the Variation has been initiated by State Govt., the costs of providing the information and documentation referred to in Sub-Clause 12.2(b), shall be reimbursed to the Concessionaire by State Govt. to the extent such costs are certified to be reasonable by the Project Engineer . (d) Upon receipt of the information and documentation in the event that State Govt. decides to proceed with the Change in Scopedocumentation, it Grantor ULB shall convey to the Concessionaire: (i) Concessionaire its preferred option as referred to in Sub-Clause 12.2(b)(iii); and (ii) in the case of Additional Major Works, its proposed method of compensation for consideration by the Concessionaire. (ec) The Parties shall, with assistance of the Project Engineer, agree on the terms for additional compensation for completing the Variation in accordance with the principle set out in Clause 12.3 - Compensation for Variation. (fd) Upon reaching an agreement on the terms of additional compensation for completing the Variation, State Govt. Grantor ULB shall issue an order (the “Variation Order‟), ) requiring the Concessionaire to undertake the Variation. In the event that the Parties are unable to agree as to the additional compensation payable, the Parties may proceed in accordance with Sub-Clause 12.2(g) below. (g) A Variation Order shall be effective and binding upon mutual agreement between the Parties. Notwithstanding a dispute regarding cost and time for implementation of such Variation Order, the Parties may agree that the Concessionaire is to proceed with the performance of such Variation Order. Pending resolution of any dispute, State Govt. shall pay to the Concessionaire upon completion of work pursuant to such Variation Order, an amount equal to the costs that are certified by the Project Engineer to be reasonable plus one-half the difference between the amount certified by the Project Engineer and the amount claimed by the Concessionaire with final adjustments to be made in accordance with the resolution of the dispute under the dispute resolution procedure set out in Section 34. (he) The provisions of this Agreement, insofar as they relate to the construction of the Works, shall apply mutatis mutandis to the works undertaken by the Concessionaire under this Section 12.