Common use of Project Parameters Clause in Contracts

Project Parameters. The Project consists of planning, designing, constructing, and commissioning of the Project more specifically described in Exhibit 2. Owner's Project Business Case for the Project is predicated upon: 1.1.1 the requirements of Owner's master facility business plan; 1.1.2 the Allowable Cost; and 1.1.3 the Conceptual Project Schedule, each as set forth in Exhibit 2. The sufficiency of the Allowable Cost will be the subject of the Validation Study described in Section 9.3. During the Validation Phase, an Expected Cost will be prepared to estimate the budget for the Project. The Expected Cost, as adjusted in accordance with this Agreement, shall serve as the baseline for determining the amount of cost-savings on the Project, if any, for distribution to the Risk Pool IPD Team Members, which distribution shall be in accordance with the terms and conditions set forth in this Agreement and the IPD Team Risk Pool Plan. Assuming that the IPD Team can develop a design solution that meets the requirements of the Owner’s Project Business Case within the Allowable Cost (and subject to the conditions precedent contained in Section 9.5), then the Core Group shall develop, review and approve a Target Cost in accordance with Section 10.1. During the Design and Procurement Phase, the IPD Team will, using the principles of Target Value Design, design the Project as more specifically described in Article 11, with a realistic opportunity to construct the Project for no more than the Target Cost, as it may be adjusted in accordance with this Agreement. At the end of the Design and Procurement Phase, as one of a number of conditions precedent to the commencement of the Construction Phase, the Core Group shall develop, review and approve an EMP in accordance with Section 11.15.