Common use of Scope of Projects Clause in Contracts

Scope of Projects. The scope of work of the Projects and the Parkway South Project shall be as set forth in the definition of each of those projects in Section 1 of this Agreement and shall comply with the Interchange Justification Report. A material change in the scope of the Exit #3 Proper Project shall require the approval of the Bank Board, SCDOT and Project Sponsors and be stated in an amendment to this Agreement. For purposes of this Section 5.2, “material change” means a change in the scope of the Exit #3 Proper Project: (a) that requires a revision of the Record of Decision or other approvals issued by Federal Highway Administration for the Exit #3 Proper Project, the permit(s) issued by the U.S. Army Corps of Engineers for the Exit #3 Proper Project, or the permits, approvals or authorizations required for the Exit #3 Proper Project issued by other Federal or state agencies, including the Interchange Justification Report, but only if such changes alter the overall design or purpose of the Exit #3 Proper Project; (b) that does not comply with SCDOT’s standards, specifications and requirements or the Interchange Justification Report; or (c) that materially changes the overall design or scope of the Exit #3 Proper Project, which alone or together with other material changes as defined in Section 5.2, increases the costs of the Exit #3 Proper Project beyond the estimated costs of $45,604,000 set forth in Section 3.1 of this Agreement or the higher cost of the Exit #3 Proper Project established by the process in Section 5.1 of this Agreement, whichever is applicable. Except as provided above in (a), (b), and (c) of this Section 5.2, change orders may be executed by SCDOT for items necessary to complete the Exit #3 Proper Project without the consent of the Project Sponsors or Bank. Notwithstanding the above provisions in Section 5.2, no consent from the Project Sponsors relating to increased costs for the Exit #3 Proper Project is required to implement or enforce the obligation of the Project Sponsors to pay for Cost Overruns for the Exit #3 Project as set forth in this Agreement so long as the Cost Overrun is not caused by one or more of the material changes set forth in (a), (b), or (c) above in this Section 5.2. The Bank acknowledges that the Project Sponsors and the Owner may negotiate among themselves an alternative basis for the sharing of the Cost Overrun obligations in the Participation Agreement, the Development Agreement or both such documents, but this shall not affect the Project Sponsors’ Cost Overrun obligations in this Agreement and the Loan Agreement.