Common use of Scope Variation Clause in Contracts

Scope Variation. (a) A scope change (Scope Variation) is one or more of: (1) a direction issued by the Project Owner under clause 17.1(a) or 17.5(d); (2) a direction issued by MTM's CEO in accordance with clause 17.2(a); or 48 (3) a direction issued by PTV's CEO in accordance with clause 17.3(a); which amounts to either: (4) a significant change, amendment or alteration to the Scope of Works; or (5) a significant change to the fundamental requirements of the Works. (b) The Participants acknowledge and agree that it is their expectation that Scope Variations are unlikely to occur during the Term. (c) If the AMT does not consider that a direction referred to in clause 17.6(a) is a Scope Variation the ALT will ensure that the direction is immediately complied with in accordance with the Agreement. (d) Where the AMT considers that a direction referred to in clause 17.6(a) is a Scope Variation, the AMT must, prior to implementation by the Participants of the direction, submit a scope change report (Scope Variation Report) to the ALT: (1) identifying the basis on which it considers the direction to be a Scope Variation; (2) providing submissions or recommendations that it believes are appropriate to reduce and/or optimise the impact of the direction on the AOC, the Participants’ performance against the KRAs and the achievement of Practical Completion by the Date for Practical Completion and compliance by the Participants with the VfM Statement and the Alliance Charter; and (3) subject to clause 17.6(d)(4), providing submissions or recommendations on any alteration to the TOC, the KRAs and the Date for Practical Completion (as the case may be) which are required as a result of the direction; and (4) if the AMT considers that the direction is a Scope Variation referred to in clause 17A, providing submissions or recommendations as to the amount of the relevant Scope Variation Allowance that will be used as a result of the direction. (e) The ALT will consider any Scope Variation Report submitted to it under clause 17.6(d) and determine whether the direction the subject of the Scope Variation Report is a Scope Variation having regard to: (1) the Works and the assumptions adopted by the Participants in developing the Final Project Proposal; and (2) where relevant, the Adjustment Event Guidelines. (f) If the ALT determines that a direction the subject of the Scope Variation Report is a Scope Variation, the ALT must submit the Scope Variation Report to the Project Owner and ensure that the direction is not performed until the Project Owner has determined whether an Adjustment Event or Scope Variation has occurred in accordance with clause 16 or clause 17A(b), as applicable.

Scope Variation. (a) A scope change (Scope Variation) is one or more of: (1) a direction issued by the Project Owner under clause 17.1(a) or 17.5(d); (2) a direction issued by MTM's CEO in accordance with clause 17.2(a); or 48or (3) a direction issued by PTV's CEO in accordance with clause 17.3(a); which amounts to either: (4) a significant change, amendment or alteration to the Scope of Works; or (5) a significant change to the fundamental requirements of the Works. (b) The Participants acknowledge and agree that it is their expectation that Scope Variations are unlikely to occur during the Term. (c) If the AMT does not consider that a direction referred to in clause 17.6(a) is a Scope Variation the ALT will ensure that the direction is immediately complied with in accordance with the Agreement. (d) Where the AMT considers that a direction referred to in clause 17.6(a) is a Scope Variation, the AMT must, prior to implementation by the Participants of the direction, submit a scope change report (Scope Variation Report) to the ALT: (1) identifying the basis on which it considers the direction to be a Scope Variation; (2) providing submissions or recommendations that it believes are appropriate to reduce and/or optimise the impact of the direction on the AOC, the Participants’ performance against the KRAs and the achievement of Practical Completion by the Date for Practical Completion and compliance by the Participants with the VfM Statement and the Alliance Charter; and; (3) subject to clause 17.6(d)(4), providing submissions or recommendations on any alteration to the TOC, the KRAs and the Date for Practical Completion (as the case may be) which are required as a result of the direction; and (4) if the AMT considers that the direction is a Scope Variation referred to in clause 17A, providing submissions or recommendations as to the amount of the relevant Scope Variation Adjustment Allowance that will be used as a result of the direction. (e) The ALT will consider any Scope Variation Report submitted to it under clause 17.6(d17.6(c) and determine whether the direction the subject of the Scope Variation Report is a Scope Variation having regard to: (1) the Works and the assumptions adopted by the Participants in developing the Final Project Proposal; and (2) where relevant, the Adjustment Event Guidelines. (f) If the ALT determines that a direction the subject of the Scope Variation Report is a Scope Variation, the ALT must submit the Scope Variation Report to the Project Owner and ensure that the direction is not performed until the Project Owner has determined whether an Adjustment Event or Scope Variation has occurred in accordance with clause 16 or clause 17A(b), as applicable.