Common use of Validation Phase Clause in Contracts

Validation Phase. During the Validation Phase, the IPD Team, under the direction of the PMT, will prepare a Validation Study that defines the Base Program, Target Cost, and a Milestone Schedule for approval and acceptance by the Owner. The Target Cost, as adjusted in accordance with this Agreement, is the design target during Target Value Design and is used to determine incentive adjustments to the ICL during the Design/Pre-Construction Phase. If the IPD Team cannot develop a design solution consistent with the Base Program and with a Target Cost that is at or below the Owner's Budget by the end of Validation, then this Agreement may be terminated pursuant to Section 17.1, except that the Risk/Reward Team Members will not be paid any profit for the work performed prior to the termination. Alternatively, the IPD Team may continue work through Target Value Design to attempt to establish a design solution with the Base Program and with a Target Cost that is at or below the Owner's Budget by [insert date]. If the IPD Team cannot develop such a solution by [insert date], then the Owner may terminate this Agreement pursuant to Section 17.1, except that the Risk/Reward Team Members will not be paid any profit for the work performed prior to the termination.