Common use of Additional Costs and Expenses Clause in Contracts

Additional Costs and Expenses. The Owner and ▇▇▇▇▇▇▇▇▇ agree that it will be difficult to determine the damages to be suffered by Clearspan as a result of any delay, modification, cancellation or election not to proceed contemplated by Sections 5.2, 5.3 or 6.2. Accordingly, Clearspan and Owner desire to liquidate in advance the amount of such damages and have agreed that the amounts specified in Sections 5.2, 5.3 or 6.2 are a reasonable estimate of those damages and are not a penalty. The Installation Fee set forth on any Work Order accepted by Clearspan has been determined based on the then current prices for the Work contemplated thereby. The parties acknowledge that ▇▇▇▇▇▇▇▇▇’s costs for the performance of such Work may be volatile and subject to sudden increases in expense. Clearspan endeavors to use commercially reasonable efforts to obtain advantageous pricing for the performance of the Work contemplated by Work Orders. Owner agrees that Clearspan shall have the right to equitably increase the Installation Fee set forth on a Work Order in the event the price to it for supplies, materials, equipment, the services of personnel, whether of its own employees, of subcontracted labor or other providers, transportation, energy or other items required to perform the Work contemplated thereby are materially increased by the provider of such goods, commodities or services. Clearspan shall provide Owner written notice of any such increase whereupon the Owner shall, within fifteen (15) days, notify Clearspan in writing of its election to either: (i) agree to pay the new Installation Fee specified by Clearspan or (ii) cancel that Work Order in its entirety. A failure by Owner to timely notify Clearspan of its election pursuant to the immediately preceding sentence shall be deemed Owner’s election to agree to pay the new Installation Fee specified by Clearspan. A cancellation of a Work Order in its entirety by an Owner pursuant to this Section 7.1 shall relieve Clearspan and Owner from all further liability under that Work Order. The additional sums for which Owner is liable pursuant to any of Sections 5.2, 5.3 or 6.2 shall be due and payable by Owner upon demand.