Adjustment of Security Amount Clause Samples
The Adjustment of Security Amount clause allows for the modification of the amount of security (such as a bond, guarantee, or deposit) required under a contract. This clause typically outlines the circumstances under which the security amount can be increased or decreased, such as changes in the contract value, project scope, or risk profile. By providing a mechanism to adjust the security, the clause ensures that the security remains appropriate to the parties' obligations and mitigates the risk of over- or under-securing the contract.
Adjustment of Security Amount. At intervals of not less than five (5) years, and after approval of the Construction Plan and the Decommissioning and Reclamation Plan, Lessor may, following consultation with Lessee, revise the construction or reclamation cost estimate to reflect then-current third party costs for the work and materials necessary to complete the Construction Plan or the Decommissioning and Reclamation Plan. Within thirty (30) calendar days of receipt of such revised estimate, Lessee shall cause the existing security to be adjusted to reflect the amount of the revised estimate.