Common use of Change in Budget Clause in Contracts

Change in Budget. (a) If Transpower becomes aware of an increase in the cost of the Works that is likely to cause the Budget to be exceeded by an amount of [10%] or more (cumulatively with any previous increases not reflected in the Budget), Transpower must notify the Customer as soon as reasonably practicable and provide the Customer with: (i) a revised Budget reflecting the increase(s); (ii) the reasons for the increase(s); and (iii) Transpower’s actions and proposals for mitigating the increase(s). (b) The Customer must notify Transpower within 10 Business Days of the date of Transpower’s notice under sub‐paragraph (a) whether it accepts or rejects the revised Budget (with reasons if the Customer rejects the revised Budget). If the Customer does not notify Transpower within that time, then the Customer will be deemed to have accepted the revised Budget. (c) If the Customer rejects the revised Budget, the parties must negotiate in good faith to agree the revised Budget within a further 10 Business Days or such longer period as the parties may agree. If the parties fail to reach agreement within the negotiation period, the Customer may terminate this Agreement on notice to Transpower within 5 Business Days of the end of the negotiation period. If the Customer does not terminate this Agreement within that time, then the Customer will be deemed to have accepted the revised Budget. (d) If the Customer accepts the revised Budget or the parties agree on the revised Budget, the revised Budget will replace the then current Budget immediately.

Change in Budget. (a) If Transpower becomes aware of an increase in the cost of the Works that is likely to cause the Budget to be exceeded by an amount of [10%] or more (cumulatively with any previous increases not reflected in the Budget), Transpower must notify the Customer as soon as reasonably practicable and provide the Customer with: (i) a revised Budget reflecting the increase(s); (ii) the reasons for the increase(s); and (iii) Transpower’s actions and proposals for mitigating the increase(s). (b) The Customer must notify Transpower within 10 Business Days of the date of Transpower’s notice under sub‐paragraph sub-paragraph (a) whether it accepts or rejects the revised Budget (with reasons if the Customer rejects the revised Budget). If the Customer does not notify Transpower within that time, time then the Customer will be deemed to have accepted the revised Budget. (c) If the Customer rejects the revised Budget, the parties must negotiate in good faith to agree the revised Budget within a further 10 Business Days or such longer period as the parties may agree. If the parties fail to reach agreement within the negotiation period, the Customer may terminate this Agreement on notice to Transpower within 5 Business Days of the end of the negotiation period. If the Customer does not terminate this Agreement within that time, time then the Customer will be deemed to have accepted the revised Budget. (d) If the Customer accepts the revised Budget or the parties agree on the revised Budget, the revised Budget will replace the then current Budget immediately.. SCHEDULE 5: PROPERTY OBLIGATIONS, AND CHANGES TO STANDARD TERMS AND CONDITIONS‌