Common use of Cost of Variations Clause in Contracts

Cost of Variations. Within 14 days of the receipt of a written Variation direction from Honeywell, the Subcontractor must provide Honeywell with a price quotation for the Variation, supported by measurements or other evidence of costs. Honeywell will value each Variation in accordance with any agreement reached between Honeywell and the Subcontractor or, where no agreement has been reached, in accordance with reasonable rates or prices (which will include a reasonable amount for profit and overheads). Any deductions will include a reasonable amount for overheads and may include a reasonable amount for profit. The relevant price will be added to or deducted from the Subcontract Sum. The Subcontractor agrees that the amount payable to the Subcontractor for a Variation will in no case exceed the amount payable to Honeywell under the Main Contract in relation to that Variation, less the sum of: 1) the percentage mark-up applied on the Subcontractor’s price by Honeywell; and 2) Honeywell’s direct costs, as submitted under the Main Contract in relation to that Variation.

Cost of Variations. Within 14 days of the receipt of a written Variation direction from Honeywell, the Subcontractor must provide Honeywell with a price quotation for the Variation, supported by measurements or other evidence of costs. Honeywell will value each Variation in accordance with any agreement reached between Honeywell and the Subcontractor or, where no agreement has been reached, in accordance with reasonable rates or prices (which will include a reasonable amount for profit and overheads). Any deductions will include a reasonable amount for overheads and may include a reasonable amount for profit, to be computed in accordance with this Section. The relevant price will be added to or deducted from the Subcontract Sum. The Subcontractor agrees that the amount payable to the Subcontractor for a Variation will in no case exceed the amount payable to Honeywell under the Main Contract in relation to that Variation, less the sum of: 1) the percentage mark-up applied on the Subcontractor’s price by Honeywell; and 2) Honeywell’s direct costs, as submitted under the Main Contract in relation to that Variation.