Common use of Cost Planning Clause in Contracts

Cost Planning. The Managing Contractor must: (a) plan the project in consultation with the Principal's Representative and provide estimates of and costings for the construction and commissioning phase of the project; (b) within 7 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing), prepare for the approval of the Principal's Representative a cost breakdown structure; (c) within 28 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing), prepare for the approval of the Principal's Representative a cost plan which sets out the Managing Contractor's proposed packaging of the subcontracts of the project and includes: (i) a cost analysis in respect of each part of the work under the Contract including a detailed break-up by reference to each separate subcontract package (a scope work breakdown structure), of the costs for construction and commissioning which must set a budget (including a contingency) for each subcontract package (a scope cost breakdown structure); (ii) a map linking the benchmark cost breakdown structure to the scope work and cost breakdown structures; (iii) the cash-flow requirements of the project; and (iv) a reconciliation of the various elements of the cost plan against the Target Budget for the project, and once this cost plan is approved by the Principal's Representative it will be referred to as the "Cost Plan"; (d) institute a system of cost control (including monthly reports to the Principal setting out the cost to date, forecast cost to complete and forecast cost at completion) and, together with the Principal's Representative, review and, where approved by the Principal's Representative, amend the Cost Plan to take account of any item affecting or likely to affect any component of the Cost Plan, and advise the Principal's Representative as to the alternative steps available where: (i) the tenders for any part of the Reimbursable Services which are to be performed by a subcontractor exceed the amount included for that work in the Cost Plan; or (ii) the costs incurred in respect of any Reimbursable Services (including under any Approved Subcontract Agreement) exceed the amount allowed for the particular Reimbursable Services in the cash-flow which forms part of the Cost Plan or the forecast final costs of that Reimbursable Works appear likely to exceed the total amount allowed for that work (including the contingency) in the Cost Plan; or (iii) no tenders are received for any part of the Reimbursable Services; and (e) if requested at any time by the Principal's Representative, the Managing Contractor must provide to the Principal's Representative (or any person authorised by the Principal's Representative) all information necessary to corroborate the Cost Plan and must co-operate in respect of any audit of the information concerning the Cost Plan.

Cost Planning. The Managing Contractor must: (a) plan the project in consultation with the Principal's Representative and provide estimates of and costings for the construction and commissioning phase of the project; (b) within 7 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing), prepare for the approval of the Principal's Representative a cost breakdown structure; (c) : within 28 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing)Award Date, prepare for the approval of the Principal's Representative a cost plan which sets out (based on the Managing Contractor's proposed packaging Outline Cost Plan); and update the cost plan throughout the Planning Phase (at a minimum, as a condition precedent to achieving each Planning Phase Milestone), in each case, so that the cost plan complies with the requirements of the subcontracts Contract. The Contractor must: ensure that each cost plan is prepared by reference to the latest Planning Phase Design Documentation and is reconciled against, and so as to show all deviations from, the Outline Cost Plan; adopt an "open book" approach to the process of preparing each cost plan and allow the Contract Administrator to access any quotations, correspondence, trade estimates, information from previous projects or other relevant information as may be requested by the Contract Administrator or which would otherwise facilitate and expedite the cost planning process; ensure that each cost plan is prepared so as to: maximise value for money for the Commonwealth; and without limiting subsubparagraph A, identify cost savings which a prudent, competent and experienced contractor could implement without derogating from the achievement of the project and includes: (i) a cost analysis in respect of each part other requirements of the work under Contract; and without limiting the Contract including foregoing, use its best endeavours to ensure that the proposed Delivery Phase Price does not exceed the Indicative Delivery Phase Price. Each cost plan prepared by the Contractor must include: a detailed break-up breakdown of the proposed Delivery Phase Price by reference to each separate subcontract package line item of the work comprising the Contractor's Activities including, where the proposed Delivery Phase Price differs from the Indicative Delivery Phase Price, details of and a validation of such difference including by reference to the matters set out in paragraph (a scope work breakdown structureb); and all such other matters as the Contract Administrator may require in writing. The Contractor must: submit each cost plan to the Contract Administrator; if any cost plan submitted by the Contractor is rejected by the Contract Administrator (in the Contract Administrator's absolute discretion), submit an amended cost plan to the Contract Administrator (within the time required by the Contract Administrator); obtain the Contract Administrator's written approval to the final cost plan as a condition precedent to Delivery Phase Approval; and in the process of preparing a cost plan (or amended cost plan), co-operate with the Commonwealth, the Contract Administrator and all other people nominated by the Contract Administrator, including any third party engaged in accordance with paragraph (e). To assist the Contract Administrator in reviewing a cost plan, the Contract Administrator or any other person on behalf of the costs for construction and commissioning which must set Commonwealth may engage a budget (including a contingency) for each subcontract package (a scope cost breakdown structure); (ii) a map linking the benchmark cost breakdown structure third party to the scope work and cost breakdown structures; (iii) the cash-flow requirements of the project; and (iv) a reconciliation of the various elements perform an external audit of the cost plan against (at the Target Budget for Contractor's cost if the project, and once this audit demonstrates that the cost plan is approved by does not meet the Principal's Representative it will be referred to as the "Cost Plan"; (d) institute a system of cost control (including monthly reports to the Principal setting out the cost to date, forecast cost to complete and forecast cost at completion) and, together with the Principal's Representative, review and, where approved by the Principal's Representative, amend the Cost Plan to take account of any item affecting or likely to affect any component requirements of the Cost Plan, and advise the Principal's Representative as to the alternative steps available where: (i) the tenders for any part of the Reimbursable Services which are to be performed by a subcontractor exceed the amount included for that work in the Cost Plan; or (ii) the costs incurred in respect of any Reimbursable Services (including under any Approved Subcontract Agreement) exceed the amount allowed for the particular Reimbursable Services in the cash-flow which forms part of the Cost Plan or the forecast final costs of that Reimbursable Works appear likely to exceed the total amount allowed for that work (including the contingency) in the Cost Plan; or (iii) no tenders are received for any part of the Reimbursable Services; and (e) if requested at any time by the Principal's Representative, the Managing Contractor must provide to the Principal's Representative (or any person authorised by the Principal's Representative) all information necessary to corroborate the Cost Plan and must co-operate in respect of any audit of the information concerning the Cost PlanContract).

Cost Planning. The Managing Contractor must: (a) plan the project in consultation with the Principal's Representative and provide estimates of and costings for the construction and commissioning phase of the project; (b) within 7 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing), prepare for the approval of the Principal's Representative a cost breakdown structure; (c) : within 28 days of the date of execution of the Contract (or any longer period agreed by the Principal’s Representative in writing)Award Date, prepare for the approval of the Principal's Representative a cost plan which sets out (based on the Managing Contractor's proposed packaging Outline Cost Plan); and update the cost plan throughout the Planning Phase (at a minimum, as a condition precedent to achieving each Planning Phase Milestone), in each case, so that the cost plan complies with the requirements of the subcontracts Contract. The Contractor must: ensure that each cost plan is prepared by reference to the latest Planning Phase Design Documentation and is reconciled against, and so as to show all deviations from, the Outline Cost Plan; adopt an "open book" approach to the process of preparing each cost plan and allow the Contract Administrator to access any quotations, correspondence, trade estimates, information from previous projects or other relevant information as may be requested by the Contract Administrator or which would otherwise facilitate and expedite the cost planning process; ensure that each cost plan is prepared so as to: maximise value for money for the Commonwealth; and without limiting subsubparagraph A, maximise all opportunities for cost savings which a prudent, competent and experienced contractor could implement without derogating from the achievement of the project and includes: (i) a cost analysis in respect of each part other requirements of the work under Contract; and without limiting the Contract including foregoing, use its best endeavours to ensure that the proposed Delivery Phase Price does not exceed the Indicative Delivery Phase Price. Each cost plan prepared by the Contractor must include: a detailed break-up breakdown of the proposed Delivery Phase Price by reference to each separate subcontract package line item of the work comprising the Contractor's Activities including, where the proposed Delivery Phase Price differs from the Indicative Delivery Phase Price, details of and a validation of such difference including by reference to the matters set out in paragraph (a scope work breakdown structureb); and all such other matters as the Contract Administrator may require in writing. The Contractor must: submit each cost plan to the Contract Administrator; if any cost plan submitted by the Contractor is rejected by the Contract Administrator (in the Contract Administrator's absolute discretion), submit an amended cost plan to the Contract Administrator (within the time required by the Contract Administrator); obtain the Contract Administrator's written approval to the final cost plan as a condition precedent to Delivery Phase Approval; and in the process of preparing a cost plan (or amended cost plan), co-operate with the Commonwealth, the Contract Administrator and all other people nominated by the Contract Administrator, including any third party engaged in accordance with paragraph (e). To assist the Contract Administrator in reviewing a cost plan, the Contract Administrator or any other person on behalf of the costs for construction and commissioning which must set Commonwealth may engage a budget (including a contingency) for each subcontract package (a scope cost breakdown structure); (ii) a map linking the benchmark cost breakdown structure third party to the scope work and cost breakdown structures; (iii) the cash-flow requirements of the project; and (iv) a reconciliation of the various elements perform an external audit of the cost plan against (at the Target Budget for Contractor's cost if the project, and once this audit demonstrates that the cost plan is approved by does not meet the Principal's Representative it will be referred to as the "Cost Plan"; (d) institute a system of cost control (including monthly reports to the Principal setting out the cost to date, forecast cost to complete and forecast cost at completion) and, together with the Principal's Representative, review and, where approved by the Principal's Representative, amend the Cost Plan to take account of any item affecting or likely to affect any component requirements of the Cost Plan, and advise the Principal's Representative as to the alternative steps available where: (i) the tenders for any part of the Reimbursable Services which are to be performed by a subcontractor exceed the amount included for that work in the Cost Plan; or (ii) the costs incurred in respect of any Reimbursable Services (including under any Approved Subcontract Agreement) exceed the amount allowed for the particular Reimbursable Services in the cash-flow which forms part of the Cost Plan or the forecast final costs of that Reimbursable Works appear likely to exceed the total amount allowed for that work (including the contingency) in the Cost Plan; or (iii) no tenders are received for any part of the Reimbursable Services; and (e) if requested at any time by the Principal's Representative, the Managing Contractor must provide to the Principal's Representative (or any person authorised by the Principal's Representative) all information necessary to corroborate the Cost Plan and must co-operate in respect of any audit of the information concerning the Cost PlanContract).