Common use of For Change Clause in Contracts

For Change. Compensation Events during the Operating Phase that involve a capital component, the Base Costs and Agreed Margin for the capital cost component will be calculated as: where: A = all necessary Base Costs (excluding FM Base Costs and Construction Base Costs); B = the Construction Base Costs; C = the applicable Builder Preliminaries (set out in Table 2) multiplied by B; and D = the applicable Builder Margin, being: (i) during the first 5 years of the Operating Phase, the percentage set out in Table 2 (whether or not it is the Builder or some other builder that undertakes the relevant works); or (ii) after the first 5 years of the Operating Phase, the percentage that a builder may charge as determined through a competitive process in accordance with Section 5 of this Part A, multiplied by B. Threshold [not disclosed] to [not disclosed] Base Cost1 >[not disclosed] to [not disclosed] Base Cost1 >[not disclosed] Base Cost1 Builder Margin [not disclosed] [not disclosed] [not disclosed] Builder Preliminaries [not disclosed] [not disclosed] [not disclosed] 1The above dollar thresholds are indexed by the CPI Multiplier Annual (OC) at the commencement of each calendar year following Contractual Close.

Appears in 2 contracts

Sources: Change Compensation Principles, DBFM Project Agreement