Common use of Pricing Procedure Clause in Contracts

Pricing Procedure. (i) Without limiting Section 4.4(d), if T&M Services not included in the Annual Operating Plan that would constitute a Major Undertaking are requested by Owner or O&M Contractor, O&M Contractor shall provide a proposed firm fixed price for performing such services, including any Spare Parts or Consumables. Owner shall respond promptly (and in any event within five (5) Business Days, unless a longer period is mutually agreed to between the Parties or is otherwise required under the terms of any financing agreement with a Project Lender, with notice of such longer period provided to O&M Contractor) to any O&M Contractor proposal for T&M Services delivered by Owner, and either provide O&M Contractor with written authorization to initiate the requested services on the proposed fixed fee or at T&M Cost or inform O&M Contractor that O&M Contractor is not authorized to initiate the requested services. Notwithstanding the foregoing, for any T&M Services for which a fixed fee is specified in Exhibit A-2, O&M Contractor shall obtain Owner’s approval to perform such services but shall not submit or negotiate any other fee arrangement. (ii) Without limiting O&M Contractor’s rights to compensation for an Emergency as provided in Section 4.5 and except as otherwise expressly permitted pursuant to Section 4.4(d), O&M Contractor shall not perform any T&M Services unless and until Owner authorizes O&M Contractor to do so in writing. Upon the receipt of written authorization from Owner, O&M Contractor shall promptly perform such T&M Services; provided that, if the authorization for such T&M Services is based on an estimate (rather than a firm fixed price), O&M Contractor shall not exceed (or allow its Subcontractors working on such T&M Services to in the aggregate incur cost overruns which result in an exceedance of) the estimated cost for such services as disclosed to Owner by O&M Contractor under the applicable order for T&M Services (or response thereto) without Owner’s prior written consent.