Common use of Variation Proposal Clause in Contracts

Variation Proposal. 16.1 Steel Diamond may provide the Supplier with notice of a proposed Variation. 16.2 Within 5 days of receiving notice of a proposed Variation pursuant to clause 16.1, or other period as agreed by the parties, the Supplier (at its own cost) must provide Steel Diamond with a response setting out (in accordance with Good Industry Practice): (a) the changes to the Goods and/or Services that would be required to execute the proposed Variation; and (b) the impact of the proposed Variation on the Price and the time for supplying the Goods and/or Services, (Proposed Variation Response). 16.3 Steel Diamond may, acting reasonably, direct a Variation the subject of a Proposed Variation Response and such direction may specify that Steel Diamond: (a) accepts the Proposed Variation Response, in which case the Price and the time for supplying the Goods and/or Services is varied in accordance with the Proposed Variation Response; or (b) rejects the Proposed Variation Response, in which case the Price will be adjusted in accordance with clause 16.4 and the time for supplying the Goods and/or Services will be adjusted in accordance with clause 19.3. 16.4 If the Variation affects the Price, it must be adjusted to reflect the value of the varied Goods and/or Services, which must be agreed between the parties. Where there is no agreement, the value will be calculated by Steel Diamond using: (a) where applicable rates and costs are included in this Agreement, by applying those rates and costs; and (b) where applicable rates and costs are not included in this Agreement, Steel Diamond's assessment (acting reasonably) of a fair and reasonable price for the varied Goods and/or Services.