10-21-2014, 12:24 AM
In the absence of anything else, my guess is that the Variation schedule is exactly where contingencies will be addressed. A contingency is simply the need to change something in the plan due to unforeseen circumstances.
From Schedule 22 from the Region's perspective "If the Region proposes or is obligated pursuant to the terms of this Project Agreement or Applicable Law to initiate a Variation it shall deliver to Project Co a written notice of the proposed Variation." and later, from the Project Co perspective the Project Co can request a variation and must "indicate all reasonably foreseeable implications of the Variation, including whether there are any costs or cost savings to the Region, and whether an adjustment to the Monthly Service Payments is required;"
(Schedule 22 defines a Variation as "variation, addition, reduction, substitution, omission, modification, deletion, removal or other change to the whole or any part of the Project Operations,
including in relation to the whole or any part of the Design and Construction Works, the Public Infrastructure Works, the Maintenance and Rehabilitation Services or the Operations Services.")
I could see the Applicable Law section being used if there was a need for an environmental clean-up to be addressed. "Outside the terms of the Project Agreement" could cover anything from unforeseen infrastructure repairs to a regulatory change that might come through during the construction period. For instance, what if the track were planned to have been put across the Margaret Street bridge? In that scenario, someone would have to pay for relaying the track if it had already been in place before the bridge was removed and replaced.
From Schedule 22 from the Region's perspective "If the Region proposes or is obligated pursuant to the terms of this Project Agreement or Applicable Law to initiate a Variation it shall deliver to Project Co a written notice of the proposed Variation." and later, from the Project Co perspective the Project Co can request a variation and must "indicate all reasonably foreseeable implications of the Variation, including whether there are any costs or cost savings to the Region, and whether an adjustment to the Monthly Service Payments is required;"
(Schedule 22 defines a Variation as "variation, addition, reduction, substitution, omission, modification, deletion, removal or other change to the whole or any part of the Project Operations,
including in relation to the whole or any part of the Design and Construction Works, the Public Infrastructure Works, the Maintenance and Rehabilitation Services or the Operations Services.")
I could see the Applicable Law section being used if there was a need for an environmental clean-up to be addressed. "Outside the terms of the Project Agreement" could cover anything from unforeseen infrastructure repairs to a regulatory change that might come through during the construction period. For instance, what if the track were planned to have been put across the Margaret Street bridge? In that scenario, someone would have to pay for relaying the track if it had already been in place before the bridge was removed and replaced.