The Maximum Tonnage of Contract Waste is the maximum which the Contractor is obliged to accept in any Contract Year and for which the Contractor is obliged to meet the Output Specification requirements. The Maximum Tonnage of Contract Waste will normally be determined by reference to the maximum capacity of the facility.
The Contractor is not obliged to accept tonnages of waste in excess of the Maximum Tonnage and such waste is outside the definition of Contract Waste. Hence the Authority is responsible for the disposal of such excess waste and the Contractor has no contractual obligations in respect of such waste.3
Where the Authority considers that excess waste will arise over the long term and wishes the Contractor to be responsible for such waste, the Authority has the option of initiating a contract variation.
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3 The parties have the option to agree alternative arrangements whereby the Contractor does accept the excess waste in exchange for an additional payment. In this scenario the parties must also agree whether the Contractor's performance in relation to the diversion of this excess waste will affect the Diversion Performance Deduction.