The Mileage Deduction is intended to compensate the Authority for additional haulage costs incurred in the event that the Authority has to deliver Contract Waste to the Contingency Delivery Point. The Mileage Deduction shall be calculated in accordance with the following formula:
M = (TA * AM * HR) + (FC * DD * NP)
where:
TA | The tonnage of Contract Waste Accepted at a Contingency Delivery Point |
AM | The Additional Mileage, if any, from the Delivery Point along the most direct adopted highway that provides a safe and legal route to and from the Contingency Delivery Point11 |
HR | The relevant Haulage Rate |
FC | The daily Fixed Cost (direct and indirect) associated with the nomination of a Contingency Delivery Point for a day or part of a day |
DD | The aggregate number of days during the Contract Year where a vehicle has been redirected to a Contingency Delivery Point |
NP | The aggregate number of Delivery Points from which vehicles carrying Contract Waste have been redirected during the Contract Year |
[Note: This formula is offered as an example of how this issue may be dealt with. There are a number of other approaches which have been adopted, driven by differing WCA and WDA arrangements.]
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11 As an alternative to this, the Authority and Contractor may agree a predefined distance between each Delivery Point and the relevant Contingency Delivery Point listed in the Contingency Plan.