In calculating the Estimated Change in Project Costs and/or the Capital Expenditure for the purposes of the Estimate, Sub-hubco shall apply the following principles wherever applicable:

4.1 unless the Authority's requirements for the Medium Value Change specify a different quality as compared to the Works:

4.1.1 the unit cost of any construction or installation works or associated preliminaries (excluding any temporary or demolition works, professional fees, contingencies, overheads and profit margins) required to implement the Medium Value Change is the equivalent unit rate set out in Part 1 (Unit Cost for Construction or Installation Costs) of Appendix 2 of this Schedule Part 16 (Change Protocol), uplifted using the DTI Pubsec index for construction cost inflation in the period between the Commencement Date and the date the Medium Value Change is to be commenced;

4.1.2 any lifecycle replacement and maintenance associated with additional works (or changes to the Works) are consistent with the lifecycle and maintenance profile of the Facilities envisaged in Section 4 (Sub-hubco's Proposals) of Schedule Part 6 (Construction Matters) including (without limitation) in terms of the replacement cycles for equipment, provided that Sub-hubco must reflect improvements in technology that can optimise Whole Life Costs for the Authority; and

4.1.3 the unit costs to be applied to the pricing of lifecycle replacement and maintenance is the equivalent unit rate set out in Part 2 (Unit Costs of Lifecycle Maintenance) of Appendix 2 of this Schedule Part 16 (Change Protocol) (index linked);

4.2 any professional fees, contingencies, overheads and/or profit margins to be charged by any consultant, sub-contractor or supplier in respect of construction and/or installation and/or lifecycle and/or service provision for the Medium Value Change are the equivalent rates set out in Part 3 (Consultant, Sub-contractor or Supplier Fees) of Appendix 2 of this Schedule Part 16 (Change Protocol), or if the professional fees, contingencies, overheads and profit margins being charged by consultants, sub-contractors and/or suppliers in current market conditions have changed significantly from those set out in Part 3 (Consultant, Sub-contractor or Supplier Fees) of Appendix 2 of this Schedule Part 16 (Change Protocol), such other rates as the parties agree or failing agreement as may be determined under the Dispute Resolution Procedure as being consistent with those charged in current market conditions;

4.3 unless the Authority's requirements for the Medium Value Change specify a different quality than required by the Service Level Specification, the unit cost of any extension of, or change to, any Service (either in scope or area), taking into account the capacity of existing labour resources, is consistent with the equivalent unit rate set out in Part 4 of Appendix 2 to this Schedule Part 16 (Change Protocol);

4.4 other than as referred to in paragraphs 4.1 to 4.3 of this Section 3 (Medium Value Changes) no charge shall be made in respect of Sub-hubco's time, or that of any Sub-hubco Party spent processing, managing or monitoring the Medium Value Change (and no additional mark up or management fee shall be applied by Sub-hubco); and

4.5 where aspects of the Medium Value Change are not addressed by paragraphs 4.1 to 4.4 of this Section 3 (Medium Value Changes), they shall be costed on a fair and reasonable basis reflecting the then current market rates.