(a) A scope change (Scope Variation) is a direction by the Project Owner under clause 13.1 which amounts to either:
(1) a significant change, amendment or alteration to the Scope of Works; or
(2) a significant change to the fundamental requirements of the Works.
(b) Examples of when a direction by the Project Owner in accordance with clause 13.1 is also a Scope Variation are set out in the Scope Variation Benchmarking Guidelines.
(c) The Participants acknowledge and agree that it is their expectation that Scope Variations are unlikely to occur during the Term.
(d) Where the AMT considers that a direction by the Project Owner under clause 13.1 is a Scope Variation, the AMT must, prior to implementation by the Participants of the direction, submit a scope change report (Scope Variation Report) to the ALT:
(1) identifying the basis on which it considers the direction to be a Scope Variation;
(2) providing submissions or recommendations that it believes are appropriate to reduce and/or optimise the impact of the direction on the AOC, the Participants' performance against the KRAs and the achievement of Practical Completion by the Date for Practical Completion and compliance by the Participants with the Project Owner's VFM Statement and the Alliance Charter; and
(3) providing submissions or recommendations on any alteration to the TOC, the KRAs and the Date for Practical Completion (as the case may be) which are required as a result of the direction.
(e) The ALT will consider any Scope Variation Report submitted to it under clause 13.2(d) and determine whether the direction the subject of the Scope Variation Report is a Scope Variation having regard to:
(1) the Works and the assumptions adopted by the Participants in developing the Project Proposal; and
(2) the Scope Variation Benchmarking Guidelines.
(f) If the ALT determines that a direction the subject of the Scope Variation Report is a Scope Variation, the ALT must submit the Scope Variation Report to the Project Owner and ensure that the Scope Variation is not performed until the Project Owner has determined whether an Adjustment Event has occurred in accordance with clause 12.
(g) A direction by the Project Owner under clause 13.1 implemented by the Participants prior to the Project Owner determining whether an Adjustment Event has occurred in accordance with clause 12 does not at any time entitle the Participants to an alteration of the TOC, the KRAs or the Date for Practical Completion and will preclude the Participants from making any claim under this Agreement for an alteration of the TOC, the KRAs or the Date for Practical Completion, except in circumstances where the Project Owner agrees to consider the claim or agrees to alter any or all of the TOC, the KRAs or the Date for Practical Completion.