The extent (if any) to which compensation will be payable by the State to Project Co for a Change Compensation Event in accordance with this Schedule, will be determined as follows:
(a) (overriding considerations): the overriding considerations will be that:
(i) the State is receiving value for money;
(ii) sufficient information is provided to demonstrate that the compensation amount is fair and reasonable and is calculated in a transparent manner; and
(iii) Project Co should be resourced in accordance with its Bid Project Plans and is not entitled to additional compensation to the extent those resources are utilised or should have been utilised to address the Change Compensation Event;
(b) (time value of money):
(i) appropriate regard must be given to the time value of money and timing of cash flows;
(ii) all cash flows must be discounted or inflated to reflect when they occur (if applicable); and
(iii) the present value of any lump sum amount paid to Project Co will take account of how Project Co intends to use those funds prior to expending them on the relevant Change Compensation Event including any interest likely to be earned on those funds;
(c) (open book basis):
(i) Project Co must and must procure that the Project Co Associates:
A. prepare and provide all information referred to in this Schedule on an open book basis in accordance with section 7.1(c)(ii);
B. if required by the State, make available the appropriate personnel to explain the basis on which a particular calculation has been made; and
C. allow the State to review and undertake audits to enable it to verify compliance with this Schedule in respect of the information referred to in section 7.1(c)(ii),
in order to enable the State to make an accurate assessment of Costs and Savings in accordance with this Schedule; and
(ii) "open book basis" means Project Co:
A. providing a reasonable breakdown of the calculation of all relevant Base Costs including Preliminaries, labour, Consultant Costs, equipment, materials, subcontract, finance and all other Costs, Margins and receipts of Project Co and the Project Co Associates in a clear and transparent manner;
B. using best endeavours to provide a breakdown of any compensation payable under any relevant Subcontracts directly with a Key Subcontractor or Significant Subcontractor; and
C. providing other information reasonably requested by the State including reasonably available source documents required to verify such calculation;
(d) (Project Co's role): Project Co must not subcontract the management of a Change Compensation Event without the consent of the State;
(e) (no double counting): in calculating any amount under this Schedule there will be no double counting;
(f) (Indexation): no amounts or costs payable will be Indexed more than once;
(g) (not part of scope): as part of providing a Change Response, Project Co must demonstrate that the additional or varied work or services that it has provided or proposes to provide as a consequence of the relevant Change Compensation Event, for which it seeks compensation in accordance with these Change Compensation Principles, do not form part of the Project Activities at the time of the relevant Change Compensation Event;
(h) (Augmentation): these Change Compensation Principles (including the entitlements to Agreed Margins) do not apply to Augmentations unless expressly stated in the Augmentation Process Schedule; and
(i) (relevant obligations under Project Deed): nothing in this Schedule limits Project Co's obligations or liabilities in respect of the relevant Change Compensation Event as otherwise set out in this Deed, including any conditions that Project Co must satisfy before it is entitled to any compensation for that Change Compensation Event in accordance with these Change Compensation Principles.