3.3  How to calculate Base Costs plus Margin (BCM) during the Development Phase

(a)  If a Change Compensation Event occurs during the Development Phase for which Project Co is entitled to be paid Construction Base Costs during the Development Phase, then:

BCM = CBC + CM + PM

where:

CBC = Construction Base Costs;

CM = Construction Margin x CBC; and

PM = Project Co Margin x CBC.

(b)  If a Change Compensation Event occurs during the Development Phase for which Project Co is entitled to be paid Services Base Costs during the Operational Phase, then:

BCM = SBC + SM + PM

where:

SBC = Services Base Costs;

SM = Services Margin x SBC; and

PM = Project Co Margin x SBC.

(c)  If a Change Compensation Event that occurs during the Development Phase for which Project Co is entitled to be paid:

(i)  Construction Base Costs in the Development Phase; and 

(ii)  Services Base Costs in the Operational Phase,

then, for the purposes of section 3.2, BCM will be the aggregate of the amounts calculated in sections 3.3(a) and 3.3(b).

Table 2 - Agreed Margins for Change Compensation Events that occur during the Development Phase