4.3  How to calculate Base Costs plus Margin (BCM) during the Operational Phase

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

(i)  Construction Base Costs; and

(ii)  Services Base Costs,

then, for the purposes of section 4.2, BCM will be the aggregate of the amounts calculated in sections 4.3(a) and 4.3(b).

Table 3 - Agreed Margins for Change Compensation Events that occur during the Operational Phase

Relevant Agreed Margin

Applicable fixed percentage 

 

$0 - $1m

>$1m - $5m

> $5m

Services Margin of Services Contractor (paragraph (a) of definition of Services Margin)

[bid amount]%

[bid amount]%

[bid amount]%

Construction Margin of Services Contractor or D&C Contractor

Same as Construction Margin of D&C Contractor in Table 2

Same as Construction Margin of D&C Contractor in Table 2

Same as Construction Margin of D&C Contractor in Table 2

Project Co Margin

0%

0%

[bid amount]%