FAQ

FAQ: Modifications

• G.1 How are modifications of deliverables handled?

  Modifications to deliverables can arise for two reasons:

  1. By order of the client
  2. On the basis of a unanimous decision by the alliance

  Depending on the nature of the modification, the target costs may or may not be adjusted.

  As part of the procurement process, the project risks are recorded jointly, taking into account the contributions of all alliance partners, and financially backed in the target costs. Modifications of deliverables resulting from the occurrence of such a risk 1 do not lead to an adjustment of the agreed target costs 1.

• G.2 How are the target costs 1 adjusted in the event of eligible modifications?

  If a situation arises that justifies an adjustment to the target costs 1, these are adjusted as follows:

  1. The additional or reduced expenditure in the work costs is determined. This is based on changes in quantities and the cost basis of the alliance agreement.
  2. If the change has an impact on relevant risks, the amount of the financial risk provision must be adjusted accordingly.
  3. Target costs 1 are to be determined on the basis of the new work costs and the agreed, unchanged percentages for the cost of sales and profit.

  The determination of new amounts for work costs and risk provisioning is based on the principle of unanimity and analogous to the first determination of target costs 1.

• G.3 Are the surcharges for AGK and profit adjusted as a result of a changes in target costs 1?

  No, a change in the target costs 1 does not entitle either party to an adjustment (upwards or downwards) of the agreed percentages for the AGK and for the profit.

• G.4 Are the bandwidths for the upper and lower limits of the realization partners' risk participation adjusted due to a change in the target costs 1?

  The agreed percentages for the upper and lower limits of profit and loss sharing remain unchanged despite the change in target costs 1.

  Only new limits are set based on the new target costs 1 and the unchanged percentages.

• G.5 Will the remuneration level 4 (bonus/penalty for non-monetary targets) be adjusted due to a change in target costs 1?

  The alliance partners shall unanimously make the necessary adjustments to the target values and, if necessary, to the evaluation system if a unilateral amendment to the contract or the occurrence of a client risk leads to the achievement of non-monetary project objectives that are relevant to remuneration under the specific alliance contract being made easier, more difficult or impossible.