Project modifications

A concluded contract can be amended at any time, provided that all contracting parties agree to the amendment. Changes that become necessary in the course of the project and on whose implementation there is consensus can be easily implemented in the alliance agreement. With the cost price model, the remuneration model makes it easy to remunerate changes.

The principle here is that in the case of an alliance agreement, it can be assumed that the project has been worked out in depth in the project definition thanks to the integral project and execution planning and that all framework conditions and influences of the project partners have been taken into account. Risks in the project are recorded using integrated project risk management, taking into account the contributions of all alliance partners. Their financial impact in the event of occurrence and the associated measures are mapped via financial risk provisioning.

As a result, project-internal causes for project changes due to jointly borne risks do not lead to a change in the agreed target costs 1.

However, it remains to be clarified in which circumstances the realization partners are entitled to an adjustment of the target costs 1, potentially the target costs 2, the deadlines and possibly other regulations (e.g. remuneration level 4).

The most important circumstance for triggering a claim for adjustment of the target costs 1 is the client’s right to unilaterally adjust the contract or if a risk occurs that is clearly the responsibility of the client.

The claim for adjustment of target costs 1 is realized in two steps:

• Firstly, the increase or decrease in work costs must be determined and, if the change affects the relevant risks, the amount of the risk provision must be adjusted accordingly.
• Secondly, on the basis of the new work costs and the agreed percentages, the new amounts for the AGK and for the profit are to be determined. The sum results in the new amount of the target costs 1.

A change does not entitle either party to an adjustment (upwards or downwards) of the agreed percentages for the profit and loss participation. The same applies to the upper and lower limits agreed as percentages for profit and loss sharing. Based on the new target costs 1 and the unchanged percentages, only new limits in terms of amount are set.

The determination of new amounts for plant costs and risk provisioning is based on the principle of unanimity and analogous to the first determination of target costs 1. This is based on the cost basis of the alliance agreement.

The principle of unanimity also applies to any adjustments to deadlines and dates. The adjustments must be made in the same way as the initial determination of the schedule.

If a unilateral amendment to the contract or the occurrence of a client risk makes it easier, more difficult or impossible to achieve non-monetary project objectives that are relevant to remuneration under the specific alliance agreement, the parties shall unanimously make the necessary adjustments to the valuation system.