AMD 1996 Annual Report Download - page 203

Wafer Process Equipment, the procurement and installation of which shall be
determined by COMPANY.
1.4 CONSTRUCTION AND CONSTRUCTION ADMINISTRATION AND SUPERVISION SERVICES.
---------------------------------------------------------------------
1.4.1 CONSTRUCTION AND CONSTRUCTION MANAGEMENT SERVICES BY
----------------------------------------------------
CONTRACTOR. The acquisition and installation of the Wafer Process Equipment is
- ----------
COMPANY'S responsibility. Except for the Wafer Process Equipment and other
things that the provisions of the Contract expressly require or provide for
COMPANY to furnish for the Facility, CONTRACTOR shall furnish and provide all
construction management services and all construction for the entire Facility,
including without limitation all materials to be incorporated into the
buildings, structures and other improvements and all labor, fuel,
transportation, construction equipment, tools, utilities, water, wastewater
disposal, sewage disposal, supplies, outfit, and appurtenances of every sort
which may be necessary for or in connection with the scheduling, delivery,
handling, construction, erection, installation, performance, calibration,
adjustment and turnover of the Facility, and for the start up and performance
testing of the Facility and for the execution of all other construction work
included as a part of the Project. All such construction management services
and all construction work are collectively referred to as the "CONSTRUCTION
WORK". CONTRACTOR shall be responsible for all Construction Work, including
without limitation the following:
1.4.1.1 UPDATING BUDGET AND SCHEDULE. During construction,
----------------------------
revising and updating continuously, and reporting to COMPANY on a
monthly basis, the Project Budget and the Project Schedule, as described
in Section 1.3.2.4 and Article 12, subject to COMPANY'S approval and
--------------- ----------
effected by issuance of a Change Order; submitting CONTRACTOR'S monthly
Application for Payment (described in Section 17.1 below) and invoices
------------
and other supporting documentation, as required herein at least monthly;
and providing COMPANY with a summary of the status of the Project and a
report on the percentage of completion of the Project (both in such form
and containing such information, including then current aerial
photographs, as COMPANY may reasonably require at least monthly,
providing such updated reports, invoices and documents on a timely basis
shall be a condition precedent to payment of CONTRACTOR'S Budgeted Fee.
Should the Project fall behind schedule or be projected to fall behind
schedule, CONTRACTOR shall prepare and submit for COMPANY'S approval, a
plan or plans for recovering the lost time showing such actions as may
be required to restore the Project Schedule to the complete satisfaction
of COMPANY and showing the costs associated with such actions (a
"SCHEDULE RECOVERY PLAN"). A Schedule Recovery Plan may include, without
limitation, one or more of the following courses of action:
-- Increase the size of the work force; or
-- Place activities on shift work; or
-- Provide and utilize additional equipment; or
-- Place activities on overtime for a specified period of time but
only if approved by COMPANY.
The party who shall bear any additional costs to the Project occurring as a
result of such delay(s) or the effort(s) necessary to recover therefrom shall be
determined in accordance with Sections 10.3, 14.4 and 16.2.4. The
------------- ---- ------
Budgeted Cost of the Work shall be increased only by means of Change Order
approved by COMPANY in writing pursuant to Article 10 or Article 14.
---------- ----------
5
Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997