AMD 1996 Annual Report Download - page 89

1.3.2.2 ESTIMATES OF PROJECT COST. Developing and preparing
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for COMPANY'S review and approval at each stage of design development of design
estimates that define the estimated cost of the Project setting forth the total
estimated design / engineering and complete construction cost of each of the
following components of the Project and including as to each component the
common system costs:
Design/Engineering, Site Development, Office Design Center, Central
Utilities Building, Fab and Clean Room, Fab Support, Chemical and Bulk
Storage, and Construction Administration and Supervision (each
referred to as a "CONSTRUCTION PHASE").
These estimates (each an "ESTIMATE OF PROJECT COST") will be exclusive of
acquisition and installation cost for the Wafer Process Equipment but shall
include building support equipment acquisition and installation as necessary or
appropriate to implement the Fab 30 Preliminary Design and the Contract. Each
estimate shall be provided to COMPANY in the level of detail mutually agreed
upon by and between CONTRACTOR and COMPANY and shall be reconciled with
previously prepared design estimates. The estimates shall set forth the
estimated total of all Reimbursable Costs (the "COST OF THE WORK ") (as
described in Article 16 below), and the CONTRACTOR'S estimated Budgeted Fee (as
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defined in Article 16 below).
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1.3.2.3 PROJECT SCHEDULE. Developing for COMPANY'S approval a
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detailed Critical Path Method Schedule for the performance of the engineering
and design work and the construction of each Construction Phase (the "PROJECT
SCHEDULE"), which Project Schedule is incorporated herein by this reference.
With respect to the Project Schedule, COMPANY'S approval will be required for
every change in the Project Schedule which may affect the Critical Path of any
Construction Phase or may affect any milestone established for any part of the
Project. Additionally, COMPANY shall have the right to change the Critical
Path of any Construction Phase, and CONTRACTOR shall thereupon revise the
Project Schedule for COMPANY'S approval, and CONTRACTOR shall submit all
additional costs resulting from such change to COMPANY and shall obtain
COMPANY'S approval (including approval of changes in the Project Budget) before
such change in such critical path is implemented. However, COMPANY'S approval
shall not be construed to relieve CONTRACTOR of any responsibility and/or
liability which CONTRACTOR may have with respect to delays and/or additional
costs not encompassed by COMPANY'S approval. The Project Schedule shall be
prepared, updated and revised in Prima Vera Project Planner for Windows (P3 Win)
or equivalent acceptable to both CONTRACTOR and COMPANY. The Project Schedule
shall be developed so as to permit CONTRACTOR and COMPANY to monitor the
progress and monetary cost of all aspects of the work including without
limitation each Construction Phase, to identify the points in time at which
specified events must occur and to anticipate potential problems in achieving
scheduled completion dates. The Project Schedule shall show the respective
dates upon which CONTRACTOR proposes to commence and complete the following sub-
phases of each Construction Phase: Phase Summary, Phase Milestones, Delays
Encountered, Conceptual Design, Schematic Design, Construction Design
Development, Preparation of Tenders, Tendering-Negotiation & Award, Notice to
Proceed, Submittals and Shop Drawings and Review and Approval thereof by
COMPANY, Fabrication and Delivery, Site Mobilization, Construction, Punchlist,
Calibration, Adjustment, Turnover to COMPANY, and Site Demobilization. Each
Construction Phase will be further detailed to reflect the elements of the
Project Schedule and the logical activities or line items planned to accomplish
each Construction Phase in accordance with the Project Schedule. Each schedule
activity or line item will be identified, along with the estimated quantity of
units of work and the cost thereof, to be
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997