AMD 1996 Annual Report Download - page 90

accomplished or installed, man hours planned per unit, together with the
cost thereof, any special construction equipment or other constraining
appurtenances required for construction (e.g., heavy-lift cranes, site
concrete batching plants, wide-load road permits, etc.), and scheduled
progress anticipated on each of said items in order to complete the entire
Facility within the contract time in accordance with the Project Schedule.
Each schedule activity or line item will be identified as a direct work or
indirect work activity and have the planned equipment, material, labor, and
equipment rental cost associated with the activity identified separately.
1.3.2.4 PROJECT BUDGET. Developing and preparing for COMPANY'S
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approval a detailed budget for the Project based on the latest Estimate of
Project Cost approved by COMPANY that reflects the elements of the Project
Schedule and sets forth separately the projected costs for each
Construction Phase and breaks down those projected costs into each element
of the Project Schedule applicable to such Construction Phase (the "PROJECT
BUDGET"), which Project Budget is incorporated herein by this reference.
The Project Budget will be coded and identify quantifiable elements to
relate directly to the Project Schedule and Project work breakdown
structure for cash flow and progress monitoring. The Project Budget will be
capable of being summarized by phase and in total to the SEMATECH Facility
Cost Model. After the Project Budget is finalized, it will not be changed
except pursuant to a Change Order approved and signed by the two
Representatives of COMPANY described in Clause (x) of Section 10.2 and by
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the COMPANY Representative described in Clause (y) of Section 10.2 hereof,
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as well as approved and signed by CONTRACTOR'S Representative described in
Clause (z) of Section 10.2. The Project Budget will be maintained
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continuously, and the status of the Project Budget and a forecast shall be
reported to COMPANY on a monthly basis, in such format as COMPANY and
CONTRACTOR mutually agree upon, and the Project Budget will monitor the
following categories of data: planned budget, approved changes, operating
budget, commitments against operating budget, cost incurred to date, cost
to complete commitment, current Estimate of Project Cost, variance of
operating budget to Budgeted Cost of the Work (defined in Section 16.3.1
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below), earned value of work completed to date, quantity of units budgeted,
estimated cost per unit, actual cost per unit and such other information as
COMPANY may request or CONTRACTOR recommend and COMPANY accept.
Additionally, COMPANY may request simplified interim status reports and
forecasts on a weekly or bi-weekly basis in such other format or formats as
COMPANY may prescribe, and any associated, additional cost shall be
reimbursed by COMPANY either as office costs pursuant to Section 16.2.1 if
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prepared in CONTRACTOR'S home office or as field costs pursuant to Section
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16.2.2 if prepared in CONTRACTOR'S field office.
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1.3.3 LATEST VERSION OF DOCUMENTS. For purposes of this Agreement,
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the defined terms "DESIGN DOCUMENTS", "ESTIMATE OF PROJECT COST", "PROJECT
SCHEDULE" and "PROJECT BUDGET" shall mean the latest version of each of these
developed and approved by COMPANY in accordance with this Agreement.
1.3.4 PROCESS DESIGN. COMPANY shall supply certain process design
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requirements for the tools used in the manufacturing process in the form of
performance requirements and certain other design information as shown
in the Contract Documents, including the Facility Performance Criteria described
in Exhibit A attached hereto and made a part hereof. Any additional sizing and
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selection of materials not specified by COMPANY is to be furnished by CONTRACTOR
with COMPANY'S approval in the form of prescribed specifications. Except for
the process design requirements, CONTRACTOR shall make detailed checks of the
design information furnished by COMPANY to satisfy itself as to the accuracy
thereof and shall be responsible for the complete design of the Facility and all
building systems, with the exception of the
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997