AMD 1996 Annual Report Download - page 91

Wafer Process Equipment, the procurement and installation of which shall be
determined by COMPANY.
1.4 CONSTRUCTION AND CONSTRUCTION ADMINISTRATION AND SUPERVISION SERVICES.
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1.4.1 CONSTRUCTION AND CONSTRUCTION MANAGEMENT SERVICES BY
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CONTRACTOR. The acquisition and installation of the Wafer Process Equipment is
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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 require) at least monthly providing such
updated reports, invoices and 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,
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revising and updating continuously, and reporting to COMPANY on a monthly
basis the Project Budget and the Project Schedule, as described in Section
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1.3.2.4 and Article 12, subject to COMPANY'S approval and effected by
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issuance of a Change Order; submitting CONTRACTOR'S monthly Application
for Payment (described in Section 17.1 below) and invoices and other
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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
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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.
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997