AMD 2004 Annual Report Download - page 361

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4.1.2. Works not to be executed
If due to a request for changes or Additional Works, Works covered by the lump sum price calculation are requested not to be executed, the
Works to be executed for the initial lump sum the remuneration is reduced by the amount for the respective part of the Works not to be executed
contained in the lump sum price calculation or the refined lump sum price calculation, if already delivered at the time of requesting not to execute
Works or Additional Works underlying the works, services or deliveries to be executed or rendered in addition. The refined lump sum price
calculation shall be submitted to Company by Contractor no later than November 30, 2003.
4.1.3. Changes leading to Reductions and Additions
If changes requested lead to reductions as well as additional works, services or deliveries, the price impact of additional works, services or deliveries
the increase is determined under no. 4.1.1 and the price impact of reductions is determined by no. 4.1.2.
4.2. Adjustment can not be based on lump sum price calculation
If certain works, services or deliveries to be executed are not covered by the scope of work to be executed for the lump sum provided for in no. 3.1
and to the extent the adjustment of the price cannot be determined in accordance with no. 4.1 since the works, services or deliveries requested to be
executed are not covered by the lump sum price calculation or the refined lump sum price calculation the price adjustment shall be determined in
accordance with the following procedure which the Parties agree to follow without any detrimental time impact on the completion of Fab X:
Contractor shall - based on tender documents approved by Company - ask potential subcontractors for competitive bids (generally three) based on
a lump sum approach for such works, services or deliveries. Contractor shall also be entitled to submit a bid. Company shall have the right to
provide additional bids. Based on the bids – of which Company is provided with copies -
22
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005