Atkinsrealis Group Inc T.ATRL

Price adjustment clauses

[Gabriel]

https://pppknowledgelab.org/guide/sections/64-adjustment-mechanisms

Financial equilibrium clauses

Civil law systems commonly espouse a concept of financial equilibrium in contracting, which may be established in general administrative law, or defined in more detail in PPP-specific law or a particular contract. Financial equilibrium provisions entitle an operator to changes in the key financial terms of the contract to compensate for certain types of events beyond their control. Adjustments are based on a mutually-agreed financial model that is maintained over the lifetime of the contract. Three causes of unexpected changes that merit financial equilibrium revisions are typically defined as force majeure (major natural disasters or civil disturbances), factum principis (government action) and ius variandi (unforeseen changes in economic conditions). The PPPIRC Website (PPPIRC) provides more information and references on financial equilibrium clauses in its section: Key Features of Common Law or Civil Law Systems.

[Gabriel]

In other words, we are entitled for full compensation for all supply disruptions, absenteeism and resulting coordination and delay issues and price item adjustments for inflation. 

[WizardFuture]

Really good research Gabriel. Do you have any guess when we will have resolution for these issues? Months or years? As you said, SNC is not a bank...

[Gabriel]

This is the last mile. Eglinton is over 90% complete. Trillium about 80%. There  are claims on these two projects. Incidentally we have a claim of about 200m on an old LSTK, the Confederation Line; and a claim of 360m on Champlain. All COVID-related claims including supply disruptions, absenteeism and price inflation will be paid for by the CDPQ for three reasons: 1) because they are