OCR

The contract modification defined project completion as the date on which the total construction complex was capable of supporting a continuous production of 20,000 tons of ore per day, and made provision for the payment of a time completion bonus in the amount of $ 300,000 plus $10,000 per day for each day such completion date as defined was achieved prior to May 1, 1960, the maximum bonus so payable to he $ 1,000,000. Further, the contract modification established and fixed the cost of work target estimate amount for purposes of cost incentive bonus consideration at $93,957,473, the October 1957 estimate cost of work total less contingency; and provided that such target estimate amount would be adjusted for comparison against actual total cost of work in the following items only: 1. Material purchase price escalation. 2. Labor increases not under Contractor control. 3. Approved overtime premium payments. 4. Cost of added work. Maximum cost bonus so payable was set at $1,000,000, determinable as a varying percentage of the difference between actual total and estimated total cost of work, adjusted per above. The approved revised estimate Of February 1959 increased the cost of work target amount, before adjustments, to $ 101,030,369. (See estimate summary.) In meeting of October 23, 1959, held at the project site, all items in question or contention concerning the target estimate and the final cost of work were totally resolved, and undisputed agreement between the parties relative contract finalization of the Toquepala project was effected.