1.

CLAIMS SETTLEMENT; DISPUTES

1.1 Initial Notice of Claims: As soon as practicable and in any event within 7
Days after CONTRACTOR becomes aware (or should reasonably have
become aware) of an event upon which a potential claim could be based,
the CONTRACTOR must give to Company Representative an Initial Notice
in writing which includes:

1.1.1 an outline of the basis of the claim or potential claim containing as

much information concerning the event as is reasonably available
to the CONTRACTOR within the given time period; and

1.1.2 the quantum or likely quantum of the claim or proposed claim and
its potential impact on the WORK Schedule.

1.2 Notice of Potential Claim: As soon as practicable and in any event within
28 Days after CONTRACTOR has given its initial notice under Paragraph
1.1 of Schedule “A”, the CONTRACTOR must give to Company
Representative a Notice of Potential Claim setting forth the reasons the
CONTRACTOR believes additional compensation or schedule extension
will or may be due; the nature of the costs, including a detailed cost estimate
with supporting breakdown of costs, expenses, or damages actually
incurred; and any identified delays incurred by reason of the events which
give rise to the Notice of Potential Claim. The CONTRACTOR shall
thereafter, with each claim for payment under this Contract, submit monthly
updates in respect of Notices of Potential Claim.

1.3 COMPANY will not be liable upon any claim by the CONTRACTOR in
respect of any matter arising out of the Contract unless the CONTRACTOR
has strictly complied with the notice requirements of Paragraphs 1.1 and
1.2 of Schedule “A”. Should the CONTRACTOR fail to comply with the
provisions of Paragraphs 1.1 and 1.2, COMPANY will have no liability in
respect of that claim, and the CONTRACTOR's claim is absolutely barred.

1.4 Should CONTRACTOR and COMPANY be unable to agree upon a

settlement of any claim, the matter shall be treated as an unresolved dispute
in accordance with Schedule “E” of this Contract.

1.5 Should any dispute arise between COMPANY and CONTRACTOR during
CONTRACTOR’s performance of the WORK, CONTRACTOR shall, unless
COMPANY directs otherwise, continue to perform the WORK and any
additional WORK which COMPANY may direct CONTRACTOR to perform.