Changes to Performance Measures Clause Samples
The "Changes to Performance Measures" clause defines the process by which the criteria used to evaluate a party's performance under an agreement can be modified. Typically, this clause outlines who has the authority to propose or approve changes, the notice requirements, and any limitations or procedures for amending the performance metrics. For example, it may allow for adjustments to sales targets or service levels in response to market conditions or operational changes. The core function of this clause is to provide flexibility and adaptability in the contract, ensuring that performance expectations remain relevant and achievable as circumstances evolve.
Changes to Performance Measures. In the event that applicable laws, rules or regulations change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder approval of such changes, and still qualify for the Performance-Based Exception, the Committee shall have sole discretion to make such changes without obtaining stockholder approval.
Changes to Performance Measures. (a) The Authority shall be entitled, on giving not less than three months' prior written notice to the Contractor, to require any or all of:
(i) a change to the Service Credits applicable to each Service Level;
(ii) a change to the Performance Measures applicable to each Service; and
(iii) the introduction of new Performance Measures or Service Credits, provided that the principal purpose of a change to the Performance Measures or Service Credits or a new Performance Measure or Service Credit is to reflect changing industry standards, the fitness for purpose of the Performance Measures or the business requirements and priorities of the Authority.
(b) If the Contractor incurs additional costs as a result of a change under this Clause 7.3, subject to Clause 42.10(b), it shall be entitled to recover those costs from the Authority in accordance with Clause 7.3(c) provided that it demonstrates to the reasonable satisfaction of the Authority that the change to the Performance Measures was the direct cause of the additional costs incurred.
(c) Subject to Clause 7.3(b) and Clause 42.10(b), the Authority shall compensate the Contractor for the actual costs reasonably incurred by the Contractor in accordance with Clause 7.3(b) in excess of £25,000 (so that only the excess of that amount is recoverable) and within 20 Business Days after receipt of a written demand by the Contractor supported by reasonably detailed evidence in writing that the costs have in fact been incurred.
(d) If the Contractor’s costs are reduced as a result of a change under this Clause 7.3, the Authority shall be entitled to recover an amount equal to the reduction in those costs from the Customer in accordance with Clause 7.3(e). The Contractor shall provide to the Authority in writing within 20 Business days after the change reasonably detailed evidence of the costs reduction or that its costs have not or will not reduce.
(e) The Contractor shall reimburse the Authority an amount equal to the reduction from which the Contractor benefits in accordance with Clause 7.3(d) in excess of £25,000 (so that only the excess of that amount is recoverable) and within 20 Business Days after receipt of a written demand by the Authority.
(f) The relevant party shall issue invoices for the relevant amounts payable under this Clause 7.3 to the other party in accordance with paragraph 16 of Schedule11 (Payment mechanism).