Common use of Example Calculation (Using Problem Severity Level Clause in Contracts

Example Calculation (Using Problem Severity Level. 3 – 4). (a) Total Problems during the reporting month equal 17. (b) Total Problems failing the Standard of 100% equal 2. (c) Percentage Problem Resolution is calculated as follows: ((17 – 2) / 17) * 100 = 88.24% (d) The threshold of 90.01% less the Percentage Problem Resolution of 88.24% = 1.77%. The difference is greater than a 1% reduction but is less than a 2% reduction; therefore, Subscriber is due 1% of the Services Fees as a Performance Credit.

Example Calculation (Using Problem Severity Level. 3 1 – 42). (a) Total Problems during the reporting month equal 1768. (b) Total Problems failing the Standard of 100% equal 23. (c) Percentage Problem Resolution Response is calculated as follows: ((17 68 – 23) / 1768) * 100 = 88.2495.59% (d) The threshold of 90.0199.01% less the Percentage Problem Resolution Response of 88.2495.59% = 1.773.42%. The difference is greater than a 13% reduction but is less than a 24% reduction; therefore, Subscriber is due 13% of the Services Fees as a Performance Credit.