Impact on Cost Clause Samples
The 'Impact on Cost' clause defines how changes or unforeseen circumstances affecting a project or agreement may alter the overall costs involved. Typically, this clause outlines the process for identifying, documenting, and approving any cost increases or decreases resulting from modifications to the original scope of work, such as changes in materials, labor, or regulatory requirements. Its core practical function is to ensure that both parties have a clear, agreed-upon method for addressing and allocating additional expenses or savings, thereby minimizing disputes and maintaining financial transparency throughout the contract.
POPULAR SAMPLE Copied 1 times
Impact on Cost. Seller will promptly notify Buyer in writing if a change directed or approved by Buyer will affect cost or timing and provide substantiation of its claim. If Buyer determines that an adjustment is appropriate, Buyer and Seller will negotiate in good faith an equitable price adjustment (up or down), a change in shipping or delivery terms, or other appropriate adjustment. Seller acknowledges that (i) in no event may any claim for adjustment exceed the cost of Raw Material (as defined in the Logistics Parameter) and/or tooling equivalent based on a term of supply of finished Products as projected by the production releases in place at the time of the production change order; and (ii) no adjustments will be recognized that were not submitted to Buyer as part of Seller’s written notification hereunder. If Buyer determines that no adjustment is appropriate, it will so advise Seller.
Impact on Cost. Seller will promptly notify Buyer in writing if a change directed or approved by Buyer will affect cost or timing and provide substantiation of its claim. If Buyer determines that an adjustment is appropriate, Buyer and Seller will negotiate in good faith an equitable adjustment (up or down), including adjustments to price as well as claims for other costs, a change in shipping or delivery terms, or other appropriate adjustment. Seller acknowledges that (i) in no event may any claim for adjustment exceed the cost of Raw Material (as defined in any applicable Logistics Parameter) and/or tooling equivalent based on a term of supply of finished Products as projected by the production releases in place at the time of the production change order; and (ii) no adjustments will be recognized that were not submitted to Buyer as part of Seller’s written notification hereunder. If Buyer determines that no adjustment is appropriate, it will so advise Seller.
Impact on Cost. Seller will promptly notify Buyer in writing if a change directed or approved by Buyer will affect cost or timing and provide substantiation of its claim. If Buyer determines that an adjustment is appropriate, Buyer and Seller will negotiate in good faith an equitable price adjustment (up or down), a change in shipping or delivery terms, or other appropriate adjustment. If Buyer determines that no adjustment is appropriate, it will so advise Seller in writing.
Impact on Cost. The additional services described above will entail fees to Collin County in the amount of $8,900.00 This enhancement will be deployed with Code Drop #2.