IMPROVED EFFICIENCIES Clause Samples
The "Improved Efficiencies" clause establishes a framework for recognizing and managing enhancements in productivity or cost savings achieved during the performance of a contract. Typically, this clause outlines how any efficiencies—such as reduced labor hours, streamlined processes, or technological advancements—are identified, documented, and potentially shared between the contracting parties. Its core practical function is to incentivize innovation and continuous improvement while ensuring that the benefits of increased efficiency are fairly allocated, thereby promoting mutual value and preventing disputes over the ownership of such gains.
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IMPROVED EFFICIENCIES. The Funds and the Agent shall meet periodically to consider whether Modifications paid for by the Funds or other changes in the nature of the delivery of the Services by the Agent has lowered the Agent’s operating costs. Where the parties agree that the foregoing has occurred, they will commence negotiations in good faith to consider the establishment of reductions in the related Fees associated with the Services affected by those Modifications or changes in the delivery of the Services.