Common use of Method of Deductions Clause in Contracts

Method of Deductions. Basis and method for deductions for unsatisfactory daily performance: If services are not in conformity, or not performed with the requirements of this contract, the Agency shall use the following guidelines in adjusting the Contractor’s invoice. Startup time not to exceed a one week period. First Occurrence – Verbal Warning. Require the Contractor to immediately perform the service in accordance with this contract. Second Occurrence – Written documentation notice from the Agency to the Contractor. Third Occurrence – Written documentation and deduction of 1/60th of monthly invoice amount. Fourth Occurrence – Written documentation and deduction of 1/30th of monthly invoice amount.

Method of Deductions. Basis and method for deductions for unsatisfactory daily performance: If services are not in conformity, or not performed with the requirements of this the contract, the Agency shall use the following guidelines in adjusting the Contractor’s invoice. Startup time not to exceed a one week period. First Occurrence – Verbal Warning. Require the Contractor to immediately perform the service in accordance with this the contract. Second Occurrence – Written documentation notice from the Agency to the Contractor. Third Occurrence – Written documentation and deduction of 1/60th of monthly invoice amount. Fourth Occurrence – Written documentation and deduction of 1/30th of monthly invoice amount.