Performance Constraints 2 Clause Samples
The Performance Constraints clause sets specific requirements or limitations on how contractual obligations must be fulfilled, often relating to quality, timing, or efficiency. In practice, this clause may specify minimum service levels, deadlines for deliverables, or benchmarks that must be met throughout the contract term. Its core function is to ensure that the parties maintain agreed-upon standards and to provide a basis for addressing underperformance or breaches, thereby protecting the interests of both sides and promoting accountability.
Performance Constraints
2. 13.1 Constraints Supplier is responsible for anticipating (1) any inability on its part to perform its obligations and (2) any limitations in meeting the objectives of this Agreement with regard to manufacturing, delivery and other required performance. Supplier is also responsible for informing Applied when such constraints will occur and initiating action plans to resolve them. Typical constraints might include, but are not limited to: (a) Consumption over forecast (b) Consumption under forecast (c) Quality problems (d) Capacity/production problems (e) Sub-tier supplier supply-chain management problems (f) Other business issues 2.13.2 Resolution of Performance Constraints Supplier will notify the Supplier Account Team Lead as soon as a constraint is identified and promptly advise Applied of an action plan to resolve the constraint. Applied will work with Supplier to determine the impact of the identified constraint and to approve and execute or disapprove the action plans.