Price and Performance Optimization Sample Clauses
The Price and Performance Optimization clause establishes a framework for ensuring that the goods or services provided under the contract are delivered at the best possible value and efficiency. Typically, this clause allows for periodic reviews of pricing structures and performance metrics, enabling adjustments if more cost-effective or higher-performing alternatives become available. Its core function is to protect both parties from outdated pricing or suboptimal performance, ensuring ongoing competitiveness and value throughout the contract term.
Price and Performance Optimization. VGLNG and BH agree to reasonably cooperate and work together in good faith with the shared objective of using the experience, knowledge and data derived from the performance under this Agreement, the FEED agreements and any LTS Purchase Orders to optimize the project management services, engineering services, procurement, manufacturing and performance of each Liquefaction Train System in combination with the balance of plant of each Project (excluding BH improvements that are unrelated to and do not impact the performance, reliability or maintenance of the relevant Liquefaction Train System(s)) with the common goals of (x) increasing the operational performance of the Liquefaction Train Systems and (y) if possible and solely to the extent consistent with clause (x), reducing the LTS Purchase Price; provided, however, that VGLNG and BH acknowledge that (i) no particular result is assured or guaranteed from such price optimization efforts, (ii) price optimization efforts are not included in any Change Order (as such term is defined in the LTS Purchase Order or the PIS Purchase Order, as applicable) requested by Buyer, and (iii) the applicable Seller shall not be permitted to change the means and methods of its performance or its basis of design for the Liquefaction Train System under any Purchase Order in a manner that would deny or reduce the value to the relevant Purchaser of the benefits of the optimization of the performance of each Liquefaction Train System achieved by VGLNG and/or the relevant Purchaser. Prior to implementation, Purchaser shall consult with the applicable Seller in respect of any modifications that adversely and materially impact the inlet, exit or throughput conditions of the Liquefaction Train System. Notwithstanding the foregoing, if and to the extent that BH makes adjustments to its means and methods or design specifications under the First LTS Purchase Order that relate to BH achieving the performance guarantees set forth in the First LTS Purchase Order, such adjustments may be incorporated into each subsequent LTS Purchase Order.