Common use of Price Reduction Clause in Contracts

Price Reduction. The Contract Price will be reduced by all amounts saved as a result of Engineering changes suggested by the Owner which are incorporated into the Specifications by the Vendor provided that the Vendor reasonably believes that such changes will not make it impossible or impracticable to comply with any of its obligations under this Contract, including, without limitation, those Vendor obligations relating to the performance criteria applicable to the System. Any reduction in Contract Price pursuant to the preceding sentence will be agreed upon promptly by the Owner and the Vendor. Failure of the Parties to mutually agree to such price reductions within ten (10) days from the date the Owner delivered written notice to the Vendor of the need for such price reduction due to incorporated Engineering changes will result in the automatic reference of such matter to dispute resolution in accordance with subsection 23.1. During the pendency of any such dispute resolution prices payable pursuant to subsection 6.1 will be payable by the Owner to the Vendor at the reduced level pursuant to this subsection 6.2. If in accordance with subsection 23.1 such dispute resolution results in a finding that such price reduction was not in fact justified then the Owner will reimburse the Vendor the amounts that would otherwise have been payable to the Vendor during the pendency of such dispute resolution.