Common use of Price Reduction Clause in Contracts

Price Reduction. If at any time after the date of Bid Opening the Contractor makes a general price reduction in the comparable price of any Goods or service covered by the Contract to customers generally, an equivalent price reduction based on similar quantities and/or considerations shall apply to the Contract for the duration thereof, including any extensions. Such price reduction shall be effective at the same time and in the same manner as the reduction in the price to customers generally. For purpose of this provision, a “general price reduction” shall mean any horizontal reduction in the price of a Good or service offered (1) to Contractor’s customers generally, or (2) in the Contractor’s price schedule for the class of customers generally comparable to Owner which was used as the basis for Contractor’s Bid. An occasional sale at a lower price, or sale of distressed merchandise at a lower price, would not be considered a “general reduction” under this provision. The Contractor shall submit its invoice at such reduced prices indicating on the invoice that the reduction is pursuant to the “Price Reduction” provision of the Contract Documents. The Contractor, in addition, will within ten (10) days of any general price reduction, Notify the Procurement Director/Procurement Agent of such reduction by letter. Failure to do so may lead to termination of the Contract. Upon receipt of any such Notice of a general price reduction all ordering offices will be duly notified by the Procurement Director/Procurement Agent. The Contractor, if requested, shall furnish, within ten (10) days after the expiration or termination of the Contract a statement certifying either (1) that no general price reduction, as defined above, was made after the date of the Bid Opening, or (2) if any such general price reductions were made, that as provided above, they were reported to the Procurement Director/Procurement Agent within ten (10) days, and ordering offices were billed at the reduced prices. Where one or more such general price reductions were made, the statement furnished by the Contractor shall include with respect to each price reduction (1) the date when notice of any such reduction was issued, (2) the effective date of the reduction, and (3) the date when the Procurement Director/Procurement Agent was notified of any such reduction.

Price Reduction. If at any time after the date of Bid Opening the Contractor makes a general price reduction in the comparable price of any Goods goods or service covered by the Contract to customers generally, an equivalent price reduction based on similar quantities and/or considerations shall apply to the Contract for the duration thereof, including any extensions. Such price reduction shall be effective at the same time and in the same manner as the reduction in the price to customers generally. For purpose of this provision, a “general price reduction” shall mean any horizontal reduction in the price of a Good good or service offered (1) to Contractor’s customers generally, or (2) in the Contractor’s price schedule for the class of customers generally comparable to Owner customers, i.e., wholesalers, jobbers, retailers, etc, which was used as the basis for Contractor’s Bid. An occasional sale at a lower price, or sale of distressed merchandise at a lower price, would not be considered a “general reduction” under this provision. The Contractor shall submit its invoice at such reduced prices indicating on the invoice that the reduction is pursuant to the “Price Reduction” provision of the Contract Documents. The Contractor, in addition, will within ten (10) days of any general price reduction, Notify the Procurement Director/Procurement Agent of such reduction by letter. Failure to do so may lead to termination of the ContractFAILURE TO DO SO MAY LEAD TO TERMINATION OF THE CONTRACT. Upon receipt of any such Notice of a general price reduction all ordering offices will be duly notified by the Procurement Director/Procurement Agent. The Contractor, if requested, shall furnish, within ten (10) days after the expiration or termination of the Contract a statement certifying either (1) that no general price reduction, as defined above, was made after the date of the Bid Opening, or (2) if any such general price reductions were made, that as provided above, they were reported to the Procurement Director/Procurement Agent within ten (10) days, and ordering offices were billed at the reduced prices. Where one or more such general price reductions were made, the statement furnished by the Contractor shall include with respect to each price reduction (1) the date when notice of any such reduction was issued, (2) the effective date of the reduction, and (3) the date when the Procurement Director/Procurement Agent was notified of any such reduction.

Price Reduction. If at any time after the date of Bid Opening the Contractor makes a general price reduction in the comparable price of any Goods or service covered by the Contract to customers generally, an equivalent price reduction based on similar quantities and/or considerations shall apply to the Contract for the duration thereof, including any extensions. Such price reduction shall be effective at the same time and in the same manner as the reduction in the price to customers generally. For purpose of this provision, a “general price reduction” shall mean any horizontal reduction in the price of a Good or service offered (1) to Contractor’s customers generally, or (2) in the Contractor’s price schedule for the class of customers generally comparable to Owner which was used as the basis for Contractor’s Bid. An occasional sale at a lower price, or sale of distressed merchandise at a lower price, would not be considered a “general reduction” under this provision. The Contractor shall submit its invoice at such reduced prices indicating on the invoice that the reduction is pursuant to the “Price Reduction” provision of the Contract Documents. The Contractor, in addition, will within ten (10) days of any general price reduction, Notify the Procurement Director/Procurement Agent of such reduction by letter. Failure to do so may lead to termination of the Contract. Upon receipt of any such Notice of a general price reduction all ordering offices will be duly notified by the Procurement Director/Procurement Agent. The Contractor, if requested, shall furnish, within ten (10) days after the expiration or termination of the Contract a statement certifying either (1) that no general price reduction, as defined above, was made after the date of the Bid Opening, or (2) if any such general price reductions were made, that as provided above, they were reported to the Procurement Director/Procurement Agent within ten (10) days, and ordering offices were billed at the reduced prices. Where one or more such general price reductions were made, the statement furnished by the Contractor shall include with respect to each price reduction (1) the date when notice of any such reduction was issued, (2) the effective date of the reduction, and (3) the date when the Procurement Director/Procurement Agent was notified of any such reduction.