Productivity Assumptions Clause Samples
The Productivity Assumptions clause defines the expected rates or standards of output for labor, equipment, or processes under a contract. It typically outlines the baseline productivity levels that will be used for planning, scheduling, and evaluating performance, such as the number of units produced per hour or the amount of work completed per day. By establishing these assumptions, the clause helps both parties set realistic expectations, assess progress, and resolve disputes related to delays or inefficiencies, ultimately ensuring clarity and fairness in project execution.
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Productivity Assumptions. The Production Support Charge declines during the Term at a rate reflecting the percentages set forth in the table below (“Productivity Commitments”). Supplier shall be responsible for any costs associated with its failure to achieve the Productivity Commitments. If the Production Support Charge is revised pursuant to Section 4.2 in connection with the addition of a new In-Scope Application, the revised Production Support Charge shall, at a minimum, reflect the Productivity Commitments stated in the table below for each remaining year of the Term. Productivity Commitment *** *** *** *** ***