Common use of Remedies for Unacceptable Levels of Performance Clause in Contracts

Remedies for Unacceptable Levels of Performance. If a Contractor Deliverable or Service does not meet the minimum level of performance as set forth in the Statement of Work, the remedy or process for correction set forth in the Statement of Work will be followed by the parties. If the specific Deliverable or Service has no remedy or process for correction set forth in the Statement of Work, State shall promptly notify Contractor in writing of such unacceptable performance and the impact on the State, and Contractor shall promptly initiate action to remedy the unsatisfactory performance. Contractor shall, at its option, take one or more of the following actions to correct the situation: i. Provide on site Contractor personnel for analysis of the problem; ii. Replace the faulty Equipment, Deliverable or Service; iii. Provide substitute Equipment, Deliverable or Service satisfactory to the State; iv. Modify the Equipment, Deliverable or Service; or v. Take any other action with which the State concurs. If Contractor fails to correct an unacceptable level of performance with respect to any Equipment, Deliverable, or Service to the satisfaction of the State during the thirty (30) calendar days following receipt of written notice from the State (or such other timeframe specified in the Contract), the State and Contractor can mutually agree to extend the time to a specified date. If Contractor fails to correct the situation to the satisfaction of the State by the end of the specified time period, then, without limiting any other remedy specified in the Contract, the State may (i) secure replacement Equipment, Deliverables, or Services with Contractor responsible for payment of Costs to Cover, and/or (ii) terminate that portion of the Contract relating to the deficient Equipment, Deliverable, or Service. The above-described remedies are not intended to constrain either party from any other action mutually agreed to by Contractor and the State as being more appropriate or to limit any of the State’s other rights and remedies under this Contract, at law or in equity, including the application of Performance Deficiency Charges (Section 50) or the exercise of Set-Off Rights (Section 51).