Common use of Setup Fees Clause in Contracts

Setup Fees. Certain vendors may charge setup fees or other non-recurring costs (collectively “NRE”) in order to produce custom parts or subassemblies or respond to engineering changes as requested by Client. BIT shall make a good faith effort to anticipate all such fees and communicate such fees to Client BIT reserves the right to pass along NRE costs to Client and Client shall pay for such NRE cost on mutually-agreeable terms.