Cost Improvement Clause Samples
The Cost Improvement clause establishes a framework for reducing costs over the duration of a contract or project. Typically, it sets targets or mechanisms for the parties to identify and implement cost-saving measures, such as process efficiencies, bulk purchasing, or technology upgrades. This clause ensures that both parties are incentivized to continuously seek ways to lower expenses, ultimately benefiting both by improving profitability and competitiveness.
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Cost Improvement. At Customer’s reasonable request, Manufacturer and Customer agree to discuss in good faith the implementation of possible cost reduction opportunities with the objective to reduce the net Price of Product. Without limiting the generality of the foregoing, Manufacturer shall use commercially reasonable efforts to reduce the price of Product Materials.
Cost Improvement. Any cost savings related to the Manufacture of Products resulting from cost saving initiatives implemented by J&J shall be taken into account in adjustments to the Price of applicable Products pursuant to Section 3.01(b) or Section 3.01(c).
Cost Improvement. Licensee shall have the right, but not obligation to compare the cost of Product as provided by Licensor (inclusive of all costs incurred by Licensee to make or have made to the extent necessary for Licensee to receive sales revenues) to an alternative manufacturing source of its choosing. In the event that Licensee establishes that an alternative source would provide a lower cost to Licensee than that which is offered by Licensor, Licensee may exercise its Right to Manufacture with that alternative source.
Cost Improvement. 5.3.1 During the Term, CSC shall plan for, identify and realize opportunities to reduce the Service Charges and the Pass-Through Expenses, and in so doing shall advise Textron in writing of each savings opportunity that is identified together with an estimate of the potential savings.
5.3.2 CSC shall use commercially reasonable efforts to persuade vendors to reduce their Pass-Through Expenses such that they are lower than, or equivalent to, the vendor’s current market prices for equivalent goods or services. CSC shall identify ways in which, and assist Textron, to reduce volumes and consumption of the Services.
5.3.3 In the event CSC provides Textron with procurement services for information technology products and services, CSC will use commercially reasonable efforts to obtain for Textron the best pricing and financing rates then available for the products and services being procured.
5.3.4 If CSC offers services to any Third Party other than a government agency that are substantially similar to locations, volumes, scope, technological base and contract terms and conditions of the Services provided under this Agreement, and such services are offered or provided at a lower aggregate price than those charged to Textron, then Textron will receive the same aggregate price as such Third Party.
Cost Improvement. The Parties shall, through the Joint Manufacturing Committee, jointly undertake to participate and invest in a research and development program and other efforts to lower costs of Manufacturing the API for the LdT Finished Product by funding and/or dedicating efforts to such program, and the Parties shall share the net benefits of such cost reductions in proportion to their respective contributions thereto (taking into account, without limitation, the value of any financial and non-financial contributions).
Cost Improvement. Both parties use the open book policy and focus on cost reduction for components and also for additional costs such as testing and packaging.