Cost Modifications Sample Clauses
The Cost Modifications clause defines how and under what circumstances the costs outlined in an agreement may be adjusted. Typically, this clause specifies the process for requesting changes to pricing, such as requiring written notice or mutual agreement before any cost increases or decreases take effect. It may also outline permissible reasons for cost changes, like changes in scope, market conditions, or regulatory requirements. The core function of this clause is to provide a clear and fair mechanism for managing and approving cost changes, thereby preventing disputes and ensuring both parties understand how financial adjustments will be handled during the contract term.
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Cost Modifications. The parties may agree to a reduction in the cost of the Contract at any time during which the Contract is in effect. Without intending to impose a limitation on the nature of the reduction, the reduction may be to hourly, staffing or unit costs, the total cost of the Contract or the reduction may take such other form as the State deems to be necessary or appropriate.