Common use of ENGINEERING CHANGE Clause in Contracts

ENGINEERING CHANGE. 10.1 At any time, Supplier may make any improvements to the Products as Supplier may determine in its discretion. Supplier will communicate such improvements to Cummins at least thirty (30) days prior to implementation with respect to any future Products to be delivered to Cummins. 10.2 Supplier shall coordinate the engineering change breakpoint with Cummins for both Serial Production Products and Service Products. The Parties shall work together to ensure a smooth transition from current Products to new Products. 10.3 Supplier will build sufficient parts banks as necessary to meet agreed-upon implementation timing as negotiated between the Parties. If the part is classified as “use up,” “go to,” “change,” Supplier shall work with Cummins to avoid excess stock. 10.4 In the event of a major engineering change, Cummins shall assign a new part number to the changed Product, the changed Product shall not be considered a product subject to the terms of this Agreement. The Parties shall mutually agree upon the commercial terms that will govern the supply of such products. 10.5 Supplier shall manage any engineering changes with Tier 2-N supplier(s).