PAYMENTS FOR TIME Sample Clauses
The "Payments for Time" clause defines how compensation is calculated and paid based on the amount of time spent performing work or services. Typically, this clause applies to contracts where billing is done on an hourly, daily, or other time-based rate, such as consulting agreements or service contracts. It outlines the rates, the method for tracking time, and any limits or requirements for approval. The core function of this clause is to ensure that both parties have a clear understanding of how payments are determined for time-based work, reducing disputes and providing transparency in billing.
PAYMENTS FOR TIME. AND-MATERIALS/LABOR HOUR ORDERS.
PAYMENTS FOR TIME. AND-MATERIALS/LABOR HOUR ORDERS.
(a) Hourly rate.
(i) The amounts shall be computed by multiplying the appropriate hourly rates prescribed in this Purchase Order by the number of direct labor hours performed. The rates shall include wages, indirect costs, general and administrative expense, and profit. Fractional parts of an hour shall be payable on a prorated basis. Unless otherwise specified, invoices may be submitted once each month to Purchaser. Seller shall substantiate invoices by evidence of actual payment and by individual daily job timecards, or other substantiation approved by Purchaser.
(ii) Purchaser may unilaterally issue a modification requiring the Seller to withhold amounts from its ▇▇▇▇▇▇▇▇ until a reserve is set aside in an amount that the Purchaser considers necessary to protect the Purchaser's interests. Purchaser may require a withholding of 5 percent of the amounts due under this paragraph, but the total amount withheld for this Purchase Order shall not exceed $50,000. The amounts withheld shall be retained until final payment under this Purchase Order and a final release, if requested by ▇▇▇▇▇▇▇▇▇, has been provided. (iii) Unless otherwise specified, the hourly rates in the Purchase Order shall not be varied by virtue of Seller having performed work on an overtime basis. If no overtime rates are provided in this Purchase Order and overtime work is approved in advance by the Purchaser, overtime rates shall be negotiated. Failure to agree upon these overtime rates shall be treated as a dispute under the Disputes clause of this Purchase Order. If this Purchase Order provides rates for overtime, the premium portion of those rates will be reimbursable only to the extent the overtime is approved by the Purchaser.
(b) Materials and subcontracts (if specified in this Purchase Order).
(i) Purchaser will determine allowable costs of direct materials in accordance with Subpart 31.2 of the Federal Acquisition Regulation (FAR) in effect on the date of this Purchase Order. Direct materials, as used in this clause, are those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product or service.
(ii) Seller may include reasonable and allocable mterial handling costs in the charge for material to the extent they are clearly excluded from the hourly rate. Material handling costs are comprised of indirect costs, including, when appropriate, general and administrative ex...