Backcharges. 10.1 In the event that Purchaser has to undertake any part of Seller’s obligations under this Purchase Order or has to instruct another party to undertake any part of Seller’s obligations, Seller shall be subject to Backcharges as follows: 10.1.1 Upon identification of a back-charge condition, Purchaser will notify in writing Seller’s designated representative. Verbal notification will be confirmed in writing to Seller within a reaso- nable time (in Purchaser’s sole yet reasonable opinion) of the verbal notification. Purchaser will request Seller’s recommended method of handling the back-charge condition. Purchaser will evaluate all recommended methods of correction and select the method most, in Purchaser’s sole yet reasonable opinion, econo- mical and advantageous to the project. Purchaser will notify Seller in writing of Purchaser’s selected method of correction and Seller will first be given the opportunity to correct the condition within a time period as determined by Purchaser. 10.1.2 In the event that Seller fails to correct the back-charge condition in the required amount of time (as shall be determined by Purchaser in accordance with Section 10.1.1) or if an emer- gency exists making it impracticable (in Purchaser’s sole yet reasonable opinion) for Purchaser to have Seller correct the back- charge condition, the following rates shall apply: 10.1.2.1 Actual cost of material, labor, equipment and sup- plies, plus ten percent (10%). 10.1.2.2 Actual cost charged to Purchaser by third (3rd) parties to perform Seller’s obligations, plus ten percent (10%). 10.1.2.3 Purchaser will prepare an estimate of charges, if requested by ▇▇▇▇▇▇, as soon as practicable after the identifi- cation of a back-charge condition. Notwithstanding the foregoing, Purchaser’s failure to deliver an estimate of charges will not prevent Purchaser from commencing cor- rective action in accordance with this Article 10.
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Sources: Purchase Order, Purchase Order