Contractor Bonus Sample Clauses
The Contractor Bonus clause establishes the conditions under which a contractor is eligible to receive additional compensation beyond the agreed contract price. Typically, this clause outlines specific performance targets, such as early completion of work, exceeding quality standards, or achieving cost savings, that must be met for the bonus to be awarded. Its core practical function is to incentivize superior performance by the contractor, aligning their interests with the project's goals and encouraging efficiency or excellence.
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Contractor Bonus. (a) Contractor shall earn and Owner shall pay a schedule bonus for each day (or portion thereof) that Interim Completion is achieved prior to the Guaranteed Interim Completion Date, and for each day (or portion thereof) that Substantial Completion is achieved prior to the Guaranteed Substantial Completion Date (The “Schedule Bonus”). The Schedule Bonus shall be payable at a rate of ***** % of the applicable Schedule Liquidated Damages rate. The Schedule Bonus shall accrue on a daily basis for each day (or portion thereof) of early completion. Owner shall pay to Contractor a maximum amount of $*****. per day, up to a maximum payable amount of $***** for all schedule bonuses in the aggregate.
(b) Contractor shall earn a bonus for the portion of Ethanol Production Rate which exceeds one hundred percent (100%) of the Ethanol Production Rate Guarantee, as determined herein and in the Scope of Work, per the final Guaranteed Performance Test (The “Performance Bonus”). Contractor shall pay to Owner the following amount based on the percentage (pro-rated) of the Ethanol Production Rate, which exceeds 100% of the Ethanol Production Rate Guarantee, up to a maximum payable amount of $*****: 103% $ ***** 106% $ ***** 109% $ ***** 112% $ ***** 115% $ *****
(c) Any bonus amount shall be pro-rated to actual performance value. Within thirty (30) days after Final Acceptance, Contractor shall provide Owner with a final statement of the amounts of bonus owed. Payment of such bonus shall not relieve Contractor of any of its obligations hereunder. The bonus shall be paid by Owner to Contractor not later than thirty (30) days after Final Acceptance.