Common use of Cost Recovery Clause in Contracts

Cost Recovery. Seller shall be responsible for those reasonable and documented costs for Battelle to resume production including shipping fees, labor costs that may include overtime premium, expedited material costs, and re-inspection costs associated with the replacement and/or repair of defective and/or non-conforming items. Aforementioned costs will be imposed for quality issues determined to be caused by the supplier’s process or workmanship and which are agreed to by both parties and which occur during an agreed upon period of the supplier’s manufacturing as identified by dates in data to be presented by Battelle. This cost will be paid by the supplier by the issue of a credit memo to Battelle once costs are documented and agreed upon.

Cost Recovery. Seller shall be responsible for those reasonable and documented costs for Battelle to resume production including shipping fees, labor costs that may include overtime premium, expedited material costs, and re-re- inspection costs associated with the replacement and/or repair of defective and/or non-conforming items. Aforementioned costs will be imposed for quality issues determined to be caused by the supplier’s process or workmanship and which are agreed to by both parties and which occur during an agreed upon period of the supplier’s manufacturing as identified by dates in data to be presented by Battelle. This cost will be paid by the supplier by the issue of a credit memo to Battelle once costs are documented and agreed upon.