Incentives/ Bonus Sample Clauses
The Incentives/Bonus clause defines the conditions under which additional compensation is awarded to a party, typically based on achieving specific performance targets or milestones. This clause outlines the criteria for earning bonuses, such as exceeding sales goals, completing projects ahead of schedule, or meeting quality standards, and specifies the calculation and timing of such payments. Its core practical function is to motivate higher performance and align the interests of the parties by providing financial rewards for exceptional results.
Incentives/ Bonus. In the event of the Contractor exceeds the required progress in terms of the approved time and progress chart, they shall be entitled for a bonus. If the progress of work during the financial year is more than the stipulated rate indicated in the approved work schedule (without considering hindrances), the contractor shall be entitled for bonus as under: If the yearly progress of work executed during the Financial year is 110% or more of the stipulated quantity (in case of composite contracts, the contractor shall achieve 110% or more of the stipulated quantity of coal and OB separately) indicated in the approved work schedule (quantity-wise)(without considering hindrances), the contractor shall be entitled to a bonus equal to 1% (one percent) of the average monthly contract value (excluding GST) for every month in which the contractor has achieved 110% or more of approved work schedule. The average monthly contract value (excluding GST) for this clause = (awarded contract value in Rs. (excluding GST) X 30 days)/ awarded contract period in days. For coal transportation contracts, the approved work schedule shall mean the TPD indicated in the Bid Document / Agreement. However, the payment of bonus shall be subject to the following conditions:
A) The yearly executed quantity considered for bonus calculation shall be finalised after reconciliation with the results of third party measurement or check measurement.
B) Total Bonus so calculated in a contract in its lifetime shall be a maximum of 5 (five) percent of the total contract value.
C) No bonus shall be calculated in case the Contractor fails to achieve 110% or more of the stipulated quantity (in case of composite contracts, the contractor shall achieve110% or more of the stipulated quantity of coal and OB separately) indicated in the approved work schedule (quantity-wise), during the month, irrespective of reasons.
D) Payment of Bonus is also subject to the condition that (i) no penalty has been imposed on the contractor within the Financial year for any shortfall quantity or any other reason and (ii) there are no dues payable by the Contractor to the Company or any Govt. agency (iii) no court/arbitration/conciliation cases exist between the contractor and the Company. Clause No: 8.11 shall be applicable for tenders whose approved Estimated Cost Value put to tender is not less than Rs.100 crore (including GST).