Common use of Operational Cost Avoidance Clause in Contracts

Operational Cost Avoidance. The agreed-upon Operational Cost Avoidance as described herein (Schedule of Savings) will be deemed realized upon execution of this Contract and will begin to accrue on the date of the completion and acceptance of each Retrofit improvement, or on the commencement date for Company Maintenance Responsibilities and Training as presented in Schedule K, whichever comes first. These Savings are representative of information provided by the Customer consisting of either whole or partial budgeted operational costs and as such, it is hereby understood and agreed that the Customer is wholly responsible for assuring that these budgeted Operational Costs are accurate and achievable. Implementation of this Contract (including, as applicable, the Schedule K) allows for the reallocation or defrayal of such budgeted Operational Costs. The Customer acknowledges and agrees that, if it did not enter into this Contract, it would have to take future steps to achieve the same ends as does the work included in Schedule A of this contract, and that, in doing so, it would incur operational costs of at least equal to the operational costs stated herein per year over the life of the Contract. The Customer agrees that, by entering into this Contract, it will avoid future operational costs in at least this amount.

Operational Cost Avoidance. The agreed-upon Operational Cost Avoidance as described herein in Attachment G (Schedule of Savings) will be deemed realized upon execution of this Contract Agreement and will begin to accrue on the date of the completion and acceptance of each Retrofit improvement, improvement or on the commencement date for Company Maintenance Responsibilities and Training as presented in Schedule KSupport Services (Article 6.2.3), whichever comes first. These Savings are representative of information provided by the Customer CUSTOMER consisting of either whole or partial budgeted operational costs and as such, it is hereby understood and agreed that the Customer CUSTOMER is wholly responsible for assuring that these budgeted Operational Costs are accurate and achievable. Implementation of this Contract Agreement (including, as applicable, the Schedule KSupport Services Agreement) allows for the reallocation or defrayal of such budgeted Operational Costs. The Customer CUSTOMER acknowledges and agrees that, if it did not enter into this ContractAgreement, it would have to take future steps to achieve the same ends as does the work included in Schedule Attachment A of this contract, and that, in doing so, it would incur operational costs of at least equal to the operational costs stated herein in Attachment G per year over the life of the Contractcontract. The Customer CUSTOMER agrees that, by entering into this Contractagreement, it will avoid future operational costs in at least this amount.