Common use of Payment Reductions Clause in Contracts

Payment Reductions. When the Contractor fails to meet contract requirements of those services listed on the PRS; e.g., the number of recorded defects exceeds the number of allowable defects (AQL); performance will be deemed defective. The Contractor will be subject to a reduction in contract price based on the value of the service established by the percentages established by the percentages contained in the PRS. Payment for services not conforming to the specified AQL will be calculated as described below.

Payment Reductions. When the Contractor fails to meet contract requirements of those services listed on the PRS; e.g., the number of recorded defects exceeds the number of allowable defects (AQL); performance will be deemed defective. The Contractor will be subject to a reduction in contract price based on the value of the service established by the percentages established by the percentages contained in column titled “Payment %” of the PRS. Payment for services not conforming to the specified AQL will be calculated as described below.