Performance Guarantees and Tests Clause Samples
The "Performance Guarantees and Tests" clause sets out the standards and criteria that a product, service, or system must meet to be considered acceptable under a contract. It typically details the specific performance metrics, testing procedures, and timelines for verifying that the deliverables function as promised. For example, it may require that equipment achieves a certain efficiency level during a trial period or that software passes predefined acceptance tests before final payment is made. This clause ensures that the buyer receives goods or services that meet agreed-upon specifications, reducing the risk of substandard performance and providing a clear basis for recourse if requirements are not met.
Performance Guarantees and Tests. Each PO shall specify the performance guarantees (“Performance Guarantees”) (the terms of which performance guarantees are summarized on Exhibit D attached hereto) that shall be met during the tests to be performed in accordance with the PO (“Performance Tests”). Each PO shall set forth detailed procedures for the Performance Tests. In recognition that the performance of the first Core System to be started-up shall have more uncertainty with respect to performance than subsequent Core Systems, the Parties have agreed that the first PO shall have more lenient provisions regarding certain aspects of performance guarantees, warranties, costs, schedule, or other commitments; provided that the POs shall have mutually agreed provisions to address the possibility that a Core System under PO #2 or PO #3 could conceivably achieve Start-Up prior to the Start-Up of the Core System under PO #1.
Performance Guarantees and Tests. 16.1. Contractor shall perform all tests of the Project in accordance with the provisions of Exhibit D. Contractor shall provide Owner with proposed test and commissioning procedures, standards, protective settings, and the testing and commissioning program to be followed by Contractor not less than one hundred fifty (150) days prior to the date on which Contractor anticipates the commencement of the Performance Tests. Contractor and Owner shall cooperate reasonably to reach agreement on such test and commissioning procedures, standards, protective settings, and test and commissioning program to be followed by Contractor not less than ninety (90) days prior to the date on which Contractor anticipates commencing the Performance Tests.
16.2. Upon completion of any test, Contractor and Owner shall jointly issue a certificate that testing has been done on the Project and that the agreed testing procedures have been followed. If there is a difference of opinion about any test results or the existence or correction of any defects or deficiencies claimed by Owner pursuant to Section 12.2 or 13.2 that cannot be resolved by the Parties within seven (7) days, the controversy shall be resolved by a reputable engineering firm. The Parties will cooperate in jointly deciding on such engineering firm not later than six (6) months prior to the anticipated date of Mechanical Completion. As to any difference of opinion between Contractor and Owner, each Party shall bear its own costs in connection with such procedure and shall share equally any costs of the engineering firm. Any determination of such engineering firm shall be non-binding, and either Party shall have the right following such a determination to avail itself of its rights under Article 36.
16.3. Any revenues generated by the Project during the performance of any tests or otherwise shall be paid to and for the benefit of Owner.
Performance Guarantees and Tests