Price Justification Clause Samples
A Price Justification clause requires a party to provide evidence or reasoning supporting the prices charged under a contract. Typically, this involves submitting documentation such as cost breakdowns, market comparisons, or supplier quotes to demonstrate that the prices are fair and reasonable. The core function of this clause is to ensure transparency in pricing and to protect the buyer from overcharging or unjustified price increases.
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Price Justification. Norco seeks to balance the needs of all stakeholders in the dairy market inclusive of:
Price Justification. Norco has set the Minimum Price on the following considerations:
Price Justification. FORMAT: Contractor is required to submit the Product and price information for the update in an Excel spreadsheet format on a CD or electronically via e-mail to the OGS Purchasing Officer. The list must be dated and the format should be consistent with the format of the price list(s) included in Appendix E of this Contract. The price list should separately include and identify (e.g., by use of separate worksheets or by using italics, bold and/or color fonts): Price increases; Price decreases; Products being added; and Products being deleted. Each updated price list must include the date the price list was prepared, and be accompanied by a revised NYS Net Price List. The State also reserves the right to require a revised NYS Net Price List at any time during the Contract period, and it will be requested if there have been numerous updates since the last complete update.
Price Justification. Lactalis’ minimum prices for the period are set on the following basis:
(a) The need for Lactalis to be competitive in the Australian retail and wholesale markets for milk and dairy products, given milk purchases are a material determinant of Lactalis’ cost of production for those products;
(b) Prices offered or expected to be offered by other buyers of milk across the relevant region;
(c) Given the national market for milk in Australia, any price in this region would need to consider the price of milk from other regions plus freight;
(d) Lactalis has contractual obligations to supply numerous retail customers and distributors on a day by day basis and offers its highest minimum base price for committed volumes whether provided under an exclusive MSA or under a non-exclusive MSA with committed supply quantities. Non-exclusive MSAs that seek to have Lactalis buy spot or represent undefined milk volumes do not meet our market profile and are therefore of lesser value.
(e) The quality bonus is an incentive offered to suppliers to encourage higher quality milk and to reward highest quality milk;
(f) Volume incentives paid reflect both the economic efficiency of collecting from large farms as opposed to the cost of collecting from a larger number of smaller farms but also the opportunity cost of replacing larger farms with many smaller farms;
(g) Logistics proximity incentives or levies (where paid) reflect a sharing with the supplier of the benefit or cost impact of milk collection closer to the processing site (benefit) or significant distance (levies) verse average farm distances for the region. In offering logistics incentives/levies the Lactalis key measure remains the overall competitive cost of milk delivered factory;
(h) Milk collection charges (where applied) reflect the underlying fixed cost of stopping a tanker to do a milk pick-up and are set to promote logistics efficiency;
(i) Non-Exclusive Pricing for MSA “2” reflects the uncertainly of uncommitted milk volumes and that Lactalis is being asked to be a buyer of residual volumes on an ad-hoc basis. Non-exclusive MSA “3” & “4” price adjustments for under or oversupply represent the cost to either buy or sell milk on spot market or shift milk back and forward across large geographical distances.
Price Justification. FORMAT: Contractor is required to submit the Product and price information for the update in an Excel spreadsheet format in hard copy in triplicate and on a floppy disk or electronically via e-mail to the OGS Purchasing Officer. The list must be dated and the format should be consistent with the format of the price list(s) included in Appendix E of this Contract. The price list should separately include and identify (e.g., by use of separate worksheets or by using italics, bold and/or color fonts):
Price Justification. FORMAT: Contractor is required to submit the Product and price information for the update in an unprotected Excel spreadsheet format on a CD or electronically via e-mail to the OGS Purchasing Officer. The list must be dated and the format should be consistent with the format of the price list(s) included in Appendix E (Submission 3, 4 and 5) of this Contract. The price list should separately include and identify (e.g., by use of separate worksheets or by using italics, bold and/or color fonts): • Price increases; • Price decreases; • Products being added; and • Products being deleted. Each updated price list must include the date the price list was prepared, and be accompanied by a revised NYS Net Price List. The State also reserves the right to require a revised NYS Net Price List at any time during the Contract period, and it will be requested if there have been numerous updates since the last complete update.
Price Justification. This price reflects current market conditions and historical market prices paid by the Purchaser. For completeness, where the Supplier supplies milk that does not comply with the Specifications and the 15% Quality Deduction (Band 3) set out in Part 5 of Schedule 2 applies to the milk, the minimum price at which the Purchaser may elect to accept and purchase such milk is $5.61 per kilogram of Milk Solids. This price represents the 15% maximum discount to the minimum price for milk that complies with the Specifications, which reflects the lower value to the Purchaser’s business of milk that does comply with the Bulk Milk Cell Count and Bactoscan Specifications. For the avoidance of doubt, any contractual discounts and/or offsetting of levies and fees including those set out in clauses 8.1.1.2, 9.3 and 10.5 shall not reduce the price below the Minimum price.
Price Justification. Norco has set the Agreed Volume Price on the following considerations:
Price Justification. FORMAT: Contractor is required to submit the Product and price information for the update in an unprotected Excel spreadsheet format on a CD or electronically via e-mail to the OGS Purchasing Officer. The list must be dated and the format should be consistent with the format of the price list(s) included in Appendix E (Submission #3, 4 and 5) of this Contract. The price list should separately include and identify (e.g., by use of separate worksheets or by using italics, bold and/or color fonts): Price increases; Price decreases; Products being added; and Products being deleted. Each updated price list must include the date the price list was prepared, and be accompanied by a revised NYS Net Price List. The State also reserves the right to require a revised NYS Net Price List at any time during the Contract period.