Reduced Value Deduction Sample Clauses
A Reduced Value Deduction clause allows for a decrease in the amount payable under a contract if the goods or services delivered are found to be of lesser value than originally agreed. In practice, this clause sets out a method for calculating the deduction, often based on the difference between the contract value and the actual value of the non-conforming goods or services. Its core function is to protect the buyer by ensuring they only pay for the value actually received, thereby allocating risk and incentivizing the supplier to meet the agreed standards.
Reduced Value Deduction. The [County] [City] [State] may reduce the Contract price to reflect the reduced value of the services performed. This method is normally used when the work is performed by the, [County] [City] [State] or another contractor rather than the Contractor under this contract. The amount of the deduction is equal to the value of the service(s) not performed. As appropriate, calculation of deductions for certain deficiencies will be made using approved methods allowed by the contract clause entitled "Inspection of Services".
Reduced Value Deduction. CITY may reduce the Contract price to reflect the reduced value of the services performed. This method is normally used when the work is performed by CITY or another SERVICE PROVIDER rather than SERVICE PROVIDER under this Contract. The amount of the deduction is equal to the value of the service(s) not performed. As appropriate, calculation of deductions for certain deficiencies will be made per the Contract clause entitled "LIQUIDATED DAMAGES." The Contract may be terminated. CITY may discuss corrective actions with SERVICE PROVIDER to prevent future occurrences.