Step in Costs Clause Samples
The Step In Costs clause defines the financial responsibilities associated with a party taking over another party’s obligations under a contract, typically when the original party fails to perform. In practice, this clause outlines which costs—such as expenses incurred to remedy defaults, continue services, or complete unfinished work—will be reimbursed and by whom. Its core function is to ensure that the party stepping in is compensated for reasonable costs, thereby facilitating a smooth transition and minimizing disruption or financial risk when intervention is necessary.
Step in Costs. The indemnity provisions of this AGREEMENT shall apply to the exercise of any such Step In Rights, provided that a Party exercising such Step In Rights shall be indemnified by the Party experiencing the Event of Default or Emergency for all reasonably incurred expenses that benefit the Party experiencing the Event of Default or Emergency or its assets, and shall be indemnified and held harmless by the Party experiencing the Event of Default from and against all claims of whatever nature lodged against such Party arising out of or associated with reasonable actions consistent with Good Utility Practice to cure or remedy such Event of Default or Emergency. Those exercising such Step In Rights shall as soon as possible return control of operations of any facilities over which it has assumed control or operation to the Party experiencing the Event of Default. The Party exercising such Step In Rights shall maintain and produce records of costs incurred to attempt to remedy or cure the Event of Default or Emergency, and the Party experiencing the Event of Default shall reimburse such reasonable and documented expenses incurred by the other Party.
Step in Costs. If the Department identifies step in costs, the Department will continue to pay the Contractor the charges due for the products or services, provided that the Contractor reimburses the Department for the Step-In Costs. If the Contractor fails to reimburse the Department within 30 days of receipt of the Department’s demand for payment of Step-In Costs, the Department is entitled to off-set such Step-In Costs against a subsequent invoice.
Step in Costs. The Indemnity provisions of this Agreement shall apply to the exercise of the Step – in – Rights, provided that the person exercising the Step – In – Rights shall be indemnified by the Seller experiencing the Event of Default or Emergency for all reasonably incurred expenses that benefit the Seller experiencing the Event of Default or Emergency or its assets, and shall be indemnified and held harmless by the Seller experiencing the event of Default or Emergency from and against all claims of whatsoever nature lodged against such Person arising out of or associated with reasonable actions consistent with Prudent Operating Practice to cure or remedy such Event of Default or Emergency. The Person exercising the Step – In – Rights shall as soon as possible return control of operations of any facilities over which it has assumed control or operation to the Seller experiencing the Event of Default. The Person exercising the Step – In – Rights shall maintain and produce records of costs incurred to attempt to cure or remedy the Event of Default or emergency, and the Seller experiencing the Event of Default shall reimburse such reasonable and documented expenses incurred by such person.