Volume Payments Clause Samples
The Volume Payments clause establishes a payment structure based on the quantity of goods or services purchased or delivered. Typically, this clause outlines thresholds or tiers where the price per unit may decrease as the volume increases, incentivizing larger orders or rewarding bulk purchases. Its core practical function is to encourage higher purchase volumes by offering financial benefits, while also providing clear terms for calculating payments based on actual quantities transacted.
Volume Payments. 12.2.1 In each Operational Year, the Public Partner shall make payments to the Private Partner for Services and Operations completed in each month of the Operational Year (the “Volume Payments”). The Volume Payments shall be determined as follows: ∑VPq = IDq x PID, where IDq – the number of the relevant type of Identity Documents (as per Annex 3 of Technical Requirements) produced by the Private Partner in a month of the Operational Year, PID – the price (in AMD) of the relevant type of Identity Documents (as per the Winner’s Bid and ANNEX 2 (Prices for Identity Documents) of the Agreement) produced by the Private Partner in a month of the Operational Year.
12.2.2 In order to collect the Volume Payments, the Private Partner shall provide to the Public Partner until the fifth (5th) day of the actual month in which the Services and Operations are provided:
12.2.2.1 the amount of issued Identity Documents divided by type of the document and prices applied according to the Agreement for the previous month;
12.2.2.2 the requested amount of the Volume Payments for the previous month;
12.2.2.3 the amount of allocations from the Escrow Account and from the Public Partner directly, considering the available cash at the Escrow Account and the outstanding up-to-date debt due from the Public Partner. Until the fifteenth (15th) day of the next month, the Public Partner should approve the Volume Payments or provide substantiated objections to the calculation stated in this Clause 12.2.2 above.
12.2.3 The Public Partner shall ensure the transfer of the corresponding amount of the Volume Payments in AMD to the bank account of the Private Partner by:
12.2.3.1 approving the allocation of corresponding amount of the Volume Payments from the Escrow Account within available amounts accumulated at the Escrow Account; and
12.2.3.2 allocating the outstanding debt under the Volume Payments directly from the state budget, if the amount of the Volume Payments allocated from the Escrow Account under Clause 12.
2.3.1 is not enough to fulfill the obligations on the Volume Payments in full.
12.2.4 The Public Partner shall transfer the corresponding amount of the Volume Payments to the bank account of the Private Partner not later than the twentieth (20th) day of the month following the month for which the Volume Payments are made (the "Volume Payments Date"). In case of changes in the Private Partner’s account details for the Volume Payments, the Private Partner shall notify the Public ...
Volume Payments