Examples of Contractual Year in a sentence
The Performance Security will be valid for 15 (fifteen) months for each Contractual Year and the Performance Security shall be extended and adjusted for the next Contractual Year upon receiving the letter from OMC to commence the subsequent Contractual Year’s operation.
Contractual Year means the period of time starting from the date of the Order Confirmation or its anniversary and ending 12 months later (or, if earlier, on the date of expiry or termination of the Order).
Upon receiving the letter of acceptance from OMC to commence work for the next contractual year’s operation, the performance security shall be recalculated for the concerned Contractual year as per the formula: Amount = 10% of Annual Contract Value of the relevant Contractual Year The Service Provider shall then provide the Performance Security of the revised amount within 15 (fifteen) days of the start of the relevant Contractual Year.
If the performance of the Service Provider is determined to be unsatisfactory by OMC, the Agreement may be terminated prematurely at the end of the Contractual Year for which performance of the Service Provider is reviewed.
OMC shall review the operational performance of the Service Provider after 10 months of each Contractual Year (which shall be 12 calendar months calculated from the Commencement Date).