Corrective actions clause: Copy, customize, and use instantly
Introduction
A corrective actions clause outlines the procedure to address non-compliance, defects, or performance issues identified in a contract. This clause helps ensure that parties take prompt action to remedy any failure to meet the agreed terms, promoting continuous improvement and compliance throughout the contract term.
Below are templates for corrective actions clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard corrective actions clause
This version includes basic provisions for corrective actions.
In the event of a breach or failure to meet the terms of this Agreement, [Party B] agrees to take corrective actions within [X] days of receiving written notice from [Party A]. The corrective actions will address the specific breach or failure, and [Party B] will provide a written action plan to [Party A] outlining the steps to remedy the issue. [Party A] will review and approve the plan before it is implemented.
Corrective actions clause with provision for immediate action
This version applies to immediate corrective action.
If a critical breach or defect is identified, [Party B] will take immediate corrective actions to remedy the issue within [X] hours/days of notification. The corrective action will be communicated to [Party A], who will review the resolution and confirm whether the issue has been satisfactorily addressed.
Corrective actions clause with provision for detailed action plan
This version applies to a detailed action plan.
[Party B] will prepare and submit a detailed corrective action plan within [X] days of receiving notice of the breach. The plan will include specific actions, timelines for resolution, and responsible personnel. [Party A] will review the plan, and upon approval, [Party B] will implement the corrective actions.
Corrective actions clause with provision for re-testing after corrective action
This version applies to re-testing.
After corrective actions are taken, [Party A] will perform re-testing to verify that the breach or defect has been addressed. [Party B] agrees to provide support for the re-testing process. If the deliverable passes the re-test, [Party A] will provide written confirmation and proceed with payment.
Corrective actions clause with provision for escalation of unresolved issues
This version applies to escalation of unresolved issues.
If the corrective actions are not completed within the specified timeline or are inadequate, [Party A] may escalate the matter to senior management for further action. If the issue is not resolved through escalation, [Party A] may pursue further remedies, including termination of the Agreement.
Corrective actions clause with provision for third-party evaluation
This version applies to third-party evaluation.
In the event that corrective actions are disputed or deemed insufficient, the parties agree to appoint a neutral third-party evaluator to assess the effectiveness of the corrective actions. The evaluator’s decision will be binding, and any required revisions will be made by [Party B] as per the evaluator’s recommendation.
Corrective actions clause with provision for periodic follow-up
This version applies to periodic follow-up.
Following the implementation of corrective actions, [Party A] will conduct periodic follow-up assessments to ensure that the actions are effective and that no new issues have arisen. [Party B] will provide updates on the status of the corrective actions as requested by [Party A].
Corrective actions clause with provision for ongoing support
This version applies to ongoing support.
[Party B] agrees to provide ongoing support for any issues that arise during the corrective action process. This includes providing additional resources or expertise to ensure that the corrective actions are fully implemented and that the deliverables meet the required standards.
Corrective actions clause with provision for additional costs
This version applies to additional costs.
[Party B] acknowledges that corrective actions may involve additional costs. If the corrective actions are due to [Party B]'s failure to meet the terms of the Agreement, [Party B] will bear all costs associated with the corrective actions, including any external fees for additional work or services required.
Corrective actions clause with provision for revised timelines
This version applies to revised timelines.
If corrective actions result in a delay to the project timeline, [Party B] will propose a revised timeline for completion. The revised timeline will be subject to approval by [Party A]. Any delays caused by corrective actions will extend the contract deadline by the agreed-upon number of days.
Corrective actions clause with provision for preventive actions
This version applies to preventive actions.
In addition to corrective actions, [Party B] will implement preventive actions to ensure that similar issues do not occur in the future. The preventive actions will be documented and provided to [Party A] for approval. Once implemented, the preventive measures will be monitored for effectiveness.
Corrective actions clause with provision for notification of failures
This version applies to notification of failures.
[Party A] will notify [Party B] in writing if any failures or defects are identified. The notification will include a description of the issue and any supporting evidence. [Party B] will acknowledge the notification within [X] days and begin corrective actions within [X] days of the acknowledgment.
Corrective actions clause with provision for failure to take action
This version applies to failure to take action.
If [Party B] fails to take corrective action within the specified time frame, [Party A] may take corrective action itself or engage a third party to resolve the issue. Any costs incurred by [Party A] will be deducted from any payments due to [Party B].
Corrective actions clause with provision for compliance with industry standards
This version applies to compliance with industry standards.
[Party B] agrees that any corrective actions will be performed in compliance with applicable industry standards and best practices. If necessary, [Party B] will engage an expert in the relevant field to ensure that the corrective actions meet or exceed industry standards.
Corrective actions clause with provision for corrective training
This version applies to corrective training.
If the breach or issue is related to a lack of knowledge or skills, [Party B] will provide corrective training to its employees or subcontractors responsible for the failure. The training will be completed within [X] days and will focus on preventing future issues.
Corrective actions clause with provision for documentation of corrective actions
This version applies to documentation of corrective actions.
[Party B] will maintain records of all corrective actions taken, including a description of the actions, timelines, and results. [Party B] will provide [Party A] with copies of this documentation upon request to ensure transparency and accountability.
Corrective actions clause with provision for external audit
This version applies to external audit.
If [Party A] deems it necessary, [Party B] will undergo an external audit to assess the effectiveness of the corrective actions. The audit will be conducted by an independent auditor selected by [Party A], and the results will be binding on both parties.
Corrective actions clause with provision for immediate corrective steps
This version applies to immediate corrective steps.
[Party B] agrees to take immediate steps to resolve any breach or failure that could impact the contract's performance. Immediate corrective steps may include halting production or suspending services until the issue is resolved. [Party A] will be kept informed of all immediate corrective actions.
Corrective actions clause with provision for progress reports
This version applies to progress reports.
[Party B] will submit weekly progress reports to [Party A] detailing the status of the corrective actions. The reports will include information on completed actions, ongoing steps, and any challenges encountered. These reports will be reviewed by [Party A] for approval.
Corrective actions clause with provision for immediate notification
This version applies to immediate notification.
In the event of a breach, [Party A] will notify [Party B] immediately in writing, detailing the breach and required corrective actions. [Party B] will then take corrective action within [X] days of receiving the notice and provide [Party A] with a report of the steps taken to resolve the issue.
Corrective actions clause with provision for specific actions to resolve breach
This version applies to specific actions.
If a breach occurs, [Party B] agrees to take the following corrective actions to resolve the breach:Action 1: [Description of action] to be completed by [date].Action 2: [Description of action] to be completed by [date]. [Party A] will review the actions taken and either approve or request further action based on the effectiveness of the corrective measures.
Corrective actions clause with provision for payment withholding during remediation
This version applies to payment withholding.
If [Party B] fails to meet the required specifications and a breach occurs, [Party A] may withhold any outstanding payments until the corrective actions are implemented and accepted. Once [Party A] confirms the corrective actions, payments will resume as per the terms of the Agreement.
Corrective actions clause with provision for correction of deficiencies in performance
This version applies to correcting deficiencies.
If any deliverable fails to meet the agreed-upon performance standards, [Party B] agrees to remedy the deficiencies by implementing corrective actions. These corrective actions will be completed within [X] days, and [Party A] will re-test the deliverable to verify that it now meets the performance criteria.
Corrective actions clause with provision for no extra cost to resolve the issue
This version applies to no extra cost.
[Party B] agrees that any corrective actions required due to a breach or failure to meet specifications will be performed at no additional cost to [Party A]. [Party B] will bear all costs associated with the corrective actions, including any additional work required to resolve the issue.
Corrective actions clause with provision for third-party verification of actions
This version applies to third-party verification.
[Party A] may appoint a third-party to verify the effectiveness of the corrective actions implemented by [Party B]. If the third-party verifies that the actions were inadequate, [Party B] will be required to take further corrective measures at its own expense.
Corrective actions clause with provision for preventative actions
This version applies to preventative actions.
In addition to corrective actions, [Party B] will implement preventative actions to avoid similar breaches or failures in the future. [Party B] will submit a preventative action plan within [X] days of completing the corrective actions, which [Party A] will review and approve.
Corrective actions clause with provision for the involvement of legal counsel
This version applies to legal counsel involvement.
If a breach occurs, [Party A] may involve its legal counsel in reviewing the corrective actions. [Party B] agrees to cooperate with the legal team to ensure that the corrective actions comply with all legal requirements and industry regulations.
Corrective actions clause with provision for monitoring the resolution progress
This version applies to monitoring progress.
After corrective actions are implemented, [Party A] will monitor the progress of the resolution for a period of [X] weeks. During this time, [Party B] will provide weekly reports on the status of the corrective actions, and [Party A] will provide feedback on any further necessary steps.
Corrective actions clause with provision for regular review meetings
This version applies to review meetings.
[Party A] and [Party B] will schedule bi-weekly meetings to review the progress of the corrective actions. The meetings will allow both parties to discuss any challenges or additional support needed and adjust the corrective action plan as necessary.
Corrective actions clause with provision for limitation on time for completion
This version applies to time limitation.
[Party B] will complete all corrective actions within [X] days of receiving notification from [Party A]. If the corrective actions are not completed within the specified timeframe, [Party A] reserves the right to seek alternative remedies, including termination of the Agreement.
Corrective actions clause with provision for acceptance criteria
This version applies to acceptance criteria.
Once corrective actions are taken, [Party A] will evaluate the deliverable according to the following acceptance criteria:Criterion 1: [Description of criterion].Criterion 2: [Description of criterion]. [Party A] will provide approval or request further corrective actions if the deliverable does not meet the agreed standards.
Corrective actions clause with provision for dispute resolution
This version applies to dispute resolution.
If a disagreement arises over the corrective actions taken, the parties agree to resolve the dispute through mediation or arbitration, as described in the Dispute Resolution section of this Agreement. Both parties agree to work in good faith to reach a resolution.
Corrective actions clause with provision for continuation of contract during remediation
This version applies to contract continuation.
The parties agree that the contract will continue during the corrective action period, with the understanding that the unresolved issue will be promptly addressed. [Party B] will continue to fulfill other contractual obligations while taking corrective actions to resolve the breach.
Corrective actions clause with provision for failure to comply with agreed actions
This version applies to failure to comply.
If [Party B] fails to comply with the agreed-upon corrective actions within the specified time frame, [Party A] may take legal action, terminate the Agreement, and seek damages for any loss resulting from the breach.
Corrective actions clause with provision for providing resources for remediation
This version applies to providing resources.
[Party B] agrees to provide additional resources as needed to implement corrective actions effectively. This may include bringing in additional personnel, acquiring necessary tools, or adjusting project timelines to ensure that the breach is fully remedied.
Corrective actions clause with provision for mutual agreement on corrective actions
This version applies to mutual agreement.
Both parties agree to meet and discuss the corrective actions within [X] days of the breach notification. [Party A] and [Party B] will mutually agree on the corrective actions, timelines, and any resources required to resolve the issue.
Corrective actions clause with provision for compliance with all relevant laws
This version applies to legal compliance.
[Party B] will ensure that all corrective actions taken to resolve a breach comply with applicable laws, regulations, and industry standards. [Party B] will provide [Party A] with documentation confirming compliance with all relevant legal requirements.
Corrective actions clause with provision for revised payment schedule
This version applies to revised payment schedule.
If the breach results in delays or revisions to the deliverables, [Party A] and [Party B] agree to modify the payment schedule to reflect the new timelines. [Party B] will continue to work towards remedying the breach, and [Party A] will adjust payments as necessary once the corrective actions are completed.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.