Common use of AUTOMATIC DEDUCTION OF PENALTIES AND DAMAGES Clause in Contracts

AUTOMATIC DEDUCTION OF PENALTIES AND DAMAGES. All the aforesaid penalties and damages shall be automatically assessed, deducted and withhold from the account of BWS, and such penalty shall continue to be imposed until compliance has been proven. For this purpose, MCWD shall have the right to deduct or withhold payment of any amount due or which may become due to BWS in this or any other contract or to collect such amount from the latter’s Performance Security, whichever is convenient and expeditious to MCWD.