Common use of Compensation for Delay Clause in Contracts

Compensation for Delay. The time allowed for carrying out the work, as entered in the tender form, shall be strictly observed by the contractor and shall be deemed to be the essence of the contract and shall be reckoned from the fifteenth day after the date on which the order to commence the work is issued to the contractor, for a work where completion is up to 6 months For works, for which the completion period is beyond six months: - The period will be reckoned from the thirtieth day after the date on which the order to commence the work is issued to contractor .The work shall throughout the stipulated period of contract be proceeded with all due diligence, keeping in view that time is the essence of the contract. The contractor shall be bound in all cases, in which the time allowed for any work exceeds one month, to complete 1/8th of the whole work before 1/4th of the whole time allowed under the contract has elapsed, 3/8th of the work before 1/2 of such time has elapsed and 3/4th of the work before 3/4th of such time has elapsed. In the event of the contractor failing to comply with the above conditions, the Commissionor/CMO shall levy on the contractor, as compensation an amount equal to: 0.5% (zero point five percent) of the value of work (contract sum) for each week of delay, provided that the total amount of compensation under this provision of the clause shall be limited to 6% (six percent) of the value of work. (Contract sum) Provided further that if the contractor fails to achieve 30% (thirty percent) progress in half (1/2) of original or validly extended period of time (reference clause 5 below) the contract shall stand terminated after due notice to the contractor and his contract finallised, with xxxxxxx money and or security deposit forfeited and levy of further compensation at the rate of 10% of the balance amount of contract left incomplete, either from the bill, and or from available security/performance guarantee or shall be recovered as "Arrears of land revenue". The decision of the Competent Authority in the matter of grant of extension of time only (reference clause 5 below) shall be final, binding and conclusive. But he has no right to change either the rate of compensation or reduce and or condone the period of delay- once such an order is passed by him (on each extension application of the contractor). It shall not be open for a revision. Where the Commissioner/CMO or Competent Authority or Commissioner/CMO as the case may decides that the contractor is liable to pay compensation for not giving proportionate progress under this clause and the compensation is recommended during the intermediate period, such compensation shall be kept in deposit and shall be refunded if the contractor subsequently makes up the progress for the lost time, within the period of contract including extension granted, if any. failing which the compensation amount shall be forfeited in favour of the Nagar Xxxxx/Nagar Palika Parishad/Nagar Panchayat Clause 3 -:Action when the work is left incomplete abandoned or delayed beyond the time limit permitted by the Commissioner/CMO or Competent Authority: -

Compensation for Delay. The time allowed for carrying out the work, work as entered in the tender form, shall be strictly observed by the contractor and shall be deemed to be the essence of the contract and shall be reckoned from the fifteenth day after the date on which the order to commence the work is issued given to the contractor, for a work where completion is up to 6 months For works, for which the completion period is beyond six months: - . The period will be reckoned from the thirtieth day after the date on which the order to commence the work is issued to contractor .The work shall throughout through the stipulated period of the contract be proceeded with with, all due diligence, keeping in view that diligence (time is being deemed to be of the essence of the contractcontract on the part of the contractor) and the contractor shall pay as compensation an amount equal to one percent or such smaller amount as the Superintending Engineer (Whose decision in writing shall be final) may decide, of the amount of the estimated cost of the whole work as shown by the tenderer for every day that the work remains uncommenced, or unfinished after the proper dates. The And further to ensure good progress during execution of the work, the contractor shall be bound bound,in all cases, cases in which the time allowed for any work exceeds one month, month to complete 1/8th of the whole work before 1/4th of the whole time allowed under the contract has elapsed, 3/8th complete. ¼ of the work before 1/2 in ¼ of such the time has elapsed and 3/4th ½ of the work before 3/4th of such time has elapsed. In the event in ½ of the contractor failing to comply with the above conditions, the Commissionor/CMO shall levy on the contractor, as compensation an amount equal to: 0.5% (zero point five percent) time ¾ of the work in ¾ of the time Full work will be completed in full time i.e. in 2Months of the time in clding mansoon period. * Note - The quantity of the work to be done within a particular time to be specified above shall be fixed and inserted in the blank space kept for the propose by the officer competent to accept the contracts after taking into consideration the circumstances of each case and abide by the programme of detailed progress laid down by the Executive Engineer.The following proportion will usually be found suitable In ¼, ½, ¾ of the time Reasonable progress of earth wprl.1/6 ,1/2 ,3/4 of the total value of the work (contract sum) for each week to be done Reasonable progress of delaymasonary work .1/10, provided that 4/10 ,8/10 of the total amount of compensation under this provision value of the clause shall work to be limited to 6% (six percent) done Clause3: Action when whole of the value of work. (Contract sum) Provided further that if the contractor fails to achieve 30% (thirty percent) progress in half (1/2) of original or validly extended period of time (reference clause 5 below) the contract shall stand terminated after due notice to the contractor and his contract finallised, with xxxxxxx money and or security deposit forfeited and levy of further compensation at the rate of 10% of the balance amount of contract left incomplete, either from the bill, and or from available security/performance guarantee or shall be recovered as "Arrears of land revenue". The decision of the Competent Authority in the matter of grant of extension of time only (reference clause 5 below) shall be final, binding and conclusive. But he has no right to change either the rate of compensation or reduce and or condone the period of delay- once such an order is passed by him (on each extension application of the contractor). It shall not be open for a revision. Where the Commissioner/CMO or Competent Authority or Commissioner/CMO as the case may decides that the contractor is liable to pay compensation for not giving proportionate progress under this clause and the compensation is recommended during the intermediate period, such compensation shall be kept in deposit and shall be refunded if the contractor subsequently makes up the progress for the lost time, within the period of contract including extension granted, if any. failing which the compensation amount shall be forfeited in favour of the Nagar Xxxxx/Nagar Palika Parishad/Nagar Panchayat Clause 3 -:Action when the work is left incomplete abandoned or delayed beyond the time limit permitted by the Commissioner/CMO or Competent Authority: -forfeited

Compensation for Delay. The time allowed for carrying out the work, work as entered in the tender form, shall be strictly observed by the contractor and shall be reckoned from the date on which the order to commence work is given to the contractor. The work shall, throughout the stipulated period of the contract, be proceeded with, with all due diligence (time being deemed to be the essence of the contract on the part of the contractor) and the contractor shall pay as compensation an amount equal to one percent or such smaller amount as the Superintending Engineer, (whose decision in writing shall be reckoned from final) may decide, of the fifteenth amount of the estimated cost of the whole work as shown in the tender for every day that the work remains un-commenced, or unfinished after the date on which proper date. And further to ensure good progress during the order to commence the work is issued to the contractor, for a work where completion is up to 6 months For works, for which the completion period is beyond six months: - The period will be reckoned from the thirtieth day after the date on which the order to commence the work is issued to contractor .The work shall throughout the stipulated period of contract be proceeded with all due diligence, keeping in view that time is the essence execution of the contract. The work, the contractor shall be bound in all cases, cases in which the time allowed for any work exceeds one month, month to complete 1/8th of the whole work before 1/4th of the whole time allowed under the contract has elapsed, 3/8th complete. % of the work before 1/2 % of such the time has elapsed and 3/4th 25% 25% 50% 50% 75% 75% 100% 100% Note The quantity of the work before 3/4th to be done within a particular time to be specified above shall be fixed and insured in balance space kept for the purpose by the officer competent to accept the contracts (after taking into consideration the circumstances of such each case) and abide by the program of detailed progress laid down by the Executive Engineer (Page No ). The following proportion will usually be found suitable in percentage of the time has elapsed*Reasonable progress of earth work in 1/4, 1/2, 3/4 of the total period 30%, 60%, 95% progress respectively of value of work. In the event of the contractor failing to comply with the above conditions, the Commissionor/CMO this condition he shall levy on the contractorbe liable to pay, as compensation compensation, an amount equal to: 0.5% (zero point five percent) to one percent or such smaller amount as the Superintending Engineer, whose decision in writing shall be final, may decide of the value estimated cost of the whole work for every day that the due quantity of work (contract sum) for each week of delay, provided remains incomplete. Provided always that the total amount of compensation to be paid under this the provision of the clause this Clause shall be limited to 6% (six percent) of the value of work. (Contract sum) Provided further that if the contractor fails to achieve 30% (thirty percent) progress in half (1/2) of original or validly extended period of time (reference clause 5 below) the contract shall stand terminated after due notice to the contractor and his contract finallised, with xxxxxxx money and or security deposit forfeited and levy of further compensation at the rate of not exceed 10% of the balance amount of contract left incomplete, either from the bill, and or from available security/performance guarantee or shall be recovered as "Arrears of land revenue". The decision estimated cost of the Competent Authority work as shown in the matter of grant of extension of time only (reference clause 5 below) shall be final, binding and conclusive. But he has no right to change either the rate of compensation or reduce and or condone the period of delay- once such an order is passed by him (on each extension application of the contractor). It shall not be open for a revision. Where the Commissioner/CMO or Competent Authority or Commissioner/CMO as the case may decides that the contractor is liable to pay compensation for not giving proportionate progress under this clause and the compensation is recommended during the intermediate period, such compensation shall be kept in deposit and shall be refunded if the contractor subsequently makes up the progress for the lost time, within the period of contract including extension granted, if any. failing which the compensation amount shall be forfeited in favour of the Nagar Xxxxx/Nagar Palika Parishad/Nagar Panchayat Clause 3 -:Action when the work is left incomplete abandoned or delayed beyond the time limit permitted by the Commissioner/CMO or Competent Authority: -tender.