Common use of Compensation for Delay Clause in Contracts

Compensation for Delay. 15.1 The time allowed for carrying out the work, as entered in the agreement, shall be strictly observed by the Contractor. 15.2 The time allowed for execution of the contract shall commence from the date of signing of the agreement. It is clarified that for various works during the contract period, separate Job orders will be issued indicating clearly the Completion period allowed which the contractor is bound to adhere with. 15.3 In the event milestones are laid down in the Contract Data for execution of the works, the contractor shall have to ensure strict adherence to the same. 15.4 Failure of the Contractor to adhere to the timelines and/or milestones shall attract such liquidated damages as is laid down in the Contract Data. 15.5 In the event of delay in execution of the Works as per the timelines mentioned in the Contract Data/ Job orders the Engineer-in-charge shall retain from the bills of the Contractor amount equal to the liquidated damages livable until the Contractor makes such delays good. However, the Engineer-in-charge shall accept bankable security in lieu of retaining such amount. 15.6 If the Contractor is given extension of time after liquidated damages have been paid, the Engineer in Charge shall correct any over payment of liquidated damages by the Contractor in the next payment certificate. 15.7 In the event the Contractor fails to make good the delay until completion of the stipulated contract period (including extension of time) the sum so retained shall be adjusted against the liquidated damages levied.

Compensation for Delay. 15.1 The time allowed for carrying out the work, as entered in the agreement, shall be strictly observed by the Contractor. 15.2 The time allowed for execution of the contract shall commence from the date of signing of the agreement. It is clarified that for various works during the contract period, separate Job orders will be issued indicating clearly the Completion period allowed which the contractor is bound to adhere with. 15.3 In the event milestones are laid down in the Contract Data for execution of the works, the contractor shall have to ensure strict adherence to the same. 15.4 Failure of the Contractor to adhere to the timelines and/or milestones shall attract such liquidated damages as is laid down in the Contract Data. 15.5 In the event of delay in execution of the Works as per the timelines mentioned in the Contract Data/ Job orders the Engineer-in-charge shall retain from the bills of the Contractor amount equal to the equaltothe liquidated damages livable until the Contractor makes such delays good. However, the Engineer-in-charge shall accept bankable security in lieu of retaining such amount. 15.6 If the Contractor is given extension of time after liquidated damages have been paid, the Engineer in Charge shall correct any over payment of liquidated damages by the Contractor in the next payment certificate. 15.7 In the event the Contractor fails to make good the delay until completion of the stipulated contract period (including extension of time) the sum so retained shall be adjusted against the liquidated damages levied.