Common use of Completion Delay Clause in Contracts

Completion Delay. (a) For each day that any PCS System and/or any PCS Sub-System, as the case may be, fails to [__________], the Vendor will pay, subject to the limitations otherwise set forth in this subsection 15.3, an amount equal to [_____________] percent of the Product Contract Price applicable to such PCS System or PCS Sub-System, as the case may be, [_________]. In no event will the Late Completion Payments payable by the Vendor with respect to any PCS System or such PCS Sub-System, as the case may be, exceed [___________]. (b) If any PCS System or any PCS Sub-System does not achieve Substantial Completion by the Guaranteed Substantial Completion Date applicable thereto but the Owner nonetheless chooses (in its sole discretion) to commence In Revenue Service in such incomplete PCS System or incomplete PCS Sub-System, as the case may be (such action in no way constituting the Owner's acceptance, express or implied, of the System or such PCS System or such PCS Sub-System or any part thereof), then the Vendor will be required to pay, on a daily basis, only that percentage of the daily Late Completion Payment equal to that percentage of the geographic area to be otherwise covered by such PCS System or PCS Sub-System, as the case may be, not otherwise placed In Revenue Service by the Owner. (c) In the event of a change in the Product Contract Price pursuant to subsections 6.2, 7.2 or 27.16 or Section 26 during the Term of this Contract from the amount originally set forth in this Contract pursuant to Section 6 the per diem amount of Late Completion Payments set forth above will be increased or decreased, as appropriate, by an amount equal to the increase or decrease in the Owner's per diem interest payment obligation resulting from any change in the amount of debt incurred or to be incurred by the Owner related to such change in the Product Contract Price. (d) Late Completion Payments, including any portions of such payments payable in accordance with paragraphs (a) and (b) above, will be accrued during the Completion Cure Period and offset against payments otherwise due to the Vendor upon the achievement of Substantial Completion pursuant to the terms of subsection 6.