Common use of Financial Consequences of Non-Performance Clause in Contracts

Financial Consequences of Non-Performance. The City may apply financial consequences if the Vendor fails to perform in accordance with the terms of the Agreement. If the Vendor fails to remedy performance deficiencies, the Vendor may be assessed a non-performance retainage equivalent to 10% or $1,000.00, whichever is less, of the total invoice amount for the task or project. The retainage will be applied to the invoice for the then-current billing period. The retainage will be withheld until the Vendor resolves the deficiency. If the deficiency is subsequently resolved, the Vendor may invoice the City for the retained amount during the next billing period. If the Vendor is unable to resolve the deficiency, the retained funds will be forfeited.

Financial Consequences of Non-Performance. The City may apply the following financial consequences if the Vendor fails to perform in accordance with the terms of the Agreement. If the Vendor fails to remedy the performance deficienciesdeficiencies within thirty (30) days following the receipt of written notice of such deficiencies from the City, the Vendor may be assessed a non-performance retainage equivalent to 10% or $1,000.00, whichever is less, of the total invoice amount for the task or project. The retainage will be applied to the invoice for the then-current billing period. The retainage will be withheld until the Vendor resolves the deficiency. If the deficiency is subsequently resolved, the Vendor may invoice the City for the retained amount during the next billing period. If the Vendor is unable to resolve the deficiency, the funds retained funds will be forfeited.