Common use of Fines and Penalties Clause in Contracts

Fines and Penalties. If a state or federal agency takes an enforcement action with associated fines and penalties against Contractor or Government for regulatory and/or permit noncompliance that resulted from a failure of Subcontractor to perform in accordance with this Subcontract (e.g., failure to meet regulatory reporting milestones, making false statements in reports, etc.), Subcontractor shall reimburse Contractor or the Government for the amount of any resultant fine and/or the cost of additional Work required as a result of the enforcement action. Contractor may withhold such amounts from any payments due Subcontractor.

Fines and Penalties. If a state or federal agency takes an enforcement action with associated fines and penalties against Contractor or Government Client for regulatory and/or permit noncompliance that resulted from a failure of Subcontractor to perform in accordance with this Subcontract (e.g., failure to meet regulatory reporting milestones, making false statements in reports, etc.), Subcontractor shall reimburse Contractor or the Government Client for the amount of any resultant fine and/or the cost of additional Work required as a result of the enforcement action. Contractor may withhold such amounts from any payments due Subcontractor.