Common use of Handling Fee Clause in Contracts

Handling Fee. Contractor acknowledges that Contractor’s failure to re-perform Defective Services will cause the Court to incur administrative costs associated with remedying such failure, and that such costs could be difficult to estimate in advance or to quantify in retrospect. Accordingly, the parties agree that, as liquidated damages (and not a penalty) for each failure of Contractor to re-perform Defective Services in accordance with Section 7.2 (“Re-Performance of Defective Services”), the Court may deduct a $125 handling fee from any amount payable to Contractor. For the avoidance of doubt, the handling fee deducted pursuant to this section shall be in addition to the remedies specified in Section 7.3 (“Failure to Re-Perform”) or elsewhere in this Agreement.