Late Completion Payment Clause Samples
The Late Completion Payment clause establishes a financial penalty or fee that must be paid if a project or contractual obligation is not completed by the agreed deadline. Typically, this clause specifies the amount or method for calculating the payment, such as a daily or weekly rate for each period of delay, and applies to construction projects, service agreements, or supply contracts. Its core practical function is to incentivize timely performance and compensate the non-breaching party for losses or inconvenience caused by late completion.
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Late Completion Payment. If Substantial Completion has not occurred on or before the Guaranteed Substantial Completion Date, then for each calendar day (or portion thereof) by which Substantial Completion occurs after the Guaranteed Substantial Completion Date, subject to the limitation set forth in Section 7.6 hereof, Contractor hereby agrees to pay to Concessionaire, as part of the consideration for awarding the contract, an amount equal to applicable Concessionaire Delay Damages Rate plus, to the extent Concessionaire is then obligated to pay the same to VDOT pursuant to Section 7.01(f)(i) of the Comprehensive Agreement, $21,000 per calendar day to be paid over to VDOT, all as liquidated damages and not as a penalty (the “Late Substantial Completion Payment”). In addition, if Final Completion has not occurred on or before the Guaranteed Final Completion Date and if Concessionaire is then obligated to pay the same to VDOT pursuant to Section 7.01(f)(iii) of the Comprehensive Agreement, then for each calendar day (or portion thereof) by which Final Completion occurs after the Guaranteed Final Completion Date, Contractor hereby agrees to pay to Concessionaire, as part of the consideration for awarding the contract, $5,000 per calendar day to be paid over to VDOT, all as liquidated damages and not as a penalty (the “Late Final Completion Payment,” collectively with the Late Substantial Completion Payment, “Late Completion Payments”).