Common use of Liquidated Damages and Penalty Clause in Contracts

Liquidated Damages and Penalty. 10.1 If the Agency fails to commence the services within the prescribed timeline of 30 days from the date of signing the contract, then 1% per week LD of annual contract value shall be imposed with an overall cap of 5% of the contract price. After arriving at maximum penalty (i.e., 5%), Contracting entity (i.e., Procuring Entity) may terminate the contract with forfeiture of PBG.

Liquidated Damages and Penalty. 10.1 6.1 If the Agency fails to commence the services within the prescribed timeline of 30 days from the date of signing the contract, then 1% per week LD of annual contract value shall be imposed with an overall cap of 5% of the contract price. After arriving at maximum penalty (i.e., 5%), Contracting entity (i.e., Procuring Entity) may terminate the contract with forfeiture of PBG.