Common use of Noncompliance Charges Clause in Contracts

Noncompliance Charges. 12.4.1 Upon assessment of the 25th Noncompliance Point pursuant to Section 19.3, and upon assessment of each additional 25th Noncompliance Point pursuant to Section 19.3, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance Contractor in an amount equal to $30,000 (such amount calculated at a rate of $1,200 per Noncompliance Point). 12.4.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Date and annually thereafter throughout the Term by the percentage based on CPI set forth in Section 8.1.3.1 (provided that the comparison CPI shall be that published for the month three months prior to the month in which the Substantial Completion Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 as deemed compensation to TxDOT resulting from Maintenance Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 Noncompliance Charges shall be payable by Maintenance Contractor to TxDOT within ten Business Days after Maintenance Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance Contractor under this Comprehensive Maintenance Agreement.

Appears in 2 contracts

Samples: Comprehensive Maintenance Agreement, Comprehensive Maintenance Agreement

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Noncompliance Charges. 12.4.1 8.1 Upon assessment of the 25th tenth Noncompliance Point pursuant to Section 19.33, and upon assessment of each additional 25th subsequent tenth Noncompliance Point pursuant to Section 19.33, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance DB Contractor in an amount equal to $30,000 60,000 (such amount calculated at a rate of $1,200 6,000 per Noncompliance Point). Notwithstanding the above, from and after the date that is six months prior to the end of the Maintenance Term, any remaining or newly assessed Noncompliance Points shall be deducted from payments in accordance with Item 8 of the CMA General Conditions at a rate of $6,000 per Noncompliance Point regardless of the 10 Noncompliance Point threshold. 12.4.2 8.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Initial Maintenance Term Commencement Date and annually thereafter throughout the Term Maintenance Period by the percentage based on CPI in accordance with the methodology set forth in Section 8.1.3.1 8.1.3(d) of the CMA General Conditions (provided that the comparison CPI shall be that the CPI published for the month three months prior to the month in which the Substantial Completion Initial Maintenance Term Commencement Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 8.3 DB Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance DB Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 8.1 as deemed compensation to TxDOT resulting from Maintenance DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 8.4 Noncompliance Charges shall be payable by Maintenance DB Contractor to TxDOT within ten Business Days after Maintenance DB Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance DB Contractor under this Comprehensive Maintenance AgreementCMC.

Appears in 2 contracts

Samples: Capital Maintenance Agreement, Capital Maintenance Agreement

Noncompliance Charges. 12.4.1 8.1 Upon assessment of the 25th tenth Noncompliance Point pursuant to Section 19.33, and upon assessment of each additional 25th subsequent tenth Noncompliance Point pursuant to Section 19.33, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance DB Contractor in an amount equal to [$30,000 ●] (such amount calculated at a rate of [$1,200 ●] per Noncompliance Point). Notwithstanding the above, from and after the date that is six months prior to the end of the Maintenance Term, any remaining or newly assessed Noncompliance Points shall be deducted from payments in accordance with Item 8 of the CMA General Conditions at a rate of [$●] per Noncompliance Point regardless of the 10 Noncompliance Point threshold. 12.4.2 8.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Initial Maintenance Term Commencement Date and annually thereafter throughout the Term Maintenance Period by the percentage based on CPI in accordance with the methodology set forth in Section 8.1.3.1 8.1.3(d) of the CMA General Conditions (provided that the comparison CPI shall be that the CPI published for the month three months prior to the month in which the Substantial Completion Initial Maintenance Term Commencement Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 8.3 DB Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance DB Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 8.1 as deemed compensation to TxDOT resulting from Maintenance DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 8.4 Noncompliance Charges shall be payable by Maintenance DB Contractor to TxDOT within ten Business Days after Maintenance DB Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance DB Contractor under this Comprehensive Maintenance AgreementCMC.

Appears in 1 contract

Samples: Capital Maintenance Agreement

Noncompliance Charges. 12.4.1 8.1 Upon assessment of the 25th tenth Noncompliance Point pursuant to Section 19.33, and upon assessment of each additional 25th Noncompliance Point pursuant to Section 19.33, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance DB Contractor in an amount equal to [$30,000 ●] (such amount calculated at a rate of [$1,200 ●] per Noncompliance Point). 12.4.2 8.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Initial Maintenance Term Commencement Date and annually thereafter throughout the Term Maintenance Period by the percentage based on CPI set forth in Section 8.1.3.1 8.1.3 of the CMA General Conditions (provided that the comparison CPI shall be that the CPI published for the month three months prior to the month in which the Substantial Completion Initial Maintenance Term Commencement Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 8.3 DB Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance DB Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 8.1 as deemed compensation to TxDOT resulting from Maintenance DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 8.4 Noncompliance Charges shall be payable by Maintenance DB Contractor to TxDOT within ten Business Days after Maintenance DB Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance DB Contractor under this Comprehensive Maintenance AgreementCMC.

Appears in 1 contract

Samples: Capital Maintenance Agreement

Noncompliance Charges. 12.4.1 8.1 Upon assessment of the 25th tenth Noncompliance Point pursuant to Section 19.33, and upon assessment of each additional 25th subsequent tenth Noncompliance Point pursuant to Section 19.33, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance DB Contractor in an amount equal to $30,000 60,000 (such amount calculated at a rate of $1,200 6,000 per Noncompliance Point). 12.4.2 8.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Initial Maintenance Term Commencement Date and annually thereafter throughout the Term Maintenance Period by the percentage based on CPI set forth in Section 8.1.3.1 8.1.4 of the CMA General Conditions (provided that the comparison CPI shall be that the CPI published for the month three months prior to the month in which the Substantial Completion Initial Maintenance Term Commencement Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 8.3 DB Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance DB Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 8.1 as deemed compensation to TxDOT resulting from Maintenance DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 8.4 Noncompliance Charges shall be payable by Maintenance DB Contractor to TxDOT within ten Business Days after Maintenance DB Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance DB Contractor under this Comprehensive Maintenance AgreementCMC.

Appears in 1 contract

Samples: Capital Maintenance Agreement

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Noncompliance Charges. 12.4.1 8.1 Upon assessment of the 25th tenth Noncompliance Point pursuant to Section 19.33, and upon assessment of each additional 25th subsequent tenth Noncompliance Point pursuant to Section 19.33, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance DB Contractor in an amount equal to $30,000 60,000 (such amount calculated at a rate of $1,200 6,000 per Noncompliance Point). Notwithstanding the above, from and after the date that is six months prior to the end of the Maintenance Term, any remaining or newly assessed Noncompliance Points shall be deducted from payments in accordance with Item 8 of the CMA General Conditions at a rate of $ 6,000 per Noncompliance Point regardless of the 10 Noncompliance Point threshold. 12.4.2 8.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Initial Maintenance Term Commencement Date and annually thereafter throughout the Term Maintenance Period by the percentage based on CPI set forth in Section 8.1.3.1 8.1.4 of the CMA General Conditions (provided that the comparison CPI shall be that the CPI published for the month three months prior to the month in which the Substantial Completion Initial Maintenance Term Commencement Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 8.3 DB Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance DB Contractor to perform the Maintenance Services in an efficient DocuSign Envelope ID: 03C7621F-6C70-41BC-A3A1-69BF53A9BA57 and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 8.1 as deemed compensation to TxDOT resulting from Maintenance DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 8.4 Noncompliance Charges shall be payable by Maintenance DB Contractor to TxDOT within ten Business Days after Maintenance DB Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance DB Contractor under this Comprehensive Maintenance AgreementCMC.

Appears in 1 contract

Samples: Capital Maintenance Agreement

Noncompliance Charges. 12.4.1 Upon assessment of the 25th Noncompliance Point pursuant to Section 19.3, and upon assessment of each additional 25th Noncompliance Point pursuant to Section 19.3, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance Contractor in an amount equal to $30,000 (such amount calculated at a rate of $1,200 per Noncompliance Point). 12.4.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Date and annually thereafter throughout the Term by the percentage based on CPI set forth in Section 8.1.3.1 (provided that the comparison CPI shall be that published for the month three months prior to the month in which the Substantial Completion Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 as deemed compensation to TxDOT resulting from Maintenance Contractor’s failure to meet the Performance Requirements performance requirements herein as evidenced by the Noncompliance Points. Maintenance Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 Noncompliance Charges shall be payable by Maintenance Contractor to TxDOT within ten Business Days after Maintenance Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance Contractor under this Comprehensive Maintenance Agreement.

Appears in 1 contract

Samples: Comprehensive Maintenance Agreement

Noncompliance Charges. 12.4.1 8.1 Upon assessment of the 25th tenth Noncompliance Point pursuant to Section 19.33, and upon assessment of each additional 25th subsequent tenth Noncompliance Point pursuant to Section 19.33, TxDOT shall be entitled to immediate and automatic Noncompliance Charges from Maintenance DB Contractor in an amount equal to $30,000 60,000 (such amount calculated at a rate of $1,200 6,000 per Noncompliance Point). Notwithstanding the above, from and after the date that is six months prior to the end of the Maintenance Term, any remaining or newly assessed Noncompliance Points shall be deducted from payments in accordance with Item 8 of the CMA General Conditions at a rate of $ 6,000 per Noncompliance Point regardless of the 10 Noncompliance Point threshold. 12.4.2 8.2 Noncompliance Charges per Noncompliance Point shall be increased commencing on the Substantial Completion Initial Maintenance Term Commencement Date and annually thereafter throughout the Term Maintenance Period by the percentage based on CPI set forth in Section 8.1.3.1 8.1.4 of the CMA General Conditions (provided that the comparison CPI shall be that the CPI published for the month three months prior to the month in which the Substantial Completion Initial Maintenance Term Commencement Date occurs and three months before each anniversary of such month thereafter). In no event shall the amount be less than the amount in effect during the immediately preceding year. If there is a decrease or no increase in the CPI index then there shall be no increase in the amount of Noncompliance Charges. 12.4.3 8.3 DB Contractor acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by Maintenance DB Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, Maintenance DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 12.4.1 8.1 as deemed compensation to TxDOT resulting from Maintenance DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. Maintenance DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date. 12.4.4 8.4 Noncompliance Charges shall be payable by Maintenance DB Contractor to TxDOT within ten Business Days after Maintenance DB Contractor’s receipt of an invoice therefor from TxDOT. If TxDOT has not received payment of the Noncompliance Charges within such ten Business Days, TxDOT may elect, in its sole discretion, to deduct such amounts from any amounts payable to Maintenance DB Contractor under this Comprehensive Maintenance AgreementCMC.

Appears in 1 contract

Samples: Capital Maintenance Agreement

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