Common use of Penalties/LiquidatedDamages Clause in Contracts

Penalties/LiquidatedDamages. (i) Wherein the Supplier fails to make deliveries as per signed contract & purchase order and within the stipulated time frame specified in the Schedule of Requirement, the Contract to the extent of non-delivered portion of supplies shall stand cancelled. (ii) After the cancellation of the Contract no supplies shall be accepted and the amount of Performance Guaranty/Security to the extent of non–delivered portion of supplies shall be forfeited. (iii) If the Supplier fails to supply the whole consignment and not able to deliver to consignee’s end, the entire amount of Performance Guaranty/Security shall be forfeited to the Government account and the firm shall be blacklisted minimum for two years for future participation. (iv) Theexacttimeframeformakingsupplieswithandwithoutpenaltyshallbeindicatedin subsequent purchase order. (v) In case of late delivery of goods beyond the periods specified in the Schedule of Requirements and subsequent purchase order, a penalty @ 0.067%per day of thecost of late delivered supply shall be imposed upon the Supplier.Maximum deductionis ten percent (10%) of Contract value. Once the maximum is reached, the Procuring Agency may consider termination of the Contract pursuant to GCC Clause 24 along with other remedies available under PPR-14.