Common use of PENALTY AND RECOVERY Clause in Contracts

PENALTY AND RECOVERY. a. In the event of undue delay in performance or the performance is unsatisfactory causing damage to the plant and property of GIPCL, then in such a case, GIPCL (Engineer-In-Charge) shall be entitled to levy a penalty on the Contractor at the rate of 1.5 times of the item rate upto a maximum of 10% of the total contract value. The said penalty amount may be recovered either from the monthly bills or the SD.

PENALTY AND RECOVERY. a. (i) In the event of the Contractor causes undue delay in performance or the performance is unsatisfactory causing damage harm to the plant and property of GIPCL, then in such a case, GIPCL (Engineer-Engineer In-Chargecharge) shall be entitled to levy a penalty on the Contractor at the rate of 1.5 times of the item rate upto up to a maximum of 105% of the total contract valueTotal Contract Price. The said penalty amount may be recovered either from the monthly bills invoices or the SDSecurity deposit.