Common use of PENALTY FOR SUBSTITUTION OF SUBCONTRACTORS Clause in Contracts

PENALTY FOR SUBSTITUTION OF SUBCONTRACTORS. 5.2.1 Should the Contractor fail to utilize any or all of the Subcontractors in the Contractor’s Bid statement in the performance of the Work on the public bidding, the Contractor shall be penalized in the amount of (project specific amount*). The Agency may determine to deduct payments of the penalty from the Contractor or have the amount paid directly to the Agency. Any penalty amount assessed against the Contractor may be remitted or refunded, in whole or in part, by the Agency awarding the Contract, only if it is established to the satisfaction of the Agency that the Subcontractor in question has defaulted or is no longer engaged in such business. No claim for the remission or refund of any penalty shall be granted unless an application is filed within one year after the liability of the successful Bidder accrues. All penalty amounts assessed and not refunded or remitted to the contractor shall be reverted to the State. *one (1) percent of contract amount not to exceed $10,000