Punitive Provisions Clause Samples
Punitive provisions are contractual clauses designed to impose penalties or additional consequences on a party that breaches the agreement. These provisions typically specify financial penalties, loss of certain rights, or other adverse outcomes if a party fails to meet its obligations, such as late payment fees or liquidated damages. The core function of punitive provisions is to deter non-compliance and encourage all parties to fulfill their contractual duties by attaching significant consequences to breaches.
Punitive Provisions. Without prejudice to and in addition to the rights of the procuring entity to other penal provisions as per the bid documents or contract, if the procuring entity comes to a conclusion that a (prospective) bidder/ contractor directly or through an agent, has violated this code of integrity in competing for the contract or in executing a contract, the procuring entity may take appropriate measures including one or more of the following:
i) If his bids are under consideration in any procurement
a. Forfeiture or encashment of bid security;
b. calling off of any pre-contract negotiations; and
c. rejection and exclusion of the bidder from the procurement process
ii) If a contract has already been awarded
a. Cancellation of the relevant contract and recovery of compensation for loss incurred by the procuring entity;
b. Forfeiture or encashment of any other security or bond relating to the procurement;
c. Recovery of payments including advance payments, if any, made by the procuring entity along with interest thereon at the prevailing rate;
iii) Provisions in addition to above:
▇. ▇▇▇▇▇▇▇/ debarment of the bidder from participation in future procurements of the procuring entity for a period not less than one year;
b. In case of anti-competitive practices, information for further processing may be filed, with the Competition Commission of India;
c. Initiation of suitable disciplinary or criminal proceedings against any individual or staff found responsible. To .……………………….. ………………………... Re: Bank Guarantee in respect of Contract No…………Dated……… Between (Name of the Company) and (Name of the Contractor)
Punitive Provisions. Without prejudice to and in addition to the rights of the Company to other penal provisions as per the bid documents or contract, if the Company comes to a conclusion that a Bidder/Supplier, directly or through an agent, has violated this code of integrity in competing for the Contract or in executing a contract, the Company may take appropriate measures including one or more of the following:
i) If his bids are under consideration in any procurement: