Common use of Standardised damages and hourly liquidated damages Clause in Contracts

Standardised damages and hourly liquidated damages. In the case of overrun deadlines or another failure to perform on the part of the Contractor, the Customer shall have the right to standardised compensation as stipulated in Appendix 5. If standardised damages have not been agreed in Appendix 5, the Customer may demand hourly liquidated damages in accordance with the provisions below: If any agreed deadline for rectifying A or B level errors is not complied with, and this is not caused by force majeure or circumstances related to the Customer, there is a delay on the part of the Contractor that triggers hourly liquidated damages. The hourly liquidated damages shall accumulate automatically and amount to 0.2 per cent of the overall annual consideration, excluding Value Added Tax, for each hour, or part thereof, of delay. The hourly liquidated damages shall only accumulate during ordinary working hours on working days. The liability for accumulated hourly liquidated damages may not exceed 5 per cent of the annual consideration per instance of breach of contract and 15 per cent of the annual consideration per year. Other rates and other periods for hourly liquidated damages, as well as the deliverables to which these shall apply, may be agreed in Appendix 1. If only parts of the maintenance deliverables are delayed, the Contractor may request a reduction in the hourly liquidated damages proportional to the ability of the Customer to utilise the software and equipment. The Customer shall not have the right to terminate the Agreement for breach for as long as the hourly liquidated damages continue to accumulate. However, such restriction as to the timing of termination for breach shall not apply in the case of wilful misconduct or gross negligence on the part of the Contractor or anyone for whom it is responsible.