Common use of Assessment of Damages Clause in Contracts

Assessment of Damages. The parties agree that Contractor’s failure to meet the performance metrics in Exhibit A and the Service Level Agreements stated in this Exhibit B will result in damage to Agency. Where actual damage will be difficult to determine, Contractor shall [provide service credits or] pay to State, not as a penalty but as liquidated damages, the amounts specified in this Exhibit B. For liquidated damages, the amounts stated for each occurrence of each performance failure define the maximum liquidated damages due from Contractor. Liquidated damages claimed will be adjusted downward to eliminate any proportion of the damage caused by Agency’s failure to meet its contractual responsibility. The damage remedies stated in this Exhibit B are in addition to any other remedy for damages provided in the Contract. If Agency recovers actual damages in addition to liquidated damages, Agency will reduce such actual damages by the amounts received as liquidated damages for the same events causing the actual damages.