COD Delay Liquidated Damages Clause Samples
The COD Delay Liquidated Damages clause establishes a predetermined financial penalty that the contractor must pay if the project fails to achieve Commercial Operation Date (COD) by the agreed deadline. Typically, this clause specifies a daily or weekly amount owed for each period of delay, calculated to compensate the project owner for losses incurred due to late completion. Its core practical function is to incentivize timely project delivery and provide a clear, enforceable remedy for schedule overruns, thereby allocating the risk of delay and avoiding disputes over actual damages.
COD Delay Liquidated Damages. If the Commercial Operation Date does not occur on or before the beginning of hour ending 0100 BA Time on the Guaranteed Commercial Operation Date, Seller shall pay to Buyer liquidated damages, for each day after the Guaranteed Commercial Operation Date until the Commercial Operation Date, in an amount equal to [●] Dollars ($[●]) 16 (“Daily COD Delay Damages”); provided, however, that Seller’s aggregate liability for Daily COD Delay Damages shall be limited to the COD Delay Damages Cap.