DELAY, CONTRACTUAL PENALTY Clause Samples
The "Delay, Contractual Penalty" clause establishes a financial penalty that the contractor or service provider must pay if they fail to meet agreed-upon deadlines. Typically, this clause specifies a daily or weekly penalty amount for each period of delay beyond the scheduled completion date, and may set a maximum total penalty. Its core function is to incentivize timely performance and compensate the non-breaching party for losses or inconvenience caused by delays, thereby allocating risk and encouraging adherence to the project timeline.
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DELAY, CONTRACTUAL PENALTY. In the event of any delay in the performance of the contractual obligations in relation to the time limits set out in the Schedule, the Supplier shall notify the Client in writing or by email, without unnecessary delay, but no later than forty-eight (48) hours of becoming aware of such delay. The Client's receipt of the Supplier's notice shall not be deemed as releasing the Supplier from any obligations. The Client shall be entitled to charge contractual penalties for the default with respect to each of the time limits specified in §5.2, points 1-4. The amount of the contractual penalty for each full day of the delay with respect to each of the time limits specified in §5.2, points 1-4 for Task 1 it will be 0.06% of the price indicated in §3.3, and for Task 2 - it will be 0.04% of the price indicated in §3.4. However, the penalty shall not be due if, despite the failure to meet the time limit specified in §5.2, points 1,2 or 3, the Supplier meets the the deadline for final acceptance of given Task, i.e. the time limit specified in §5.2 points 4. In view of the foregoing, the amount of the contractual penalty for the failure to meet of any deadlines specified in §5.2 points 1-3 shall become due only on the day when the penalties for delay with the completion of a given Task are due, subject to the provisions of section 3 below. Exceeding the time limit for the final acceptance specified in §5.2, point 4 letter (a) or (b) by no more than 5 Business Days shall not give rise to charging the contractual penalty; however, if the default is longer, the penalty shall be charged for each day, counting from the date specified in §5. 2, point 4, letter (a) or (b). The total amount of the contractual penalties charged under paragraphs 2-3 may not exceed 10% of the price of the Delayed Task, specified in §3.3 and §3.4. Contractual penalties specified in sec. 2 are exclusive, and therefore the Client will not be entitled to claim additional compensation under the terms of § 23. Payment of the contractual penalty shall not exclude the Client’s right torescind the Agreement in accordance with §22 of the Agreement. The payment of a contractual penalty shall not release the Supplier from the Supplier’s obligation to complete and supply the Devices or to perform any other obligation under the Agreement.
DELAY, CONTRACTUAL PENALTY. 1. In the event of any delay in the performance of the contractual obligations in relation to the time limits set out in the Schedule, the Supplier shall notify the Client in writing or by email, without unnecessary delay, but no later than forty-eight (48) hours of becoming aware of such delay. The Client's receipt of the Supplier's notice shall not be deemed as releasing the Supplier from any obligations.
2. The Client shall be entitled to charge contractual penalties for the default with respect to each of the time limits specified in §5 paragraph 2 letters (a)-(d). The amount of the contractual penalty shall be 0.1% of the Total Purchase Price, for each full day of the delay with respect to each of the time limits specified in §5 paragraph 2 letters (a)-(d). However, the penalty shall not be due if, despite the failure to meet the time limit specified in §5 paragraph 2 letters (a), (b) or (c), the Supplier meets the time limit for completing the next stage (milestone), i.e. the time limit specified in §5 paragraph 2 letters (b), (c) or (d). In view of the foregoing, the amount of the contractual penalty for the failure to meet the time limit specified in, for example, §5 paragraph 2 letter (a) shall become due only on the date resulting from §5 paragraph 2 letter (b), provided that the Supplier is in default with the completion of the second stage on that date.
3. Exceeding the time limit for the final acceptance specified in §5 paragraph 2 letter (d) by no more than 5 Business Days shall not give rise to charging the contractual penalty; however, if the default is longer, the penalty shall be charged for each day, counting from the date specified in §5 paragraph 2 letter (d).
4. The Client shall be entitled to charge contractual penalties for the default with respect to each of the time limits specified in §5 paragraph 5 letters (a)-(c). The amount of the contractual penalty shall be 0.4 % of the additional price, specified in §3 paragraph 2 letter (a) or (b), respectively, for each full day of the delay with respect to each of the time limits specified in §5 paragraph 3 letters (a)-(d). However, the penalty shall not be due if, despite the failure to meet the time limit specified in §5 paragraph 3 letter (a) or (b), the Supplier meets the next time limit specified in §5 paragraph 3 letter (b) or (c). In view of the foregoing, the amount of the contractual penalty for the failure to meet the time limit specified in §5 paragraph 3 shall become due on t...