Common use of Delay in Completion Clause in Contracts

Delay in Completion. Subject to Clause 34.2, if the Contractor fails to achieve Final Performance Acceptance in accordance with the Contract within the Time for Completion, the Contractor shall pay to the Purchaser or as the Purchaser shall direct upon demand, without set-off or counterclaim the sum calculated at the rate named in the Appendix 2 as liquidated damages for such default, and not as a penalty, for every week or part of a week which shall elapse between the expiry of the Time for Completion stated in the Appendix 2 and the Commercial Operation Date. If any such due amount remains unpaid 14 days after a written demand therefore the Purchaser shall be entitled to charge interest on the amount unpaid calculated daily at the rate of 2% per annum over the Base Lending Rate. Payment of liquidated damages by the Contractor shall be made in Malaysian Ringgit and on a weekly basis not later than 7 (seven) days from the end of the week, failing which such liquidated damages shall be deducted from the Contract Price or be claimed against the Performance Bond.