Design Capacity Shortfall Clause Samples

The Design Capacity Shortfall clause defines the procedures and remedies if a facility or system fails to meet the agreed-upon design capacity requirements. Typically, this clause outlines how capacity is measured, the process for verifying a shortfall, and the responsibilities of the parties to rectify the deficiency, such as requiring the contractor to make necessary modifications or pay liquidated damages. Its core function is to ensure that the delivered project meets performance expectations and to provide a clear mechanism for addressing underperformance, thereby protecting the interests of the party relying on the specified capacity.