Milestone Delay Clause Samples
The Milestone Delay clause defines the procedures and consequences when a project milestone is not achieved by its scheduled date. Typically, this clause outlines the responsibilities of the parties in the event of a delay, such as notification requirements, opportunities to cure the delay, and potential penalties or extensions. For example, if a contractor fails to complete a phase of work on time, the clause may specify liquidated damages or revised deadlines. Its core function is to manage expectations and allocate risk by providing a clear framework for addressing delays, thereby minimizing disputes and ensuring project timelines are respected.
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Milestone Delay. The Parties acknowledge and agree that in the event of a delay in the achievement of any of the Milestones which derives from actual research and development delays, then the relevant tentative deadline for the achievement of such Milestone, as indicated in the Milestone List, shall be extended with a period of six (6) months, whereby it is understood, for the avoidance of doubt, that in the event of achievement of such Milestone or any of its sub-parameters at any time during such six (6)-month extension period, the relevant Earn-out Amount shall still be due upon such achievement, but if such Milestone or any of its sub-parameters are not achieved during the aforementioned six (6)-month extension period, then such aforementioned Milestone or such sub-parameter (and only such Milestone or such sub-parameter) shall be deemed unachieved and the corresponding Earn-out Amount shall be forfeited. The deadline extension of such Milestone shall not affect the deadlines of other Milestones, as set forth in Appendix B.