Shutdown of PEP Equipment Sample Clauses

Shutdown of PEP Equipment. In the event that the operation of the well repair equipment owned by PEP is suspended due to causes attributable to the CONTRACTOR, it will be penalized $350.00 for each hour or fraction of the equipment shutdown. “WELL MAINTENANCE AND REPAIR WORK, AT THE POZA RICA – ALTAMIRA ASSET OF THE NORTH REGION” PACKAGE I CONTRACT No. 424048860 The penalties will be applied on the estimates that the CONTRACTOR generates. If it is not possible to apply the established penalties in any of the above cases, the CONTRACTOR is under obligation to deliver to PEP the amount corresponding to said penalties through a certified cheque, otherwise the performance bond will be exercised. If PEP decides to demand compliance with this contract in accordance with article 1846 of the Federal Civil Code, applicable by extension, the CONTRACTOR shall submit the express consent from the surety institution regarding the guarantees of this contract, where it indicates the period granted to comply with the obligation. The contractual penalties established in this clause may in no case be greater than the amount of the performance bond in their entirety. The application of said penalties will not take place when the delay or interruption comes from an act of God or force majeure event or any other cause not attributable to the CONTRACTOR. The penalties for delay in the performance of the work agreed to in this clause, or any other contractual penalty that must be applied in relation to this contract, will be applied against the estimates that the CONTRACTOR submits to PEP and that PEP pays to the company MERCO INGENIERIA INDUSTRIAL S.A. DE C.V., by virtue of its appointment as Common Representative, regardless of which of the parties is responsible for the delay in the performance of the work and/or any other breach of contract, according to the parts of the works that each company is under obligation to perform as referred to in clause one of this contract, with the understanding that PEP will not be responsible for the manner in which the Common Representative applies the penalties and/or distributes the payments that it receives as a result of this contract.
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Related to Shutdown of PEP Equipment

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