Common use of Penalty Clause Clause in Contracts

Penalty Clause. There shall be regular review regarding the performance of the contractor by MCGM/ Traffic Police. In case at any stage, it has been observed/ found that the performance of the contractor is unsatisfactory or discrepancies are found in the works carried out by contractor, the MCGM reserves the right to cancel the contract and black list the contractual firm(s) after giving due opportunity and forfeit the Performance Guarantee. However, performance of the work does not include un-avoidable delay in executing the work and penalty levied on account of delayed works and other insignificant shortcomings. If the maintenance work is not carried out to the satisfaction of the MCGM and /or Traffic Police Authorities, the Contractor shall be liable to be penalized and deductions, as deemed appropriate. The penalty / deductions will be made from the maintenance bills, after evaluating the performance on the basis of several external factors such as power supply, excavation permission, no. of signals that were faulty or non functioning, the response time in attending the faults/ damages, frequency of defects, non replacement of LED retrofits/ SMPS or other parts, other software and hardware problems related to the Controller etc. In case of unsatisfactory maintenance, the office of Jt. Commissioner of Police (Traffic), who are the end users of the Traffic Signal Systems, may also propose penalty. The penalties will be based on resolution time as specified below. If the resolution time exceeds the specified resolution time, then the penalties will be levied as specified below and will be deducted from the monthly running bills.

Penalty Clause. There shall be regular review regarding the performance of the contractor by MCGM/ BMC/ Traffic Police. In case at any stage, it has been observed/ found that the performance of the contractor is unsatisfactory or discrepancies are found in the works carried out by contractor, the MCGM BMC reserves the right to cancel penalize the contract and black list the contractual firm(s) after giving due opportunity and forfeit the Performance Guaranteecontractor. However, performance of the work does not include un-avoidable delay in executing the work and penalty levied on account of delayed works and other insignificant shortcomings. If the maintenance work is not carried out to the satisfaction of the MCGM and /or BMC and/ or Traffic Police Authorities, the Contractor shall be liable to be penalized and deductions, as deemed appropriate. The penalty / penalty/ deductions will be made from the maintenance bills, after evaluating the performance on the basis of several external factors such as power supply, excavation permission, no. of signals that were faulty or non functioning, the response time in attending the faults/ damages, frequency of defects, non replacement of LED retrofits/ SMPS or other parts, other software and hardware problems related to the Controller etc. In case of unsatisfactory maintenance, the office of Jt. Commissioner of Police (Traffic), who are the end users of the Traffic Signal Systems, may also propose penalty. The penalties will be based on resolution time as specified below. If the resolution time exceeds the specified resolution time, then the penalties will be levied as specified below and will be deducted from the monthly running bills.