Liquidated Damages

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Item Information

Revision History

Date Status ID Title
2008-05-12 Active D0024C Liquidated Damages (2008-05-12) D0024C

Remarks – Recommended Use of SACC Item

Use the following clause in contracts for goods or services when liquidated damages will be included in the contract.

Legal text for SACC item

  1. If the Contractor fails to _________ (insert "deliver the goods" or "perform the services") within the time specified in the Contract, the Contractor agrees to pay to Canada liquidated damages in the amount of $ _____ for each calendar day of delay. The total amount of the liquidated damages must not exceed _____ percent of the contract price.
  2. Canada and the Contractor agree that the amount stated above is their best pre-estimate of the loss to Canada in the event of such a failure, and that it is not intended to be, nor is it to be interpreted as, a penalty.
  3. Canada will have the right to hold back, drawback, deduct or set off from and against the amounts of any monies owing at any time by Canada to the Contractor, any liquidated damages owing and unpaid under this section.
  4. Nothing in this section must be interpreted as limiting the rights and remedies which Canada may otherwise have under the Contract.