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CLAUSE 40.

If the Contractor fails to complete the Works by the Date for Completion or within any extended time granted pursuant to clause 43. the S.O. shall issue a Certificate of Non Completion to the Contractor. Prior to the issuance of the Certificate of Non-Completion, the S.O. shall issue a notice to the Contractor informing the Contractor the intention of the Government to impose Liquidated and Ascertained Damages to the Contractor if the Contractor fails to complete the Works by the Date for Completion or within any extended time granted.

CLAUSE 40.2

Upon the issuance of the Certificate of NonCompletion, the Government shall be entitled to recover from the Contractor Liquidated and Ascertained Damages calculated at the rate stated in Appendix from the period of the issuance of the Certificate of Non-Completion to the date of issuance of Certificate of Practical Completion or the date of termination of this Contract. The S.O. may deduct such damages from any money due or to become due to the Contractor failing which such damages shall be recovered from the Performance Bond or as a debt due from the Contractor. The S.O. shall inform the Contractor in writing of such deduction.

CLAUSE 22.1 LIQUIDATED DAMAGES AND CERTIFICATE OF NON COMPLETION

If the contractor fails to complete the works by the completion date, and the architect is of opinions that the same ought reasonably so to have been completed, the architect shall issues certificate of non-completion. Upon the issuance of the certificate of non-completion, the contractor shall pay or allow to employer a sum calculated at the rate stated in the appendix as liquidated damages for the period from the completion date to the date of practical completion. The employer may recover such sum as a debt or may deduct such sum from any monies due or to become due to the contractor under the contract or the employer may recover such sum from performance bond. The employer shall inform the contractor in writing of such deduction or such debt due from the contractor. The imposition of liquidated damages by the employer shall not be taken into account by the architect in the issuance of payment certificate and final certificate, and is not subject to the sett-off procured under clause 30.4 adjudication.

CLAUSE 22.2 AGREED LIQUIDATED DAMAGES AMOUNT

The Liquidated Damages stated in the Appendix is a genuine pre-estimate of the loss/and or damage which the employer will suffer in the event that the Contractor is in breach of Clause 21.0 and 22.0. The parties agree that by entering into the Contract, the Contractor shall pay to the employer the said amount, if the some become due without the need for the employer to prove his loss and/or damage unless the contrary is proven by the Contractor

CLAUSE 22.3 CERTIFICATE OF NON COMPLETION REVOKED BY SUBSEQUENT CERTIFICATE OF EXTENSION TIME

In the event the architect issues a certificate of extension of time under clause 23.4, 23.9 and 23.10 which has the effect of fixing of completion date which is later than the date stated in a certificate of noncompletion earlier issues. The employer shall then revise the amount of liquidated damages he is entitled to retain. In the event the amount of liquidated damages retain exceed the amount the employer is entitled to retain, he shall repay the surplus amount to the contractor within the period of honouring certificates from the date of the last certificates of extension of time. If the works is not completed by the completion date stated in such certificates of extension of time, the architect shall issues a further certificate of noncompletion

CLAUSE 41.1

Where different completion dates for different sections or parts of the Works are stated and identified in Appendix or elsewhere in the Contract Documents and different and separate Liquidated and Ascertained Damages are provided for each section or part of the Works, the provisions of this Contract in regard to:
   

(a) Certificate of Practical Completion; (b) Delay and Extension of Time; (c) Liquidated Ascertained Damages; and (d) Defects Liability Period,

but not Insurance of the Works under clause 18, Performance Bond under clause 13 and final payment on the Final Certificate under clause 31 hereof shall, in the absence of any express provision to the contrary elsewhere in the Contract Documents apply as if each such section or part was the subject of a separate and distinct contract between the Government and the Contractor

CLAUSE 41.2

For the avoidance of doubt, nothing contained in clause 41.1 shall entitle the Contractor to the release of the whole or any part of the Performance Bond or Performance Guarantee Sum deposited by him. The Performance Bond or Performance Guarantee Sum shall be released or be refunded only upon the issue of the Certificate of Making Good Defects of the whole of the Works or in respect of the last section of the Works, as the case may be.

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