Common use of DB Contractor Clause in Contracts

DB Contractor. acknowledges and agrees that because of the unique nature of the Project, the fact that it is an essential part of the Texas highway system, and the fact that inconvenience or hazard to the traveling public will be one of the significant impacts of any failure by DB Contractor to perform the Maintenance Services in an efficient and timely manner and properly maintain the facility, it is impracticable and extremely difficult to ascertain and determine the actual Losses which would accrue to TxDOT and the public in the event of such failure. Consequently, DB Contractor agrees to pay TxDOT the sums of money determined pursuant to Section 8.1 as deemed compensation to TxDOT resulting from DB Contractor’s failure to meet the Performance Requirements herein as evidenced by the Noncompliance Points. DB Contractor further acknowledges and agrees that such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances existing as of the Effective Date.