Common use of Delay of Payment Due to Supplier’s Failure Clause in Contracts

Delay of Payment Due to Supplier’s Failure. If the Department determines that the Supplier has failed to perform or deliver any commodities as required by the Contract, the Supplier shall not be entitled to any compensation under the Contract until such commodities are delivered and accepted. In this event, the Department may withhold that portion of the Supplier’s compensation, which represents payment for commodities that were not delivered. To the extent that the Supplier’s failure to perform or deliver in a timely manner causes the Department to incur costs, the Department may deduct the amount of such incurred costs from any amounts payable to Supplier. The Department’s authority to deduct such incurred costs shall not in any way affect the Department’s authority to terminate the Contract.

Delay of Payment Due to Supplier’s Failure. If the Department determines that the Supplier has failed to perform or deliver any commodities goods and services as required by the Contract, the Supplier shall not be entitled to any compensation under the Contract until such commodities goods and services are delivered performed, delivered, and accepted. In this event, the Department may withhold that portion of the Supplier’s compensation, which represents payment for commodities services or goods that were not performed or delivered. To the extent that the Supplier’s failure to perform or deliver in a timely manner causes the Department to incur costs, the Department may deduct the amount of such incurred costs from any amounts payable to Supplier. The Department’s authority to deduct such incurred costs shall not in any way affect the Department’s authority to terminate the Contract.