Common use of Penalties for Noncompliance Clause in Contracts

Penalties for Noncompliance. If the Developer or a contractor fails to comply with any portion of this EBO Program, and whose failure to comply continues for a period of 30 calendar days after the Developer or contractor receives written notice of such noncompliance from the CAC to the CMPA, the Developer or contractor shall be subject to any or all of the following penalties: (1) Withholding of ten percent of all future payments for the eligible project until the CAC determines that the contractor is in compliance with this EBO Program. (2) Withholding of all future payments under the eligible project until it is determined that the contractor is in compliance with this EBO Program. (3) Cancellation of the eligible project. (4) Refusal of all future contracts or subcontracts with the CMPA for a minimum of one year and a maximum of five years from the date upon which this penalty is imposed.

Appears in 2 contracts

Sources: Equal Business Opportunity Program Agreement, Program Agreement