Common use of PENALTY SYSTEM Clause in Contracts

PENALTY SYSTEM. 9.1. Failure to comply with or faulty compliance with contractual obligations shall be grounds for the penalties established in clause 24 of the Specific Administrative Bidding Conditions. 9.2. The penalties established in this section are of a cumulative and not substitutive nature. For the purposes of article 1.153 of the Civil Code, a contractor to whom a penalty has been applied shall not only have to fulfil the penalty within the terms established in the paragraph below, but also to fulfil any obligations regarding non-compliance or arrears in execution for which he or she is being penalised Penalties shall be deducted from sums pending payment. In the event that there are no sums pending payment, penalties shall be withdrawn from the definitive security that may have been provided, as the case may be. In the event that the penalties should have been levied from the aforementioned security, the service provider shall be bound to increase the security by the appropriate amount until it reaches the 5% of the award value. The application and payment of penalties shall not imply a waiver by the VHIR for any indemnities to which it may be entitled for damages caused by non-compliances attributable to the service provider.

PENALTY SYSTEM. 9.1. Failure to comply with or faulty compliance with contractual obligations shall be grounds for the penalties established in clause 24 of the Specific Administrative Bidding Conditions. 9.2. The penalties established in this section are of a cumulative and not substitutive nature. For the purposes of article 1.153 of the Civil Code, a contractor to whom a penalty has been applied shall not only have to fulfil the penalty within the terms established in the paragraph below, but also to fulfil any obligations regarding non-compliance or arrears in execution for which he or she is being penalised penalized Penalties shall be deducted from sums pending payment. In the event that there are no sums pending payment, penalties shall be withdrawn from the definitive security that may have been provided, as the case may be. In the event that the penalties should have been levied from the aforementioned security, the service provider shall be bound to increase the security by the appropriate amount until it reaches the 5% of the award value. The application and payment of penalties shall not imply a waiver by the VHIR for any indemnities to which it may be entitled for damages caused by non-compliances attributable to the service provider.