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GC-63
 
LIQUIDATED DAMAGES
 
If the Contractor refuses or fails to satisfactorily complete the Contract Work covered by this Contract within the time specified herein plus any extension thereof, authorized by the NIA as provided under this Contract, and is hereby in default under this Contract, the exact damages caused to the NIA by such delay will be impossible to ascertain accurately. In lieu thereof, the Contractor agrees to pay the NIA, as liquidated damages and not by way of penalty, an amount to be determined in accordance with the following formula:

LD = 0.75 x CP/CT

Where:

In case that the delay in the completion of the work exceed a time duration equivalent to twenty percent (20%) of the specified contract time plus any time extension duly granted to the Contractor, the NIA may forfeit the Contractor's Performance Security and take over the prosecution of the project or award the same to a qualified Contractor through negotiated contract.

In no case however, shall the total sum of liquidated damages exceed fifteen percent (15%) of the total contract price, in which event the contract shall automatically be taken over by the NIA or award the same to a qualified Contractor through negotiation and the erring Contractor's performance security shall be forfeited. The amount of the forfeited performance security shall be aside from the amount of the liquidated damages that the Contractor shall pay the NIA under the provision of this clause.

If the Total Original Contract Amount (TOCA) shall be adjusted due to the provision of Article GC-64, PRICE ESCALATIONS/ADJUSTMENTS, the amount of liquidated damages per day shall be correspondingly adjusted.