Liquidated Damages in Works Contract: - It is necessary for the Railway to serve a notice to the contractor with the intention to recover individual damages as required under the contract act, even though the contractor has been informed of this liability earlier. The Railway can however, recover by way of liquidated damages only reasonable compensation not exceeding the amount s named or stipulated in the agreement. The compensation should be calculated on the basis of the actual loss sustained by the Railway or the inconvenience that accessioned. The decision for the recovery of liquidated damages is not taken at a level lower than the authority who signed the agreement.
Liquidated Damages in Stores Contract: - The charges recoverable from supplier on belated supplies. The amount as recoverable as been prescribed under IRS conditions or contracts which are generally applicable to all contracts. It is calculated as 2% of the price of the stores which contactor has failed to deliver every month or part of month during which the delivery of such stores may be in arrears, for the purpose of the levy off liquidated damages, cases of belated supplies can be divided in 3 categories as shown below.
1. Where the buyer has incurred loss due to delay in supplies and where such losses can be assessed.
2. Where the buyer has suffered loss due to delay in supplies but the loss cannot be estimated or where the buyer has been put to inconvenience due to delay in supplies.
3. Where there has been no loss or inconvenience to the buyer due to delay in supplies.
Percentages for Liquidity Damages are as shown below
Liquidity Damages - 2% per month max 10%
Token Liquidity Damages - 10% or 2% of Liquidity Damages
General Damages - Heavy Loss to Railway Risk Purchase Tender is issued and damages are recovered
Liquidated Damages in Stores Contract: - The charges recoverable from supplier on belated supplies. The amount as recoverable as been prescribed under IRS conditions or contracts which are generally applicable to all contracts. It is calculated as 2% of the price of the stores which contactor has failed to deliver every month or part of month during which the delivery of such stores may be in arrears, for the purpose of the levy off liquidated damages, cases of belated supplies can be divided in 3 categories as shown below.
1. Where the buyer has incurred loss due to delay in supplies and where such losses can be assessed.
2. Where the buyer has suffered loss due to delay in supplies but the loss cannot be estimated or where the buyer has been put to inconvenience due to delay in supplies.
3. Where there has been no loss or inconvenience to the buyer due to delay in supplies.
Percentages for Liquidity Damages are as shown below
Liquidity Damages - 2% per month max 10%
Token Liquidity Damages - 10% or 2% of Liquidity Damages
General Damages - Heavy Loss to Railway Risk Purchase Tender is issued and damages are recovered
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