To avoid problems with schedules and deadlines, contractors are held accountable with penalty clauses in the contract for failure to perform up to standard.
Party who comes in contract to perform certain tasks and breach the compensation in case the contract is failed to be completed is called a penalty clause resulting to the payment of certain penalty to the aggrieved party.
There are certain deadlines, schedules given by contractors so they could complete the task on time resulting to failure of performance upto a standard can lead a penalty .
The sum payable is the agreed amount or completion of work with providing spare days .
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