Tender Ref.: Marine Department Shipbuilding Tender No.

2/2014

Schedule 4
Liquidated Damages for Certain Breaches of Contract

Part
Part 1

Item
Item 1 and Item 2 as specified in Part
1 of Schedule 1 but excluding the final
version of the As-Fitted Plans and
Drawings

Liquidated damages (not as penalty)

If the Contractor fails to deliver to the Delivery Location a Vessel with
all Equipment installed thereon, by the Delivery Date stipulated in
Schedule 2, in Ready for Use condition, whether because of any failure
of any part of the tests and trials in the Technical Acceptance or
otherwise, or even if such delivery has been made, but fails to procure
and ensure that the Vessel with all Equipment installed thereon passes
the Delivery Acceptance to the satisfaction of the Government by the
same Delivery Date (Delayed Vessel), the Contractor shall pay to the
Government for each day or part thereof of delay for that Delayed Vessel
an amount equal to 0.125% of the vessel unit price as quoted in Part 1 of
Schedule 1 (Vessel Unit Price).
The aggregate amount payable by the Contractor in respect of a Delayed
Vessel shall be capped at a maximum of 15% of the Vessel Unit Price.

Part 2

Items 3 to 6 in Parts 2, 3 & 4 of

Schedule 1

If the Contractor fails to deliver to the Delivery Location one set of any
of the items 3 to 6 by the Delivery Date stipulated in Schedule 2, in
Ready for Use condition, or even if such delivery has been made, but
fails to procure and ensure that any of the items 3 to 6 passes the
Delivery Acceptance to the satisfaction of the Government by the same
Delivery Date (Delayed Deliverables), the Contractor shall pay to the
Government for each day or part thereof of delay for that Delayed
Deliverables an amount equal to 0.2% of the price for one set of the
relevant item as quoted in Part 2, 3 & 4 of Schedule 1, subject to a
maximum cap of 15% of the price for one set of the relevant item.

Part 3

The final version of the As-Fitted

Plans and Drawings as specified in
Annex
14
of
the
Technical
Specifications

If the Contractor fails to deliver to the Delivery Location the final

version of the As-Fitted Plans and Drawings described in Annex 14 of
the Technical Specifications within two (2) months after the delivery of
the Vessel to the Government Dockyard, the Contractor shall pay to the
Government for each day or part thereof of delay an amount equal to
0.1% of the Vessel Unit Price specified in Part 1 of Schedule 1, subject
to a maximum cap of 1% of the Vessel Unit Price.

Part V - Schedule 4 - Liquidated Damages for Certain Breaches of Contract

Supply of Two Units of Aluminium Fast Pursuit Crafts for Customs & Excise Department

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Tender Ref.: Marine Department Shipbuilding Tender No. 2/2014

Part 4
If, after the Government chooses to exercise its options under Clause 12 of the Conditions of Contract
(including without limitation requesting the Contractor to take all necessary remedial actions to address
the failure in achieving the Contract Speed) the Vessel still fail to achieve the Contract Speed in the
Official Sea Trial to be conducted as part of the Technical Acceptance, without prejudice to other rights
and claims of the Government, and if the Government does elect to accept that Vessel notwithstanding
the deficiency (and for the avoidance of doubt, the Government may alternatively choose to reject that
Vessel and may terminate the Contract for failing to achieve the Contract Speed and therefore failing the
Technical Acceptance), the Contractor shall pay to the Government an amount at the rate as specified
below as liquidated damages for such failure but not as a penalty.
The liquidated damages shall be the percentage of the Vessel Unit Price of the Vessel which has failed to
achieve the Contract Speed:

Speed deficiency (from the Contract Speed)

Liquidated damages (not as penalty)

(as a percentage of the Vessel Unit Price
of the relevant Vessel)

0.25 knot

> 0.25 knot but 0.50 knot

> 0.50 knot but 0.75 knot

> 0.75 knot but 1.00 knot

12

Part V - Schedule 4 - Liquidated Damages for Certain Breaches of Contract

Supply of Two Units of Aluminium Fast Pursuit Crafts for Customs & Excise Department

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