Penalty clauses

Late drawings/technical queries/ tooling delays/errors/shop overload/ out of sequence/overtime/concessions/ shortages/excess work in progress/excess inventory/poor supplier quality/penalty clauses/ lost sales/poor management... 

The contract could include a penalty clause for noncompletion by the contractor, and paid by him, as well as a bonus clause paid by the client to the contractor in the event that he completes his contract on or before the agreed completion date. This bonus clause can be on a reducing scale (say, from 75 per cent of the time onwards). 

When a publishing house (Izdatelstvo) plans to issue a book, monograph, journal, or other printed material, the Glavizdat provides it with information about the possible volume of sale derived either on the basis of a survey or past performance. The format, size of the edition, required paper, ink, and binding supplies are worked out, and time schedules are set for the delivery of the product by the publisher to the Glavizdat. The date of delivery, quality, packaging, etc., are embodied in a contract secured by penalty clauses. The Glavizdat supplies... 

Penalty clause - A provision in a contract that provides for a reduction in the amount otherwise payable under a contract to a contractor as a penalty for failure to meet deadlines or for failure of the project to meet contract specifications. 

The first item might refer either to cash losses arising from penalty clauses in the contract, or to special costs involved in avoiding these losses. Such special costs might cover, for example, chartering an express transportation service to make up lost time or supplying the product in question from an alternative source. 

The normal mechanism used is to include a penalty clause which provides that the sum payable to the supplier is reduced by a specified amount for each week that acceptance of the product is delayed, up to a certain maximum. Thus, on a contract of value 1 million, the penalty might be specified as 5,000 per week up to a maximum of 100,000. 

The contractor will make all reasonable efforts in the execution of the performance/service to adhere to the deadlines under the penalty clause. 

The contractor is obliged to immediately inform the employer in writing about threatening delays attributable to the contractor. In case, because of a fault on the part of the contractor, the adherence to the deadlines under the penalty clause involves extra costs, the contractor has to take the necessary measures and to bear all extra costs incurred. 

Penalty clauses in relation to late deliveiy were introduced into supplier... 

Contractors should also have indicated their completion times for retrofits for minimiun impact on shutdown times. Consider penalty clauses, cost plus clauses, and other relevant expense items. 

Nowhere is this effect more important than in the sulfur plant. In the sulfur recovery section, the air flow to the Claus reactor must be carefully proportioned to the sulfur flow in the feed even slight variations cause significant penalty in the sulfur plant efficiency and increased load on the tail-gas treating... 

Increased capital cost penalty to decomposition process (25% over Claus) ( 8.00)... 

Notwithstanding the administrative and disciplinary measures referred to in Articles 3, 9 and 65 of the Law No. 73-55 dated 3 August 1973 regulating the pharmaceutical professions, any violation to the clauses to the present Law and to the Articles of its application is punishable by a fine going from Tunisian dinars 2,000 to 10,000 and to imprisonment going from 6 months to 12 years or to only one of these two penalties. 

Power Factor. Most public utilities have a clause in their power contracts requiring a plant with low power-factor loads to pay a penalty charge or an increased rate the power factor of a motor represents the percentage of the load or power current to the total line current. The line current is made up of magnetizing or reactive current and power or active current. This reactive current represents just as real a burden to the power system as the active or load current, even though it does... 

Other Sources — The General Duty Clause, foimd in the Occupational Safety and Health Act of 1970, has become increasingly important to employers in the last few years as OSHA has begun to utilize the clause in more and more of its penalty and enforcement actions. Section 5(a)(1) of the Occupational Safety and Health Act of 1970 requires that every working man and woman must be provided with a safe and healthful workplace. The section, more commonly known as the General Duty Clause, specifically states ... 

The general duty clause extends OSHA s authority beyond the specific requirements of the standards when a recognized workplace hazard exists or potentially exists. It is often used when no specific standard applies to a recognized hazard in the workplace. The general duty clause has been used as the basis for numerous OSHA citations. Millions of dollars are collected as a result of these citations. Few other sections of the OSHA standards (Parts 1910 and 1926) cost more in penalties for OSHA violations than Section 5(a)(1). OSHA may also use the general duty clause when a standard exists, but it is clear that the hazards involved warrant additional precautions beyond what the current safety standards require. 

Citations for serious violations are issued when there is a substantial probability that death or serious physical harm could result and that the employer knew or should have known of the hazard. Violations of the general duty clause are considered serious. The maximum penalty is now 7,000. 

In using the number of exposed employees as a multiplier, 08HA was following its so-called egregious policy, which instructs enforcement offices that, for violations that are not merely "willful" but "egregious" (a term nowhere used in the Occupational afety and Health Act). Under the egregious approach, a penalty will be proposed as to each exposed employee. OSHA claimed that this was lawful under the General Duty Clause, which states that an employer must furnish safe employment to "each" employee. 

The Fifth Circuit unanimously upheld the Commission s decision, holding that OSHA could not multiply penalties by the number of exposed employees under the General Duty Clause. The court held that violations of the General Duty Clause are based on the hazardous condition, not the number of employees affected. 

In addition, the PAAA 2005 removed from the Secretary the duty to determine whether civil penalties for violation of DOE nuclear safety directives or regulations by other not-for-profit contractors should be remitted. It further removes the exemptions from civil penalties for seven named M O contractors, their subcontractors, and suppliers, reflected in Note I to the clause at 970.250-70 (June 1996). In place of the named exempt entities, the PAAA 2005 provides that civil penalties for any not-for-profif confracfors, subcontractors. 

Civil penalties are assessed Ity the OSH Review Commission taking into accoimt the size of the business, good faith, previous record, and the gravity of the violatioa A criminal or wilful violation carmot be based on the general duty clause in the act Note in the USA the word docket means an official public record and can include, for example, proposed standards, regulations, or adjudication information. 

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