The contractor has 30 days following the date of receipt to submit observations. Failing that, the decision becomes enforceable the day after the time limit for submitting observations has elapsed. 

If the contractor submits observations, the contracting authority, taking into account the relevant observations, must notify  the contractor: 

(a) of the withdrawal of its intention to apply liquidated damages; or 

(b) of its final decision to apply liquidated damages and the corresponding amount. 

## Nature of liquidated damages II.15.3. 

The parties expressly acknowledge and agree that any amount payable under this Article is not a penalty and represents a reasonable estimate of fair compensation for the damage incurred due to failure to provide the services within the applicable time limits set out in this contract. 

## Claims and liability II.15.4. 

Any claim for liquidated damages does not affect the contractor’s actual or potential liability or the contracting authority’s rights under Article II.18. 

## Quality standards II.16.1. 

## REDUCTION IN PRICE II.16. 

If the contractor fails to provide the service in accordance with the contract (‘unperformed obligations’) or if it fails to provide the service in accordance with the expected quality levels specified in the tender specifications (‘low quality delivery’), the contracting authority may reduce or recover payments proportionally to the seriousness of the unperformed obligations or low quality delivery. This includes in particular cases where the contracting authority cannot approve a result , report or deliverable as defined in Article I.5 after the contractor has submitted the required additional information, correction or new version. 

A reduction in price may be imposed together with liquidated damages under the conditions of Article II.15. 

## Procedure II.16.2. 

The contracting authority must formally notify the contractor of its intention to reduce payment and the corresponding calculated amount. 

The contractor has 30 days following the date of receipt to submit observations. Failing that, the decision becomes enforceable the day after the time limit for submitting observations has elapsed. 

If the contractor submits observations, the contracting authority, taking into account the relevant observations, must notify  the contractor: 

(a) of the withdrawal of its intention to reduce payment; or 

