d  is the period for execution specified in a Specific Contract  or Purchase Order  or, failing that, the period between the first implementation date specified in the Special Conditions and the date of delivery or performance specified in the relevant Specific Contract  or Purchase Order , expressed in calendar days. 

2. If Europol wishes to impose liquidated damages, it must send Formal notification  to the Contractor in writing of its intention and the applicable amount calculated in accordance with the formula above. The Contractor  may submit written observations on the formal notice within 30 (thirty) days of its receipt. Europol is entitled to apply liquidated damages if the Contractor’s written observations are not submitted within the deadline specified. 

3. If the Contractor submits its written observations within the deadline specified in the paragraph above, Europol must consider such observations in good faith and notify the Contractor  in writing if it accepts the Contractor’s observations and therefore will not pursue liquidated damages or if it rejects such observations and decides to impose them. 

4. The parties expressly acknowledge and agree that any sums payable under this article are in the nature of liquidated damages and not penalties, and represent a reasonable estimate of fair compensation for the losses incurred due to failure to fulfil obligations which may be reasonably anticipated. 

5. Any claim for liquidated damages does not affect the Contractor’s actual or potential liability or Europol’s rights to terminate the Framework Contract  and/or Specific Contract  or Purchase Order or the right to reduce payment in accordance with Article II-11 (“Reduction in payment and off- setting”) . 

## Article II-24 

## Checks and audits 

1. Europol may check or require an audit on the implementation of the Framework Contract . This may be carried out either by Europol own staff or by any other third-party authorised to do so on Europol’s behalf. 

2. Checks and audits may be initiated during the implementation of the Framework Contract , at any moment and up to 5 (five) years after the final payment under the last Specific Contract  or Purchase Order . 

3. The audit procedure shall be considered initiated on the date of receipt by the Contractor  of the relevant letter sent by Europol as applicable. Audits are carried out on a confidential basis. 

4. The Contractor must keep all original documents stored on any appropriate medium, including digitised originals if authorised under national law, for a period of 5 (five) years following the payment of the balance of the last Specific Contract  or Purchase Order  implementing the Framework Contract . 

5. The Contractor  must grant Europol staff and any authorised third-party personnel the appropriate right of access to sites and premises where the Framework Contract  is implemented and to all the information, including information in electronic format, needed to conduct such checks and audits. The Contractor  must ensure that the information is readily available at the moment of the check or audit and that the information is handed over in the format as requested. 

6. Europol shall draw up a provisional report on the basis of the findings made during the audit. The report shall be sent to the Contractor , who has 30 (thirty) days following the date of receipt to 

