What may the City assess if the Contractor fails to meet Acceptance Criteria during the Acceptance Window?

If the Contractor fails to meet Acceptance Criteria during the Acceptance Window, the City may assess Liquidated Damages. This is a pre-defined amount that is agreed upon in the contract to reflect the loss the City would incur due to the Contractor’s failure to deliver the project as expected within the specified time frame or standards. The purpose of liquidated damages is to provide a clear financial consequence that encourages timely and appropriate completion of contractual obligations.

Liquidated damages are particularly useful because they remove the need for the City to prove actual damages, which can be challenging and time-consuming. Instead, the agreed-upon amount is intended to serve as a deterrent against underperformance and to protect the City's interests in maintaining project timelines and quality.