If you fail to complete the government contract within the specified time, the contract will be unsuccessful and a penalty of 25% of the contract turnover will be applied.
This penalty is automatically deducted from your account when the contract period expires.
The penalty amount is calculated based on the total turnover of the contract.
10,000,000 $ Let's say you fail to complete a government contract with a turnover of within the deadline.
Contract turnover: 10,000,000 $
Penalty rate: 25%
Penalty to be paid: 2,500,000 $
In this case, 2,500,000 $ penalty will be collected from your account.
It is recommended that you consider the following factors before accepting a contract:
Check if you have the required product quantity.
Monitor the remaining time of the contract.
Make sure you can complete the delivery on time.
The Contract Duration Extension Card provides an important advantage for contracts that cannot be completed on time and can help you avoid penalties that may be applied due to failed contracts.
Note: With each use, the contract duration is extended by 25%. By regularly monitoring your contracts and using the Duration Extension Card when needed, you will make it easier to complete your deliveries on time. It can be used even if the contract duration has expired.
Important: While government contracts offer high profit opportunities, contracts that are not completed on time incur a penalty of 25% of the contract turnover. For this reason, it is recommended that you only accept contracts that you can complete.
