The purchase contract may provide for the following regarding pre-fixed compensation:-
(a) If, due to the delay of the supplier, consultant, service provider or builder, the work according to the purchase agreement cannot be completed within the period specified in the agreement, he shall pay the public body a pre-determined compensation not exceeding ten percent of the contract amount, usually zero ten times five percent of the contract amount per day, but If the performance or supply is delayed due to circumstances beyond his control or due to no fault or negligence, he shall not be required to pay such compensation, and (b) the pre-determined compensation as per clause (a) shall be performed by the relevant supplier, consultant, service provider or construction contractor in accordance with the purchase agreement. Cannot be freed from liability.