(1) In relation to pre-determined compensation in the purchase agreement, the following arrangements can be made:-
(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 local body a pre-determined compensation of zero ten times zero five percent of the contract amount per day, not exceeding ten percent of the contract amount. But if there is delay in performance or supply due to circumstances beyond his control or due to no fault or negligence, no such compensation shall be payable,
(b) By paying the pre-determined compensation as per Clause (a), the relevant supplier, consultant, service provider or construction professional shall not be released from the obligation to perform the work as per the purchase agreement.