Comprehensive guide on what Liquidated Damages are, how they are calculated, and how to avoid them on GeM.
[!TIP] Quick Answer: Liquidated Damages (LD) ek penalty hai jo buyer lagata hai jab seller delivery period (DP) ke andar items deliver nahi kar pata. Ye delay ke hisaab se haftawari (weekly) 0.5% lagti hai.
| Rule | Detail |
|---|---|
| Weekly Penalty | 0.5% of delayed quantity value |
| Maximum Penalty | 10% of total contract value |
| Calculation Basis | Delayed days beyond Delivery Period |
| Exemption | Force Majeure clause applies |
Sarkari contracts mein time par delivery sabse zaroori hai. Agar aap late hote hain, toh system automatically Liquidated Damages calculate karke aapke payment se deduct kar leta hai.
Apne problem ke anusaar tool chune or apni working Aasaan banaye !
Hinglish queries (jaise 'Bhopal ki bids do', 'computer ki bids do ') enter karke apne city aur niche ke live bids aur tenders directly filter and track karein.
| Delivery Status | LD Applicable? |
|---|---|
| Within DP | No |
| Beyond DP without extension | Yes |
| Beyond DP with approved extension without LD | No |
Are you going to be late? -> Request DP Extension -> Does buyer accept with LD? -> Yes -> Deliver goods and accept penalty.
[!WARNING] Agar delay bahut zyada ho jata hai aur LD 10% cross kar jata hai, toh buyer contract terminate karke PBG forfeit kar sakta hai.
| Feature | DP Extension without LD | DP Extension with LD |
|---|---|---|
| Reason | Delay due to buyer/unavoidable reasons | Delay due to seller fault |
| Payment | 100% | Deducted by LD percentage |
Q1: Can LD be waived? A: Only if the buyer agrees that the delay was beyond the seller's control (e.g., buyer delayed site readiness).
Q2: Does GeM deduct LD automatically? A: Yes, during the bill generation process, the GeM system computes the delay based on PRC date and applies LD.
(...13 more FAQs covering Force Majeure, GST on LD, part-deliveries, etc.)
Learn what happens if a contract is completely cancelled in our Termination guide.
Estimate your potential penalties using our LD Calculator.
Independent Platform Disclaimer: SahayakAI is an independent AI-powered procurement knowledge platform and is not affiliated with Government e Marketplace (GeM), CPPP, IREPS, or any Government authority.
Apne problem ke anusaar tool chune or apni working Aasaan banaye !
Hinglish queries (jaise 'Bhopal ki bids do', 'computer ki bids do ') enter karke apne city aur niche ke live bids aur tenders directly filter and track karein.
SahayakAI ka mission hai Bharat ke businesses ko Government procurement ko aasaan tareeke se samajhne aur confidently participate karne me madad karna. Hum AI-powered productivity tools, practical guidance aur compliance-first approach ke through sellers ko empower karte hain, taaki woh Government e-Marketplace (GeM) Portal aur anya public procurement platforms par behtar tareeke se kaam kar sakein.