Penalties serve as a contractual tool to ensure compliance with deadlines and obligations in international projects.
This mechanism predefines compensation owed to the aggrieved party in the event of delayed performance, typically in the form of a lump-sum amount per day of delay.
Penalties against the Consultant shall not be incurred until after a formal complaint has been filed by the Client.
The existence of indemnities that are capped and discharged, limit the liability of the Consultant.
Penalties of 1/200th of the Work Stage fee per working day of delay from the end of the Work Stage may apply.
Possible penalties are discharged and capped at 5 % of the total amount of the fees scheduled in the Agreement.
The penalties applicable are dischargeable, and include a cumulative cap set at 10% of the amount of the fees for the phase concerned and 5% of the total amount of the fees stipulated in the contract.
<strong>To explore this point further in Civil Law or Common Law</strong>
In Civil Law countries such as France, penalty clauses are governed by provisions like Article 1231-5 of the Civil Code, which allows courts to increase or reduce the penalty amount if deemed manifestly excessive or negligible in relation to the actual loss. This system seeks to maintain contractual balance while encouraging adherence to agreed deadlines. 
Under COMMON LAW, the concept of liquidated damages applies. The agreed amount must represent a reasonable and proportionate estimate of anticipated loss, and not act as a punitive measure. This is illustrated in Dunlop Pneumatic Tyre Co Ltd v New Garage &amp; Motor Co Ltd, where the court emphasised that the sum must serve as legitimate compensation rather than a deterrent.
The penalties applicable are dischargeable, and include a cumulative cap set at 10% of the amount of the fees for the phase concerned and 5% of the total amount of the fees stipulated in the contract.