ECOWAS Tenders Code Article 67: Penalty for Delayed Completion 1. Where a contractor, service provider, supplier party to the contract fails to complete the works or services (including intellectual services) or deliver the goods within the agreed time for completion or extension period , it may be liable for the payment of liquidated damages or penalties subject to a maximum amount defined in the contract. 2. This provision shall be applied without prior notice and the damages shall initially be deducted from the amounts owed to the supplier, contractor or service provider and subsequently from the securities. Where the balance is insufficient to offset the amount of damages, a payment order shall be issued to cover the outstanding amount and subsequently, the contract is terminated for non-performance. 3. The supplier, contractor or service provider shall be compensated according to the provisions of the contract documents, for any loss or damages they may suffer in the execution of the contract as a result of default by the procuring entity Chapter II: Contract Securities Article 68: Performance Securities 1. Contractors, suppliers or service providers, either from the public or the private sectors, must provide a performance security to guarantee the proper execution of the contract and against reimbursement of any amount owed by them in connection with the contract. Consultants are not subject to this requirement. 2. The Contracting Authority determines the amount of the security which shall specifically be provided for in the special conditions of the contract, depending on the contract value and the risk. Such amount shall not exceed ten (10) per cent of the initial contract price, subject to any further increase or decrease that may occur during contract execution. 3. The Performance Security shall be provided within twenty (20) calendar days after notification of the contract and, in any event, before any disbursement can be made on the part of the Community. 4. The performance security should be returned within one (1) month after the expiry of the warranty period or, if such period is not stipulated in the contract, immediately following the acceptance of the goods, works or services, according to the modalities determined in the conditions of contract. Article 69: Form of Securities 1. Securities are submitted in the form of a surety bond or on first demand bank / insurance guarantee which may be issued by a reputable Bank / Insurance company in an ECOWAS member state. A security issued by a reputable foreign bank located outside the ECOWAS Member States with a corresponding bank in one of the Member States may be accepted by the procuring entity. Final Page 32