Calculate the delay penalty
Enter the first contract price, the daily rate in the contract and the days late to see the daily penalty, the total and the 15% cap. No sign-up.
Delay penalty
Take the rate from your contract's delay penalty clause. The days are the calendar days late once extensions are taken off.
Enter the first contract price, the rate and the days, or try the sample data.
How the delay penalty is calculated
If the contractor does not finish on time, each day late costs the rate written in the contract, applied to the first contract price.
Daily penalty = first contract price × daily rate
Delay penalty = daily penalty × days late
The total is rounded to the kuruş once; the daily figure is rounded for display only. All penalties together, delay included, cannot pass 15% of the first contract price.
Rules applied
- A rate of 3 to 6 per 10,000
- The administration writes into the contract a daily rate of no less than 0.03% and no more than 0.06% of the first contract price (Standard Contract art. 25.2, fn. 22).
- The first contract price
- The daily penalty is worked out on the first contract price; a price grown by work increases does not grow the penalty (art. 25.2).
- Ten days' notice
- The penalty applies after written notice of at least ten days. Days covered by a time extension do not count as late (art. 25.1).
- Deducted from payments
- The delay penalty comes off progress payments without further protest; what they cannot cover is collected from the contractor separately (art. 25.4).
- 15% penalty cap
- All penalties together, delay included, cannot pass 15% of the first contract price; if they would, the performance bond is forfeited and the contract terminated (art. 25.7, Law No. 4735 art. 20/b).
- Partial acceptance
- Where partial delay penalties are provided for, the penalty applies only to the parts not finished, not to the whole contract price (art. 25.6).
What this tool does not calculate
It does not work out the completion date: you enter it with extensions included, or find it with the work duration tool. It does not handle part-by-part penalties under partial acceptance. It does not calculate other penalties, such as for technical staff; enter the total already deducted and it counts that against the 15% cap only.
Legal basis: Works Standard Contract art. 25 (as amended, Official Gazette 8.8.2019/30856, in force 18.8.2019); General Specification for Works art. 29/1 and 41/8; Public Procurement Contracts Law No. 4735, art. 20/b. For information only.
About the delay penalty
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Stop tracking penalties in a spreadsheet
Days late are worked out with extensions taken off, penalties are tracked against the 15% cap and land on the payment cover.