Contract number: EEAS-618-DELBRBB-SER-FWC-2019   Template of June 2018 Updated November 2018  Liquidated damages may be imposed together with a reduction in price under the conditions  laid down in Article II.16.  II.15.2. Procedure  II.15.3. Nature of liquidated damages  II.15.4. Claims and liability  II.16. REDUCTION IN PRICE  II.16.1. Quality standards  The contracting authority must  formally notify the contractor of its intention to apply  liquidated damages and the corresponding calculated amount. The contractor has 30 days following the date of receipt to submit observations. Failing that,  the decision becomes enforceable the day after the time limit for submitting observations has  elapsed. If the contractor submits observations, the contracting authority, taking into account the  relevant observations, must  notify  the contractor: (a) of the withdrawal of its intention to apply liquidated damages; or (b) of its final decision to apply liquidated damages and the corresponding amount. The parties expressly acknowledge and agree that any amount payable under this Article is  not a penalty and represents a reasonable estimate of fair compensation for the damage  incurred due to failure to provide the services within the applicable time limits set out in this  FWC.  Any claim for liquidated damages does not affect the contractor’s actual or potential liability  or the contracting authority’s rights under Article II.18.  If the contractor fails to provide the service in accordance with the FWC or a specific contract  (‘unperformed obligations’) or if it fails to provide the service in accordance with the  expected quality levels specified in the tender specifications (‘low quality delivery’), the  contracting authority may reduce or recover payments proportionally to the seriousness of the  unperformed obligations or low quality delivery. This includes in particular cases where the  contracting authority cannot approve a  result , report or deliverable as defined in Article I.6  after the contractor has submitted the required additional information, correction or new  version. A reduction in price may be imposed together with liquidated damages under the conditions  of Article II.15.  27 