Contract number: [ complete ]  Service contract conditions of December 2018  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: 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  contract.  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 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.5 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.  The contracting authority must  formally notify the contractor of its intention to reduce  payment 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 reduce payment; or (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. Nature of liquidated damages  II.15.3. Claims and liability  II.15.4. REDUCTION IN PRICE  II.16. Quality standards  II.16.1. Procedure  II.16.2. 28 