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Section X— Secondary Options

Clause X17

Low Performance Damages

Purpose

If the works or Plant do not achieve the performance levels stated in the Works Information, the Contractor pays low performance damages. The damages are calculated using the method in the Contract Data.

Practical Application

Low performance damages apply when completed works underperform against specified criteria (e.g., energy efficiency, output capacity). They are distinct from delay damages.

Common Pitfalls

Performance testing must be conducted in accordance with agreed procedures. Disputes over test methods or conditions can delay the assessment of low performance damages.

Related Clauses

Clause 40.3Clause X7

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.