Delay in Delivery
DALO may impose liquidated damages for late delivery where this is provided for in the contract.
Being a Supplier to the Danish Defence Comes with Responsibilities
The Danish Defence performs a range of critical national functions. These responsibilities depend on maintaining the necessary operational capability – the ability to deploy personnel, equipment, and operational capacities quickly and effectively. Operational capability is not solely determined by military personnel and equipment; it also relies on a well-functioning supply chain that ensures materiel and IT solutions are delivered on time and in accordance with contractual requirements.
As a supplier to the Danish Defence Acquisition and Logistics Organisation (DALO), you are expected to meet the delivery obligations set out in your contract. Timely and compliant performance enables the Danish Defence to:
- Plan and streamline the acceptance of goods efficiently.
- Plan military exercises and operational activities.
- Maintain a stable supply of equipment and services to end users.
- Minimise unnecessary administrative burdens, resource reallocation, and additional costs arising from delayed performance.
Liquidated Damages for Delay
The rights and obligations of the parties in relation to delayed performance are governed exclusively by the relevant contract concluded between the supplier and DALO. The contract will specify will specify whether liquidated damages apply in the event of late delivery and, if so, the applicable rates and conditions.
If you anticipate a delay in delivery, you should contact your DALO contract representative as soon as possible. The payment of liquidated damages does not relieve the supplier of its obligation to fulfil the contract.
Where possible, DALO will set off claims for liquidated damages against outstanding supplier invoices.
Key points
• Delivery obligations are governed by the individual contract.
• Liquidated damages may apply where contractual delivery deadlines are not met.
• Suppliers must notify DALO promptly if a delay is anticipated.
• Payment of liquidated damages does not affect the supplier's obligation to complete performance of the contract.
• DALO may exercise its contractual right of set-off against outstanding invoices, where applicable.