What is a Delay Penalty?
The delay penalty is a discount offered to customers if the project handover is delayed by more than 15 days beyond the confirmed move-in date. This date is provided in the Project Schedule after all sales orders are finalized.
How much is the penalty?
The penalty is calculated at 0.1% of the total project value for each day beyond the 15-day grace period after the committed move-in date.
Effective from April 05, 2024, the delay penalty will be issued as a cashback.
For example, if your move-in date is July 1, 2023, and the project value is ₹10,00,000, the penalty would be ₹1,000 per day for delays beyond July 16.
The maximum delay penalty cannot exceed 3% of the total project value.
Move-in Definition:
A project is considered ready for move-in if the kitchen, living room, bedroom, and bathrooms are functional. Minor snags (e.g., part replacements, delayed supply of standalone units, issues with false ceilings, finishing, or electrical works) do not prevent the home from being deemed functional as long as they do not affect the overall usability of the space.
When is the Delay Penalty Not Applicable?
- Design Changes: Any design modifications, including changes in scope, materials, finishes, aesthetics, or functionality, after the move-in date is communicated can result in a delay, voiding the penalty.
- Customer-Handled Scope: If the project involves work managed by the customer, the estimated move-in date will consider the duration required for the customer’s scope of work. Delays from the customer’s end will revise the move-in date, and penalties will be calculated from this new date.
- Site Access: Delays caused by restricted or delayed site access will void the penalty.
- Utility Availability: Consistent and uninterrupted power and water supply are required. Interruptions will nullify the penalty.
- Payment Delays: Non-payment, partial payment, or delayed payments by the customer will void the penalty.
- Approval Dependencies: Any delays caused by waiting for customer-provided local authority approvals will void the penalty.
- Third-Party Delays: Delays in production or delivery of products from third-party brands are not covered.
- Force Majeure: This includes natural disasters, wars, riots, strikes, power failures, statutory restrictions, changes in law, unforeseen supply shocks, and other uncontrollable circumstances. Ark Spaces will inform the customer of such delays within 72 hours of the event’s occurrence or awareness.
In cases of Force Majeure, Ark Spaces will communicate the delay to the customer promptly, and the delay penalty will not apply.
Delay Penalty FAQs
1. What is a Delay Penalty?
The delay penalty is a discount provided to customers if the project handover is delayed by more than 15 days beyond the confirmed move-in date.
2. How is the Delay Penalty calculated?
The penalty is 0.1% of the total project value for each day of delay beyond the 15-day grace period after the committed move-in date.
3. How will I receive the Delay Penalty?
Effective from April 5, 2023, the delay penalty will be issued as refund.
4. Is there a maximum limit to the Delay Penalty?
Yes, the maximum delay penalty is capped at 3% of the total project value.
5. What is considered a move-in ready project?
A project is move-in ready if the kitchen, living room, bedroom, and bathrooms are functional. Minor issues that do not affect the functionality of these areas do not prevent the home from being considered move-in ready.
6. Can I get a Delay Penalty if there are design changes?
No, any design changes or modifications after the move-in date is communicated can cause delays and void the penalty.
7. Does the Delay Penalty apply if my project includes work managed by me?
No, if delays are caused by the scope of work managed by the customer, the move-in date will be re-estimated, and penalties will be calculated from the revised date.
8. What if there are issues with site access?
If there are delays due to restricted or delayed access to the site, the penalty does not apply.
9. Is consistent utility supply required for the Delay Penalty to apply?
Yes, consistent and uninterrupted power and water supply are required. Interruptions in these utilities will void the penalty.
10. Does non-payment affect the Delay Penalty?
Yes, non-payment, partial payment, or delayed payments by the customer will void the penalty.
11. What if local authority approvals are delayed?
If delays are caused by waiting for local authority approvals that the customer must provide, the penalty does not apply.
12. Are delays from third-party product deliveries covered?
No, delays in production or delivery of products from third-party brands are not covered by the penalty.
13. Does the Delay Penalty cover Force Majeure events?
No, events such as natural disasters, wars, riots, strikes, power failures, statutory restrictions, changes in law, unforeseen supply shocks, and other uncontrollable circumstances void the penalty. Ark Spaces will inform customers of such delays within 72 hours.
