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Old 2nd Jul 2012, 21:42
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cdnnighthawk
 
Join Date: Jan 2012
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I have no idea from where the concept of "significant additional charges" for lateness comes. The original contract called for a $100,000 per day holdback for anything up to a max of 360 days late, after which there would be no further penalty (ie a max penalty of $36 million for late delivery). The Feb 2009 contract amendment (always referred to in the media as the "2008 contract announcement" or something to that effect) capped the late delivery penalty at $8 million. If it had indeed been $100K per day (no cap), Sikorsky would no longer be in business and Canada would still not have any new helicopters. Sikorsky is still in business. Canada's Navy still flies Sea Pigs.
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