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Q&A

Chair asks penalty amount

New York City Council · Oct 27, 2026 · starts 0:45:07 · 35 sec

Won asks how the penalty is calculated and whether it is a percentage of contract sum. Harry says he will share the rules and contract language, noting the penalty can scale with severity and lack of participation.

Julie Won

And for the penalty, is it a percentage of the contract sum?

Julie Won

What is the penalty amount?

Julie Won

And how is it calculated?

Douglas Harry

That's a good question.

Douglas Harry

I'll have to share.

Douglas Harry

We can share the rules and the contract language for that exact amount.

Douglas Harry

But it is a, there's a certain dollar amount and it can scale up depending on the severity and the value and the lack of participation by the vendor.

Douglas Harry

We don't want it to just be a cost of doing business, right?

Douglas Harry

We want it to make sure that people are...

Julie Won

Yep.

Julie Won

Okay, great.

Julie Won

This all sounds good.