Offset Milestone Schedule

The effective date of commencement of the offset obligation is the date of signing the supply contract. This date is called the Offset Start Date (OSD). In certain circumstances where the date of signing and the effective date of commencement of the supply contract is different such that the difference between the two dates exceeds 90 days and such difference is material, or due to any material changes to the supply contract schedule not attributable to the foreign contractor's performance, then the foreign contractor may petition the PEO to adjust his OSD appropriately.

An offset milestone schedule lays down the time limits within which the offset obligation is to be performed.

Penalties

The imposition and enforcement of penalties is left to the discretion of the government of the State of Kuwait. Provisions are made for imposition of non-participation penalty and partial fulfillment penalty.