text: If the contractor submits observations, the contracting authority, taking into account the 
  relevant observations, must*notify*the contractor: 
  
  (a) of the withdrawal of its intention to apply liquidated damages; or 
  
  (b) of its final decision to apply liquidated damages and the corresponding amount. 
  
  **II.15.3. Nature of liquidated damages**
  
  The parties expressly acknowledge and agree that any amount payable under this Article 
  is not a penalty and represents a reasonable estimate of fair compensation for the damage 
  incurred due to failure to provide the services within the applicable time limits set out in 
  this FWC. 