It is a good idea to add a penalty clause to an outsourcing agreement because deadlines are often taken as a suggestion rather than a commitment.

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Another important cultural difference relates to schedules and deadlines.To most Americans, a deadline is a set completion date.In many other cultures, a deadline is a suggestion that maybe something will be finished by that indicated date.To ensure that outsourced work is completed on time it is imperative to add a penalty clause to your contract or enforce late fees.

It Is a Good Idea to Add a Penalty Clause