Clause 138 In the event that the contracting party is unable to perform
according to the contract or agreement and the penalty amount to be imposed is more
than 10% of the total cost of materials or works, the government agency shall
consider to cancel the contract or agreement. However, in the case that the
contracting party agrees to pay penalty to the government without any condition, the
head of government agency shall consider to reprieve the cancellation as necessary.