Can we set penalties for missed pickups?

Yes, if you want them in the contract.

How do you handle repeated failure to meet agreed standards?

A corrective plan, then a review, then the agreed remedy.

Are penalties standard in your contracts?

No, they are added when a company asks.

How are failures proved?

From GPS records and trip logs.

Penalties and Service Credits in SLAs

Can our company establish penalties or service credits for contractually defined failures?

Short answer

Yes, if you ask: written into the contract with clear definitions.

Yes, if your company asks for them. Shiv Shakti Tours & Travels can include penalties or service credits in the contract for failures you define, such as a missed pickup or a vehicle that does not report. The contract spells out what counts as a failure, how it is measured from GPS records, the amount or credit, and the corrective steps that come first when a problem repeats.

Answered by Vaibhaviba Bhavsinh Solanki, owner of Shiv Shakti Tours & Travels · Last checked 9 October 2026 · 2 min read

Onrequest

Definedfailures

GPSmeasured

Stepsbefore penalties

Key facts: penalties and credits

Available: If the company asks, in the contract
What counts: Failures defined in the contract
Measurement: GPS reporting times and trip records
Remedy: Penalty or service credit, as agreed
Amounts: Agreed per contract; none published
Repeated failures: Corrective plan, review, then the agreed remedy
Exclusions: Agreed causes outside our control, such as road closures
Shown on: The monthly report and invoice

What failures are usually defined?

The ones that hurt a shift. Keep the list short and measurable so both sides read the report the same way.

Failure	How it is measured
Missed pickup	No vehicle at a scheduled pickup
Late reporting	GPS time at the first pickup after the agreed time plus any grace period
Vehicle not supplied	Agreed vehicle missing from a scheduled run
Wrong vehicle type	A smaller vehicle sent without agreement

How are repeated failures handled?

First, a corrective plan for the route: a different driver, an earlier start or a resized vehicle. If the problem continues, it is taken up at the review meeting, and the agreed penalty or credit applies as the contract says.

See repeated delays and corrective action.

What makes these terms work?

Clear definitions, a grace period that suits your roads, and agreed exclusions such as road closures or plant gate delays. That way the penalties track real failures, not bad luck.

See the service-level agreement.

Where do these facts come from?

The penalty terms on this page were confirmed by the owner on 9 October 2026; they are added on request, not as standard.

Penalties or service credits included when a company asks confirmed by the owner on 9 October 2026.

About this answer

Written and checked by Vaibhaviba Bhavsinh Solanki, owner of Shiv Shakti Tours & Travels, a GST- and MSME-registered taxi and car rental company in business since 2018. Branch: Hansalpur Circle, Becharaji, near the SMG (Maruti Suzuki) plant, Gujarat 384210. Head office: B-50, First Floor, Jay Bhanu Society, Gate No. 2, Ghatlodiya, Ahmedabad 380061. Open 24/7 on +91 99745 30788. Rated 4.9 on Google.

To cite this answer:Shiv Shakti Tours & Travels, "Can our company establish penalties or service credits for contractually defined failures?", updated 9 October 2026, https://www.shivshaktitoursandtravels.in/answers/corporate-accounts/penalties-and-service-credits/

Talk to us

Call or WhatsApp any time. We answer in English, Gujarati and Hindi, and confirm the car and fare before you travel.

Shiv Shakti Tours & Travels, Hansalpur Circle, Near SMG (Maruti Suzuki) Plant, Becharaji, Gujarat 384210 · Ahmedabad office: B-50, First Floor, Jay Bhanu Society, Gate No. 2, Ghatlodiya, Ahmedabad 380061 · Open 24/7 · See our Terms and Cancellation & Refund Policy.