Clawback is a provision under which money that’s already been paid out must be returned to the government or company. This is a special contractual clause for money paid for services to be returned under special circumstances or events as stated in the contract. Most clawback provisions are non-negotiable. Clawbacks are typically used in response to misconduct, scandals, poor performance, or a drop in company profits. (Also, known as restitution)
Related Definitions in the Project: The Commercial Definitions; Project Contract
