Contractor Owed Liquidated Damages Where it Failed to Timely Seek Change Order for Owner Caused Delay
ConstructionRisk.com Report Vol. #14, Issue #4
See article in the following topic indices:
Change Orders,Claims Procedures,Contract Procedural Requirements,Delay,Liquidated damages,Time Limit
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Where a general contractor failed to follow contract procedures to submit a time extension request, a city was entitled to collect liquidated damages from the contractor despite the fact that the city caused the delay. Since the contractor failed to follow the procedures to claim an extension of time, the trial court would not even [...]
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Liquidated Damages Properly Assessed against Design-Builder Without Regard to Whether Excessive Compared to Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #2
See article in the following topic indices:
Design-Build,Liquidated damages
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Where a design-builder (“contractor”) was assessed liquidated damages by the Contracting Officer under a U.S. Coast Guard contract for the design and construction of prefabricated metal buildings, the contractor filed suit against the Government seeking remission of the liquidated damages based on its argument that the amount set for the LDs was arbitrary and not [...]
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Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Breach of Contract,Damages,Delay Claims,Delays,Design-Build,Federal Government Contracts,Liquidated damages
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Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite evidence that the actual damages incurred by the contractor as a result of alleged [...]
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Subcontractor Was Wrongfully Terminated Where Its Performance was Delayed by the Prime Contractor and Others
ConstructionRisk.com Report Vol. #13, Issue #7
See article in the following topic indices:
Damages - Liquidated,Default Termination,Delay,Interference with Contract,Liquidated damages,Termination
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Demolition delays by others for whom the subcontractor was not responsible significantly impeded the subcontractor’s ability to timely perform its work. Stored equipment and activity of other subcontractors prevented the subcontractor from accessing work areas. And revisions to plans that were required as a result of design errors required removal and relocation of piping the [...]
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Contracts requiring a design-build engineering firm to supply “basic engineering packages” for licensing and technology transfer agreements for the design and construction of a processing plant for sodium hydroxide (caustic soda) contained a liquidated damages clause capping the engineer’s liability at 10 percent of its fee, and also contained a waiver of consequential damages clause [...]
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Prompt Payment Act Not Triggered Until Architect Issues Payment Certificate
Certificate,Liquidated damages,Payment Disputes,Prompt Payment
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Owner had no duty to make prompt payment to its construction contractor even though the architect’s refusal to certify final payment was based on an incorrect understanding of the specifications of the construction contract. The “topsoil” specification required the contractor to provide at least four inches of fill. The architect enforced that section instead of [...]
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Liquidated damage assessment against contractor
Damages - Liquidated,Federal Government Contracts,Liquidated damages,Punitive Damages
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When the amount of damages is difficult to predict, a liquidated damages clause will generally be upheld unless the court determines that the clause was intended to be a penalty rather than liquidated damages. In Safeco Credit v. U.S., 44 Fed.Cl. 406 (1999), a contractor was assessed damages by the Department of Navy for late [...]
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$26.9 Million in Liquidated Damages Not a Windfall to Power Plant Owner
ConstructionRisk.com Report Vol. #12, Issue #3
See article in the following topic indices:
Arbitration,Damages,Delay,Liquidated damages,Settlement Agreement,Substantial Completion
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On October 30, 2009, the DC Superior Court confirmed an August 17, 2009 arbitration award issued by a three-member arbitration panel in New Athens Generating Co. et al. v. Bechtel Power Corp. et al. The Panel awarded $26,950,000 in liquidated damages against the construction giant Bechtel Power Corporation, EPC contractor of a $533 million power [...]
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Liquidated Damages Enforced Against Road Re-Striping Contractor on Federal Highway Project
ConstructionRisk.com Report Vol. #12, Issue #4
See article in the following topic indices:
Federal Government Contract,Liquidated damages
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The liquidated damages (LD) provision in a federally funded contract to re-stripe an interstate highway was held to be enforceable against the contractor that failed to complete a project on time. When the Montana Department of Transportation (MDT or MDOT) assessed and withheld liquidated damages, the contractor filed suit asking the court to declare the [...]
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