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Liquidated Damages Clause and Waiver of Consequential Damages Clause Effectively Cap Damages Available against Design-Builder

by Kent Holland | Feb 9, 2011 | Newsletter Article

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...

Prompt Payment Act Not Triggered Until Architect Issues Payment Certificate

by Kent Holland | Feb 9, 2011 | Newsletter Article

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”...

Liquidated damage assessment against contractor

by Kent Holland | Feb 7, 2011 | Newsletter Article

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...

$26.9 Million in Liquidated Damages Not a Windfall to Power Plant Owner

by Kent Holland | Dec 31, 2010 | Newsletter Article

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...

Liquidated Damages Enforced Against Road Re-Striping Contractor on Federal Highway Project

by Kent Holland | Dec 31, 2010 | Newsletter Article

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...
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