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Liquidated Damages Enforced Despite Continuous Use Liquidated Damages

Thursday, January 02, 2003 12:08 pm

Liquidated Damages Enforced Despite Continuous Use Liquidated Damages

The Armed Services Board of Contract Appeals has ruled that the government can assess liquidated damages for late completion even when the contract allows the government to occupy and use the facility throughout construction and requires the contractor to work around the government's operations.

The Department of Health and Human Services awarded a contract to William F. Klingensmith, Inc. (WFK) for "phased modifications" to a building at the National Institutes of Health. The work was divided into five phases, each with its own milestone completion deadline and separate rate of liquidated damages.

The contract stated that "the government will occupy the site and existing building during the entire construction period [...]

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