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Oralagreement On Liquidated Damages Was Not Valid Or Binding

Wednesday, April 04, 2007 12:00 pm

Oralagreement On Liquidated Damages Was Not Valid Or Binding

The ASBCA ruled that an oral agreement the parties reached regarding liquidated damages had no effect because the contract price could not be modified without a written agreement.

The Naval Facilities Engineering Command awarded Trawick Contractors, Inc. a fixed-price construction contract. The total contract price was $9.4 million and Feb. 6, 2004 was the construction completion date.

The contract included the following clauses: FAR 52.211- 12, Liquidated Damages; Navy clause FAC 5252.201-9300, Contracting Officer Authority; and FAC 5252.242-9300 Government Representatives.

Trawick finished the project 141 days after the completion date. The company's project man [...]

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