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Liquidated Damages Assessed On Two Separate Completion Dates

Monday, August 01, 2011 03:01 am


Liquidated Damages

Appeal of: Sundt Construction, Inc., ASBCA No. 57358 (May 24, 2011)

A government contract can stipulate two separate completion dates, and you'll be obligated to meet them both-- not just the penultimate one.

The U.S. Air Force issued an $18.4-million contract to Sundt Construction, Inc. (Sundt) for design and construction services for military family housing at Andrews Air Force base, Maryland. The contractual delivery schedule date for the work was revised via several contract modifications throughout the project. Ultimately, the modifications required that all units except one be completed by February 28, 2007. One unit, a General Officer's Quarters building (GOQ) that had been the subject of several design changes, was granted an extension until September 14, 2007.

When Sundt failed to deliver any units at all by the end of February 2007, the government allowed Sundt to continue work with the understanding that the government would assess liquidated damages against the contractor for late performance in accordance with the contract. Sundt completed all its work by September 2007. It therefore argued that no assessment of liquidated damages wa [...]

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