§1816 — Title 2 The Congress | U.S. Code

Summary

The Architect of the Capitol must put a liquidated-damages clause into any construction contract worth more than $50,000. If the contractor causes a delay in finishing the project, the contractor must pay the daily damage rate times the number of days delayed. The daily damage rates are $140 for contracts over $50,000 and under $100,000; $200 for contracts $100,000 to $500,000; and $200 plus $50 for each $100,000 increment the contract exceeds $500,000. The contracting officer can change the rate up or down with a written reason. This rule applies to contracts from fiscal year 2002 onward.

Title 2, §1816

The Congress — Source: USLM XML via OLRC

(a)The Architect of the Capitol may not enter into or administer any construction contract with a value greater than $50,000 unless the contract includes a provision requiring the payment of liquidated damages in the amount determined under subsection (b) in the event that completion of the project is delayed because of the contractor.

(b)The amount of payment required under a liquidated damages provision described in subsection (a) shall be equal to the product of—

(1)the daily liquidated damage payment rate; and

(2)the number of days by which the completion of the project is delayed.

(c)(1)In subsection (b), the “daily liquidated damage payment rate” means—

(A)$140, in the case of a contract with a value greater than $50,000 and less than $100,000;

(B)$200, in the case of a contract with a value equal to or greater than $100,000 and equal to or less than $500,000; and

(C)the sum of $200 plus $50 for each $100,000 increment by which the value of the contract exceeds $500,000, in the case of a contract with a value greater than $500,000.

(2)Notwithstanding paragraph (1), the daily liquidated damage payment rate may be adjusted by the contracting officer involved to a rate greater or lesser than the rate described in such paragraph if the contracting officer makes a written determination that the rate described does not accurately reflect the anticipated damages which will be suffered by the United States as a result of the delay in the completion of the contract.

(d)This section shall apply with respect to contracts entered into during fiscal year 2002 or any succeeding fiscal year.

Editorial Notes

Codification Section was classified to section 166j of former Title 40, prior to the enactment of Title 40, Public Buildings, Property, and Works, by Pub. L. 107–217, § 1, Aug. 21, 2002, 116 Stat. 1062.

§1816 Construction Contracts

Summary

Title 2, §1816

Notes & Related Subsidiaries

Editorial Notes

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