2 U.S.C. § 1816 — Construction contracts
submitted 25 years ago by Pub. L. 107-68 to r/title-2-THE-CONGRESS · 293 words · no verdicts yet
Construction contracts over $50,000 must generally include liquidated damages for contractor-caused delays. The section sets the daily rates, allows a written adjustment, and applies to contracts entered during fiscal year 2002 and later fiscal years.
(a) Liquidated damages. The Architect of the Capitol may not enter into or administer a construction contract worth more than $50,000 unless it includes a provision requiring liquidated damages if the project is delayed because of the contractor. The amount must be determined under subsection (b).
(b) Amount of payment. The required payment equals the daily liquidated-damage payment rate multiplied by the number of days the project completion is delayed.
(c) Daily liquidated damage payment rate. (1) In general. In subsection (b), "daily liquidated damage payment rate" means: (A) $140 for a contract worth more than $50,000 but less than $100,000; (B) $200 for a contract worth at least $100,000 and no more than $500,000; and (C) $200 plus $50 for each $100,000 increment by which the contract value exceeds $500,000, for a contract worth more than $500,000. (2) Adjustment in rate permitted. Despite paragraph (1), the contracting officer may set a higher or lower daily rate if the officer makes a written finding that the listed rate does not accurately reflect the damages the United States is expected to suffer from the delay.
(d) Effective date. This section applies to contracts entered into during fiscal year 2002 or any later fiscal year.
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.
The amount of payment required under a liquidated damages provision described in subsection (a) shall be equal to the product of—
the daily liquidated damage payment rate; and
the number of days by which the completion of the project is delayed.
In subsection (b), the “daily liquidated damage payment rate” means—
$140, in the case of a contract with a value greater than $50,000 and less than $100,000;
$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
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.
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.
This section shall apply with respect to contracts entered into during fiscal year 2002 or any succeeding fiscal year.
Source credit: (Pub. L. 107–68, title I, § 130, Nov. 12, 2001, 115 Stat. 580.)
- 2001Enacted · Pub. L. 107-68 · 115 Stat. 580
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-68 on 2001-11-12.
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