Section 27-2604. LIQUIDATED DAMAGES IN CONSTRUCTION CONTRACTS  


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    2604.1In accordance with §507(a) of the Act (D.C. Code, §1-1185.7), in all construction contracts estimated to exceed fifty thousand dollars ($50,000), the contracting officer shall include a liquidated damages clause approved by the Director.

     

    2604.2In addition to the provisions of §2303 of this title, the provisions of this section shall apply to all liquidated damages clauses included in construction contracts.

     

    2604.3When liquidated damages clauses are required or used, if different completion periods for separate parts or stages of the work are specified in the contract, the contracting officer shall include a provision, approved by the Director, providing for liquidated damages for delay of or failure to perform each separate part or stage of the work compensating the District for damages incurred.

     

    2604.4The contracting officer shall base the minimum amount of liquidated damages on the estimated cost of inspection and superintendence for each day of delay in completion.

     

    2604.5Whenever the District would suffer other specific losses due to failure of the contractor to complete the work on time, the contracting officer shall also include in the contract the amount of these specific losses.

     

    2604.6If liquidated damages are used in a contract, the contracting officer shall include an appropriate, reasonable rate or rates of liquidated damages.

     

source

Final Rulemaking published at 35 DCR 1581 (February 26, 1988).