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  • Question

    Can LDs be assessed if the completion date has not passed in regards to the entire contract? Can you do a modification to extend the contract and assess LDs at the same time?


    Answer

    Given that you have the proper LD clause in the contract, yes, you can assess liquidated damages before the contract ends if there were actual damages caused by a late delivery or other failure to perform.
     
    If you extend the contract, you are in effect authorizing a new delivery schedule and liquidated damages would be inappropriate. The only way I see getting around that is if the contractor agrees to pay  the  liquidated damages and a contract extension in the same bi-lateral contract modification as part of the remedy action.


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