Us Code § 1816 - Construction contracts
Full text of Us Code United States Code § 1816 — Construction contracts, with citation guidance and answers to common questions.
§ 1816. Construction contracts
(a) Liquidated damages
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) Amount of payment
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) Daily liquidated damage payment rate
(1) In general
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) Adjustment in rate permitted
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) Effective date
This section shall apply with respect to contracts entered into during fiscal year 2002 or any succeeding fiscal year.
(Pub. L. 107–68, title I, §130, Nov. 12, 2001, 115 Stat. 580.)
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.
About This Section
2 U.S.C. § 1816 is part of Title 2 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
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