108.10 Liquidated Damages - Revision history

Clarkj25: /* Guidelines for Assessing Liquidated Damages */

2024-10-23T21:24:55Z

Guidelines for Assessing Liquidated Damages

Clarkj25 at 14:01, 27 July 2022

2022-07-27T14:01:17Z

Clarkj25 at 13:57, 27 July 2022

2022-07-27T13:57:55Z

Clarkj25 at 13:52, 27 July 2022

2022-07-27T13:52:11Z

SchaeferS: Removed 2012 Spec Book tagline link

2022-01-12T21:40:07Z

Removed 2012 Spec Book tagline link

SchaeferS: /* LAP Project Considerations */ Deleted this section because it's covered in the main LAP section, per Kelly Crannell

2020-07-30T16:48:34Z

LAP Project Considerations: Deleted this section because it's covered in the main LAP section, per Kelly Crannell

SchaeferS: Updated content and added "LAP Project Considerations" info/links

2020-07-15T20:54:02Z

Updated content and added "LAP Project Considerations" info/links

JohnsonN23 at 19:02, 19 June 2017

2017-06-19T19:02:09Z

JohnsonN23: /* See Also */

2017-06-19T12:38:06Z

JohnsonN23: /* See Also */

2017-06-19T12:36:07Z

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 ===[[#Guidelines for Assessing Liquidated Damages|Guidelines for Assessing Liquidated Damages]]===
-The Contract Modifications, which follow or accompany the request for extension of contract time, should merely revise the contract completion date according to the approved Form 1100A and should include a statement that the amount of liquidated damages will be determined following completion of the project and determination of final contract quantities.
+The Contract change orders, which follow or accompany the request for extension of contract time, should merely revise the contract completion date according to the approved Form 1100A and should include a statement that the amount of liquidated damages will be determined following completion of the project and determination of final contract quantities.
 <div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 Liquidated damages for department oversight costs are specified in [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 subsection 108.10.C.1] of the Standard Specifications for Construction.  These damages represent the additional cost of engineering and supervision due to a contractor’s failure to open to traffic or complete work within the specified contract time.  These liquidated damages will be identified as the pay item “Liquidated Damages, Oversight”.
-Liquidated damages for other department costs are described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.2] of the Standard Specifications for Construction and these represent the inconvenience to the public, maintenance of detours, and other items that have caused an expenditure of public funds due to the contractor’s failure to open to traffic or complete the work within the specified contract time.  These liquidated damages, when applicable, may be combined with liquidated damages described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1].  Liquidated damages for other department costs will be identified as the pay item “Liquidated Damages, Other”.
+Liquidated damages for other department costs are described in [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 subsection 108.10.C.2] of the Standard Specifications for Construction and these represent the inconvenience to the public, maintenance of detours, and other items that have caused an expenditure of public funds due to the contractor’s failure to open to traffic or complete the work within the specified contract time.  These liquidated damages, when applicable, may be combined with liquidated damages described in [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 subsection 108.10.C.1].  Liquidated damages for other department costs will be identified as the pay item “Liquidated Damages, Other”.
-Liquidated damages for user delay costs are to be assessed with the pay item “Liquidated Damages, Other” as these liquidated damage values are not associated with [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1].  These liquidated damages are not to be described in the progress clause, incentive special  provisions, the special provision for maintaining traffic, or any other contract documents.  A unique special provision must be developed when applying liquidated damages for other department costs.  The special provision is to be titled Special Provision for Liquidated Damages for Other Department Costs.  These damages may be specified by the hour, day, or some other increment of time, and must be supported by a user delay analysis.  The monetary amount of damage per unit of time must not exceed the user delay monetary amount per unit of time.
+Liquidated damages for user delay costs are to be assessed with the pay item “Liquidated Damages, Other” as these liquidated damage values are not associated with [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 subsection 108.10.C.1].  These liquidated damages are not to be described in the progress clause, incentive special  provisions, the special provision for maintaining traffic, or any other contract documents.  A unique special provision must be developed when applying liquidated damages for other department costs.  The special provision is to be titled Special Provision for Liquidated Damages for Other Department Costs.  These damages may be specified by the hour, day, or some other increment of time, and must be supported by a user delay analysis.  The monetary amount of damage per unit of time must not exceed the user delay monetary amount per unit of time.
 The calculation of liquidated damage values (e.g. user delays costs) for other department costs must be documented and placed in the appropriate project folder in the ProjectWise directory.
@@ Line 27: / Line 27: @@
 ====[[#Suggested Wording When Assessing Liquidated Damages|Suggested Wording When Assessing Liquidated Damages]]====
-''Contract Time in Working Days.''  In the absence of any justification for an extension of time without assessment of liquidated damages, it is recommended that the contract time be extended X working days and liquidated damages be assessed following the expiration of X working days.  This assessment is subject to revision, however, if subsequent extensions of time are granted without damages in accordance with subsection [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf 108.09 and 108.10] of the standard specifications.
+''Contract Time in Working Days.''  In the absence of any justification for an extension of time without assessment of liquidated damages, it is recommended that the contract time be extended X working days and liquidated damages be assessed following the expiration of X working days.  This assessment is subject to revision, however, if subsequent extensions of time are granted without damages in accordance with subsection [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 108.09 and 108.10] of the standard specifications.
 '''(Note: X = Original contract time in working days + any previously authorized extensions without damages).'''
-''Calendar Date Completion.''  In the absence of any justification for an extension of time without assessment of liquidated damages, it is recommended that the completion date be extended to (date) with liquidated damages to be assessed after Y.  This assessment is subject to revision, however, if subsequent extensions are granted without damages in accordance with Article [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf 108.09 and 108.10] of the Standard Specifications for Construction.
+''Calendar Date Completion.''  In the absence of any justification for an extension of time without assessment of liquidated damages, it is recommended that the completion date be extended to (date) with liquidated damages to be assessed after Y.  This assessment is subject to revision, however, if subsequent extensions are granted without damages in accordance with Article [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 108.09 and 108.10] of the Standard Specifications for Construction.
 '''(Note: Y = Original contract completion date, or previously authorized extensions thereof, without assessment of damages).'''
@@ Line 47: / Line 47: @@
 '''Calculation of Liquidated Damages due to weather:'''
-MDOT contracts assume 4.5 days of work per month (30 day period) are lost due to bad weather.  These “given” bad weather days are exempt from Liquidated Damages (LD) per 108.08 of the Standard Specifications for Construction.  For the additional weather delays LD do apply and the formula for calculating this is located in section 108.08.D.01.
+MDOT contracts assume 4.5 days of work per month (30 day period) are lost due to bad weather.  These “given” bad weather days are exempt from Liquidated Damages (LD) per 108.08 of the Standard Specifications for Construction.  For the additional weather delays LD do apply and the formula for calculating this is located in section [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 108.08D.01]
 :::(Number of Days) X 2.0 = Days of weather extension W/O LD’s

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 <div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
 ==[[#LIQUIDATED DAMAGES|LIQUIDATED DAMAGES]]==
-Liquidated damages for department oversight costs are specified in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1] of the Standard Specifications for Construction.  These damages represent the additional cost of engineering and supervision due to a contractor’s failure to open to traffic or complete work within the specified contract time.  These liquidated damages will be identified as the pay item “Liquidated Damages, Oversight”.
+Liquidated damages for department oversight costs are specified in [https://www.michigan.gov/-/media/Project/Websites/MDOT/Field-Services/FieldServices4/2020-Standard-Specifications-Construction.pdf?rev=df6ed714e5bb43b6814fb252b1ed2561 subsection 108.10.C.1] of the Standard Specifications for Construction.  These damages represent the additional cost of engineering and supervision due to a contractor’s failure to open to traffic or complete work within the specified contract time.  These liquidated damages will be identified as the pay item “Liquidated Damages, Oversight”.
 Liquidated damages for other department costs are described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.2] of the Standard Specifications for Construction and these represent the inconvenience to the public, maintenance of detours, and other items that have caused an expenditure of public funds due to the contractor’s failure to open to traffic or complete the work within the specified contract time.  These liquidated damages, when applicable, may be combined with liquidated damages described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1].  Liquidated damages for other department costs will be identified as the pay item “Liquidated Damages, Other”.

@@ Line 1: / Line 1: @@
 <div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
 ==[[#LIQUIDATED DAMAGES|LIQUIDATED DAMAGES]]==
-Liquidated damages for department oversight costs are specified in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1] of the 2012 Standard Specifications for Construction.  These damages represent the additional cost of engineering and supervision due to a contractor’s failure to open to traffic or complete work within the specified contract time.  These liquidated damages will be identified as the pay item “Liquidated Damages, Oversight”.
+Liquidated damages for department oversight costs are specified in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1] of the Standard Specifications for Construction.  These damages represent the additional cost of engineering and supervision due to a contractor’s failure to open to traffic or complete work within the specified contract time.  These liquidated damages will be identified as the pay item “Liquidated Damages, Oversight”.
-Liquidated damages for other department costs are described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.2] of the 2012 Standard Specifications for Construction and these represent the inconvenience to the public, maintenance of detours, and other items that have caused an expenditure of public funds due to the contractor’s failure to open to traffic or complete the work within the specified contract time.  These liquidated damages, when applicable, may be combined with liquidated damages described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1].  Liquidated damages for other department costs will be identified as the pay item “Liquidated Damages, Other”.
+Liquidated damages for other department costs are described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.2] of the Standard Specifications for Construction and these represent the inconvenience to the public, maintenance of detours, and other items that have caused an expenditure of public funds due to the contractor’s failure to open to traffic or complete the work within the specified contract time.  These liquidated damages, when applicable, may be combined with liquidated damages described in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1].  Liquidated damages for other department costs will be identified as the pay item “Liquidated Damages, Other”.
 Liquidated damages for user delay costs are to be assessed with the pay item “Liquidated Damages, Other” as these liquidated damage values are not associated with [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1].  These liquidated damages are not to be described in the progress clause, incentive special  provisions, the special provision for maintaining traffic, or any other contract documents.  A unique special provision must be developed when applying liquidated damages for other department costs.  The special provision is to be titled Special Provision for Liquidated Damages for Other Department Costs.  These damages may be specified by the hour, day, or some other increment of time, and must be supported by a user delay analysis.  The monetary amount of damage per unit of time must not exceed the user delay monetary amount per unit of time.
@@ Line 32: / Line 32: @@
-''Calendar Date Completion.''  In the absence of any justification for an extension of time without assessment of liquidated damages, it is recommended that the completion date be extended to (date) with liquidated damages to be assessed after Y.  This assessment is subject to revision, however, if subsequent extensions are granted without damages in accordance with Article [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf 108.09 and 108.10] of the standard specifications.
+''Calendar Date Completion.''  In the absence of any justification for an extension of time without assessment of liquidated damages, it is recommended that the completion date be extended to (date) with liquidated damages to be assessed after Y.  This assessment is subject to revision, however, if subsequent extensions are granted without damages in accordance with Article [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf 108.09 and 108.10] of the Standard Specifications for Construction.
 '''(Note: Y = Original contract completion date, or previously authorized extensions thereof, without assessment of damages).'''
@@ Line 47: / Line 47: @@
 '''Calculation of Liquidated Damages due to weather:'''
-MDOT contracts assume 4.5 days of work per month (30 day period) are lost due to bad weather.  These “given” bad weather days are exempt from Liquidated Damages (LD) per 108.08 of the 2012 Standard Specifications for Construction (SSFC).  For the additional weather delays LD do apply and the formula for calculating this is located in section 108.08.D.01 of the 2012 SSFC:
+MDOT contracts assume 4.5 days of work per month (30 day period) are lost due to bad weather.  These “given” bad weather days are exempt from Liquidated Damages (LD) per 108.08 of the Standard Specifications for Construction.  For the additional weather delays LD do apply and the formula for calculating this is located in section 108.08.D.01.
 :::(Number of Days) X 2.0 = Days of weather extension W/O LD’s

← Older revision		Revision as of 21:40, 12 January 2022
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−	~~<center>[http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf 2012 STANDARD SPECIFICATIONS FOR CONSTRUCTION - SECTION 108]</center>~~
	<div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>		<div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
	==[[#LIQUIDATED DAMAGES\|LIQUIDATED DAMAGES]]==		==[[#LIQUIDATED DAMAGES\|LIQUIDATED DAMAGES]]==

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 [[Category:Construction Manual]]
 [[Category:Division 1]]
 [[Category:Section 108]]

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 <center>[http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf 2012 STANDARD SPECIFICATIONS FOR CONSTRUCTION - SECTION 108]</center>
-<div style="text-align: center;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: center;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
 ==[[#LIQUIDATED DAMAGES|LIQUIDATED DAMAGES]]==
 Liquidated damages for department oversight costs are specified in [http://mdotcf.state.mi.us/public/specbook/files/2012/108%20Prosecution%20and%20Progress.pdf subsection 108.10.C.1] of the 2012 Standard Specifications for Construction.  These damages represent the additional cost of engineering and supervision due to a contractor’s failure to open to traffic or complete work within the specified contract time.  These liquidated damages will be identified as the pay item “Liquidated Damages, Oversight”.
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 The calculation of liquidated damage values (e.g. user delays costs) for other department costs must be documented and placed in the appropriate project folder in the ProjectWise directory.
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 The Contract Modifications, which follow or accompany the request for extension of contract time, should merely revise the contract completion date according to the approved Form 1100A and should include a statement that the amount of liquidated damages will be determined following completion of the project and determination of final contract quantities.
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 Whenever the Engineer recommends an extension of time, a statement should be included on [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=1100A.pdf Form 1100A] regarding the assessment of liquidated damages.  If additional work has been performed or will be required, if contract quantities have been increased sufficiently, or if delays not the fault of the Contractor have occurred (on calendar day projects), the Engineer may recommend that a portion, or perhaps all, of the estimated additional time required be without assessment of liquidated damages.  When, in the opinion of the Engineer, there is no justification for an extension, or portion thereof, without assessment of damages, the following or similar wording is suggested for [http://mdotjboss.state.mi.us/webforms/GetDocument.htm?fileName=1100A.pdf Form 1100A].
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 '''(Note: Y = Original contract completion date, or previously authorized extensions thereof, without assessment of damages).'''
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 Note: this example is after September 15th and that there is a different factor to apply for projects with completion dates before September 15th and also for the partial months of April and November.
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 [http://mdotwiki.state.mi.us/construction/index.php/108.07_Extension_of_Time_on_Work_Day_Contracts Extension of Time and Liquidated Damages]
-<div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
+<div style="text-align: right;">[mailto:Change?body=http://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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 ===See Also===
-[http://mdotwiki.state.mi.us/construction/index.php/Extension_of_Time_on_Workday_Contracts#Extension_of_Time_and_Liquidated_Damages 108.07.1 - Extension of Time and Liquidated Damages]
+[http://mdotwiki.state.mi.us/construction/index.php/108.07_Extension_of_Time_on_Work_Day_Contracts Extension of Time and Liquidated Damages]
 <div style="text-align: right;">[mailto:Change?body=https://mdotwiki.state.mi.us/construction/index.php/108.10_Liquidated_Damages Email this Page]</div>
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