Page 55 - CONTRACT POLICY MANUAL

§3.3-120 Liquidated Damages

(1) Liquidated damages clauses are enforceable if:
a) damages are difficult to ascertain or estimate at the time the contract is formed; and
b) the amount is a reasonable forecast of compensatory damages in the case of breach.
Specifically, if the liquidated damages amount significantly exceeds the amount of
damages prospectively probable, the liquidated damages clause may not be enforceable.
(2) Liquidated damage clauses may be included in service contracts when the County could suffer
financial loss due to delays in performance. Consistent with legal requirements, the amount of
damages listed in the contract must be a “reasonable forecast” of the County’s actual damages.

(3) Liquidated Damages Clause:
a) It is agreed by and between the Contractor and the County that if this Contract is not fully
and completely performed within the terms of the contract, damage will be sustained by
the County. Said damage includes any additional costs resulting from a delay in scheduled
time frames by the Contractor. Since it is and will be impractical and extremely difficult
to determine the actual damage which the County will sustain by reason of such delay, it
is therefore agreed that Contractor will pay to the County liquidated damages in a set
amount for each and every day of delay as set forth in this document.

b) In the event the liquidated damages as set forth herein are not paid by the Contractor, the
County will deduct the amount of liquidated damages from any monies due Contractor
under this contract.
c) This provision may be invoked at the sole option of the County by notification to the
Contractor by certified return receipt mail.
d) If Contract is delayed by reason of changes or extra services ordered by the County or as a
result of the County’s failure to perform or delays cause by the County, the time of
performance of this Contract will be extended commensurate with the time required for the
extra services, and no liquidated damages will accrue during the period of such extension.
e) If this Contract is not fully and completely performed within the time set forth herein, the
County shall have the right to increase the time for such performance and to waive the
liquidated damages. Nothing herein shall be construed as giving the Contractor a right to
extra time for performance.

§3.3-121 Contract Administration

(1) All service contracts will be monitored for efficient performance by the project
manager/department designee named in the contract documents. The service(s) to be provided will
be clearly stated in the contract and it will be the job of the representative to monitor the contractor’s
performance to ensure that those services are provided.
a) All contract deficiencies will be noted in writing to the contractor and sent to the County
Procurement Officer or Deputy Purchasing Agent, as appropriate.
b) No contractor will be paid in full for any service which has not been satisfactorily
performed.

51