8-1.18 Liquidated Damages

Liquidated damages are discussed in Sections 5-13, Terminate Contract, and 7-3, Bonds, Insurance, and Taxes. Construction purchase contracts may contain Clause 2-10: Liquidated Damages, as well as other clauses relevant to liquidated damages, and the insertion of this language into contracts must be considered. For additional information on calculating the liquidated damages rate for construction projects see the guidelines in Handbook P-2, Design and Construction Purchasing Practices. When different completion periods for separate parts or stages of the work are specified in the contract, the clause may be revised to provide for liquidated damages for each separate part or stage in which delay will damage the Postal Service.