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General Requirements (01000-01999)

108.9, Schedule of Liquidated Damages . The assessment of post -substantial -completion

DE · 2025 Standard SpecificationsBook pages 9192View official source ↗

SUBCONTRACTING, NTP, PROGRESS SCHEDULES, SECTION 108 TIME EXTENSIONS; LIQUIDATED DAMAGES; TERMINATION 81 C. For contracts that specify contract time in calendar days or contracts that have a specified completion date, the Department will base the assessment of liquidated damages on the amounts listed under the “Calendar Day” columns of the charts provided in Section 108.9 , Schedule of Liquidated Damages . The Department will include every calendar day in the computation of liquidated damages.

D.For contracts that specify the contract time in working days, the Department will base the

assessment of liquidated damages on amounts listed under the “Working Day” column of the chart provided in Section 108.9 , Schedule of Liquidated Damages . The Department will calculate liquidated damages by counting each working day after the contract time expires.

E.Assessment of liquidated damages begins automatically as soon as the contractor fails to

complete the work within the contract time. No Department action is required to begin the assessment. Failure of the Department to assess liquidated damages does no t constitute a waiver of the Department’s entitlement to recover liquidated damages.

F.The Department may deduct the amount of liquidated damages due from the pay estimate.
G.If the pay estimate amount is less than the liquidated damages due, pay the outstanding balance

of liquidated damages due within 30 calendar days.

H.Failure to pay an outstanding liquidated damage balance due within 30 calendar days may result

in the Department removing the contractor from the list of qualified bidders until the outstanding balance due is paid in full. In the case of joint ventures, the Department may remove each entity that makes up a part of the joint venture from the list of qualified bidders.

I.In addition to the assessment of liquidated damages, the Department will not pay for

maintenance of traffic (MOT) devices or measures used during days when the Department is assessing liquidated damages. Examples of these costs include MOT devices, flag gers, traffic officers, and any lump sum MOT pay items. The Department will not pay for field office costs or the cost of providing CPM schedule updates during the liquidated damage period.

J.The Department does not waive its rights under the contract by allowing the contractor or its

surety to continue the work after expiration of the contract time.

K.Once the Department determines that the work is substantially complete, the Department will

suspend time charges and the assessment of liquidated damages. Failure to complete all punch list work identified during the initial and primary inspections within the timeframes allotted, will result in the Department restarting liquidated damages in accordance with the chart specified in liquidated damages will continue until project completion. Schedule of Liquidated Damages.

A.The specific rates for assessment of liquidated damages, which are based on an estimate of the

additional costs the Department and the traveling public may incur, are as follows:

SUBCONTRACTING, NTP, PROGRESS SCHEDULES, SECTION 108 TIME EXTENSIONS; LIQUIDATED DAMAGES; TERMINATION 82 Table 108.9 -1. Schedule of Liquidated Damages Awarded Contract Value Daily Charge For More Than To and Including Working Day Calendar Day $0 $100,000 $770.00 $550.00 $100,000 $500,000 $1,190.00 $850.00 $500,000 $1,000,000 $1,420 .00 $1020.00 $1,000,000 $2,000,000 $2,210 .00 $1,580.00 $2,000,000 $5,000,000 $2,520 .00 $1,800.00 $5,000,000 $10,000,000 $2,680 .00 $1,92 0.00 $10,000,000 $15,000,000 $3,100 .00 $2,220 .00 $15,000,000 $20,000,000 $4,670 .00 $3,340 .00 $20,000,000 $25,000,000 $6,040 .00 $4,320 .00 $25,000,000 $30,000,000 $7,750 .00 $5,54 0.00 $30,000,000 $35,000,000 $9,730 .00 $6,950 .00 $35,000,000 $50,000,000 $12,600.00 $9,000.00

B.The Department may designate rates for assessment of liquidated damages for contracts with an

awarded contract value exceeding $35,000,000 by Special Provision.

108.10Default of the Contract

A.The engineer may give written notice to the contractor and the surety declaring the contract in

default under the following conditions:

1.Failure to begin work within the time specified in the notice to proceed.
2.Failure to perform the work with sufficient labor, equipment, and material resources to ensure

prompt completion of the work in accordance with the approved schedule.

3.If the contractor's work is unacceptable or if the contractor refuses to remove materials or

correct work the engineer determines is defective or otherwise unacceptable.

4.Ceasing work and failure to resume the work.
5.Insolvency, bankruptcy, files for bankruptcy or insolvency, or allowing any final judgment to

stand unsatisfied for a period of 10 days.

6.Making an assignment for the benefit of creditors without the Department’s authorization.
7.Failure to carry on the work in a manner acceptable to the Department.
B.Failure by the contractor or surety to remedy the condition in the default notice within 10 days

after receiving the notice, will result in the engineer declaring the contractor in default of the contract . This action will terminate the contractor's right to proceed with the work and will give full power and authority for the work to the Department without violating the contract. The Department will take ownership of the contractor’s materials at the site suitable for use . The Department may enter into an agreement with another contractor for completion of the contract or use other methods to complete the contract.

C.The Department will deduct from monies due the contractor for completed work all costs and

charges the Department incurs as a result of the default, including the cost of completing the work

Source: Delaware Standard Specifications for Road and Bridge Construction, 2025 Edition. Pages 9192 of 779.