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General Requirements & Control

145Stipulated Damages

LA · 2016 Standard SpecificationsBook pages 114114View official source ↗

Table 108-1 Stipulated Damages Original Contract Amount Daily Charge (A) Million Dollars Dollars 0 - 1 >1 - 5 >5 -10 >10 - 15 >15 - 20 > 20 $ 500 1,000 2,000 4,000 8,000 10,000

Traffic Volume Daily Charge (B) ADT x 1000 Dollars 0 -10 >10 - 20 >20 - 30 >30 - 40 >40 - 50 >50 $ 500 1,000 2,000 4,000 8,000 10,000

The contractor will automatically be subject to an assessment of stipulated damages by the expiration of contract time on the project. At any time stipulated damages are assessed, such damages shall be assessed continuously until the cause of such assessment ends, regardless of intervening circumstances. The amount of assessed stipulated damages will be deducted from payments for the work under the contract or from any payments on any other contract the contractor has with the Department. The contractor hereby waives any requirement of written notice of default prior to any deduction for stipulated damages from any payments. The contractor and the surety shall be solidarily liable for stipulated damages in excess of any remaining amounts due the contracto r under the contract.

108.09DEFAULT OF CONTRACT. The contractor shall be in default ,

if the contractor:

1.Fails to complete the project within the contract time,
2.Becomes insolvent or a petition is filed in the Bankruptcy Courts of

the United States under Chapters 7 or 13 of the Bankruptcy Code naming the contractor as debtor or conversion of a proceeding or petition from Chapter 11 to Chapter 7 or 13 of the Bankruptcy Code or seeks a forced respite under the laws of this State or similar debtor protection by courts of other states,

3.Allows any final judgment to stand unsatisfied for a period of 14

calendar days,

4.Makes an assignment or arranges for performance by others of all or

part of the performance of the contract, other than by subletting pursuant to

108.01, wi thout written approval and consent in advance of the Department,

and the surety in the case of an assignment of the entire contract,

5.Makes an assignment of contract proceeds for the benefit of one or

more creditors without prior written approval and conse nt of the Department; any such purported assignment will not be honored without evidence of compliance with this subparagraph,

6.Discontinues prosecution of the work,
7.Fails to begin work within 10 calendar days of either the “Notice to

Proceed” or end of the Assembly Period,

8.Fails to perform with sufficient workers, equipment, or materials to

assure prompt completion of the work,

9.Performs the work unsuitably or neglects or refuses to remove

materials, or replace or repair rejected work,

10.Fails to resume discon tinued or suspended work within 10 calendar

days after notice to do so,

11.Fails to maintain licenses or certifications, or to acquire permits,

necessary to accomplish the work;

Source: Louisiana Standard Specifications for Roads and Bridges, 2016 Edition. Pages 114114 of 1,145.