Overview
This section prescribes the specific standard contract clauses that must be included in federal solicitations and contracts when the contracting officer determines that liquidated damages are necessary to protect the government's interests.
Key Rules
- Supplies, Services, and R&D: Use clause 52.211-11 in fixed-price contracts when liquidated damages are deemed appropriate by the contracting officer.
- Construction Requirements: Use clause 52.211-12 for construction contracts (except cost-plus-fixed-fee). If the project involves multiple milestones or stages, the clause must be modified to specify distinct liquidated damage amounts for each separate stage.
- Time Extensions: Clause 52.211-13 must be included in construction contracts specifically when clause 52.211-12 has been modified to account for phased work or multiple completion dates.
Practical Implications
- Contracting officers must proactively determine the "appropriateness" of liquidated damages rather than including them as a default; otherwise, the clauses may be omitted.
- For complex construction projects, the government must ensure that liquidated damage rates are clearly apportioned across different stages of work to avoid legal challenges regarding the "reasonableness" of the damages.