[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR811.502]



[Page 169]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 8--DEPARTMENT OF VETERANS AFFAIRS

 

PART 811_DESCRIBING AGENCY NEEDS--Table of Contents

 

                    Subpart 811.5_Liquidated Damages

 

Sec. 811.502  Policy.





    Liquidated damages provisions will not be routinely included in 

supply or construction contracts, regardless of dollar amount. The 

decision to include liquidated damages provisions will conform to the 

criteria in FAR 11.502. In making this decision, consideration will be 

given to whether the necessity for timely delivery or performance as 

required in the contract schedule is so critical that a probable 

increase in contract price is justified. Liquidated damages provisions 

will not be included as insurance against selection of a non-responsible 

bidder, as a substitute for efficient contract administration, or as a 

penalty for failure to perform on time.