Article Date: 03/12/2007

LIQUIDATED DAMAGES AGREEMENT REQUIRED CONTRACT MODIFICATION

Armed Services Board of Contract Appeals

Appeal of Trawick Contractors, Inc.

No. 55097
February 23, 2007

Overview

The Armed Services Board of Contract Appeals has ruled that an agreement to remit liquidated damages to a contractor was, in effect, an adjustment to the contract price. The agreement was therefore unenforceable without a proper, written contract modification.

Background

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