LIQUIDATED DAMAGES

An amount fixed in the contract which is assessed against a Contractor when it breaches the delivery provision of a contract (e.g., it fails to complete delivery, installation, service, or the work specified in a contract within the contract period of performance or schedule) where the extent of actual damages would be difficult or impossible to determine. Liquidated damages are a predetermined, set amount and are included in the contract in lieu of attempting to measure actual damages. Liquidated damages, as predetermined, are assessed even if there are no ascertainable damages or greater damages as a result of the contractor’s failure to perform in accordance with contract requirements.