Propane Patch Heater Liquidated Damages Clause .docx

Maine Department of Transportation Fleet Services

LIQUIDATED DAMAGES

It is agreed by the parties to the contract that time is of the essence, and in event of delay in completion of the work or the delivery of the supplies, materials or equipment beyond the date set forth in the Contract Documents, or beyond authorized extensions thereof, damage will be sustained by Maine Department of Transportation Fleet Service associated with the following: rental cost of replacement equipment, repair or maintain costs for other equipment, additional labor costs, and other project delay costs, etc. Because it is impracticable to determine the actual amount of the damage by reason of such delay, it is, therefore, agreed that the contractor will pay to Maine Department of Transportation Fleet Service the sum of two hundred dollars ($500.00) per unit for each and every calendar day's delay in DELIVERY AND ACCEPTANCE, as defined below, of units beyond the dates in the negotiated delivery schedule.

These damages shall be deducted from any monies due, or which may thereafter become due, to the contractor under this contract or may be recovered by Maine Department of Transportation Fleet Service through any lawful means.

The contractor will be granted an extension of time and will not be assessed with liquidated damages or the cost of engineering and inspection for any portion of the delay in completion of the work beyond the time named in these Contract Documents caused by acts of God or of the public enemy, fire, floods, epidemics, quarantine, restrictions, strikes, labor disputes, and freight embargos, or other causes beyond his reasonable control, provided that the Contractor shall notify Maine Department of Transportation Fleet Service in writing of the cause of delay within fifteen (15) days from the beginning of any such delay.

Maine Department of Transportation Fleet Service shall ascertain the facts and extent of the delay, and his findings thereon shall be final and conclusive. Contractor has the burden of proof that the delay was beyond his control.

DELIVERY AND ACCEPTANCE

Time is of the essence in this Contract. The Contractor shall prosecute the work continuously and diligently. Delivery and acceptance of the units shall occur in accordance with the terms and conditions set out below.

Production of the units shall be conducted as a continuous production with no breaks or inserts of other orders or types of equipment.

Delivery shall be restricted to Monday through Friday, between the hours of 8 AM and 4 PM.

Units furnished under this Contract shall be delivered in first class condition, complete and ready for operation, and the Contractor shall assume all costs, responsibilities, and risk or loss incident to the delivery.

When units are delivered, certificates or releases signed by representatives of Maine Department of Transportation Fleet Service are understood to be a simple acknowledgment of receipt of the units only, and will NOT constitute an acceptance by Maine Department of Transportation Fleet Service of the condition of the units or their conformance with the terms and conditions of the contract specifications.

Upon delivery, Maine Department of Transportation Fleet Service will conduct such tests as may be required to determine to its own satisfaction that the units appear to be in conformance with the terms, conditions, and requirements of the contract specifications.

Acceptance by Maine Department of Transportation Fleet Service shall occur only after final inspection by authorized employees of Maine Department of Transportation Fleet Service. Maine Department of Transportation Fleet Service will notify the Contractor within fifteen (15) days after delivery if the coaches have or have not been accepted. A letter of non-acceptance will furnish details of deficiencies.

2/17/2015