Major expansion of the city public works facility

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Reference no: EM132089274

Lindenwood Contractors entered into a written contract with the City of St. Charles, Missouri to construct a major expansion of the City Public Works facility. The contract required that all construction be complete by November 27, 2015, and if not completed by that date, the contractor will pay to the City $950.00 for each work day that the contractor shall be in default after November 27, 2015. Lindenwood did not compete the facility expansion until June 28, 2016. Because Lindenwood had not completed work on the project by November 27, 2015, the City assessed and deducted from the payment due Lindenwood on the contract, liquidated damages of $133,000 for 140 work days at $950.00 per work day from November 28, 2015, to June 28, 2016. Lindenwood maintains that it was unable to work for 95 of the 140 days due to weather. Lindenwood says it is liable for only 45 days of liquidated damages in the amount of $42,750 because there is a difference between a calendar day as used by City to calculate liquidated damages and a "work day" as specified in the contract. Lindenwood says that with construction work, weather plays a very large factor in whether a contractor can perform productive work. Therefore, days that Lindenwood would not perform work because of the weather should not be counted as a work day under the contract. City maintains that the term "work day" by its common accepted usage means Monday through Friday. You are the judge. What amount of liquidated damages do you award? Fully explain your answer.

Reference no: EM132089274

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