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Michigan Court of Appeals Holds That Contractor Who Failed to Timely Seek a Time Extension Is Barred From Contesting Liquidated Damages

Abhe & Svboda, Inc. v. State of Michigan Department of Transportation, 2017 Mich. App. Lexis 1387 (August 29, 2017)

Author: Michelle Beth Rosenberg

11/02/2017

Read the full post at Constructlaw

Michigan Court of Appeals Holds That Contractor Who Failed to Timely Seek a Time Extension Is Barred From Contesting Liquidated Damages

Contractor Abhe & Svboda, Inc. (A&B) entered into a contract with the Michigan Department of Transportation (MDOT) to clean and paint a portion of the Mackinac Bridge, with a contract completion date of October 30, 2009.  A&B missed the completion date by 644 days. MDOT, therefore, imposed liquidated damages in the amount of $3,000 per day for each day by which completion was delayed.

In the trial court, A&B argued that MDOT’s assessment of liquidated damages was improper because a portion of the delay was caused by MDOT’s failure to approve a prerequisite to the work (scaffolding) and because site conditions were substantially worse than reasonably anticipated.

The trial court held that A&B waived its right to relief, because A&B never requested an extension of time as provided in the contract.