11.500
Scope
FAR 11.500 clarifies when liquidated damages clauses should be used in federal contracts and identifies key exclusions to prevent misapplication.
Overview
FAR 11.500 defines the scope of Subpart 11.5, which establishes the policies and procedures for including liquidated damages clauses in federal solicitations and contracts. It applies to contracts for supplies, services, research and development, and construction. However, it specifically excludes liquidated damages related to subcontracting plans, the Contract Work Hours and Safety Standards statute, and paid sick leave for federal contractors, which are governed by other FAR sections.
Key Rules
- Applicability of Liquidated Damages Policies
- This subpart applies to the use of liquidated damages clauses in most federal contracts for supplies, services, R&D, and construction.
- Exclusions from Scope
- The subpart does not cover liquidated damages for subcontracting plans, contract work hours and safety standards, or paid sick leave, as these are addressed elsewhere in the FAR.
Responsibilities
- Contracting Officers: Must determine when to include liquidated damages clauses in applicable contracts and ensure exclusions are observed.
- Contractors: Should be aware of when liquidated damages clauses may apply and understand exclusions.
- Agencies: Must ensure compliance with the correct FAR subparts for excluded topics.
Practical Implications
- This section clarifies when Subpart 11.5 applies, helping contracting professionals avoid misapplication of liquidated damages clauses.
- Understanding the exclusions prevents overlap or conflict with other FAR requirements.
- Common pitfalls include mistakenly applying these policies to excluded contract types or requirements.