---
kind: "section"
citation: "2 U.S.C. § 1816"
title: "2"
title_heading: "The Congress"
number: "1816"
heading: "Construction contracts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/2/1816"
units:
  - "Chapter 28 — Architect of the Capitol"
  - "Subchapter II — General Powers and Duties"
---

# §1816. Construction contracts

- (a) **Liquidated damages—** The Architect of the Capitol may not enter into or administer any construction contract with a value greater than $50,000 unless the contract includes a provision requiring the payment of liquidated damages in the amount determined under [subsection (b)](#b) in the event that completion of the project is delayed because of the contractor.
- (b) **Amount of payment—** The amount of payment required under a liquidated damages provision described in [subsection (a)](#a) shall be equal to the product of—
  - (1) the daily liquidated damage payment rate; and
  - (2) the number of days by which the completion of the project is delayed.
- (c) **Daily liquidated damage payment rate—**
  - (1) **In general—** In [subsection (b)](#b), the “daily liquidated damage payment rate” means—
    - (A) $140, in the case of a contract with a value greater than $50,000 and less than $100,000;
    - (B) $200, in the case of a contract with a value equal to or greater than $100,000 and equal to or less than $500,000; and
    - (C) the sum of $200 plus $50 for each $100,000 increment by which the value of the contract exceeds $500,000, in the case of a contract with a value greater than $500,000.
  - (2) **Adjustment in rate permitted—** Notwithstanding [paragraph (1)](#c-1), the daily liquidated damage payment rate may be adjusted by the contracting officer involved to a rate greater or lesser than the rate described in such paragraph if the contracting officer makes a written determination that the rate described does not accurately reflect the anticipated damages which will be suffered by the United States as a result of the delay in the completion of the contract.
- (d) **Effective date—** This section shall apply with respect to contracts entered into during fiscal year 2002 or any succeeding fiscal year.

## Source credit

(Pub. L. 107–68, title I, § 130, Nov. 12, 2001, 115 Stat. 580.)

## Notes

### Editorial Notes

### Codification

Section was classified to section 166j of former Title 40, prior to the enactment of Title 40, Public Buildings, Property, and Works, by Pub. L. 107–217, § 1, Aug. 21, 2002, 116 Stat. 1062.