K-Con Can't Shake Delay Penalty In Coast Guard Feud

Law360, New York (August 22, 2011, 2:45 PM EDT) -- A U.S. Court of Federal Claims judge on Friday refused to invalidate a contract provision requiring K-Con Building Systems Inc. to pay liquidated damages to the U.S. Coast Guard for failing to complete a prefabricated building construction project on time.

In denying K-Con's motion for partial summary judgment, Judge Margaret M. Sweeney rejected the contractor's argument that it should not be forced to pay liquidated damages of $589 per day because the Coast Guard's rate calculation was arbitrary and unsupported, and because the alleged construction delays...
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