2 USC § 1816 - Construction contracts

---
identifier: "/us/usc/t2/s1816"
source: "usc"
legal_status: "official_prima_facie"
title: "2 USC § 1816 - Construction contracts"
title_number: 2
title_name: "THE CONGRESS"
section_number: "1816"
section_name: "Construction contracts"
chapter_number: 28
chapter_name: "ARCHITECT OF THE CAPITOL"
subchapter_number: "II"
subchapter_name: "GENERAL POWERS AND DUTIES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 107–68, title I, § 130, Nov. 12, 2001, 115 Stat. 580.)"
---


# § 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) 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) 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), 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), 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.)

## 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 , , .