Common use of Liquidated Damages for Lane Closures and Lane Rental Charges Clause in Contracts

Liquidated Damages for Lane Closures and Lane Rental Charges. 8.7.2.1 DB Contractor shall be liable for and pay to TxDOT liquidated damages for Lane Closures (“Liquidated Damages for Lane Closures”) and Lane Rental Charges assessed against DB Contractor for failure to meet Lane Closure requirements as described in Exhibit 15 to the Design-Build Agreement. 8.7.2.2 DB Contractor acknowledges and agrees that Liquidated Damages for Lane Closures and Lane Rental Charges are reasonable in order to compensate TxDOT for damages it will incur as a result of such Chargeable Lane Closures. Such damages include (a) loss of use, enjoyment and benefit of the Project and connecting TxDOT transportation facilities by the general public, (b) injury to the credibility and reputation of TxDOT’s transportation improvement program with policy makers and with the general public who depend on and expect availability of service, which injury to credibility and reputation may directly result in loss of ridership on the Project and connecting TxDOT transportation facilities, and (c) additional costs of administering this Design-Build Contract (including engineering, legal, accounting, overhead and other administrative costs). DB Contractor further acknowledges that these damages are incapable of accurate measurement because of, among other things, the unique nature of the Project and the unavailability of a substitute for it and such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances as of the Effective Date.

Liquidated Damages for Lane Closures and Lane Rental Charges. 8.7.2.1 DB Contractor shall be liable for and pay to TxDOT liquidated damages for Lane Closures (“Liquidated Damages for Lane Closures”) and Lane Rental Charges assessed against DB Contractor for implementing failure to meet certain Lane Closure Closures requirements as described in Exhibit 15 to the Design-Build Agreement. 8.7.2.2 DB Contractor acknowledges and agrees that Liquidated Damages for Lane Closures and Lane Rental Charges are reasonable in order to compensate TxDOT for damages it will incur as a result of such Chargeable Lane Closures. Such damages include (a) loss of use, enjoyment and benefit of the Project and connecting TxDOT transportation facilities by the general public, (b) injury to the credibility and reputation of TxDOT’s transportation improvement program with policy makers and with the general public who depend on and expect availability of service, which injury to credibility and reputation may directly result in loss of ridership on the Project and connecting TxDOT transportation facilities, and (c) additional costs of administering this Design-Build Contract (including engineering, legal, accounting, overhead and other administrative costs). DB Contractor further acknowledges that these damages are incapable of accurate measurement because of, among other things, the unique nature of the Project and the unavailability of a substitute for it and such amounts are in the nature of liquidated damages and not a penalty and that such sums are reasonable under the circumstances as of the Effective Date.