G. L. Hegdahl

• Decision Date: 24 October 1955
• Docket Number: B-124041
• Citation: G. L. Hegdahl, 35 Comp.Gen. 228, B-124041 (Comp. Gen. Oct 24, 1955)
• Parties: G. L. HEGDAHL, TREASURY DEPARTMENT,
• Court: Comptroller General of the United States

35 Comp.Gen. 228

G. L. HEGDAHL, TREASURY DEPARTMENT,

No. B-124041

Comptroller General of the United States

October 24, 1955

Contracts - damages - actual - delays in delivery where a contractor failed to make deliveries of embossed plates within the time scheduled in the contract and it was necessary for the government to emboss and punch sufficient plates to meet its immediate needs, the government is entitled to recover the direct and proximate costs incurred as result of the contractor's failure to deliver plates on time even though the contract did not contain any provisions for assessment of liquidated damages and the government subsequently accepted the delinquent deliveries. Acceptance of delayed performance under a contract is not inconsistent with a right to demand damages for delay, and hence is not in and of itself a waiver of damages.

There has been received by reference from the administrative assistant secretary, treasury department, a reclaim voucher in the amount of $800.01, stated in favor of the American expansion bolt and manufacturing company, under contract no T-3-fs-112, dated August 30, 1954, with the request that an advance decision be rendered as to whether the voucher May be certified for payment.

The amount reclaimed represents a deduction which was made from payments due the contractor under the subject contract by reason of delays in deliveries of embossed plates, which made it necessary for certain regional disbursing offices to emboss 101, 650 plates at a cost of $800.01 in excess of that which would have been charged for the same number of plates under the contract.

Under the terms of the contract, the contractor agreed to furnish approximately 2, 250, 000 (15 percent variation) embossed plates for delivery to nine different regional disbursing offices. It was recited in the specifications that it was necessary by reason of increased veterans' pension and compensation rates, which were to become effective October 1 1954, to enter into a contract by August 30, 1954, for supplying the specified plates and services, with partial shipments (20 percent of specified plates) to be made to each office within 5 calendar days after receipt of order, and complete delivery to be made within 25 calendar days after receipt of order. The 25-calendar-day delivery period was extended to 30 days by telegram dated August 21, 1954. The contract contained no provision for the assessment of liquidated damages, and no provision for excess costs except in the event of termination for...