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EXHIBIT 12-E Local Assistance Procedures Manual <br />Attachment I PS&E Checklist Instructions <br />Liquidated Damages <br />Liquidated Damages are based on the estimated cost of field construction engineering. In special cases, liquidated <br />damages greater than the estimated field construction engineering cost may be specified, provided detailed <br />reasons are given to support the greater amount. In every case, show the calculations that support the <br />recommended rate. Liquidated damages are not to be used as disincentives to encourage timely completion. <br />Use the following formula for highway construction projects to avoid excessive liquidated damages: <br />L% (See Table below) x Engineer's Estimate + RE Office Expenses * = Liq Dam/calendar day <br />Working Days ** <br />* Resident Engineer office expenses over the life of the contract should be added unless the cost is already <br />included in the Engineer's Estimate. <br />** Working days used to calculate liquidated damages should not include water pollution establishment or plant <br />establishment days. <br />LIQUIDATED DAMAGES <br />TABLE (L%) <br />* Resurfacing projects include AC Surfacing, seal coats, slurry seals, and so on. <br />The calculated liquidated damages should be rounded up in $100 increments to determine the amount to be <br />specified. <br />Page 12-44 <br />June 29, 2012 OB 12-04 <br />Project T e <br />Project Estimate <br />Resurfacing*/Rehab <br />New <br />Highway <br />Realignment/ <br />Widening <br />Landscaping <br />Soundwall <br />Others <br />Over $30 million <br />10% <br />10% <br />13% <br />15% <br />15% <br />15% <br />$10 million to <br />$30 million <br />10% <br />$5 million to <br />$10 million <br />10% <br />15% <br />15% <br />15% <br />15% <br />15% <br />$7501Cto <br />$5 million <br />15% <br />Less Than $750k <br />15% 20 % 20% <br />* Resurfacing projects include AC Surfacing, seal coats, slurry seals, and so on. <br />The calculated liquidated damages should be rounded up in $100 increments to determine the amount to be <br />specified. <br />Page 12-44 <br />June 29, 2012 OB 12-04 <br />