The United States of America for the Use and Benefit of Federal Roofing and Painting, Inc. v. Foster Construction (Panama) S.A.

In the district court Foster, the prime contractor, was held entitled to withhold from Federal, its subcontractor, provable overhead expenses incurred by Foster from project delay caused by Federal in excess of the amount of liquidated damages recovered by the Government against Foster. We affirm.

The amount of liquidated damages which the prime contract required be paid to the Government, as owner of the project, bears no absolute relationship to the amount of overhead expenses suffered by the prime contractor because of the subcontractor’s failure to timely perform its obligations under the…