Albina Marine Iron Works, Inc. v. United States

The plaintiff entered into a contract with the Department of Commerce to construct three lightships at a stated price. The ships were to be completed within a specified number of days from the date of the receipt of the notice to proceed with the construction. The contract contained a liquidated damage clause whereby the contractor was to pay $40 for each calendar day’s delay on each lightship. The three ships were completed and accepted but the limitation for completion on each vessel was far exceeded.

The question in this case is the number of days for which the contractor is chargeable with…