Commonwealth v. Interstate Contractors Supply Co.

NARICK, Senior Judge.

The Commonwealth of Pennsylvania, Department of Transportation (Department) appeals from an order of the Board of Claims (Board), which entered judgment in favor of Interstate Contractors Supply Company (Interstate), finding that the liquidated damages clause in the parties’ contract constituted a penalty. We reverse.

This matter involves a February 24, 1986 contract between the Department and Interstate for the painting and cleaning of six Allegheny County bridges. The Department issued the Notice to Proceed with the project at Interstate’s request on April 2, 1986, six…