ment and in shipping home the body of an employee who died of influenza while engaged upon the contract work is not entitled to be reimbursed the amount so expended, there being no provision in the contract for payment to the contractor for such expenses, and no other legal obligation upon the United States to bear the expense. (26 Comp. Dec. 357, November 5, 1919.)

29-125. Publication of newspaper in connection with cost-plus contract. The expense incurred by a contractor under a cost-plus contract in publishing a newspaper for the benefit of his employees is not one of the "actual and essential elements" in the cost of the work for which reimbursement is authorized. (26 Comp. Dec. 401, November 21, 1919.)

29-126. Officer's approval of unauthorized expenditures. The mere approval of expenditures by a Government officer in charge of contract work has no legal effect in imposing upon the Government the obligation to reimburse a contractor for expenditures not otherwise authorized. (26 Comp. Dec. 401, November 21, 1919.)

29-127. Cost of additional watchmen, etc., as Item of expense. Where cost-plus contracts for the building of ships for the Government contain no provision that the cost of a watchman force at the plant of the contractor shall be an item of expense of the work the provisions of the acts of March 4, 1917, 39 Stat. 1193, and June 15, 1917, 40 Stat. 182, granting the President power to modify, suspend, cancel, or requisition any existing or future contract, give no authority to modify the terms of such contracts so as to include as an item of expense, or to charge the Government with, the extra cost of guarding the plants of the contractors required by reason of a general order of the Navy Department issued subsequent to the execution of the contracts that all contractors provide additional watchmen and devices for the protection of their property and the work in process of construction for the Navy Department against espionage, acts of war, and of enemy aliens. (26 Comp. Dec. 641, February 10, 1920.)

29-128. Traveling expenses of contractor's representatives. Where a costplus contract provides liquidated damages for avoidable delays, but expressly specifies that delays in securing delivery of materials will not be regarded as unavoidable, and which also requires the contractor to furnish without charge, other than the commission or fee provided for in the contract, its entire business and technical organization, the traveling expenses of a force of labor and material expediters organized to speed up delivery of labor and material when it became difficult to secure the necessary deliveries to carry on the work, may not be included as an item of cost for which the contractor is entitled to reimbursement. (26 Comp. Dec. 688, February 26, 1920.)

29-129. Royalties on patents as overhead expense. Payments of royalties on account of airplane patents used in the manufacture of airplanes for the Government may not be considered as overhead expenses under a cost-plus contract, and in the absence of a specific provision in the contract obligating the Government there is no authority to reimburse the contractor for such payments as an item of cost of manufacturing the airplanes. (26 Comp. Dec. 710, March 5, 1920.)

29-130. Legal services. Under a cost-plus contract placing upon the contractor the responsibility for defending suits for damages or meeting claims of subcontractors, whether brought directly against the United States or indirectly through suit or

claim against the contractor, the expense of any legal service necessary in connection therewith must be borne by the contractor and is not subject to reimbursement as a cost of the contract work. (26 Comp. Dec. 1033, June 14, 1920.)

29-131. Cash discounts in determining cost of materials. Where payment under a contract for repairing a Government vessel is authorized on the basis of the cost of materials and labor plus a percentage thereof it is contemplated that the net price of the materials is to be used in determining the cost, exclusive of all cash discounts given the contractor by the dealers from whom the materials were purchased. (27 Comp. Dec. 1041, June 10, 1921.)

(F) DAMAGES, DELAYS, ETC.

29-132. Provision for forfeiture to Government of all sums due contractor interpreted as penalty. Where a contract provides that upon certain contingencies all sums due the contractor and percentages retained shall be forfeited to the United States, such sums are regarded as penalties and not as liquidated damages, and should be withheld until the completion of the work contemplated by the contract and determination of the damage sustained by the United States. (2 Comp. Dec. 579, May 23, 1896.)

29–133. Remission of penalty on extension of contract. The lawful extension of a contract which provides for a daily penalty for noncompletion within a limited time is a modification of the terms of the contract so far as it relates to the time limit, and the extension carries with it a remission of the penalty for the period of extension. (4 Comp. Dec. 38, August 5, 1897.)

29-134. Delay from authorized extra work imposes no forfeiture. Under a provision in a contract that a specified sum shall be forfeited for each day's delay beyond a time fixed therein, in completing the work thereunder, the forfeiture is not incurred by delay caused by the performance by the contractor of additional work authorized by the head of the department, the delay not having been caused by the fault or negligence of the contractor and the United States having suffered no damage by the delay. (4 Comp. Dec. 460, February 21, 1898.)

29-135. Delay by the Government in approving a contract, no objection being made by the contractors to proceeding with the work, does not release them from liability under the contract for failure to complete the work within the time specified therein. (5 Comp. Dec. 748, April 29, 1899.)

29-136. Penalty for delay caused by subcontractor. The remission of a penalty incurred by a contractor for delay in completing a vessel within the time fixed by the contract for its completion, such delay having been principally caused by the failure of a subcontractor to furnish, within the time specified, an engine to be placed in the vessel, is not authorized, notwithstanding that the subcontractor was selected by the Government, such selection having been provided for in the contract. (6 Comp. Dec. 748, March 27, 1900.)

29-137. Liability for repairing damages to contractor's plant. Under a provision in a contract for the construction of a pier, that the United States would pay the actual cost of removing any wrecks of vessels obstructing the work, the cost of repairing damages to the plant, etc., resulting from an explosion of dynamite,

caused by careless handling, is not a part of the actual cost of removing such wreck. (6 Comp. Dec. 838, May 7, 1900.)

29-138. Liquidated damages, where reasonable, for delay in completing work under a contract. A provision in a contract for the payment by the contractor of liquidated damages for delay in the completion of the work provided for therein, where the amount stipulated is reasonable and it is clear that the parties intended it as liquidated damages, will be enforced. (8 Comp. Dec. 23, October, 22, 1901.)

29-139. Liquidated damages; delay caused by Government. Where, by the sole fault of the Government, a contractor is delayed in the completion of the work provided for in the contract he is not liable for damages for such delay. (8 Comp. Dec. 238, October 22, 1901.)

29-140. Deduction for delay regarded as penalty. Where a contract entered into for the construction of two buildings, to be completed at different times, the cost of one of which was much greater than that of the other, provided that a fixed sum should be deducted from the amount to be paid therefor for each day's delay in the completion thereof, from which delay the Government suffered no damage, the sum so fixed must be regarded as a penalty and not as liquidated damages. (8 Comp. Dec. 487, January 28, 1902.)

29-141. Provision in a contract for a penalty for delay. Where, in a contract for work to be done, provision is made for a penalty for each day's delay in completing the work, the term "penalty" will not be construed to be a provision for liquidated damages except upon the most cogent evidence that the parties had agreed upon the sum fixed as a measure of the damages that would be caused by the delay. (8 Comp. Dec. 646, March 17, 1902.)

29-142. Restriction as to actual damages. In the enforcement of a provision for a penalty for delay in completing work under a contract, inconvenience, disturbance, annoyance, litter, or noise, or all of these combined, are not ordinarily regarded as actual damages. (8 Comp. Dec. 646, March 17, 1902.)

29-143. Deduction from damages for delay in completing work under a contract. A contractor who failed to complete the repairs of a vessel within the time specified in the contract therefor, and became liable for the damages caused by his delay, is not entitled to a deduction therefrom of an amount saved by the Government in the cost of transportation by the use of another vessel instead of the one which he failed to have repaired in time. (8 Comp. Dec. 672, March 27, 1902.) 29-144. Liquidated damages as distinguished from actual damages. Where a contract for the construction of a dam expressly provided for the payment of liquidated damages for delay in completing the work, and expressly stipulated the amount of liquidated damages to be paid for each day's delay, the provision for liquidated damages will be enforced upon failure to complete the contract within the specified time, and the contractors will not be permitted to show that the Government was not actually damaged by the delay. (10 Comp. Dec. 605, February 15, 1904.) 29-145. Two buildings completed at different times; fixed damages construed as penalty. Under a contract for the construction of two buildings, to be completed at the same time, but at a different price for each, where neither of said

buildings was completed by the time specified, but were completed at different times thereafter, a provision in the contract for the payment of a fixed sum for each day's delay in the completion thereof will be construed as providing for a penalty, and enforced only to the extent of the actual damage to the United States by reason of the delay in completing the work. (11 Comp. Dec. 513, March 10, 1905.)

29-146. Liquidated damages; actual damage immaterial. Under a contract for the alteration and repair of a torpedo boat, fixing the loss to the United States for each day's delay after the time specified for completion at $50 per day, and providing that the same should be withheld from or paid by the contractor as liquidated damages, neither the statement of the contractor nor that of the agent of the Government entering into the contract to the effect that the period agreed upon was too short, that the default of the contractor had caused no loss to the Government, or that the subcontractors had failed to furnish labor and materials in conformity with the specifications, will release the contractor from his liability for such liquidated damages. (13 Comp. Dec. 853, June 13, 1907.)

29-147. Assessment of inspection costs; fair estimate acceptable. Where a contract provides that "any additional expense or other loss" incurred by the United States because of the failure of the contractors to complete the work by a certain time should be deducted from the amount otherwise due the contractor, and it is impracticable to determine the actual time an inspector was engaged in inspecting work during a period of delay subsequent to such time, a fair estimate of the time so engaged made by the proper officer of the Government may be accepted as a measure of the additional cost of inspection to the Government caused by the delay. (14 Comp. Dec. 33, July 31, 1907.)

29-148. Default of contractor and deduction of damages. Where a contract provides for a monthly payment to the contractor upon an estimation of the work done and that 10 per cent shall be retained from such payments until the work shall be completed and that "in case of default by the contractor said 10 per cent shall be and become the sole and absolute property of the United States," and the contractor after part performance of such contract voluntarily relinquishes the same because of his inabilty to complete it, such relinquishment is a default within the meaning of the contract, and such forfeiture is a penalty, and only so much thereof should be deducted as is necessary to compensate the United States for the damages suffered by reason of said default, including delay in completion of the work. (14 Comp. Dec. 203, October 10, 1907.)

29-149. Liquidated damages construed to be for a penalty. Where a contract provides for the performance of several independent pieces of work, the completion and use of no one of which is connected with or dependent upon the completion of either of the others, and one sum is specified to be deducted for each day's delay in completion of the work called for beyond the time specified therefor, such provision is a provision for a penalty and enforceable only to the extent of the actual damages sustained because of the delay, notwithstanding that the contract specifies that it is a provision for liquidated damages and not one for a penalty. (14 Comp. Dec. 617, March 24, 1908.)

29-150. Provision for liquidated damages and provision for a penalty contained in same contract. Where the printed form of a contract to be executed

contains a provision for liquidated damages for delay in completion of work except as to the amount thereof, and also in a subsequent article contains a provision for deduction of actual damages caused by such delay, and the parties in executing said contract insert in the blank left in the provision for liquidated damages the amount thereof, such provision is dominant and controlling, and the subsequent provision for deduction of actual damages is subordinate thereto and inoperative in so far as it conflicts therewith. (14 Comp. Dec. 704, April 16, 1908.)

29-151. Damages for default under contract for material. Where a contract for furnishing material provides that upon default of the contractor the Government may purchase such material elsewhere and charge the difference in cost thereof to the contractor as damages arising from such default, the Government may upon such default, without seeking for competition by readvertising or otherwise, purchase said material from the next lowest bidder at the higher price bid by him in competition with the original contractor, and, if it is not shown that by competitive or open-market purchase the material could have been procured at a lower price, the difference in cost may be charged to the original contractor as damages arising from his default. (14 Comp. Dec. 733, May 2, 1908.)

29-152. Same; liquidated damages. Where a contract provides for liquidated damages for delay in delivery of material and the contractor defaults and never delivers the material and the Government under another provision of the contract purchases the material elsewhere and charges the difference in price to the contractor as damages arising from his default, he can not be charged liquidated damages for the time elapsing between the date delivery by him was due and the date the contract was awarded for the purchase of the material elsewhere. (14 Comp. Dec. 733–734, May 2, 1908.)

29-153. Responsibility for damages arising from occupancy of public building prior to completion of work. Where a contract for painting, varnishing, and repairing the interior walls, ceilings, etc., of a public building provides that the contractor shall be responsible for the proper care and protection of all material delivered and work performed thereunder until the completion and final acceptance thereof, and, under direction of the proper officer of the Government and with the consent of the contractor, employees of the Government took possession of and occupied one of the rooms in said building subsequent to a partial completion of the work therein but prior to the completion and final acceptance thereof, the terms of the contract are thereby modified and the contractor is not responsible for damages by fire to the work in said room resulting from such occupancy, and additional compensation may be paid for replacing the damaged material and work under a new contract. (15 Comp. Dec. 83, August 11, 1908.)

29-154. “Additional cost of inspection" resulting from delay in delivery of supplies. Where a contractor delayed in making delivery of articles beyond a specified time, and during the period of delay the Government inspectors who made the inspection were also engaged in inspecting under other contracts of said contractor, not delinquent, and were not required by reason of the inspection of the delayed deliveries to be kept inspecting under the other contracts longer than if no delay had occurred, and the expense of such inspection was no greater than if no delay had occurred, the cost of the inspection of the delayed deliveries during the delay period was not "additional cost of inspection" resulting from the delay within the meaning of a pro