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Panama City officials say liquidated-damages clauses exist but rarely enforced; staff favors on-site management
Summary
City staff told residents that liquidated-damages clauses are included in public works contracts but have not been pursued in recent decades; officials described a practice of embedded project management and post‑project review as the primary accountability tools.
Panama City officials told residents at a town-hall meeting that the city includes liquidated-damages language in construction contracts but has rarely executed those penalties, opting instead to work alongside contractors in the field to resolve delays.
City Manager Jonathan (City Manager) said the clauses are “in the contract” but acknowledged the city “for the better part of 1 or 2 decades, we've never actually executed liquidated damages.” He said the city’s project-management and construction engineering inspection (CEI) teams are “literally in the field … working hand in hand with the contractors each and every day” to address issues as they arise.
Why it matters: Liquidated-damages provisions are designed to create a financial incentive for on-time completion. When they are…
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