 000.0.0.0.0.0 Liquidated Damages (00 CFR 000.000) A provision for liquidated damages must be included in the bid proposal and must be administered by the LPA. The term liquidated damages means the daily amount set forth in the contract to be deducted from the contract price to cover additional costs incurred by the LPA because of the contractor's failure to complete the contract work within the number of calendar days or work days specified. 