Typhoon Excused Late Defense Base Construction, Pernix Guam Says

Pernix Guam LLC says the US Navy improperly demanded $16.6 million in liquidated damages under a $26.4 million contract to build a stealth aircraft repair shop at Andersen Air Force Base in Guam, after the company endured typhoon-related delays.

The penalty is disproportionate to the government’s harm, and contract performance delays from Typhoon Mawar in 2023 excused timely completion, Pernix told the US Court of Federal Claims in a Thursday complaint.

The Navy acknowledged the typhoon was beyond the contractor’s control and had an impact on the project schedule, the complaint says. The court should declare the assessment of liquidated ...