Rely at your own risk upon a Contracting Officer’s statements when statutes or contract provisions may conflict.
U.S. President Reagan used the phrase, “Trust, but Verify” from about 1984-1987 in the context of nuclear disarmament. See a short clip here of President Reagan using that phrase with Mikhail Gorbachev by his side.
That same phrase also applies to communication between Owner and Contractor, Government and Contractor, and/or Contractor and Subcontractor. I’m not suggesting rampant lying or fraud by anyone. Nor am I suggesting disbelieving everything heard – doing that could cripple our world. Rather, to preserve your interests, simply be mindful of words, either spoken or written, and actions done. Balance your trust with a dash of constructive skepticism.
For example, the Armed Services Board of Contract Appeals has denied appeals when Contractors relied upon statements made by Contracting Officers, but the Contractors didn’t verify the accuracy of the statements by reviewing applicable laws or Contract Documents. The Contractors trusted, but failed to verify. Use the few minutes it may take to verify or risk forfeiting recovery.
Appeal of Anaconda Construction Co., ASBCA No. 60905 (June 26, 2017).
Roads & Bridges
Where Does the Buck Stop?
Jon is a monthly contributor to Roads & Bridges magazine. He has been writing the law section for the magazine since January 2020. The link below will take you directly to the Roads & Bridges […]
Pay-If-Paid Unenforceable in Virginia Starting Jan. 1, 2023
As of Jan. 1, 2023, pay-if-paid clauses are unenforceable, regardless of whether a surety/payment bond claim is involved. This is only for subcontracts created on/after 1/1/23.
Also for subcontracts created on/after 1/1/23, the prime must specifically […]
How Short is Too Short
A limitations period is too short when it’s unreasonably short.
Construction Contracting Without Relief Clauses During COVID-19
What to do if your contract lacks the parts to handle COVID-19? Considerations for creating new contracts during COVID-19.
Your Contract Can Handle COVID-19
Uncertainty and risk are not new or novel to contractors. Contracts reduce uncertainty and share the risk of doing or providing something. COVID-19 may have contributed to, but it has not single-handedly created, uncertainty and risk.
Contractors Can Use RFI to Notify the Government
The Board (and the government) should not elevate form over substance in evaluating the sufficiency of a contractor’s notice.
Taxes Due!
It’s tax season again, so it’s time to pay the piper.
Contractor Wins when Government Reconsiders Accord
Ever had buyer’s remorse or second-guessed a decision? When the U.S. Army Corps of Engineers did that, a Contractor won its claim for time and money.
On a flood control project near Nogales, Arizona, severe flooding […]
Claim Certified with Digital Signature Deemed OK
The law is not a trend-setter. It doesn’t readily change or adapt to tech. So, a commonplace practice in business became a dispute when a claimant digitally certified a claim under the Contract Disputes Act.
Jonathan J. Straw
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