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).
Trick or Treat in Government Contract Claims
Without a request for a contracting officer’s final decision, claimants may seek treats, but get tricked instead.
Owner Nonpayment is No Defense to Miller Act Claim
As if you needed confirmation that the Federal Miller Act is a powerful tool for unpaid subcontractors, this is it. Even when a Prime ordered and accepted the Sub’s work, but didn’t have to pay under the Subcontract, the Subcontractor still. . . .
Trust, but Verify
Rely at your own risk upon a Contracting Officer’s statements when statutes or contract provisions may conflict.
Payment for Verbal Changes When a Writing was “Required”
Even if your agreement can only be modified by a writing, you may still have a good argument to be paid for extra work.
Pirates and Arbitration
How does a pirate solve a dispute (besides walking the plank)?
Bases Covered?
Contractors, will your current insurance policy cover “your work” as a joint venture partner? The typical answer is NO.
Two Paths at the Same Time to the Same Place
“Two roads diverged in a wood, and . . .” the Prime Contractor had to take both roads at the same time to the same place.
Rules, Which Rules?
Good Idea: Include a choice of law clause in your contract to promote consistency and predictability (while reducing potential costs and risk).
Government Liability for Third-Party Delays
Generally, the Government is not responsible for delays caused by third parties, even other contractors at its own project site, unless the Government affirmatively indicates the site will be ready and available.
