Contractors know that time is money. So, the point is clear when expressly told to “Speed Up! Go Faster!”
But, what do you do when the Owner says, “You must still meet the deadline and I’m not giving you any more time.” Preserve and pursue a claim against the Owner for constructive acceleration.
Constructive acceleration occurs when the owner or government demands compliance with an original contract deadline, despite a delay. In such cases, the contractor may be entitled to reimbursement for expenses actually and reasonably incurred in complying with an (implied) acceleration order.
But, the Contractor must prove:
- Excusable Delay: a delay that is neither the fault of the owner or contractor;
- Request: The Contractor timely and sufficiently requested more time;
- Denial: Owner denied or failed to timely respond to Contractor’s request for more time;
- Demand: Owner demanded Contractor meet deadline;
- Timely Notice: Contractor timely notified Owner that Contractor understood the Owner’s demand as constructive acceleration; and
- Damages: Contractor incurred damages due to Owner’s unreasonable demand(s).
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 […]
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.
Acceptance and Intervening Cause Avoided Construction Warranty Claim
Like cars, computers, and appliances, construction projects include warranties too. Similarly, construction project warranties are limited to causes within the contractor’s control […]
Insurance Company Had No Duty to Defend Under Eight Corners Rule
To decide if an insurer has a duty to defend, a Virginia State or Federal Court may only look at the allegations in the complaint and the insurance policy to determine if a judgment against the insured will be covered by the policy.
Owner SOL When Mandatory Mediation Didn’t Toll Statute of Limitations
Contract interpretation strives to find the meaning of all parts together.
