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).
Linking Obligations
If you want to bind the subcontractor to the prime in every way the same as the prime is bound to the owner, then the incorporation clause of the subcontract should be: . . .
Termination of Government Contracts for Convenience (T4C)
Imagine you’re a Government Contractor under a firm, fixed-price contract and you’ve done nothing wrong. Nevertheless, the Government has decided to unilaterally end its contract with you. Yes, the Government can do this...
Government Contractors: Build a Snowman in August
As a Government Contractor, when have you agreed to perform a certain way, but later realized that another way is better for everybody? When the Government agrees, expressly or impliedly, to the alternative performance, it waives a credit for the unperformed work.
Construction Dispute Settlement: Dealing with Details
Reap the benefits of settling a construction dispute by doing these things.
E-mail Signature Not Enough to Certify a Claim
Construction project professionals routinely send e-mails with “signatures,” which typically include the sender’s typewritten name, title, contact information, and/or company logo. But, this sort of e-mail “signature” is not enough to certify a claim to the Government.
Government Contractors: Ask for a “Sum Certain” in Your Claim
If your Claim includes an item for damages with an amount “TBD,” you could lose the entire Claim.
Contractors: Be Aware When Contracting with Virginia Public Agencies
Without a valid contract, a Virginia public entity has no duty to to pay for any of your work.
Constructive Acceleration
Contractors know that time is money. So, the point is clear when expressly told to “Speed Up! Go Faster!”
But, what do you […]
Construction Contracts & Whodunit
Imagine reading a crime novel and just when you think you figured out whodunit, a plot twist suggests a different culprit. In construction contracting, finding the right answer can be a difficult task when
