If your Claim includes an item for damages with an amount “TBD,” you could lose the entire Claim.
A Claim is a written demand by a contracting party for payment of a “sum certain” or other relief. F.A.R. 52.233-1(c)
For example, a Contractor agreed to provide facilities maintenance and repair, among other services, at Fr. Meade, Maryland. The Contractor submitted a Claim to the Contracting Officer for several cost items. Among them was an item for “anticipatory lost profits” in an amount “TBD. Although portions of the Claim were for definite amounts, the ASBCA dismissed the entire appeal because at least one part of the Claim was not for a “sum certain.” The part of the Claim for an amount “TBD” tainted the entire Claim.
The Board provided some guidance for Contractors. If a “sum certain” cannot be calculated, then a Contractor should specifically describe:
- How to perform a calculation for a sum certain;
- What information the calculation would be based;
- Where such information exists;
- What the Contractor has done to acquire such information; and
- That, due to no fault of the Contractor, such information is not available.
If you can’t calculate a sum certain or you doubt your explanation, separate the uncertain amount from the rest of your Claim and submit it as a separate claim. At least then, it won’t taint the rest of your Claim.
Roads & Bridges | Some Conditions Apply
SOME CONDITIONS APPLY | The scope of insurance policy coverage and what the terms dictate
At some time or another, many have tried […]
Roads & Bridges | Contract Termination
CONTRACT TERMINATION | An unpredictable case teaches hard lessons to each party involved
Court decisions are “opinions.” There are majority and dissenting (disagreeing) […]
Roads & Bridges | Good Faith and Fair Dealing
GOOD FAITH AND FAIR DEALING | How Do You Prove a Party Has Failed to Act Based Upon an Ulterior Motive?
The duty […]
Roads & Bridges | Not Another Notice Story
NOT ANOTHER NOTICE STORY| This Defensive Argument Seems to be on the Rise
AS I CONSIDERED the subject matter for this column, I […]
Roads & Bridges | All According to Plan
ALL ACCORDING TO PLAN | Exact Measurements Go a Long Way
In December 2013, a contractor agreed to replace four bridges for the […]
Roads & Bridges | Connecting the Dots
CONNECTING THE DOTS | Showing Causation in Contracting Cases is Critical
In this asphalt case, the prime contractor agreed to perform a $13 […]
Roads & Bridges | Liquidated Damages
LIQUIDATED DAMAGES | Penalties and What is Unenforceable
Liquidated damages typically flow from delays, but they are not always solidly enforced.
In June 2017, […]
Roads& Bridges | Warranty Provisions
WARRANTY PROVISIONS | Contracts must be interpreted thoroughly to avoid absurd results
You are responsible for things within your control. Be careful if […]
Roads& Bridges | The Agreed Price
THE AGREED PRICE | This case stands as a warning about pay-if-paid clause
History cannot be rewritten and a bad, but legal, […]









