Appealing a Contracting Officer’s Final Decision is a rejection of any offer of payment or settlement included therein.
In a recent example of this, a contractor agreed to renovate a portion of a VA hospital in Fayetteville, Arkansas. After contract award, the VA notified the contractor of extra asbestos abatement. The contractor provided a price to perform the extra work but the VA issued a unilateral modification for a lesser amount. The contractor performed the extra work and submitted a certified claim.
The CO issued a Final Decision agreeing to only a portion of the claim and issued a draft modification. The contractor countered by proposing a reservation of its rights so that it could accept the partial payment and preserve a future appeal for the balance. The CO rejected the contractor’s proposal and, effectively, conditioned the partial payment upon the contractor’s waiver of appeal.
Without the reservation of rights, the contractor had only three options:
- Accept the partial payment and have no appeal;
- Appeal the entire claim; or
- Walk away.
BES Design/Build, LLC v. Department of Veterans Affairs, Civilian Board of Contract Appeals 5640 (Aug. 29, 2017)
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
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Insurance Company Had No Duty to Defend Under Eight Corners Rule
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Owner SOL When Mandatory Mediation Didn’t Toll Statute of Limitations
Contract interpretation strives to find the meaning of all parts together.
Government Must Review Claims in Good Faith, Not “Conjure Up” a “Baseless Retaliation”
A contracting officer’s review of certified claims submitted in good faith is not intended to be a negotiating game where the agency may deny meritorious claims to gain leverage over the contractor.
Termination for Convenience was OK to Get a Lower Price
When Massachusetts’ highest State court rejected Federal law on termination for convenience (T4C) a public entity’s “sole discretion . . . for […]
Pirates (Parties) Should Arbitrate Arbitrability
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Very Bad Behavior Without Bad Faith is Not a Breach of Contract
Despite “abhorrent” behavior by the Army Corps of Engineers, a majority of the Armed Services Board of Contract Appeals held there was […]
Government Construction Contracts Require Bonds, Even When Contract Doesn’t Say So
Yesterday (Nov. 5, 2018), the Fed. Cir. Ct. of Appeals again endorsed the Christian doctrine, which can make unstated requirements part of a government contract.
