Contractors take heed – a time extension may be issued after substantial completion for specific work and the Government can still assess liquidated damages.
Under a contract with the U.S. Army Corps of Engineers, a Contractor agreed to construct facilities for support services, site logistics, and command in the Kingdom of Bahrain. The Government assessed LDs for delayed substantial completion. Several months later, after the Contractor had demobilized from the Project site, the Government issued an RFP for extra work. The Government accepted the Contractor’s pricing proposal for the extra work and established a deadline for completion of the same.
In its Certified Claim and on Appeal to the Armed Services Board of Contract Appeals, the Contractor unsuccessfully argued the award of extra work extended the overall deadline for substantial completion of the original scope of work. The bilateral Modification for the extra work provided in part, “This Period of Performance covers work under this modification only, not for the overall contract.”
The Board’s opinion doesn’t discuss what sort of extra work was performed. Presumably, the use or benefit of the overall Project did not depend upon completion of the extra work.
FEDERAL CONTRACT TERMINATION OR MODIFICATION
The White House has directed Agency heads to “terminate or modify . . . covered contracts.” With some exceptions, there are […]
Roads & Bridges | Maximizing Damage Recovery
MAXIMIZING DAMAGE RECOVERY
Tracking Costs, Avoiding Duplication in Liquidated and Actual Damage Claims
A County and Contractor contracted for construction of a road and […]
Roads & Bridges | Roadwork, Delays and Disputes
ROADWORK, DELAYS, AND DISPUTES
The Subcontract Case In Pecos County, Texas
“Road construction is ubiquitous in our society. . . .” C&C Road […]
Roads & Bridges | Understanding Sovereign Immunity
UNDERSTANDING SOVEREIGN IMMUNITY| Public Contracts and Lessons from Recent Texas Cases
Generally, governmental entities are immune from lawsuits. One exception is contractual. If […]
Roads & Bridges | Indiana Court Upholds Broad ND4D Clause
INDIANA COURT UPHOLDS BROAD ND4D CLAUSE | Ruling Precludes Subcontractor Claims for Delay and Acceleration Damages
This is the story of an Indiana […]
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 […]
