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.
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
Yes, the word “pirates” is an anagram for “parties.” Participants in a lawsuit, arbitration, or mediation are collectively referred to as parties. Are they pirates too?
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.
Government’s Negligent Estimate a Trick?
The Government’s negligent estimate failed to provide the “most current information available.”
Prime Contractor Had No Duty to Help Surety Investigate Sub’s Default
We all know what happens when we “ASS-U-ME” something. So, we should all carefully avoid assuming things unnecessarily.
It’s Good to Be the King
Mel Brooks in the movie History of the World: Part I (1981) said it best – “It’s good to be the King.” It’s also true when asserting claims against the State or an arm or agent of the State.
Smoke Without Fire: Damage from Concrete Dust Covered by Insurance
You’ve heard, “where there’s smoke, there’s fire.” In this instance, the smoke was concrete dust that damaged a warehouse full of aircraft […]
