Georgia Tech Procurement Assistance Center

Federal contractors may be able to recover costs caused by the government shutdown

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The current government shutdown is now the longest in U.S. history, and many federal contractors are incurring costs as a result of shutdown-related work stoppages and delays. Luckily, many federal contracts contain clauses that provide a potential avenue for recovery of such costs. Further, there are practical steps that contractors can take to increase their chances of recovering shutdown-related costs from the government.

What contract clauses might apply?

Several Federal Acquisition Regulation (FAR) clauses, including the following ones, could provide contractors with an avenue to recover costs incurred as a result of shutdown-related delays or work stoppages:

  • FAR 52.242-14 (Suspension of Work)
  • FAR 52.242-15 (Stop Work Order)
  • FAR 52.242-17 (Government Delay of Work)
  • FAR 52.243-2 (Changes – Cost-Reimbursement)
  • FAR 52.243-3 (Changes – Time-and-Materials or Labor-Hours)

It is very important to note that these clauses generally impose very short timeframes in which a contractor must provide the government with notice and/or assert its right to an adjustment.

Keep reading this article at: https://www.jdsupra.com/legalnews/federal-contractors-may-be-able-to-53396/

CORs weren’t authorized to order additional work, so contractor goes unpaid

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A contractor’s performance of extra work outside the scope of the contract may go uncompensated if a contractor does not receive appropriate authorization in accordance with the contractual terms.

A Court of Federal Claims decision reinforced that a contractor should only perform work required under the terms of the federal contract or directed by an authorized government agent in accordance with the contractual terms. And importantly, a Contracting Officer’s Representative isn’t always authorized to order additional work – even if that person acts as though he or she has such authority.

The Court’s decision in Baistar Mechanical, Inc., v. United States, No. 15-1473C (2016) involved a ground maintenance and snow removal services contract for the Armed Forces Retirement Home’s property in Washington, D.C., which included 270-acre property providing residence to several hundred retired military members. Baistar successfully bid on and was awarded the contract, which was executed in December 2011. The contract contemplated a five-year period of performance beginning on December 16, 2011.

Keep reading this article at: http://smallgovcon.com/u-s-court-of-federal-claims/cors-werent-authorized-to-order-additional-work-so-contractor-goes-unpaid/

Construction firms seek an extra $300 million for bullet train work

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Two huge construction firms that are helping to build about 54 miles of bullet train structures in California’s Central Valley are seeking an additional $300 million on their fixed-price contracts, the Los Angeles Times has learned.

The increases, if the state ultimately agrees to cover them, would further bloat the bill for what has been touted as the easiest and most predictable section of the Los Angeles-to-San Francisco system.

The potential increases lend credence to the findings of a December risk assessment by the Federal Railroad Administration that costs for building the full 118 miles of work in the Central Valley could jump by 50%, or $3.6 billion, above current estimates.

The increases are described in letters from Tutor Perini Corp. and Dragados USA. The firms make the case that their contracts do not cover the full scope of the work and that the state’s management of the project is causing delays.

Keep reading this article at: http://www.latimes.com/local/california/la-me-bullet-train-cost-increases-20170302-story.html

Contractor wins claim for additional costs after partial termination by government

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It is common for government contractors to file claims on federal projects where there are government-directed changes to the contract that add time or scope.

contract-changesBut what if – instead of adding time and/or scope – the government de-scopes work from the contract by issuing a partial termination?  A recent successful claim shows that the contractor can still recover its increased costs.

In a decision by the Armed Services Board of Contract Appeals (ASBCA), the Board considered a contract for the provision of food service operations at 18 dining facilities at Fort Leonard Wood, Missouri.  After two years, the agency issued a partial termination for convenience and removed six facilities from the contractor’s scope.  The contractor continued to provide services at the remaining 12 facilities, but could not reach an agreement with the government for the cost of completing the contract.

Keep reading this article at: https://governmentcontracts.foxrothschild.com/2016/12/articles/contract-claims/contractor-wins-claim-for-additional-costs-after-partial-termination-by-government/

Construction contracts: Everything you need to know

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hardhatContracts are crucial components of the construction process, but they can be among the most complicated and controversial aspects as well.

As the industry shifts to increasingly collaborative project delivery methods and adopts new materials and technologies, construction professionals need to stay up to date on the how the legal landscape is evolving — or not — to ensure their work is verified and protected.

In the latest monthly series of articles published by Construction Dive, an in-depth look at the evolving world of construction contracts and project delivery is presented.

The series covers the period from bidding to close-out, including project delivery and contract type, terms and conditions, and additional factors to keep in mind.  To see all the details, click on this link: http://www.constructiondive.com/news/construction-contracts-resource/429229

How construction firms can manage the ‘necessary evil’ of change orders

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Construction Dive 07.2016Construction projects, like anything else in life, are subject to change. Design blunders, unanticipated revisions to building codes, an owner-driven switch in material selection — all of these events can lead to changes that add a few dollars or create a significant addition to a project’s scope and cost.

General contractors and subcontractors have different considerations when faced with a directive to perform work outside of their original contracts. According to industry experts, it pays to be a stickler for the contract, but it also can be worth it to take a more flexible approach at times. Of course, it all starts with the contract.

Instructions for how a general contractor or subcontractor should proceed with changes to its original scope of work can typically be found in the contract’s general conditions. Both general contractors and subcontractors should pay close attention to the notice provisions of their contracts because this is where they can find the requirements for getting paid for any changes to the work.

Keep reading this article at: http://www.constructiondive.com/news/the-dotted-line-how-construction-firms-can-manage-the-necessary-evil-of/422390/

Read earlier installments in this series here, here, here, here, here and here.

 

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