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