Contract Disputes Act (CDA) claims offer Government Contractors the opportunity to recover costs incurred due to Government-caused changes or delays. While the initial focus often rests on proving liability, a recent Court of Federal Claims (COFC) decision highlights the danger of failing to prove entitlement to damages.
In other words, claims can present the danger of winning the battle . . . only to lose the war.
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Today, we have a question for our federal construction readers:
Recently, the Civilian Board of Contract Appeals (CBCA) answered our question with a resounding yes.
This point is particularly important in the context of requests for equitable adjustments or claims asserted against the government. You may think (or the government may try to convince you) that there is no entitlement when the project is below budget. That is simply not the case. The CBCA decision makes the point that damages are based upon the actual cost of performance — your bid should not be used against you. In short, extra costs due to differing site conditions should always be tracked and documented — even if you are meeting or below a projected budget.
The case in question involved construction contractor Tucci and Sons Inc., which filed a claim seeking more than $80,000 on a DOT Federal Highway Administration (FHWA) contract for the reconstruction of a 9.7 mile stretch of highway in Mount Rainier National Park. Tucci claimed that it experienced extra costs based on the unexpected need to work around a number of larger boulders impeding the work.
Keep reading this article at: http://www.mondaq.com/article.asp?articleid=470494
After filing a claim under the Contract Disputes Act (CDA), the contracting officer may notify you that a final decision will be issued within “X” days after certain pre-conditions are met, such as:
Are you required to cooperate? For claims over $100,000, the CDA requires a contracting officer, within 60 calendar days, to either issue a final decision or notify the contractor of the date by which a final decision will be issued. The Armed Services Board of Contract Appeals (ASBCA) recently held that a conditional final decision date, as described above, does not comply with this CDA requirement. Thus, in such instances, a contractor may file an Appeal on a deemed denial basis without waiting for a final decision.
Keep reading this article at: http://www.mondaq.com/article.asp?articleid=468776
