Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Breach of Contract,Damages,Delay Claims,Delays,Design-Build,Federal Government Contracts,Liquidated damages
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Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite evidence that the actual damages incurred by the contractor as a result of alleged [...]
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Subcontractor Had Rights as Third Party Beneficiary Under Federal Government Contract
ConstructionRisk.com Report Vol. #13, Issue #8
See article in the following topic indices:
Federal Government Contracts,Payment Disputes,Subcontract Dispute,Third party beneficiary
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Where the federal government contracting officer issued a contract modification to the prime contract to require the government to issue a two-party check jointly to the prime and a subcontractor that had complained about not being paid, the subcontractor had rights against the government as a third party beneficiary when the government failed to issue [...]
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Accord and Satisfaction Barred Contractor Claim for Additional Compensation
Accord and Satisfaction,Federal Government Contracts,Misrepresentation,Waiver and Release
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Where a contractor timely completed a construction contract for the U.S. Army Corps of Engineers and accepted payment which included changes required by the Corps, the contractor was barred from later filing a claim for additional compensation. The claim was barred by accord and satisfaction because when signing change orders the contractor did not reserve [...]
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Proving Constructive Acceleration Claims Can be Difficult for Contractors
Constructive Acceleration,Delay,Federal Government Contracts,Schedule
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By: Katz & Stone When claiming entitlement to cost for constructive acceleration, contractors must prove that any time extensions received were inadequate to remedy their excusable delays. Time extensions do not have to be granted immediately, and the mere failure to grant extensions does not, by itself, constitute constructive acceleration so long as the procedures [...]
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Hurricane Katrina’s Impact on Existing U.S. Government Contracts
Federal Government Contracts,Hurricane Katrina,Natural Disasters
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For contractors performing work on existing federal contracts in affected areas, assessing the impact of the hurricane on their contracts raises a number of issues and concerns. Federal construction and supply contracts typically provide for a non-compensable time extension for unusually severe weather or Acts of God. See, e.g., The Rice Co., AGBCA No. 2003-188-1, [...]
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De Facto Takeover: Are a Surety’s Rights Protected?
Federal Government Contracts,Payment Issues,Sureties,Withholding Payment
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By Michael J. Carrato, Esq. A Miller Act surety needs to be aware of certain notice requirements if it decides to take over performance for its principal on a federal construction contract. Informal or “constructive” notice that a surety intends to take over management of a project may not be enough to protect the surety’s [...]
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Where a contractor had to revise the government’s design and expend additional time and expense to construct a door for a helicopter hangar, the government argued unsuccessfully that the contractor was barred by a general disclaimer from claiming entitlement to a change order for its extra costs. The specifications contained a general disclaimer advising prospective [...]
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Written Notice of Deviations from Specifications Is Required With Shop Drawing Submittals
Federal Government Contracts,Shop Drawings,Specifications - Failure to Meet
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The Owner’s approval of a shop drawing submittal that deviates from specification requirements does not relieve the contractor where the contractor failed to notify the owner in writing of the variations from the specifications and obtain approval from the owner. The U.S. Navy issued specifications for the construction of a facility in Greece. One of [...]
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Bid Bonds on Federal Contracts – Just the Fax
Bid Bonds,Bonds,Federal Government Contracts,Surety
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Bidders on most sealed-bid federal contracts are required to furnish a bid guarantee along with their bids. The bid guarantee is usually provided in the form of a bid bond issued by a Treasury-listed surety company. The purpose of the bid bond is to guarantee the payment of liquidated damages to the government in the [...]
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Government Warranty of Performance-Type Specifications
Acceleration,Federal Government Contracts,Implied Warranty of Specifications,Specifications (Owner implied warranty)
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Two recent Board of Contract Appeals decisions addressed the conflict between the Government’s implied warranty of its design and its attempt to disclaim that warranty through the use of performance specifications. In both cases, the Boards allowed the contractors to recover damages. In Edsall Construction, Inc., ASBCA No. 51,787, 01-1 BCA 31,425, the Government awarded [...]
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