Government Warranty of Performance-Type Specifications

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...

Surety Fails to Pay on Bond for Default Termination

When the U.S. Government terminated a contractor for failure to perform in accordance with the contract provisions, the contractor’s surety asserted that the termination was wrongful and refused to pay on the performance bond.  After much litigation it was held...

Contractor Wins Claim on Implied Warranty of Specifications

When a contractor expends time and money attempting to comply with design specifications that fail to accomplish the owner’s performance needs, it is entitled to recover its costs from the owner on the basis that the owner breached its implied warranty of...

Liquidated damage assessment against contractor

When the amount of damages is difficult to predict, a liquidated damages clause will generally be upheld unless the court determines that the clause was intended to be a penalty rather than liquidated damages. In Safeco Credit v. U.S., 44 Fed.Cl. 406 (1999), a...