Given the uncertainty that COVID-19 has brought to federal projects, it is imperative now more than ever that contractors preserve rights to potential claims at all turns. Fortunately, with careful reading and documentation, contractors can satisfy the government’s desire for releases while preserving their claims. A recent Armed Services Board of Contract Appeals decision is
Walking the Tightrope: Liquidation Agreement “Traps for the Unwary”
When crafting a liquidation or “pass-through” agreement for a subcontractor claim against the government, the key provision from the prime contractor’s perspective is a release from any liability for the subcontractor’s claim with the exception of amounts recovered from the government related to that claim. If the release language is too broad, however, the agreement
To Reserve or Not to Reserve? Maintaining Claims against the Government
Contractors do not have to waive future claim rights when negotiating the direct cost of a change order (modification) with the government, despite banter by the contracting officer that reservation of claims is not permitted. More often than not, the contracting officer will inform the contractor that it is necessary to incorporate the following language