A contractor is halfway through the (timely) completion of a project and the owner’s payment is late. Days, weeks go by, and now the contractor is incurring all the costs of the work without any compensation. It might be tempting to simply walk off the job, but bear in mind that legally speaking, that might
Absent Timely Revocation, Government Acceptance Is Conclusive
In a recent decision, the Armed Services Board of Contract Appeals issued a summary judgment ruling in a case involving government claims relating to the contractor’s supply of thermal sight systems for armored vehicles. The government contended that some of the sights were defective while others were delivered late.
As to the allegedly defective
Subcontractor Certification of Pass-Through Claim — Defective but Correctable
In June, the Armed Services Board of Contract Appeals (ASBCA) addressed whether it had jurisdiction where a subcontractor pass-through claim was certified under the Contract Disputes Act (CDA) by the subcontractor’s president, not the prime contractor’s representative. In its motion to dismiss, the government argued that under the CDA, only the prime contractor could certify
OIG Report: SBA’s Administration of All Small Mentor-Protégé Program Falling Short
The Small Business Administration (SBA) Office of Inspector General (OIG) recently issued a public report on the SBA’s All Small Mentor-Protégé Program (ASMPP), in which the SBA OIG found certain shortcomings in the SBA’s administration of the program. As discussed below, the report also provides a series of recommendations, most of which the SBA has
Subcontractor Pass-Through Claims Are Vulnerable to the Severin Doctrine
Two recent decisions – one from the U.S. Civilian Board of Contract Appeals and the other from the U.S. Court of Federal Claims – provide opposing holdings on whether the government can raise a “Severin doctrine” defense to subcontractor “pass-through” claims based on broad language in subcontractor progress payment releases. In light of these
Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime Contract
In a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions.
The general contractor said that its fire sprinkler subcontractor was responsible for the burst sprinkler pipe and the resulting property damage based on the “Assumption of Liability” provision in the subcontract, which stated that