A recent decision by the Armed Services Board of Contract Appeals illustrates the importance for GCs to obtain solid commitments from key subcontractors when seeking government contracts.
The ASBCA earlier this year dismissed a construction contractor’s claim for increased costs on a contract for the construction of dissolved oxygen injection systems in the Savannah River. The case involved a GC whose marine subcontractor withdrew its bid after a delay.
The contractor subsequently said that it would incur more than $3 million in increased costs. The ASBCA ruled that there was no evidence that the suspension of about 60 days to resolve a bid protest was anything but reasonable.
It also found that there was no causal connection between the suspension and the GC’s increased costs. The key lesson: prime contractors should promptly execute subcontracts with key subcontractors.
Related Stories
Codes and Standards | Mar 12, 2018
L.A. mayor proposes mandatory seismic retrofits for steel buildings, daycare centers, private schools
Los Angeles Mayor Eric Garcetti has proposed a seismic retrofit requirement for vulnerable steel buildings built before the 1994 Northridge earthquake.
Codes and Standards | Mar 8, 2018
Net zero commercial building trend shows strong momentum
Almost 50% more zero energy commercial buildings under construction in 2017.
Codes and Standards | Mar 7, 2018
Dept. of Energy says 2016 ANSI/ASHRAE/IES Standard 90.1 would save 8.2% of energy costs
Favorable comparison to 2013 standard for commercial buildings.
Codes and Standards | Mar 6, 2018
Well Living Lab launches extensive study on how indoor environments affect people’s lives
Factors that impact health, performance, stress and resiliency, sleep, and comfort to be scrutinized.
Codes and Standards | Mar 5, 2018
New guide helps planners assess innovation districts
The document is designed to aid in targeting resources toward innovative and inclusive economic development based on an area’s unique strengths and challenges.
Codes and Standards | Mar 1, 2018
Net zero commercial building trend shows strong momentum
Almost 50% more zero energy commercial buildings under construction in 2017.
Codes and Standards | Feb 28, 2018
AEC industry reported high levels of fraud, cyber breaches, and security incidents in 2017
83% experienced at least one fraud incident.
Codes and Standards | Feb 27, 2018
Smart surface solutions can improve disaster resilience, health and comfort in cities
Stormwater management, water quality, and heat island effect could all be impacted.
Codes and Standards | Feb 26, 2018
Bolstering energy efficiency would produce significant health benefits, ACEEE study says
Reducing energy consumption by 15% would save six lives a day.
Codes and Standards | Feb 22, 2018
GBCI will certify underwriting standard for energy efficiency projects
Investor Ready Energy Efficiency (IREE) certification aims to boost confidence in predicted energy and financial savings.