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.
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| Aug 11, 2010
Best AEC Firms of 2011/12
Later this year, we will launch Best AEC Firms 2012. We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. Keep an eye on this page for entry information. +