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 | Jun 10, 2019
Intl. Code Council releases Natural Disaster Preparedness Guide
Provides tips for staying safe during and after a hurricane or severe weather.
Codes and Standards | Jun 7, 2019
Market conditions indicate slower growth in industrial real estate sector
E-commerce, market oversupply, rising interest rates to dampen hot market.
Codes and Standards | Jun 3, 2019
Haskell invests in BLOX, creator of modular-based delivery method
‘Represents important part of Haskell’s future strategy,’ says CEO.
Codes and Standards | Jun 3, 2019
Florida may eliminate certificate of need requirement for new hospitals
Bill could boost specialized facilities.
Codes and Standards | May 31, 2019
RELi 2.0 standard for sustainability, resilience being piloted
Will be open to LEED-registered or -certified projects, with introductory pricing and support.
Codes and Standards | May 31, 2019
Pankow Foundation releases report, tools for embodied carbon impacts
Focus is on MEP and tenant improvements.
Codes and Standards | May 24, 2019
USGBC receives funding for LEED for Cities and Communities Program
Bank of America provides $500,000 grant to certify 15 U.S. cities.
Codes and Standards | May 24, 2019
AIA updates Interiors Contract Documents
Six revised documents available for interior construction projects.
Codes and Standards | May 23, 2019
Northern California casino offers a template for resilient microgrids
Solar power with batteries and backup generators provide weeks of self-reliance.
Codes and Standards | May 23, 2019
Austin creates innovative plan to boost affordable housing
Approach includes loosened zoning, incentives for higher density in lower-cost and mixed-income developments.