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Standby Status Requires Short Notice Delay damages; Overhead

Thursday, January 02, 2003 12:08 pm

Standby Status Requires Short Notice Delay-damages; Overhead

A federal court has ruled that a contractor was never placed on "standby status" for purposes of the Eichleay formula. The contractor was not required to maintain personnel or other resources poised to resume work on short notice.

The Department of Veterans Affairs awarded a contract to Sergent Mechanical Systems, Inc. for improvements to the boiler plant at a medical center in Sepulveda, California. When the work was substantially complete, the VA inspected the project and prepared a punch list. Included was calibration of a sensor on the hydronic bridge system and training of VA employees in the operation of the system.

Sergent Mechanical [...]

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