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Consultant Fees Allowed In Part Claims Administration

Sunday, March 02, 2003 12:46 pm


The Armed Services Board of Contract Appeals has ruled that consultant fees incurred in preparing a request for an equitable adjustment (REA) were allowable costs of contract administration. But the cost of revising the REA and converting it into a claim could not be recovered.

The case involved a Navy ship repair contract, but the principle is equally applicable to construction contracts. Advanced Engineering & Planning Corp. (AEPCO) negotiated a series of change orders with the government. Most of the negotiations resulted in bilateral contract modificati [...]

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