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Construction Claims Monthly - Devoted exclusively to the problems of construction contracting since 1963

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Total Cost Method Disallowed Claims Administration

Sunday, March 02, 2003 12:46 pm

 
Total Cost Method Disallowed Claims Administration

The Armed Services Board of Contract Appeals has refused to allow a contractor to use the "total cost method" to price a claim. The contractor could not prove the reasonableness of its bid price or its own lack of contribution to the cost overrun.

The Navy awarded a contract to Management Resource Associates, Inc. (MRA) for boiler repairs and replacement of piping systems in a building at Oceana Naval Air Station in Virginia Beach, [...]

 
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