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Unit Price Increase Denied Under Veq Clause Estimates; Unit Prices

Wednesday, July 02, 2003 03:08 pm

Unit Price Increase Denied Under Veq Clause Estimates; Unit Prices

The Department of Agriculture Board of Contract Appeals has ruled that a contractor could not recover under the Variation in Estimated Quantity (VEQ) clause because the contractor could not show increased costs caused solely by the quantity overrun. A dissenting opinion criticized this narrow interpretation of the clause.

The U.S. Forest Service awarded a contract to S & T Enterprises to repair the spillway of a dam in the Rogue River National Forest in Oregon. One of the line items, shotcrete, stated an estimated quantity of 34 cubic meters (CM). The contract incorporated by reference the standard VEQ clause which authorizes an equitable adjustment to the unit price if the actual quantity varies more than 15 percent above or below the estimated quantity.

S & T applied 52.2 CM o [...]

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