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Court Addresses "Commission" On Subcontracted Changes Changes-directed; Overhead

Saturday, August 02, 2003 03:19 pm

Court Addresses "Commission" On Subcontracted Changes Changes-directed; Overhead

The U.S. Court of Federal Claims has ruled that the "commission"on subcontracted work, authorized by the GSA Equitable Adjustment clause, is set at ten percent. It is not calculated by adding the contractor's overhead and profit.

The General Services Administration awarded a contract to North American Construction Corp. (NACC) for renovation of the federal building in Sacramento, California. During the course of the work, GSA issued a series of change orders. Much of the changed work was performed by subcontractors to NACC. A dispute developed r [...]

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