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Lost Efficiency Is Not Standby Overhead; Delay-damages

Saturday, August 02, 2003 03:19 pm

Lost Efficiency Is Not Standby Overhead; Delay-damages

The U.S. Court of Appeals for the Federal Circuit has ruled that when government delay causes contractor inefficiency, the contractor is not on standby for purposes of recovering Eichleay formula damages.

The Army awarded a contract to Charles G. Williams Construction, Inc. for improvements to a medical facility in Aurora, Colorado. Defective government specifications and impaired site access delayed Williams' performance.

Williams filed a claim for 330 days of unabsorbed home office overhead computed according to the Eichleay formula. The Armed Services Board of Contract Appeals denied the claim. The Court [...]

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