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Government Waived Completion Deadline Termination-default; Overhead

Thursday, June 03, 2004 01:12 pm

Government Waived Completion Deadline Termination-default; Overhead

The Armed Services Board of Contract Appeals has ruled that the government waived the right to terminate for late completion when it allowed a contractor to work past the contractual deadline. The contractor was also allowed to recover unabsorbed home office overhead for a standby period.

The National Aeronautics and Space Administration awarded a contract to B. V. Construction, Inc. to build a "space frame"patio cover at a visitor's center in Edwards, California. The contract required completion by a stipulated date but did not establish liquidated damages.

The design called for the steel support posts of the space frame to rest on concrete piers to be poured through cuts in the existing patio floor. When BV made the cuts, however, it discovered that the soil conditions did not meet the contract specifications for the foundation p [...]

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