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Contractor Recovers For Standby Period Delay-damages; Overhead

Saturday, July 03, 2004 01:34 pm

Contractor Recovers For Standby Period Delay-damages; Overhead

The Armed Services Board of Contract Appeals has allowed a contractor to recover unabsorbed home office overhead, calculated according to the Eichleay formula, for 258 days of standby caused by government indecision.

The Army Corps of Engineers awarded a contract to Tulsa Mid-West Construction Co., Inc. to repair and renovate four gates, gate frames, and bulkheads of a dam in Sevier County, Arkansas. The contract contained a standard Suspension of Work clause.

After Tulsa started work, it discovered that the hydraulic cylinder used to raise and lower one of the lift gates which control water flow was badly rusted and pitted. Tulsa notified the government and raised the cylinder [...]

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