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Contractor's Conduct Undercuts Backcharge Claims Administration

Tuesday, January 03, 2006 05:03 pm

Contractor's Conduct Undercuts Backcharge Claims Administration

A federal appeals court has ruled that a subcontract was ambiguous regarding responsibility for construction quality control (CQC) costs. But the prime contractor's conduct belied its later attempt to assert a set-off.

Metric Construction Co. was the prime contractor on a project at Hill Air Force Base in Utah. Metric subcontracted the electrical work to Cache Valley Electric Co. The subcontract scope of work included "CQC personnel per section 01451 [of the prime contract]."Metric's contract with the government called for Metric to provide qualified, on-site personnel whose sole duties were CQC servi [...]

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