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Cost Sharing Contract Terminated For Convenience Termination-convenience

Friday, February 03, 2006 05:15 pm

Cost Sharing Contract Terminated For Convenience Termination-convenience

A federal appeals court has ruled that when a conventional termination for convenience clause was used in a cost sharing development and construction contract, the contractor could recover all costs, not just the government's share of the costs.

The federal government entered into a contract with Jacobs Engineering Group, Inc. whereby Jacobs would develop, design, fabricate and construct a gasification improvement facility. The total estimated cost was $28.75 million, with the government reimbursing Jacobs for 80 percent of those costs. In exchange for its contribution to the project, Jacobs stood to [...]

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