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Milestone Documentation Proves Key In Default Termination Case

Thursday, October 04, 2007 12:52 pm

Milestone Documentation Proves Key In Default Termination Case

The Armed Services Board of Contract Appeals ruled that a default termination by the government was justified according to the contract because the contracting officer was "justifiably insecure about the contract's timely completion."

Default termination is generally viewed as an extreme measure, requiring a substantial burden of proof on the party terminating the contract. This case sheds light on the kinds of actions that may lead to default termination, as well as the documentation that may be used to either uphold or challenge the termination in court.

Default termination allowed when party is justifiably insecure about completion

In September 1998, the Army Corps of Engineers (Corps) awarded FFR-Bauelemente + Bausanierung GmbH (FFR) a contract to restore a military barracks building. The Corps e [...]

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