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Contractor Proves Govt. Left It To Twiddle Its Thumbs, Secures Eichleay Recovery

Wednesday, December 30, 2009 03:57 am


Delay -- Eichleay Formula

Appeal of: Packard Construction Corporation

Armed Services Board of Contract Appeals

2009 ASBCA No. No. 55383 (August 10, 2009)

A contractor sought compensation for additional work, but failed to show it was on "standby" for the entire delay period -- or to accurately report its delay-related expenses. Acknowledging that government-caused delays put a $3 million project at Fort Bragg, North Carolina behind schedule, the U.S. Army Corps of Engineers (Corps) granted the contractor, Packard Construction Corporation (Packard), a compensable time extension of 66 days. That wasn't enough, according to Packard, who sought 88 days of compensable delay, including unabsorbed overhead and direct costs associated with its work on a water distribution system. The contractor succeeded only in part.

Packard began its quest for compensation by filing for equitable adjustment. It claimed five days of delay and $11,000 due to the contract drawings' inaccurate depiction of the water main and 59 days of delay and $22,000 [...]

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