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Positive Government Inspections Don't Equal Work Acceptance

Friday, February 12, 2010 03:08 am


Default Termination

R.C. Professional Services, Inc. v. Dept. of Homeland Security

A contractor assumed that the government's continued payments constituted acceptance of its project work. It discovered its mistake when the government terminated the contract for default on the grounds that the contractor's work did not conform to the contract.

The U.S. Coast Guard of the Department of Homeland Security hired R.C. Professional Services, Inc. (R.C.) to rehabilitate a Coast Guard building by demolishing and reconstructing portions of it. R.C. asked for a final inspection in September 2006. The government inspected the building but would not call the inspection "final" because it found too much unfinished work. In addition, R.C. had not provided warranties for the roofing system, as required by [...]

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