Shopping Cart (0) items Sign In

Construction Claims Monthly - Devoted exclusively to the problems of construction contracting since 1963

‹ Prev article: 

Clause Permits Adjustment To'established Prices' Only

Thursday, December 02, 2010 01:31 am


Price Adjustment

Appeal of: Tekkon Engineering Co., Ltd., 2010 ASBCA No. 56831 Lexis 72 (Sept. 28, 2010)

An economic price adjustment clause couldn't save a federal contractor from extreme construction cost increases or losses due to currency fluctuations.

Working under a contract with the U.S. government to supply water treatment chemicals and chlorine gas cylinders throughout Iraq, contractor Tekkon Engineering Co., Ltd. (Tekkon) incurred $34,000 in increased fuel costs and $190,000 in losses caused by currency fluctuations. The contractor sought an economic price adjustment (EPA) to its fixed-price indefinite delivery/indefinite quantity contract, but the Armed Services Board of Contract Appeals denied the claim. The contract's EPA clause did not cover increased contractor costs, nor could Tekkon show reliance on a prior course of dealing. The Board also den [...]

› Next article: 
Sign up now for Construction Claims Monthly Online! Your own virtual help desk of must-have techniques, tutorials, and how-to articles.
Join Now Construction Claims Monthly! Close

Dear Valued Customers,

We regret to announce that ProEdTech LLC and all its affiliate brands will cease operations on April 1, 2019.

We are no longer able to fulfill online orders. We will fullfill all DVD and book orders already placed.

Customers of canceled webinars and subscription products may request a refund at (800) 223-8720 or You must do so by April 1, 2019.

Thank you for your business and loyalty over the years. We sincerely apologize for any inconvenience caused.

Best regards,
The ProEdTech Team