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Decisions Of The Boards Of Contract Appeal: Costs Due To Import Restrictions Are Recoverable Where U

Monday, April 11, 2011 11:01 am


Delay - Disruption

Appeals of: Kolin Construction, Tourism, Industry and Trading Co., Inc., 2011 ASBCA Nos. 56941, 57066 Lexis 4 (Jan. 20, 2011)

On an Air Force project in Turkey, the U.S. government claimed it was not liable for delay caused by the Turkish government's actions. But its contractor successfully argued against the indisputability of that assertion.

One of the requirements on a renovation project at Incirlik Air Base in Turkey was that the contractor, Kolin Construction, Tourism, Industry and Trading Co. (Kolin), submit a materials list for approval before beginning work. The government approved a materials list that included imported goods, but Kolin hit a brick wall when it attempted to transport those materials to the project site for installation: The United States and the nation of Turkey (collectively, GOT) barred the use of imported products at the base. As a result, the project was significantly delayed. Kolin submitted a claim for $1 million based on work disruption and delay caused by the importation roadblock. It claimed costs of idle equipment and crew, lost profit, and additional indirect costs. The government appealed and moved for summary judgment.

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