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Contractor Deserved A Reasonable Completion Date After Govt. Dallied Over Cures

Thursday, December 01, 2011 06:05 am

 

Contract Termination

Appeal of: Environmental Safety Consultants, Inc., 2011 ASBCA No.51722 Lexis 64 (Sept. 28, 2011) A contractor successfully appealed a default termination,incurred due to its tardy performance, where the time specified for completing the project "was not the essence of the contract."

In November 1995, the U.S. Navy hired Environmental Safety Consultants, Inc. (ESCI) to remove old and install new fuel storage tanks at the Naval Weapons Station in Yorktown, Virginia for $562,000. The project completion date was set for August 1996. Very quickly ESCI fell behind schedule. On several occasions throughout the project the government warned ESCI that it was considering default termination as a result of the contractor's untimely performance. Nevertheless, the government did not actually terminate the contract until June 1998. When it did 'for ESCI's failure to perform the work by the modified completion date of June 30, 1997--ESCI appealed.

Between the government's first warnings to the contractor and the eventual contra[...]

 
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