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Contractor Could Not Appeal Disputed Liquidated Damages

Friday, September 21, 2012 05:53 am

 

Liquidated Damages

Appeal of: Parsons Evergreene, LLC, 2012 ASBCA No. 57794 Lexis 57 (June 22, 2012)

The government's refusal to pay the balance due on a contract may constitute an appealable final decision on a government claim--if the balance in question is undisputed.

Parsons Evergreene, LLC (Parsons) was a design/build contractor on a project to construct a temporary lodging facility and visiting quarters at McGuire Air Force Base in New Jersey. By the scheduled completion date, Parsons had not yet completed the work. Going forward, the government assessed contractually allowed liquidated damages for the delay. Parsons appealed to the Armed Services Board of Contract Appeals. But the Board ruled in the government's favor, finding that the Board lacked jurisdiction under the Contract Disputes Act (CDA), 41 U.S.C. 7101-7109.

Under the CDA, the Board's jurisdiction is predicated on a written claim either by the contractor or the government. Here, the contractor had not su [...]

 
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