Has the Government ‘Waived’ Goodbye to Strict Compliance with Your Contract Specifications?

A recent Armed Services Board of Contract Appeals decision confirmed that waiver defenses can defeat government demands for strict compliance with contract requirements, reports Cohen Seglias Pallas Greenhall & Furman.

Authors Maria L. Panichelli and Alissandra D. Young explain that the Board found in Appeal of American West Construction, LLC that the U.S. Army Corps of Engineers had effectively waived the right to enforce a construction contract specification.

“This meant that the government could not recover from the contractor the difference in the price it paid for the original specification and the lower amount spent by the contractor to perform the deviation,” they write. “In a world where the government often has the right to strictly enforce contract requirements and hold contractors financially responsible for any deviation, this decision is a big win for construction contractors.”

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Key Issues for Due Diligence of Government Contracts – Part II

Comprehensive due diligence review of any target company that performs government contracts should include evaluation of five broad categories relating to general business matters, Kimi Murakami writes in Part II of a report on Piliero Mazza‘s PM Legal Minute blog.

She discusses key issues to be considered when performing due diligence in M&A transactions for government contractors.

The topics include entity formation basics. registrations and permits, employee related matters, intellectual property related matters, and financial and other business related matters.

Read the article.

Read Part I.

 

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