Archives: Subcontracting

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Buyer Beware—The Risks of Settling a Subcontractor Claim

Engineers team meeting and discussion about work plan and process with construction accessories and blueprint on table.A recent case from the Armed Services Board of Contract Appeals provides us with a reminder of what can happen to a prime contractor when it settles a subcontractor claim and then seeks to pass through the settlement amount to the government. In Kellogg Brown & Root Services, Inc., (November 19, 2018), the prime contractor… Continue Reading

Lock ‘Em Up or Lose ‘Em — The Importance of Early Execution of Key Subcontracts

A recent decision by the Armed Services Board of Contract Appeals reminds us of the importance of obtaining commitments from your key subcontractors after award. In CDM Constructors, Inc. (August 20, 2018), the ASBCA dismissed on summary judgment a construction contractor’s claim for increased costs arising out of a contract for the construction of dissolved… Continue Reading

Contractor’s Inferior Knowledge and Mistakes Are No Excuse for Avoiding the Preclusive Effect of a Contractual Release

As the following decision demonstrates, careful recordkeeping can be critical to avoid forfeiting a claim upon the completion of a project with the government. Appeal of Merrick Construction, LLC, ASBCA No. 60906 (March 22, 2018). In Merrick, the Armed Services Board of Contract Appeals (“ASBCA”) found that a contractor forfeited a claim against the Army… Continue Reading

OHA Clarifies Ostensible Subcontractor Rule

At the end of last year, the Small Business Administration Office of Hearings and Appeals (“OHA”) issued a decision that further clarified the “ostensible subcontractor” rule. This rule may result in affiliation when a small prime contractor is unduly reliant on its subcontractor. In Emergent, Inc. v. Kapsuun Group, LLC, SBA No. SIZ-5875 (Dec. 19,… Continue Reading