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
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
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
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
A recent Armed Services Board of Contract Appeals (ASBCA) decision discusses the Severin doctrine and its impact on subcontractor pass-through claims, confirming that this defense to liability may only be used in very limited circumstances by the Government. As a refresher, in a 1943 decision, Severin v. United States, the Court of Claims… Continue Reading