The term “claim” is defined by FAR 52.233-1, and there are numerous federal courts and board decisions which have established what information must be included in a c laim under the CDA. There are clear and mandatory requirements to submitting a valid claim under the CDA that must be followed. The claims accrue when all events that fix the alleged liability of the government were known or should have been known.Ī contractor’s claim under the CDA must first be submitted to the Contracting Officer (CO) for a written final decision. If the contractor is not satisfied with the CO’s final decision, the CDA provides an avenue for contractors to appeal the decision, and essentially litigate before an agency administrative board or in a special federal court. All claims must be submitted within six (6) years from the date of accrual. The Contract Disputes Act of 1978 (CDA) is the statutory scheme for resolving contract claims between contractors and the federal government. The CDA applies to all contracts entered into with the federal government for the procurement of property or services, the procurement of construction, alteration, repair, or the maintenance of real property or the disposal of personal property. Under the CDA the term “procurement” means “the acquisition by purchase, lease or barter, of property or services for the direct benefit or use of the Federal Government.” However, the CDA does not relate to bid protests, which are considered part of the procurement process and are governed by separate federal regulations. The scope of the CDA extends to all matters “relating to the contract,” and includes claims for breach of contract, or any other claim based on a remedy-granting clause of the contract, such as the FAR Changes clause.Ī contractor must be in direct privity with the federal government in order to bring a claim under the CDA. However, contractors frequently pass through subcontractor claims to the federal government. This article explains the basis for bringing a construction claim against the federal government, what is required to bring a claim, how and where to litigate an unfavorable decision, and the potential alternative dispute resolutions that are available. This fear is emphasized by the old adage that when dealing with the federal government, you “must turn square corners,” meaning that any misstep among all the regulations and procedures can lose you your contract rights.Īt closer inspection, however, that seemingly complex web of rules, regulations, and procedures actually provide a well-defined path of steps for a construction contractor to follow in order to preserve and pursue construction claims against the federal government - the contractor merely has to connect the dots. Federal government contracts can be scarily complex with many unique rules, regulations and procedures not seen in private construction.
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