Contract Can Pursue Delay Claim Before Contract is Completed
The Civilian Board of Contract Appeals ruled that a contractor has the right to pursue a delay claim against the VA even though the project is still ongoing. We represent the contractor. As of September 30, 2016, the project is over three years late and delays continue to mount. The contractor exercised its right to file a delay claim under the Contract Disputes Act for delays up to September 30, 2016 and plans on filing another delay claim when the project is completed. The VA filed a motion to stay the first delay claim until the project is over. The contractor objected, noting that that the Contract Disputes Act allows contractors to file claims even when the contract is still ongoing. The Board agreed and held noted that the suspension of work clause requires a contractor to submit a claim for damages "as soon as practicable" not after the contract is over.
The Board's decision is a welcome one for those contractors facing a project that has been significantly delayed. The contractor should not have to shoulder the financial burden of these delays until the project is over. This is particularly true for small businesses.
