The firm represented a prime contractor in an action against the U.S. Army Corps of Engineers (USACE) before the Armed Services Board of Contract Appeals (ASBCA) that resulted in judgment. The client performed work on two projects for the Department of Veterans Affairs administered by the USACE – a $3.8 million contract to rehabilitate a transition center and a $7.4 million contract for the expansion of a research facility. The USACE made numerous design changes which increased the scope of the client’s work on the rehabilitation project and significantly delayed construction, but refused to pay for the additional work and time-related costs. On the research facility, the USACE issued multiple unilateral time extensions due to government-caused delay, but again refused to compensate the client for its time-related costs.
The firm helped the client prepare certified claims on both projects, and later, filed appeals with the ASBCA. After the USACE unsuccessfully moved to dismiss the appeals, the firm attempted resolution early in the litigation. Early attempts at settlement were ignored, so the firm pressured the USACE with written discovery and sought depositions of USACE personnel. Prompted by this discovery and the prospect of being forced to a hearing, the USACE agreed to pay $550,000 before the close of discovery. A consent judgment was entered and the client was paid within 60 days.
Counsel: Jason R. Thornton and Justin M. Stoger