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November 25, 2013

CBCA Reaffirms Federal Contractors' Obligation To Continue Work During Dispute

Arnold & Porter Advisory

A recent Civilian Board of Contract Appeals (CBCA) decision provides a reminder of the differences between government and commercial contracts, and that a contractor that does not appreciate these differences acts at its peril. In Kap-Sum Properties, LLC v. General Services Administration, CBCA 2544 (Oct. 31, 2013), the CBCA denied a contractor's claim for damages resulting from the contractor's terminating performance on a real estate lease where the government experienced a significant delay in providing needed drawings to the contractor. Arising in the context of a government lease, this decision highlights the profound effect that unique federal Changes and Disputes clauses have on a contractor's options in the face of government delays and alterations to the contract.

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