February 23, 2004

CONTRACT MODIFICATION RELEASES DEFEAT PERINI’S $8.4 MILLION DELAY CLAIM; BOARD TOSSES CPM ANALYSIS IN REDUCING LIQUIDATED DAMAGES

Armed Services Board of Contract Appeals

This case involves two appeals on an Embassy contract in Venezuela for the Department of State. The first is Perini’s appeal of the denied delay claim for $8,335,913 and 517 calendar days contract time extension. The second is Perini’s appeal of the government’s assessment of liquidated damages and penalties. This is a classic case of an end-of-job claim with multiple causes of claimed delay involving critical path method scheduling, a litany of anecdotal incidents, alleged defective or impossible specifications, and lost labor productivity.

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