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Volume 5 - Number 29 | July 23, 2007
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EDITOR'S NOTES
One main difference separates commercial and government contracting—the amount of oversight. Whereas commercial contracts are typically governed by the Uniform Commercial Code and local law, which allows for some flexibility, government work is fraught with statutory limitations and regulations. If the government project occurs overseas, bidders must satisfy additional prerequisites. Although an agency may exercise legislative interpretation when qualifying a bidder, that right does not extend so far as to waive or ignore a requirement. That’s the ruling the Comptroller General issued to the U.S. State Department after the agency dismissed a prequalification requirement for a bidder on an embassy project.
Also this week, we look at a project that was terminated for convenience. Of particular interest is that the agency could issue the termination yet instruct the contractor to finish other facets of the project also covered by the same contract.
Finally, a contractor lost its opportunity to collect on its subcontractor’s performance bond because it failed to submit timely notice of contract default as stipulated by the contract and the bond.
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DELETION RULED TERMINATION INSTEAD OF DEDUCTIVE CHANGE
Unexpected conditions on a tunneling project prompt the public owner to terminate the project for convenience. It instructs the contractor to wrap up other facets of the project, raising the question of whether the project was terminated or the instructions warranted a deductive change order.
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