November 26, 2007

EDITOR'S NOTES

Anyone who has ever played organized sports knows that the players change the rules midway through the game. The same applies to contracts (unless change orders come into play). On a project with substantial federal funding, a municipality tried to insert a provision for local hiring preferences into the contract. The state transportation department instructed it to remove the addition, which it did. However, the municipality reinserted the provision after the bid award, prompting the federal agency to withdraw its funding.

Credibility plays a significant role when a contract breach suit goes to court. When the facts are vague, the dispute can come down to a game of “he said/she said.” In this week’s second case, the court accepted the version of the story presented by the owner.

The final case this week draws from the experience gained from a Coast Guard contract. Despite objections from a small business, government agencies may be able to bundle small contracts into one larger contract if the cost savings can be justified.

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