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The contractor argued it was entitled to an equitable adjustment for costs it incurred leveling floors. ASBCA ultimately denied the claim, finding that the contract’s release absolved the government from liability. Furthermore, the contractor’s request for equitable adjustment had already led to a negotiation that resulted in an adjustment.
Appeal of GSC Construction, ASBCA No. 61380
- Background – The contractor received a task order to design and renovate Army Ranger barracks at Fort Benning. The instant decision focused on two claims. (1) Whether the contractor was entitled to an equitable adjustment for costs it incurred leveling the floors, and (2) whether the government improperly required GSC to remedy the defects and the damage related to two floods under a warranty clause.
- Floor Leveling – The ASBCA found that the government adequately demonstrated that the release in the contract contained clear and unambiguous language that released the government from liability. Additionally, there was undisputed evidence showing that the contractor’s request for equitable adjustment had already resulted in a $412K adjustment.
- Flood Claims – The government asserted two flood claims. It sought to require the contractor to remedy the defects and damages. One was in March, and the other was in April. ASBCA denied the March flood claim but sustained the April flood claim. For the March Flood, the government determined that the most probable cause of the flood was defective cross-threading, for which the contractor was liable. On the other hand, the government failed to demonstrate that it was entitled to require the contractor to rectify the damage caused by the April flood. There was sufficient competing evidence indicating that the flood was a result of Roto-Rooter’s defective materials.
Patrick B. Kernan of Asmar, Schor, McKenna, PLLC appeared for the appellant. Michael P. Goodman and Allie E. Vandivier of the Army appeared for the government.
— Case summary by Joshua Lim, Assistant Editor.
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