Contractors must understand that the Government is bound by the contract’s terms and cannot act as a sovereign. If you’re facing withheld payments, forced interpretations, or scope changes without agreement, you may be entitled to additional compensation.
Does…
The Government or Prime Contractor have the right to withhold payments?
The Government or Prime Contractor have the right to interpret your contract?
Your contract need to be restructured?
Every Contractor must be aware that the Government is limited to the terms of the contract and may NOT act as a SOVEREIGN.
Sovereign acts by the Government, such as dictating to the Contractor, orally or through un-priced or unsigned modifications are a manifestation that you are working to defective specifications and/or performing added scope work.
If any of the following conditions apply to your contract, you may be experiencing lost funds and may be entitled to additional monies:
An act by the Government that goes beyond the terms of a Fixed Price Contract, Cost Type, Cost Plus Award Fee, Research & Development Contract, etc. or any contract termination that has a consequential ripple effect upon the entire contract and/or Contractor, impose a substantial risk to the Contractor and require immediate action by the Contractor to ensure no financial denigration to reputation.
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