Know Your Rights—The Government Isn’t Above the Contract

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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