Contract Suspension Impact and Analysis
Contract suspensions can cause confusion for contractors. Suspensions are often issued to contractors in times of uncertainty on the contract. Kendall-Dinielli Consulting’s construction consultants can help identify suspension impacts and quantify the costs associated with the suspension. Kendall-Dinielli Consulting has assisted contractors recover costs associated with suspensions even in unusual contract situations, such as a suspension prior to the contract Notice to Proceed. One of our construction consultant principals was involved with the resolution of the case of Nicon, Inc. v. United States, No. 99-98-982C (Fed. Cl. Dec. 21, 2001) which enabled the contractor (Nicon) to recover suspension costs prior to the Notice to Proceed without using a Modified Eichleay formula. There is no current case law that allows the modification of the Eichleay formula for use as a method for calculating delay damages. Kendall-Dinielli’s consultant worked with Nicon’s attorney to settle the matter with the Department of Justice providing for fair compensation to Nicon for its delays.
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