Federal Change Order Bars Cumulative Labor Inefficiencies

Kegler Brown Construction Newsletter

The U.S. Civilian Board of Contract Appeals on March 13, 2012, ruled on the age old issue of whether a change order on the GSA form, which excluded “direct, indirect, and impact and delay costs,” barred cumulative labor inefficiencies incurred as a result of changed work in previously signed change orders.

After hearing testimony about the intent of the change orders from both sides, the Board found that the “special circumstance” exception inapplicable and that the contractor failed to prove that the government intended that cumulative labor efficiency claims could be asserted later. Walsh/Davis Joint Venture v. General Services Administration, CBCA 1460.