Article Date: 01/31/2014


Federal Contract Clause Left Contractor at Mercy of State Regulators


Under a contract’s Permits and Responsibilities clause, the contractor on a federal project had no recourse against the federal agency for increased costs incurred as a result of allegedly arbitrary and unreasonable performance mandates imposed by state regulatory authorities. The agency had no contractual obligation to intervene with state officials on behalf of the contractor.

 

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