Aron C. Beezley and Patrick R. Quigley | BuildSmart A recent executive order marks a significant policy shift in federal procurement by directing agencies to default to fixed-price, performance-based contracting. Framed as an effort to promote fiscal discipline, transparency, and accountability, the order reflects concerns about cost overruns and inefficiencies associated with cost-reimbursement models. This post examines… Continue reading Fixed-Price Contracting as Default: A Shift in Federal Procurement Policy
Tag: Fixed Price Contract
Delays and Suspension of the Work Under Fixed Price Government Contract
David Adelstein | Florida Construction Legal Updates Here is an interesting fact pattern and case decided by the Civilian Board of Contract Appeals dealing with (1) force majeure type events and epidemics (Covid-19); (2) suspension of the work; and (3) delays. These are three topics important to all contractors including federal contractors. In Lusk Mechanical Contractors,… Continue reading Delays and Suspension of the Work Under Fixed Price Government Contract
The Risk of a Fixed Price Contract is the Market
David Adelstein | Florida Construction Legal Updates When performing work on a fixed price or unit, there is risk that is being assumed on your end. One risk is the market. You are ultimately banking on the fact that the market is not going to make your fixed prices unprofitable. That’s not an unforeseeable occurrence because the market… Continue reading The Risk of a Fixed Price Contract is the Market