{"id":904141,"date":"2025-03-26T10:45:18","date_gmt":"2025-03-26T16:45:18","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904141"},"modified":"2025-03-26T10:46:01","modified_gmt":"2025-03-26T16:46:01","slug":"termination-settlement-proposal-attorneys-fees-recoverable","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/","title":{"rendered":"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals"},"content":{"rendered":"\n

Aron C. Beezley and Nathaniel J. Greeson | BuildSmart<\/a><\/p>\n\n\n\n

When a government contract is terminated for convenience, contractors may find themselves navigating the complex process of preparing a termination settlement proposal. One critical consideration that often arises is whether the costs associated with hiring legal counsel to assist with the preparation of these proposals are recoverable from the government. The good news for contractors is that, in many cases, attorneys\u2019 fees<\/a> related to the preparation of a termination settlement proposal<\/a> are indeed recoverable.<\/p>\n\n\n\n

The Legal Basis for Recoverability<\/strong><\/h4>\n\n\n\n

The Federal Acquisition Regulation (FAR) provides guidance on cost allowability when it comes to termination settlements. FAR 31.205-42 specifically addresses termination settlement costs, providing that settlement expenses, including the following, are generally allowable:<\/p>\n\n\n\n

    \n
  1. Accounting, legal, clerical, and similar costs reasonably necessary for \u2013<\/li>\n<\/ol>\n\n\n\n

    (A) The preparation and presentation, including supporting data, of settlement claims to the contracting officer; and<\/p>\n\n\n\n

    (B) The termination and settlement of subcontracts.<\/p>\n\n\n\n

    Additionally, FAR 31.205-33 addresses the allowability of professional and consultant service costs, including legal fees, and generally allows for the recovery of such fees when they are reasonable and allocable.<\/p>\n\n\n\n

    The Armed Services Board of Contract Appeals (ASBCA) and the Civilian Board of Contract Appeals (CBCA) have consistently upheld that legal fees incurred in the preparation and negotiation of termination settlement proposals are recoverable, provided they meet the standards of reasonableness and allocability. Courts have recognized that contractors often require the assistance of legal professionals to navigate the intricate requirements associated with settlement proposals, especially when large sums or complex contract terms are involved.<\/p>\n\n\n\n

    Demonstrating Reasonableness and Allocability<\/strong><\/h4>\n\n\n\n

    To ensure recovery, contractors generally should demonstrate that attorneys\u2019 fees were both reasonable and necessary for the preparation of the termination settlement proposal. Factors considered in determining reasonableness include the complexity of the proposal, the qualifications of the attorney, and the time spent on the preparation. Allocability requires showing that the costs are directly linked to the contract termination and not for unrelated purposes.<\/p>\n\n\n\n

    Practical Tips for Contractors<\/strong><\/h4>\n\n\n\n
      \n
    1. Consult Early \u2013<\/strong>\u00a0Involve legal counsel early in the process to ensure compliance with FAR requirements and to maximize the likelihood of recovery.<\/li>\n\n\n\n
    2. Document Legal Involvement \u2013<\/strong>\u00a0Maintain detailed records of the attorney\u2019s contributions to the termination settlement proposal to demonstrate their necessity.<\/li>\n\n\n\n
    3. Justify the Reasonableness \u2013<\/strong>\u00a0Be prepared to show that the rates charged, and the hours billed, are customary and appropriate for the services rendered.<\/li>\n<\/ol>\n\n\n\n

      Conclusion<\/strong><\/h4>\n\n\n\n

      Recovering attorneys\u2019 fees related to the preparation of termination settlement proposals is a crucial consideration for contractors facing contract termination. By carefully documenting expenses and demonstrating reasonableness and allocability, contractors can enhance their chances of obtaining reimbursement from the government.<\/p>\n\n\n\n

      \n\n\n\n

      When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n\n\n\n

      Republished with permission. The article, \u201cRecovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals\u201d was originally published on BuildSmart by Bradley Arant Boult Cummings LLP. Copyright 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Aron C. Beezley and Nathaniel J. Greeson | BuildSmart When a government contract is terminated for convenience, contractors may find themselves navigating the complex process of preparing a termination settlement proposal. One critical consideration that often arises is whether the costs associated with hiring legal counsel to assist with the preparation of these proposals are… Continue reading Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172],"tags":[9895,528,27,12150],"class_list":["post-904141","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","tag-advise-consult","tag-attorney-fees","tag-construction-law","tag-termination-settlement-for-proposal","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nRecovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"good news for contractors, in many cases, attorneys\u2019 fees related to the preparation of a termination settlement proposal are recoverable\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"good news for contractors, in many cases, attorneys\u2019 fees related to the preparation of a termination settlement proposal are recoverable\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-26T16:45:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-26T16:46:01+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals\",\"datePublished\":\"2025-03-26T16:45:18+00:00\",\"dateModified\":\"2025-03-26T16:46:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\"},\"wordCount\":507,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise & Consult\",\"Attorney Fees\",\"construction law\",\"Termination Settlement for Proposal\"],\"articleSection\":[\"Construction Law\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\",\"name\":\"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2025-03-26T16:45:18+00:00\",\"dateModified\":\"2025-03-26T16:46:01+00:00\",\"description\":\"good news for contractors, in many cases, attorneys\u2019 fees related to the preparation of a termination settlement proposal are recoverable\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals - Advise & Consult, Inc.","description":"good news for contractors, in many cases, attorneys\u2019 fees related to the preparation of a termination settlement proposal are recoverable","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/","og_locale":"en_US","og_type":"article","og_title":"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals - Advise & Consult, Inc.","og_description":"good news for contractors, in many cases, attorneys\u2019 fees related to the preparation of a termination settlement proposal are recoverable","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2025-03-26T16:45:18+00:00","article_modified_time":"2025-03-26T16:46:01+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals","datePublished":"2025-03-26T16:45:18+00:00","dateModified":"2025-03-26T16:46:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/"},"wordCount":507,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise & Consult","Attorney Fees","construction law","Termination Settlement for Proposal"],"articleSection":["Construction Law"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/","name":"Recovering Attorneys\u2019 Fees in Connection with Termination Settlement Proposals - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2025-03-26T16:45:18+00:00","dateModified":"2025-03-26T16:46:01+00:00","description":"good news for contractors, in many cases, attorneys\u2019 fees related to the preparation of a termination settlement proposal are recoverable","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/termination-settlement-proposal-attorneys-fees-recoverable\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3NcV","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/904141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=904141"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/904141\/revisions"}],"predecessor-version":[{"id":904142,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/904141\/revisions\/904142"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=904141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=904141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=904141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}