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Contractors Must Provide Sufficient Notice Of The Basis And Amount Of A CDA Claim

The U.S. Court of Appeals for the Federal Circuit recently decided the case of K-Con Building Systems, Inc. v. United States, No. 2014-5062 (Fed. Cir. Feb. 12, 2015). While this construction case reaffirms some relatively unremarkable concepts of liquidated damages and changes, it does provide some helpful guidance for all federal contractors regarding the required contents of claims against the government under the Contract Disputes Act (“CDA”) .

K-Con Building Systems, Inc. (“K-Con”) contracted with the U.S. Coast Guard to build a $582,641 cutter support team building in Port Huron, Michigan. The project was supposed to be completed by November 20, 2004. The Coast Guard accepted the building as substantially complete on May 23, 2005, and withheld payment of $109,554 in liquidated damages (“LD’s”) computed at the contractually determined level of $589 per day. On July 28, 2005, K-Con submitted a CDA claim to the contracting officer requesting remission of the LD’s, asserting that the LD’s constituted an impermissible penalty. The claim also obliquely mentioned that the Coast Guard had failed to issue extensions to the completion date as a result of changes to the contract, but K-Con never set out any more facts behind this extension issue. The Contracting Officer denied the claim, and K-Con filed suit in the US Court of Federal Claims. Continue reading Contractors Must Provide Sufficient Notice Of The Basis And Amount Of A CDA Claim