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ASBCA Holds That Contractor Entitled to Recover Costs of Preparing to Perform, When CO Terminated Contract Before Notice to Proceed

Client Alert | 1 min read | 09.27.17

In Appeal of Pro-Built Construction Firm (ASBCA No. 59278), the Board found that the contractor was entitled to recover nearly $290,000, even though Pro-Built never actually performed the contract. The U.S. Army Corps of Engineers contracted with Pro-Built to construct a police station in Afghanistan, but eight months later, terminated the contract for convenience, before the USACE ever issued a notice to proceed with construction to Pro-Built. After the USACE determined Pro-Built was entitled to $48,972 in reimbursable costs, Pro-Built appealed to the Board, arguing it was also entitled to direct labor and subcontractor costs as well as lost profit. In rejecting the USACE’s argument that it was unreasonable to incur “standby” costs prior to the NTP, the Board found that Pro-Built was entitled to three months of these costs and lost profit, holding that it was reasonable for Pro-Built to have staff on standby for three – not eight – months, and Pro-Built properly determined it was in its best interest to retain personnel and subcontractors in advance of construction due to the labor market and security situation in Afghanistan.

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Client Alert | 3 min read | 06.03.26

Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases

In a judgment that will have direct and immediate consequences, the Court of Justice of the European Union (CJEU) has clarified that for all competition damages actions brought after 26 December 2014, interest runs from the date on which the harm occurred. The ruling addressed two important questions: (1) whether national provisions implementing Article 3(2) of the EU Damages Directive — which requires interest to run from the date harm occurred —apply to cases in which the harm preceded the adoption of those provisions; and (2) how the date of harm should be determined in cartel cases involving the purchase of goods at inflated prices....

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