Government Contracting Database
Delay in Issuance of Notice to Proceed
It is basic that where the government, by express words or by implication, warrants the date of commencement in the contract, a contractor who is not permitted to start by this date is entitled to recover damages for breach of this warranty. United States Steel Corp. v. Missouri Pac. R.R. Co., 668 F.2d 435 (8th Cir. 1981), cert. denied, 459 U.S. 836 (1982). Such a warranty exists, and a contractual obligation is created, even where an express date is not specified. See, e.g, H.N. Wood Prod., Inc. v. United States, 59 Fed. Cl. 479, 487 (2003); Cedar Lumber, 5 C1. Ct. 539 (1984); Renel Constr. Co., GSBCA No. 5175, 80 – 2 BCA 14, 811 (1980).
Even in the absence of a warranty or contractual obligation to issue the NTP by a date certain, there is an implied obligation to issue a NTP within a reasonable time of contract award. Marine Constr. & Dredging, Inc., ASBCA Nos. 3841 2 et al., 95 – 1 BCA ¶ 27,286.
Updated: July 30, 2018