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    Government Contracting Database

    Litigation Risk

    An assessment of “litigation risk” involves a weighted consideration of the likelihood that litigation will yield a better result than acceptance of an offer of settlement. If the contractor’s time, the cost of legal services, and the uncertainty of litigation are all factored into the reasonable assessment, a contractor may find that the possibility of a better result in the future is not worth the risk of rejecting an offer of settlement.

    Updated: July 24, 2018

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