Government Contracting Database
Subcontractor Costs
Where an owner’s acts or omissions increase a subcontractor’s costs, the prime contractor may seek to recover these costs on behalf of its subcontractor and such costs are the legitimate basis for a request for an equitable adjustment. In addition, unless restricted or totally precluded contractually, the prime contractor is entitled to apply its normal mark-ups for general and administrative costs and profit to subcontractor claims and changes. Modeer v. United States, 68 Fed. Cl. 131, 140 (2005), aff’d, 183 F. App’x 975 (Fed. Cir. 2006); Kunz Constr. Co. v. United States, 12 Cl. Ct. 74, 81 (1987); Engineering Technology Consultants, ASBCA No. 44912, 93-1 BCA ¶ 25,556; Page Constr. Co., AGBCA Nos. 92-191-1, et al., 93-3 BCA ¶ 26,060.
Updated: August 8, 2018
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