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Filing a post-shutdown REA?
Contractors who received a “stop-work” order during the shutdown may qualify for reimbursement of some of the costs. Even without a formal stop-work order, if a contractor is locked out and unable to perform, in some cases it is considered a constructive stop-work and costs can recouped.
Attorneys usually advise filing within 30 days of the stop-work. Expenses that may be recoverable include:
- Management costs to implement an orderly cessation of the work, redeployments and coordination with the agency;
- Idle time for staff and idle facility costs;
- Severance pay if shutdown necessitates layoffs;
- Startup and remobilization costs;
- Staff recruitment costs to replace staff no longer available;
- Inflation adjustments for labor and materials if the performance period is extended as a result of the stop work;
- Overhead that was borne by other contracts during the stop-work period;
- Legal and accounting costs of preparing, submitting and negotiating the equitable adjustment;
- Profits lost due to the above items.
More information: GovCon360: https://bit.ly/2sPFs22
PilieroMazza PLLC: https://bit.ly/2B7MDr8
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