Termination for Convenience • Termination for Default

Call our attorneys at 1-866-601-5518 for immediate help.

During performance of a government contract, the agency can unilaterally exercise the termination for convenience clause. In other situations, the agency can allege that you did not comply with the terms and conditions of the contract. As a result, the Contracting Officer may impose a termination for default (breach of contract.) In any of the two situations, you have rights as a contractor. Preparing an accurate settlement agreement can mean the difference between recovering thousands or millions of dollars.  By analysing critical facts to determine your expenditures and cost associated with a terminated contract can improve the outcome. You want to bring a government contracts attorney on board that knows the law. More importantly, you want to hire a law firm that understands mistakes that agencies make. You want to protect your rights. The contract termination lawyers at the law firm of Watson & Associates, LLC provide meticulous and aggressive legal representation to small businesses and large DOD contractors that are want to protect their rights when the agency ends the contract. We help you to prepare proper defenses to the agency’s adverse actions and vigorously litigate if your claims are denied.. In the case of a termination for convenience, our lawyers help you to adequately prepare settlement proposals and detailed support for allowable damages. See examples of recent representative government contracting cases.

• Understand your rights when the government terminates your contract
• Maximize your allowable damages
• Prepare adequate settlement proposals with support
• Challenge or appeal contracting officer’s final decision

Termination for Convenience: This type occurs when the government agency that has contracted with you and then decides to cancel the contract. The problems that usually occur include:

• Improper reasons for termination
• Wrongful denial of claims submitted
• Actual breach of contract on the government’s part

Contracting officials can terminate the contract without fault of the contractor. However, it is always prudent to inquire as to whether the government’s termination is actually a valid one. Our attorneys help you to conduct a meaningful inquiry into the agency’s actions. Without this help, you might miss out on getting the maximum damages allowed.

What happens if the government improperly terminates your contract for convenience?

If the government improperly terminates the contract for convenience, the logical approach is to be compensated as though it were a breach. This is why the first approach to handling a termination for convenience is to see whether of not there is an actual breach. The underlying reason for this clause is to allow the government to continue to act in its sovereign capacity. If there are no funds available or the mission changes, the the government should be able to unilaterally terminate the contract. Terminations for convenience is not intended to be a sword against contractors who stand up for their rights or demand payment for extra work.

Watson & Associates will also seek out whether the government has actually breached the contract. If the agency has instituted an improper termination for convenience, then you may be entitled to profits ( you generally  cannot collect anticipated profits.) You never want to simply take the advice of the agency officials because they have no legal duty to protect your rights.

Watson & Associates, LLC will help your organization to seek the maximum damages allowed. We will also counsel you on strategies that maximize recovery. We will prepare settlement proposals on your behalf and act as your advocate in negotiations and even appeal final decisions for you.

Challenge Unreasonable Proof Requirements from the Government

A fixed-price contractor is not required to document its costs of performance. However, the government often rejects payment of termination for convenience costs. Although as a contractor you have the burden of proving your claims, you can utilize the estimation approach. When there is a firm-fixed price termination, you should always keep adequate records of spending and costs. You never want to reactive because you might spend considerable time and money simply trying to challenge the decision. Our government contract attorneys recommend that you keep a solid accounting system for all government contracts individually.

Requesting Partial Payments

When there is a termination for convenience, you should always submit a request for partial payment with your settlement proposal. The government should process this requirement in a prompt fashion and not use it as a sword to force you to accept less of a payment. Call our termination for convenience lawyers for immediate assistance.

Termination for Default: Sometimes contracting officers will issue a show cause notice. When this happens, there is a good chance that a termination for default will follow. Although government contract law and case law states that this type of termination should be the last resort, our office has seen a rise in the amount of default terminations. Let us help you to protect your rights and negotiate a better outcome. A termination for default can ruin your future of doing business with the government. Our lawyers may be able to negotiate a reinstatement of the contract with new terms. Tips to avoid terminations for default include:

• Keeping the government informed all of potential problems in writing
• Keep a tight leash on your subcontractors
• Keep copies of all communication with the government
• Always keep in mind that only the contracting officer can bind the government (not the COR/COTR)

Contact us immediately to protect your rights. The government contracts law firm of Watson & Associates represents businesses across the country and overseas in federal contract terminations matters (you do not have to hire a Washington, D.C. law firm to help you.)

Contact us Today

Watson & Associates, LLC Government Contracts Attorneys

925 South Niagara Street, Suite 600 Denver, Colorado 80224

Phone: (720) 941-7200

 Fax: (720) 941-7201

Toll Free: 1-866-601-5518

Watson & Associates’ law firm represents clients with government contracts claims, litigation, and appeals in all contract termination disputes. The firm services clients in Washington, DC and nationwide.