International Construction Law Review
FOREIGN CONTRACTOR AND SUB-CONTRACTOR CLAIMS AGAINST THE UNITED STATES GOVERNMENT
JOHN B TIEDER, JR*
PAUL A VARELA
DAVID B WONDERLICK
I. INTRODUCTION
This article describes briefly the bases of construction contract claims against the United States Government (hereinafter “US Government”) and the procedures for presenting those claims1. It addresses the subject specifically from the perspective of a non-United States contractor performing a contract for an agency of the US Government outside the territorial jurisdiction of the United States, as well as considerations for sub-contractors on such projects. Section II describes the US Government’s position as a contracting party, including the treaties, statutes, regulations, and standard contract terms under which construction services are procured outside the United States. Section III describes typical claims that may arise during the performance of prime contracts, and issues particular to sub-contractor claims against the US Government. Section IV describes the procedures for submitting and prosecuting a claim. Section V discusses the very severe penalties which the US Government can impose if a contractor submits a fraudulent claim.
The same topic was originally the subject of “Foreign contractor claims against the United States Government” in (1987) 4 ICLR 31. Since that time, there have been substantial changes in the law. In addition, the subject matter has been of increasing importance due to the US Government’s embassy construction programme, the large number of projects in Iraq and Afghanistan, and significant military construction in numerous locations. Thus, this update was deemed appropriate.
II. THE UNITED STATES GOVERNMENT AS A PARTY TO CONSTRUCTION CONTRACTS WITH FOREIGN CONTRACTORS
A. Waiver of sovereign immunity
The US Government is, of course, a sovereign entity. As such, it is totally immune from legal actions from its own citizens, as well as citizens of other
* The authors are partners at the law firm Watt, Tieder, Hoffar & Fitzgerald, LLP, 8405 Greensboro Drive, Suite 100, McLean, VA 22102.
1 The subject matter is limited to claims for money and/or time arising out of contract performance. It does not discuss claims for equitable or monetary relief relating to the tendering process.
Pt 1] Foreign Contractor and Sub-contractor Claims
5