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Request for Additional Payment Under Fixed-Price Contract

B-196608 Feb 08, 1980
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Highlights

The Veterans Administration (VA) requested an advance decision as to whether it should pay a contractor for additional work performed under a fixed-price contract for renovations at a VA domiciliary. The firm contended that: (1) its fee for the renovations was based on a VA cost estimate that did not include a floor plan; (2) part of the work to be done was subsequently added; and (3) the contract price was not firm but was to be adjusted after the preliminary drawings were submitted with an accurate renovation cost estimate. The VA did not disagree that part of the renovation work was added, but contended that building code violations in the firm's drawings required costly changes. The VA contended that the firm was not entitled to additional payment because the contract expressly required it to comply with building codes and that the additional efforts on the part of the firm were within the scope of the contract. Also, the firm did not obtain written approval from the contracting officer to perform work which it believed was beyond the scope of the contract. GAO held that the questions raised in the dispute were normally resolved through standard disputes clause procedure. GAO has advised contracting officers of the laws applicable to such matters upon request. However, it held that the record did not sufficiently establish the facts involved to permit it to provide such advice in this case. Accordingly, GAO would not consider the dispute.

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