Aptus Company had its government contract terminated for default after failing to make progress, delivering unsatisfactory work, and violating the Davis-Bacon Act on a hydroelectric plant equipment installation project in Michigan. The company claimed the government caused delays by not providing required equipment on time, but the court rejected this defense and upheld the termination. This case shows that subcontractors cannot use government delays alone to excuse poor performance or missed deadlines without proving the delays were truly unavoidable.
Document everything: Keep detailed records of your work progress, quality issues, and any government-caused delays. Vague claims of delay won't save you from a default termination.
Wage and hour compliance is non-negotiable: Davis-Bacon Act violations were a key reason for termination. Ensure all workers are properly classified and paid according to prevailing wage requirements.
Justifiable delay requires proof: Simply saying the government delayed you isn't enough. You must prove the delay was beyond your control and directly caused your inability to perform—and even then, you must still show reasonable effort to mitigate.