FEDERALUnited States Court of Federal Claims
1993

Mega Construction Co. v. United States

29 Fed. Cl. 396United States Court of Federal Claims • Decided 1993Enforced

HOLDING

Mega Construction failed to fix a defective concrete slab that didn't meet contract specs, despite orders from the contracting officer to remove and replace it. The government terminated the contract for default. The court upheld the termination, ruling the contractor had no valid excuse for non-compliance. This case shows that ignoring a contracting officer's direct orders to fix defective work is grounds for termination and you won't win in court.

KEY FINDINGS

Termination for Convenience

Follow contracting officer directives immediately—failure to comply with orders to fix defective work is a valid reason for termination for default

Change Order

Defective materials that don't meet contract specs give the owner the right to demand removal and replacement; ignoring this demand puts your contract at risk

Dispute Resolution

Courts will not overturn a termination for default if you failed to perform work that met contract specifications, even if you dispute the quality assessment

FULL COURT OPINION