Tecom, Inc. v. United States
66 Fed. Cl. 736 | United States Court of Federal Claims | 2005
What This Case Means for Subcontractors
Tecom, Inc. won a breach of contract case against the Air Force over vehicle maintenance work at Peterson Air Force Base. The Air Force failed to pay Tecom for excess deferred maintenance work that exceeded the 355-hour threshold specified in the contract. The court ruled that the Air Force was obligated to compensate Tecom for this additional work, establishing that contractors cannot absorb unexpected maintenance backlogs inherited from previous contractors without additional payment.
Key Takeaways
- •Document all inherited work conditions at contract start with detailed inspections and photos. Use these records to support change order claims if actual work exceeds contract thresholds.
- •Include specific hour or cost thresholds in your contract for deferred maintenance or inherited work. Once exceeded, you have a clear trigger for additional compensation claims.
- •Notify the client in writing immediately when you discover work substantially exceeding contract limits. Don't perform excess work silently hoping to bill later—establish the change order obligation upfront.
The Air Force breached paragraph 5.5.1 by failing to compensate Tecom for excess maintenance backlog.
Frequently Asked Question
Can I charge extra if I inherit more maintenance work than the contract specified?
Yes, if the actual work substantially exceeds the contract threshold. You must document the excess work with inspections and notify the client in writing. The court will enforce your right to additional compensation for work beyond the contracted scope, even if it was deferred by the previous contractor.
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