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.
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.