Claims Management for Contractors

Federal and DC-area contractors forfeit millions of dollars annually by missing claim submission deadlines, failing to certify claims correctly, or misidentifying a routine request for payment as a formal claim. The Contract Disputes Act (41 U.S.C. § 7101 et seq.) establishes a strict framework governing these rights — and contractors who don't understand that framework before a dispute arises are already behind.

What Constitutes a Contractor Claim

Under the Contract Disputes Act, a claim is a written demand or assertion by a contractor seeking payment of a sum certain, adjustment or interpretation of contract terms, or other relief arising under or related to a contract. The word "claim" carries legal weight. Not every invoice dispute, request for equitable adjustment (REA), or change order negotiation crosses into formal claim territory — but the line matters because it starts the clock.

A key threshold: claims exceeding $100,000 must be certified by a contractor representative who affirms the claim is made in good faith, the supporting data is accurate and complete, and the amount requested accurately reflects the contract adjustment believed to be owed (according to the Contract Disputes Act). A false certification exposes a contractor to liability under the False Claims Act — a separate, severe consequence that no claim recovery is worth triggering.

Timeframes and Deadlines

FAR Part 33 implements the Contract Disputes Act at the regulatory level. Under FAR 33.206, contractors must submit claims within 6 years of the accrual of the claim. The accrual date is generally the date all events that fix the alleged liability occurred and the contractor knew or should have known of that liability. Courts and boards interpret "accrual" strictly — waiting too long, even with a legitimate claim, results in permanent bar.

The Contracting Officer (CO) has 60 days to issue a final decision on claims of $100,000 or less. For larger claims, the CO must acknowledge receipt within 60 days and provide a decision date. If no decision arrives, the contractor can treat that silence as a deemed denial and proceed to appeal.

Where Appeals Go: ASBCA and Other Boards

Once a CO issues a final decision, a contractor has two forums for appeal:

• Agency Boards of Contract Appeals — The Armed Services Board of Contract Appeals (ASBCA) handles DoD contract disputes. Civilian agencies have the Civilian Board of Contract Appeals (CBCA). Contractors must file within 90 days of receiving the CO's final decision.
• U.S. Court of Federal Claims — Contractors may elect this route instead, but must file within 12 months of the CO's final decision.

Choosing the wrong forum or missing the filing window extinguishes the appeal. The ASBCA has jurisdiction only over contracts with DoD components, so DC-area contractors working across multiple federal agencies must track which board applies to each contract.

Interest on Claims

FAR Part 32 governs prompt payment and interest accrual on contractor claims. Interest on a contractor claim runs from the date the CO receives the written claim until payment — calculated at the rate established by the Secretary of the Treasury under the Renegotiation Act (according to FAR 33.208). This interest provision gives contractors a financial incentive to file formal claims early rather than letting disputes drag through informal channels indefinitely.

The GAO Protest Track

For pre-award and post-award bid disputes, the U.S. Government Accountability Office provides an alternative forum. GAO resolves the majority of bid protests within 100 days of filing. A GAO protest is not the same as a CDA claim — it addresses procurement irregularities, not contract performance disputes — but DC-area contractors frequently encounter situations where both tracks are relevant simultaneously. A disappointed offeror challenging a task order award, for example, may file at GAO while simultaneously tracking performance obligations on an existing contract.

GAO sustains roughly 12–15% of protests decided on the merits in a given fiscal year (according to GAO annual protest statistics), though a larger percentage of protests result in voluntary corrective action by agencies before GAO issues a decision.

DC-Specific Compliance Factors

Contractors operating in the District of Columbia must maintain active licensing with the DC Department of Consumer and Regulatory Affairs (DCRA). A lapsed or invalid DC contractor license can complicate — or in some forums, bar — the ability to pursue claims arising from DC-funded or DC-permitted work. Claims standing is affected by licensure status because courts and boards examine whether the contractor was legally authorized to perform at the time the work was executed.

For work subject to OSHA Construction Standards, safety violations on the project can be raised as an affirmative defense or counterclaim by an agency or owner seeking to reduce a contractor's recovery. A documented OSHA citation on the project site — even one resolved through settlement — creates a record that opposing counsel will use. Proactive safety documentation is therefore part of claim defense, not a separate administrative obligation.

Practical Claim Documentation Requirements

Strong claims are built before a dispute crystallizes. The documentation that wins claims includes:

• Daily reports signed by field supervisors, noting weather, labor counts, and any government-directed changes
• Change order logs tracking every RFI, directive, and verbal instruction that altered scope
• Cost segregation records separating impacted work from baseline contract performance
• Correspondence chains preserving all CO communications, especially oral directives confirmed in writing within 48 hours

Construction managers overseeing federal work — a role with a national median annual wage of $104,900 according to the BLS Occupational Outlook for Construction Managers — are the primary custodians of this documentation. Their field records are the evidentiary foundation of any successful claim.

References

• Federal Acquisition Regulation (FAR) Part 33 — Protests, Disputes, and Appeals
• Contract Disputes Act — 41 U.S.C. § 7101 et seq.
• Armed Services Board of Contract Appeals (ASBCA)
• BLS Occupational Outlook: Construction Managers
• OSHA Construction Standards
• FAR Part 32 — Contract Financing
• U.S. Government Accountability Office — Bid Protests
• DC Department of Consumer and Regulatory Affairs — Business Licensing

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)