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A contractor in a federal construction project can save money if it completes the project earlier than the completion date that is set forth in a contract. The contractor may have a claim against the government for damages if the government interferes with the contractor's completion of the project prior to the completion date. Although the contractor has a right to finish the project early, most construction contracts with the federal government do not contain clauses regarding early completion.
In order to be successful in a claim against the federal government for early completion of a construction project, a contractor must prove that it notified the government of its intention to complete the project early and that its early completion of the project was reasonable and was in accordance with industry standards. If the contractor bases its claim for early completion of the project on the government's delay, the contractor must prove that the government interfered with its early completion of the project.
When the government looks at schedules for a construction project, it seldom anticipates an early completion of the project by a contractor. If the governments wants to encourage early completion of the project, it should make sure that the schedule is reasonable and that it does not interfere with the contractor's work. However, the contractor cannot be responsible for any delays. Delays on the part of the contractor would cancel out any interference or delay on the part of the government.
If the government does not want to encourage early completion of a construction project, it may include provisions regarding "float" in a construction contract. The term "float" is a contingency or slack time that is associated with non-critical portions of the project. A typical "float" clause specifies that there is no critical path regarding scheduling. However, "float" clauses are usually not used in federal construction contracts because they encourage a contractor to not adhere to the schedule or to modify the schedule.
Some federal construction contracts provide a bonus to a contractor if the contractor completes the project earlier than the scheduled completion date. The bonus is usually based on a daily rate. If the contract does not contain a provision with regard to a bonus and the government accelerates the completion date of the contract, the contractor may be entitled to an adjustment of the contract price if the contractor completes the project prior to its scheduled completion date.
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