Contract Termination for Failure to Make Progress

The federal government’s termination for default for failure to make progress can occur when you fail to make satisfactory progress  toward completion of contract performance. 

For commercial item government contracts , the  government should be allowed to demand adequate assurances that you will meet the contract terms. You must respond to those, and cure notices, in a detailed and timely fashion.

Government’s Proof After Termination: A termination of contract for default for failure to make progress can also occur  when the government succeeds in that showing  convincing proof that it is reasonably certain, that on the date of termination, your company was just incapable of completing the contract in the time specified the contract.

The government cannot rely on improper information or fail to cooperate with the contractor which leads to problems and then terminated for untimely performance. See also Grounds Supporting Termination for Default Letter of Government Contracts.

Lack of Diligence Default Requirements: Many termination for default letters state that your demonstrated  lack of diligence indicates a lack of adequate assurance that you can achieve a timely completion.

Indicators That Government Looks For in a Termination of Contract Case: If you are issued a termination of contract for default for failure to make progress, you should be aware that the government will look to some of the following to meet its legal proof.

• Your company failed to make progress milestones
• Failure to maintain necessary materials and supplies  while trying to get cheaper prices
• Losing key personnel and failure to promptly hire more

Preparing to Defend Failure to Make Progress Contract Terminations: As you begin to see performance problems with your contract, you should always start keeping copies of written communication with the contracting officer and technical representatives.

• CORs and COTRs cannot bind the government – only the Contracting Officer can.

Make sure your subcontractors are up to speed and meet given deadlines—primes are generally imputed with a default for problems with subcontractors.

Always submit equitable adjustments and requests for extended delivery dates. Regardless of meetings held with the government, you should always follow up with written requests to extend delivery times. This is critical especially when the government later terminates you for failure to make progress. See how appeal courts look at contract termination for default cases.

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If your contract has been terminated for failure to make progress, call our contract termination of contract for default lawyers at 1-866-601-5518. FREE INITIAL CONSULTATION