Default and Dispute

Abstract

The paper begins with the introduction defining termination of default and Convenience. It then gives a comprehensive discussion on the distinctions between the termination of default and termination of Convenience. Practical Examples are given for each, along with defining the consequences and remedies for each. A discussion on the dispute process of the Contract Dispute Act has been provided which gives an extensive account of the dispute process that exists. An account of alternative dispute account has been provided which is the preferred Act used these days for conflict resolution between two parties. Highlight has been given on the procurement procedures adopted in the US and steps have been proposed as to how the procurement procedure could be made more efficient and productive. A conclusion is provided as per the major outcome of this research.

Table of Content

Abstract2

Introduction5

Discussion5

Termination for Default5

Termination for Default Justification & Its Practical Example6

Consequences of Termination for Default6

Remedies for Termination of Default6

Termination of Convenience7

Consequences for Termination of Convenience7

Remedies for Termination of Convenience7

Excess cost of re-procurement” and liquidated damages8

Analyze the dispute process under the Contract Dispute Act8

Importance of acquisition planning to cost saving in government contracting9

Recommendations for Improving Government Procurement Procedures10

Conclusion10

References12

Default and Dispute

Introduction

Contracts can be terminated by either termination for default or termination of convenience. Each has its own consequences and remedies which are discussed in depth later. When a conflict arises, smooth resolution is a must to ensure proper functioning of system. Contract dispute act gives guidelines as per how conflicts should be avoided and solved (Smith et. al 2009).

Government procurement & cost minimization should be at its lowest when it comes to contract with contractors. A detail elaboration on this account is given and measures given on how to increase the efficiency of procurement process in US.

Discussion

Termination for Default

The right to terminate a contract generally arises due to a major breach of the contract. If the contractor has in some sense violated a major requirement of a contract and it has inflicted major damage to the other party then the other party can file for termination of default (Smith et. al 2009).

For the parties their obligations and rights are conferred by the local law, which has been applied in similar cases before. All the legal statutes applicable in such a case are applied henceforth. In the case of minor breach of contract, the other party does not have a substantial claim to file the other party for termination of default. Such a case should be resolved; however when once a party files for termination of default then the other party is liable to pay for the losses (Smith et. al 2009).

Termination for Default Justification &Practical Example

The best example for termination for default comes under the federal construction procurement contracts (Smith et. al 2009). This contract sets forth the rights & duties for both the parties when an event of contract default occurs. For the use of fixed price construction contract, the clause that is used by the government comes under the federal acquisition regulation (FAR) ...