LEGAL PROBLEMS ARISING FROM CHANGES, CHANGED CONDITIONS, AND DISPUTES CLAUSES IN HIGHWAY CONSTRUCTION CONTRACTS

The paper discusses provisions of the "changes" article appearing as Clause 3, Standard Form 23-A, March 1953 Edition, GSA, Fed. Proc. Reg. (41 C.F.R.) 1-16.401, General Provisions, and the "Changed Conditions" article (Clause 4) which permits adjustment of the contract where unforeseen physical conditions are encountered. The Disputes Article (Clause 6) is also discussed. It is noted that the rules governing judicial review of the administrative decision making process have not changed drastically in the 100 years since the United States v. Kihlberg supra, was decided and the rules of finality and exceptions were first announced. The development of the law has been along the lines of clarification of the early rules. It has been made clear that the decision of a contracting officer, department head or appeal board on a disputed question of fact, is final and conclusive unless the same is fraudulent or capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith, or is not supported by substantial evidence. It has been made clear that a contracting officer, department head or appeal board does not have the authority to make a final determination on a question of law.

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  • English

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Filing Info

  • Accession Number: 00178352
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Aug 31 1998 12:00AM