Hi Folks,
I'm administering a MTA/TO type subcontract awarded under a T&M basis. Due to recent wild fires in CA, the Subcontractor employees were sent home early given safety/health related concerns with the surrounding air quality. Such circumstance were no fault of the Subcontractor in which they complied with the order received based upon our direction. As a prime contractor, we did not flow-down 52.232-7 Payment under T&M clause. However, we have similar plain language that mirrors the FAR clause. Generally speaking, the T&M subcontract allows for payment based on actual hours work with each fully burden labor rate including wages, indirect costs, general and administrative expense, and profit.
I'm now being asked how the Subcontractor should account for its time for the hours not work. Can we simply allow the Subcontractor to invoice its time for the hours missed or consider some other equitable adjustment? Appreciate perspective thoughts on how to best remedy this dilemma.
THanks,
Shawn