Sorry, took me a several attempts to read your responses in full and have time to ponder without interruptions.
Where this question stemmed is that I prepared a schedule and one of the activities was installation of scaffolding. Then I cost loaded this activity so that I could be paid once it was progressed onsite. I also had an activity for removing it and cost for that as well.
The response I received is that it isn't work in place and therefore I wasn't entitled to be paid. The justification was that if the contract was terminated then I would have received payment from something that USACE does not own or would have no rights to in this event. They are requesting that I take the cost of the scaffold and spread it across all the activities it supports. My objection is that I won't be paid in full for the scaffolding till all the work is complete, when the scaffold subcontractor will be billing for erection once in place.
My approach was that this was preparatory work and that I should be paid. But, it doesn't sound like it is truly preparatory work.