bobbyduece

Q1: We are the subcontractor. Q2: Yes, it is probable the sub would have performed the original work at a loss. Q3: see Q1

Subcontractor has a fixed-price lump sum contract. Government has requested one of the systems, to be installed, is to be a different kind of system. The credit offered by the subcontractor is less than what the government desires, claiming that the original specified system cannot be provided for the offered deduct. Can the government require the subcontractor to provide a higher deductive amount than is in their estimate? Value of the change isin the range of $25k on the low end to $80k on the high end. Thanks in advance for opinions and references.