P&L HW 7 - CEE 4804 Case 7 Dig-it Dredgers vs Federal...

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10/02/07 CEE 4804 Case 7: Dig-it Dredgers vs. Federal Agency Overview: This case is between Dig-it Dredgers and Federal Agency. Dig-it was contracted by Federal Agency for maintenance dredging of 89,000 cubic yards. The contract stated that there is to be required site visits for the contractor. The contract “urged and expected” bidders to make a site visit, but there is not any record of Dig-it conducted a site visit prior to being awarded the contract. The contact incorporated a differing site conditions clause that required the contractor to promptly notify the government about any conditions that differ from those stated by the contract. The problem is that Dig-it never looked at the prior dredging records available because they claimed that the records were at an inconvenient and unreasonable location 14 hours away in Detroit. Federal Agency claims that if a bidder is unable to examine the dredging records in Detroit, the government would find a way to get the information to the bidder. Nevertheless, Dig-it began work and eventually had to stop prior to the 90 day performance period because their barge and backhoe sank. Federal Agency is claiming that due to the contract’s default
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