Tawazuh Commercial and Construction Co. Ltd.

June 13, 2011Judge Williams

Denied / Government PrevailedContract InterpretationTermination for DefaultAccord & Satisfaction / Release / Waiver

Tawazuh Commercial and Construction Co. Ltd. appealed the default termination of its contract for road construction in Afghanistan, seeking an equitable adjustment of $2,756,450. The Board upheld the termination, finding it justified due to the contractor's failure to meet contract specifications.

Material Facts

The contract was awarded to Tawazuh Commercial and Construction Co. Ltd. on 20 December 2005 for constructing 40 kilometers of road.
The performance period was from 26 December 2005 through 8 July 2006.
The contractor submitted multiple progress payment requests, but the government denied the third request due to concerns about work completion.
The contracting officer issued a suspension of work order on 5 April 2006 due to deficiencies in the contractor's work.
The contract was terminated for default on 6 June 2006 after the contractor failed to provide a remediation plan in response to a cure notice.

Parties

Appellant: Tawazuh Commercial and Construction Co. Ltd.
Respondent Agency: U.S. Army Engineer District, Middle East
Contracting Agency: U.S. Army Corps of Engineers
Contract Number: W91B4L-06-C-0021

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