What is the Contract Disputes Act? Everything you need to know.

The Contract Disputes Act establishes a framework for addressing claims by contractors or government entities. Today, it is legal for a contractor to sue public entities, but this was not always the case. Before 1863, claims against the government were not allowed.

Naturally, disputes were raised between contractors and the rightness of contract funds. The act was passed to resolve these unresolved claims. The act specifies that all contract disputes must be handled by the US Court of Federal Claims.

If the US Court of Federal Claims is not available, claims must be determined by a contract appeals administrative board. Know that the act does not cover all federal entity charges. If you’re asking, “What is the Contract Disputes Act?” read on to discover everything you need to know.

What is the Contract Disputes Act?

The CDA addresses monetary claims such as breach of contract, non-monetary claims including interpretation disputes, and other claims that involve implied-in-fact agreements that deal with a contractor and the government.

What is not handled under the CDA?

When you search “What is the Contract Disputes Act?” you will find information on how the CDA addresses common issues between contractors and government entities. You will also learn that some situations are not addressed. For instance, claims for prevailing wages that fall under the Davis Bacon Act are not covered under the CDA.

The CDA does not handle claims that are the responsibility of a separate federal entity. Moreover, pre-award claims and claims that do not involve implied-in-fact contracts or contracts between the government and the contractor are not covered by the CDA.

How can you file claims?

There are no formal guidelines. However, there are criteria for the claim to be considered a valid CDA claim. The following points illustrate the requirements that must be included for you to grasp answers to questions like, “What is the Contract Disputes Act?” and whether a CDA claim is valid:

• The contractor must complete a written request. Simply notifying the contracting officer of the dispute will not suffice.
• The written demand must include a payment request for a set amount or similar relief about the contract between the contractor and entity.
• The payment must be exact; estimations will be taken as invalid CDA claims.
• The federal contractor must fully certify claims over $100,000.
• Contractor claims over $100,000 must indicate that the claims are made in good faith. Supporting data must be included that is accurate and with the requested amount.
• When you search “What is the Contract Disputes Act?” you’ll discover that every claim has a six-year statute of limitations.
• All claims must be made to contracting officers.
• You must indicate a request for a final decision by the contracting officer.

Stay informed and learn your legal options.

If you are a government contractor and feel you have a contract claim against a public entity, contact legal representatives. Your representative will answer questions such as “What is the Contract Disputes Act?” and keep you informed of your legal options.