Question: Smith was awarded a fixed-priced contract for the repair and maintenance of a government owned campus consisting of several buildings. On September 1, Smith subcontracted
Smith was awarded a fixed-priced contract for the repair and maintenance of a government owned campus consisting of several buildings. On September 1, Smith subcontracted the roofing work on the headquarters building to Jones. However, after starting work, the government ordered Jones to sus- pend work because of an inherently dangerous condition that had to be corrected before work could be completed. Jones returned to the job on October 1 and satisfactorily completed the work within the required 30 days.
On November 3, Jones requested compensation from Smith for the 30-day delay. Smith sent a copy to the contracting officer with the notation "Attached is a claim for delay. Please Respond." Upon receipt, the contracting officer returned the correspondence with a note explaining that the claim had to be "submitted by Smith and in Smith's name." On April 29, Smith submitted a final invoice without any reference to the delay claim. The invoice was accompanied by a standard release of liability. On June 1, Smith was paid the remaining amount due.
On July 1, Smith filed a "Revised Claim" in its own name for the costs of the delay experienced by Jones.
Question:
1. Should the government pay this claim? Why? Why not?
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