Default and Dispute

Name: Course: Instructor: Introduction In government contracting, the government as the buyer enters into mutually and legally binding relationships with a second party, which is the seller. The seller is to deliver the supplies while the buyer pays for those services. This includes all written commitments that obligate the government to expend allocated funds in large contracting engagements. In the management of contracts, situations arise where these agreements may require termination between the contracting government agents and contractors in order to settle arising disputes. Generally, the government will terminate a contract either based on a default arising from the contractor or by the convenience of the government(Breger,et al, 2001). Termination for Default Terminating a contract by default is the exercise of the government's right because of the contractor’s actual or anticipated failure to perform the set contractual obligations. The right to terminate a contract where it has been determined that the reasons are not excusable the government acts to terminate the contractors just like for its convenience purposes. The default clause allows the contractor to transfer title of the delivered work to the government after termination of the contract. The government on the other hand pays all goods, services and materials delivered. However, the government must establish that the termination was proper and correct. Though default termination is a drastic action, the government shows that its determination was evidenced based and that it was unlikely for the contract to have been completed in time (David Ricci). The ground of termination according to FAR Part 49 includes: A Failure to deliver or perform on time Timeliness is a qualitative measure of performance that can lead to termination of government contract. A sense of goodwill also counts in case there is strong evidence proves that extra effort from the contractor would achieve bett...