Court Denied Contractor Claims in Utah Garage Dispute
Contractors must proactively seek scope clarification to avoid bearing project cost overruns.
Updated on Sept. 29, 2026 in Construction
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The Court of Federal Claims dismissed a $6.8 million damages claim from a contractor regarding elevator work at a Department of Veterans Affairs parking garage expansion in Utah. The court ruled the contractor held responsibility for seeking clarification on project scope requirements.
Why it matters
This ruling clarifies the operator burden of due diligence during contract performance, signaling that courts may hold builders liable for cost overruns if they fail to resolve ambiguous scope requirements early. It reinforces the importance of formalizing requests for information before proceeding with contested construction tasks.
The Court of Federal Claims dismissed a $6.8 million contractor damages claim related to elevator work for a Department of Veterans Affairs parking garage. The ruling impacts how firms approach project scope disputes.
The players
Court of Federal Claims
A federal court that handles contract claims against the United States government.
Department of Veterans Affairs
The federal agency responsible for managing healthcare and benefit facilities for military veterans.
The details
The court's decision establishes that contractors cannot assume they will be compensated for additional work when they fail to inquire about vague project specifications. By deciding the contractor failed to seek clarification, the court placed the financial risk of the scope dispute squarely on the firm executing the work rather than the government client.
Timeline
September 28, 2026: The Court of Federal Claims issued its ruling on the contractor's damages claim.
Market Landscape
This case follows a pattern of strict judicial interpretation regarding the Contra Proferentem doctrine in federal contract law. It places the burden of due diligence on the contractor to identify and resolve scope discrepancies during the project's planning phase.
Construction operators should review internal processes for documenting and submitting requests for clarification when project specifications are ambiguous. Relying on later claims to recover costs from scope disagreements represents a high-risk operational strategy.
The takeaway
The court's decision underscores the vital necessity of securing written clarification for any ambiguous scope items before moving ahead with construction. Ensure your project management team logs all inquiries regarding contract specifications to protect margins from unexpected liability.
Further reading
For more on industry standards, visit the Construction section.
Source note: This article includes information reported by Law360.
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