On July 30, 2024, Christopher Griesedieck and David Smith published “Virginia Appeals Court Nixes Subcontractor Workshare Provision for Additional Work” in Westlaw Today. The following is an excerpt:
A recent decision from the Court of Appeals of Virginia may have companies doublechecking the workshare terms in their subcontracts. The Court held that a subcontractor's 40 percent workshare only applied to the $70 million originally awarded under the prime contract and did not apply to the additional $55 million that the government later added. This was true even though the workshare provision stated that it applied to costs "over the life of the contract."
Read on to learn why the Court ruled this way and tips for avoiding controversies over federal subcontracting workshare arrangements.
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