Cure Notice
Malyszek & Malyszek has been practicing government contract law for more than 40 years. Our areas of practice include Litigation and much more. If you’re in need of an aggressive law firm to help you understand the specifics of cure notices, Malyszek & Malyszek is your answer.
A cure notice is issued by the government to notify the contractor that the government considers the contractor's failure to be an endanger to the contract. The cure notice specifies a period, usually 10 days, for the contractor to correct the condition. If the condition has not been modified within the given time period, the cure notice states that the contractor may face possible termination of the contract for default.
The contracting officer must send the cure notice prior to terminating an order. A cure notice isn’t necessary when the cause for termination is late delivery.
The cure notice should:
• Specify the failure endangering performance of the order
• Allow a time period of at least 10 days for the contractor to cure the failure
• Identify the GSA schedule clause authorizing order termination for cause
• Notify the contractor that the ordering activity may terminate the order unless the situation is cured
Once the contractor receives the cure notice they have the opportunity to resolve the problem. In formulating the cure notice, much care should be taken to state the failures and suggest the cures. The 10-day time period may be extended if the contracting officer considers it realistically necessary. The contractor can even use the failure to deliver the cure notice as a defense in its termination for default appeal; failure to provide the required cure notice is fatal.
The contractor is allowed to make a profit on preparations for the terminated portion of the contract but not on settlement expenses. When defining the rate of profit permitted, the effort made by the prime contractor can be considered. Profit is not allowed if it appears the contractor would have incurred a loss. An adjustment for the loss is essential in the amount of the final settlement.
If you are in need of a competent law firm Malyszek & Malyszek is your answer. Call Malyszek & Malyszek today to learn more about our government contract law legal services.
