When companies in Louisiana and elsewhere enter into a contract with a federal agency to construct a building or design an addition to a current structure, much time, effort and planning must be exerted. These are frequently huge projects with tight deadlines. However, even the most carefully planned construction project is not executed without any flaws or setbacks. Thus, it is important to understand why construction disputes occur in a federal contract so proper steps can be taken to remedy them.
Based on a 2015 study, it was discovered that the most common cause for construction disputes when a federal agency is a party was due to cost adjustment denial. Cost changes in these types of contracts frequently occur due to unforeseen problems or issues that arose over the course of the construction project.