Surety Bond Quarterly - Winter 2017 - 33

feature

The Calm After the Storm:

Managing Disaster
Response Contracts
IGOR ZH./SHUTTERSTOCK.COM

BY W. BARRON A. AVERY AND WILLIAM B. O'REILLY

WHEN A DISASTER strikes, federal, state,
and local authorities turn to the private sector to quickly mobilize the resources and
expertise needed to effectively respond
and rebuild. With more than $15 billion
in relief funds already approved for the
response to Hurricane Harvey and more
funding appropriated to assist with the
recovery from Hurricanes Irma and Maria,
contractors can expect myriad opportunities to participate in the effort to rebuild
vast swaths of Texas, Louisiana, Florida,
and Puerto Rico. With such large sums of

money being doled out in a short time, it
is easy for the government to lose track of
how effectively it is spending that money,
but that does not relieve contractors of
their own obligations to account for the
funds. Despite the fast pace of awards
and performance, and hazy, often fluid
needs, ordinary procurement rules remain
generally applicable in disaster recovery
situations. Consequently, contractors who
fail to adequately assess the requirements
associated with their contracts may face
significant, unrecoverable losses or, worse,
monetary claims by the government, as
disaster recovery contractors have learned
the hard way in the years since Hurricane
Katrina and Superstorm Sandy.
In December 2016, the Civilian Board of
Contract Appeals rejected a construction
contractor's claim for more than $4 million
associated with delays and cost overruns
allegedly incurred in the construction of
a Louisiana breakwater after Hurricane
Katrina due to differing site conditions.
The board found that a modification issued
by the government after the storm warned
the contractor that conditions had changed
and may remain "dynamic." Because the
government had made no assurances

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33


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Table of Contents for the Digital Edition of Surety Bond Quarterly - Winter 2017

NASBP Upcoming Meetings & Events
2017–2018 Executive Committee
From the CEO: Looking Backward to Reach Forward
Relationships for the Long Run
Subcontractor Default Insurance: Relevant Considerations for the Surety Claims Professional
Bottom Line Protection with Job Cost Accumulation & Allocation
Inside the AIA’s New Insurance and Bonding Contract Exhibit
The Calm After the Storm: Managing Disaster Response Contracts
Practical Tools to Help Jump-Start Your Company’s Cyber Plan
Index to Advertisers
Surety Bond Quarterly - Winter 2017 - Intro
Surety Bond Quarterly - Winter 2017 - cover1
Surety Bond Quarterly - Winter 2017 - cover2
Surety Bond Quarterly - Winter 2017 - 3
Surety Bond Quarterly - Winter 2017 - 4
Surety Bond Quarterly - Winter 2017 - 5
Surety Bond Quarterly - Winter 2017 - 6
Surety Bond Quarterly - Winter 2017 - 2017–2018 Executive Committee
Surety Bond Quarterly - Winter 2017 - 8
Surety Bond Quarterly - Winter 2017 - From the CEO: Looking Backward to Reach Forward
Surety Bond Quarterly - Winter 2017 - 10
Surety Bond Quarterly - Winter 2017 - Relationships for the Long Run
Surety Bond Quarterly - Winter 2017 - 12
Surety Bond Quarterly - Winter 2017 - 13
Surety Bond Quarterly - Winter 2017 - Subcontractor Default Insurance: Relevant Considerations for the Surety Claims Professional
Surety Bond Quarterly - Winter 2017 - 15
Surety Bond Quarterly - Winter 2017 - 16
Surety Bond Quarterly - Winter 2017 - 17
Surety Bond Quarterly - Winter 2017 - 18
Surety Bond Quarterly - Winter 2017 - 19
Surety Bond Quarterly - Winter 2017 - 20
Surety Bond Quarterly - Winter 2017 - 21
Surety Bond Quarterly - Winter 2017 - 22
Surety Bond Quarterly - Winter 2017 - 23
Surety Bond Quarterly - Winter 2017 - 24
Surety Bond Quarterly - Winter 2017 - 25
Surety Bond Quarterly - Winter 2017 - Bottom Line Protection with Job Cost Accumulation & Allocation
Surety Bond Quarterly - Winter 2017 - 27
Surety Bond Quarterly - Winter 2017 - 28
Surety Bond Quarterly - Winter 2017 - 29
Surety Bond Quarterly - Winter 2017 - Inside the AIA’s New Insurance and Bonding Contract Exhibit
Surety Bond Quarterly - Winter 2017 - 31
Surety Bond Quarterly - Winter 2017 - 32
Surety Bond Quarterly - Winter 2017 - The Calm After the Storm: Managing Disaster Response Contracts
Surety Bond Quarterly - Winter 2017 - 34
Surety Bond Quarterly - Winter 2017 - Practical Tools to Help Jump-Start Your Company’s Cyber Plan
Surety Bond Quarterly - Winter 2017 - 36
Surety Bond Quarterly - Winter 2017 - 37
Surety Bond Quarterly - Winter 2017 - Index to Advertisers
Surety Bond Quarterly - Winter 2017 - cover3
Surety Bond Quarterly - Winter 2017 - cover4
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