48 C.F.R. § 49.108-6
49.108-6 Delay in settling subcontractor settlement proposals.
When a prime contractor's inability to settle with a subcontractor delays the settlement of the prime contract, the TCO may settle with the prime contractor. The TCO shall except the subcontractor settlement proposal from the settlement in whole or part and reserve the rights of the Government and the prime contractor with respect to the subcontractor proposal.
Notes of Decisions
Cited in 1
case, 1999–1999 · leading case: Morrison Knudsen Corp. v. Fireman's Fund Insurance
Morrison Knudsen Corp. v. Fireman's Fund Insurance (1999)
“” 48 C.F.R. § 49.108-6 . If a prime could directly recover its sub’s costs under the “costs of this work” clause, there would be no need for a procedure to address situations in which a prime’s inability to settle with a sub delayed its settlement with the government.”
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