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Rajah Lehal

Subcontractor Limits on Bringing Claims Against the Government

September 29, 2015

Links from this article: Read full article here.

“>This article outlines that the general rule is that a “subcontractor cannot bring a claim against the government unless it has contractual privity with the government or is an intentional third-party beneficiary of an agreement. However, subcontractors can typically bring claims against the government if a prime contractor brings the suit on behalf of the subcontractor as a pass-through or sponsored claim”.

The article discuses a United States case which granted the government’s motion to dismiss for lack of subject matter jurisdiction because the subcontractor lacked privity of contract with the government.

Read full article here.

Take away:

  • Subcontractors should be aware of legislation governing third party suits against the government, and ensure that their contract with the prime contractor requires it to initiate litigation/arbitration on behalf of the subcontractor.
Generally Used Clauses
Parties and Privity
Commercial Activities

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.