Section 5.40 Subcontractor’s Claim for Interest Penalty

• Library: Construction Law 2016 Supp

D. (§5.40) Subcontractor’s Claim for Interest Penalty

As discussed in §5.35 above, if a prime contractor seeks to collect an interest penalty from an agency, its claim is subject to limited jurisdiction. The prime contractor must submit its claim initially to the contracting officer under the Contract Disputes Act of 1978, 41 U.S.C. §§ 7101 et seq., and must appeal any negative decision to the agency Board of Contract Appeals or United States Court of Federal Claims, 41 U.S.C. § 7104. But a subcontractor...