What to Expect When You Are Expecting a Price Adjustment: The ABCs and CBAs of Increased Labor Rates

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The Agency accepted your bid and you have begun performance on the contract. You invested countless hours and dollars into providing the perfect, winning bid. But then the unthinkable happens, several months into performance, the DOL advises you that you have been underpaying workers in violation of the SCA. It turns out that the SCA was not properly incorporated into you initial contract, but the Government has now corrected the error through a contract

modi?cation. You now owe your employees backpay and will incur signi?cant unanticipated costs to complete contract performance.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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