Payne Hackenbracht & Sullivan

Subcontractor Costs

Where an owner's acts or omissions increase a subcontractor's costs, the prime contractor may seek to recover these costs on behalf of its subcontractor and such costs are the legitimate basis for a request for an equitable adjustment. In addition, unless restricted or totally precluded contractually, the prime contractor is entitled to apply its normal mark-ups for general and administrative costs and profit to subcontractor claims and changes. Kunz Constr. Co. v. United States, 12 C1. Ct. 74, 81 (1987); Nager Elec. Co. v. United States, 442 F.2d 936 (Ct. C1. 1971); Engineering Technology Consultants, ASBCA No. 44912, 93-1 BCA 25,556 (1992); Page Constr. Co., AGBCA Nos. 92-191-1, et al., 93-3 BCA 26,060 (1993).