A recent case in the Federal Circuit revealed the danger of leaving undefined terms in construction contracts.\r
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The Department of Veterans Affairs (VA) awarded a contract to Reliable Contracting Group, LLC, for design and construction improvements to a new medical center. The contract required Reliable to install three backup generators. Notably, the contract required the generators, and all other equipment under the contract, to be 'new.' While a separate provision of the contract defined 'new' under FAR 52.211-5, the provision relating to the generators did not provide a definition. The failure to define this one, small word led to the dispute in this case.
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