Contract Disputes Act Guide: Claims, Appeals & Resolution Process
Complete guide to the Contract Disputes Act (CDA). Learn how to file claims against the government, navigate the appeals process, understand your rights at the Board of Contract Appeals and Court of Federal Claims.
Quick Answer
The Contract Disputes Act (CDA) provides the exclusive process for resolving monetary claims and disputes under federal contracts. Contractors must submit claims to the contracting officer, who issues a final decision. Appeals go to either an agency Board of Contract Appeals or the Court of Federal Claims. Claims must be filed within 6 years of claim accrual.
Understanding the Contract Disputes Act
The Contract Disputes Act of 1978 (41 U.S.C. §§ 7101-7109) establishes the procedures for resolving claims and disputes arising under federal government contracts. It provides contractors with a fair and efficient process to seek relief when disagreements arise.
The CDA applies to express or implied contracts for procurement of property or services, construction, alteration, or repair of real property, and disposal of personal property. It covers both contractor claims against the government and government claims against contractors.
Types of CDA Claims
- Payment disputes (invoices, progress payments, final payment)
- Contract interpretation disputes
- Constructive change claims (undirected changes)
- Differing site conditions
- Termination for convenience settlements
- Delays and disruptions caused by government
Filing a Claim
A claim is a written demand or assertion seeking money, adjustment, or interpretation of contract terms. Claims must be submitted to the contracting officer for a decision.
Required Claim Elements
Written Demand
Must be in writing and clearly state it is a claim under the Contract Disputes Act
Sum Certain
Monetary claims must request a specific dollar amount
Request for Decision
Must request a contracting officer's final decision
Certification (if over $100,000)
Claims exceeding $100,000 require contractor certification of good faith and accuracy
Certification Requirements (Over $100K)
"I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge and belief; that the amount requested accurately reflects the contract adjustment for which the contractor believes the Government is liable; and that I am duly authorized to certify the claim on behalf of the contractor."
A defective certification is not fatal—it can be corrected. However, fraudulent certification can result in forfeiture of the claim and False Claims Act liability.
Contracting Officer Final Decision
Once a claim is submitted, the contracting officer must issue a final decision. This decision is required before you can appeal.
Decision Timeframes
COFD Must Include
- • Description of the claim and dispute
- • CO's decision and rationale
- • Statement that it's a final decision
- • Appeal rights and deadlines
- • Information about ADR options
Deemed Denial
If the CO fails to issue a decision within the required timeframe, you may treat the claim as denied and proceed with an appeal. Don't wait indefinitely—monitor deadlines carefully.
Appeals Process
If you disagree with the CO's final decision (or deemed denial), you have the right to appeal to either an agency Board of Contract Appeals or the Court of Federal Claims.
Appeal Timeline
CO Issues Final Decision
Clock starts on date contractor receives the decision
File Notice of Appeal
90 days to Board of Contract Appeals OR 12 months to Court of Federal Claims
Discovery & Briefing
Parties exchange documents, take depositions, and file legal briefs
Hearing or Trial
Case decided on motions, written record, or live hearing/trial
Decision
Board or Court issues decision; further appeals possible to Federal Circuit
Choosing Your Forum
You must choose between a Board of Contract Appeals (BCA) or the Court of Federal Claims (COFC). This is an important strategic decision.
Boards of Contract Appeals
ASBCA, CBCA, PSBCA
- • 90-day appeal deadline
- • Less formal procedures
- • Judges with contract expertise
- • Generally faster resolution
- • Lower litigation costs
- • Accelerated procedures for small claims
- • No jury option
Court of Federal Claims
Article I Court
- • 12-month appeal deadline
- • Formal court procedures
- • Full discovery tools available
- • Nationwide jurisdiction
- • Higher litigation costs
- • May be preferred for large claims
- • No jury option
Major Boards of Contract Appeals
ASBCA
Armed Services Board - DoD contracts
CBCA
Civilian Board - Most civilian agency contracts
PSBCA
Postal Service Board - USPS contracts
Timelines & Deadlines
Critical CDA Deadlines
Time to submit claim to CO
Required response time
From receipt of COFD
From receipt of COFD
From Board/COFC decision
Dispute Resolution Strategies
Alternative Dispute Resolution
Consider ADR before formal litigation. Options include mediation, settlement judges, mini-trials, and neutral evaluation. ADR can resolve disputes faster and cheaper.
Document Everything
Keep contemporaneous records of all issues, delays, changes, and communications. Strong documentation wins cases.
Continue Performance
You generally must continue contract performance during disputes. Stopping work can lead to termination for default.
Preserve Relationships
Aggressive litigation can damage future business. Balance vigorous claim pursuit with maintaining working relationships.
Get Legal Counsel Early
CDA claims and appeals are complex. Early involvement of experienced government contracts counsel improves outcomes and helps avoid procedural mistakes that can doom your claim.
Frequently Asked Questions
Can I recover attorney fees?
Generally no—the "American Rule" applies and each party pays their own fees. However, the Equal Access to Justice Act (EAJA) may allow fee recovery for small businesses if the government's position wasn't substantially justified.
What interest rate applies to successful claims?
Interest is paid on successful claims at the rate established by the Secretary of the Treasury. The rate is published semi-annually and typically tracks short-term Treasury rates.
Can the government file claims against contractors?
Yes, the CDA applies equally to government claims against contractors. The CO asserts the claim and, if the contractor disagrees, the contractor appeals to a Board or COFC.
What's the accelerated procedure for small claims?
Claims of $50,000 or less can use accelerated procedures at the Boards. Claims of $150,000 or less can use small claims procedures with simplified rules. Decisions in these tracks are faster but have limited precedential value.
Can I sue for breach of contract outside the CDA?
No, the CDA provides the exclusive remedy for contract disputes with the government. You cannot sue in regular federal district court for breach of a government contract.
Find Your Next Opportunity with BidFinds
While disputes are part of contracting, finding the right opportunities reduces risk. BidFinds helps you discover quality contracts across all 50 states.
Ready to Find Your Next Contract?
Get instant access to thousands of government construction bids with our AI-powered platform.
Get Started