CDBG Entitlement FAQ

If you are in the midst of a project and remove a prime construction contractor, what are the options for completing the work so that a nonprofit owner is in compliance with the federal requirements?

Date Published: May 2015

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Federal procurement standards require all contacts in excess of $100,000 contain suitable provisions for termination, including the manner by which termination shall be effected and the basis for settlement. In addition, contracts must describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor. Please reference 24 CFR 84.48. Depending on the situation, you may wish to consider legal action against the contractor since they were removed for cause.

Tags: CDBG Entitlement Program Procurement