Agency’s “Callousness, “Disturbing Attitude,” and “Abhorrent” Behavior, which Caused a Contractor to Lose His House, Equipment, and Business to Creditors, Amounted to an Abuse of Discretion and a Violation of the Contract’s Implied Duty of Good Faith and Fair Dealing; ASBCA 60235, Appeals of North American Landscaping, Construction and Dredge Co. Inc.

Appeals of agency decisions denying claims for delay costs, differing site conditions, and repudiation of a settlement agreement are, for the most part, sustained where (1) the agency abused its discretion in paying mobilization costs, knowing that it would deprive the contractor of the funds it needed to perform; (2) the agency breached the implied duty of good faith and fair dealing by, among other things, refusing to reimburse the contractor for mobilization costs and by coercing the contractor into settlement; (3) the agency effectuated a constructive change by requiring the contractor to perform beyond the contract requirements; and (4) a settlement between the agency and the contractor is unenforceable due to duress.