The U.S. Court of Appeals for the Federal Circuit has affirmed the default termination of a VA contract for HVAC and asbestos abatement work, holding that the contractor failed to establish excusable delay or to support a contract modification.
On May 21, 2026, the U.S. Court of Appeals for the Federal Circuit issued its nonprecedential decision in Sergent’s Mechanical Systems, Inc. v. United States, affirming the default termination of a Department of Veterans Affairs contract for HVAC and asbestos abatement work. The court held that the contractor had failed to establish excusable delay and that the record did not support a contract modification.
The decision is a reminder of the documentary discipline that supports a successful defense to a default termination. Excusable-delay defenses, differing site conditions claims, and constructive change theories all require contemporaneous documentation, timely notice, and a properly certified claim submitted to the contracting officer.
Construction contractors performing federal work — particularly on environmental remediation and abatement scopes — should review notice procedures, daily reporting practices, and claim preservation steps with their counsel and project management teams.
Source: Sergent’s Mechanical Systems, Inc. v. United States, No. 2026-1116 (Fed. Cir. May 21, 2026)