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Defaulting on a contract will likely have a substantial negative impact on your business beyond the losses experienced for the terminated contract. The standard default clause in a government contract states that the government can terminate a contract for default if a contractor fails to deliver supplies or to perform the services or work within the time specified in the contract. However, any number of issues may impact a contractor’s ability to deliver within the agreed-upon schedule. When late delivery seems inevitable despite best efforts, there are actions a contractor ...