Understanding and cooperation are discussed as keys to a successful federal-state relationship for federal-aid reimbursement of contractors' claims. The state's responsibility in the resolution of construction claims is discussed. The administration should not be liable for a claim which is attributable entirely to negligence or other culpable action on the part of the state personnel in administration of a contract. It is emphasized that the measure of a state's success on the particular claim for federal reimbursement is necessarily the extent to which such claim is supported by adequate documentation. Particular attention should be given to the following categories of doucmentation of a construction claim: (1) the facts giving rise to a claim, (2) the legal basis for paying the claim, (3) the presentation of an auditable claim, and (4) argument presented from strength rather than weakness. Although the federal highway administration has a veto authority over the states in the area of federal reimbursement, this authority will be exercised in a reasonable way. A complete and thorough resolution of the state claim, well documented, founded in state law and applicable federal law and regulations, has assurance of acceptance by the administration.
Abstract