Contract Disputes with Government Entities: Strategies for Enforcement & Litigation
Lesley Brovner & Mark Peters
November 11, 2025
New York City and State enter into a multitude of contracts to provide essential government services and fulfill their legal obligations. In many instances over the past several years the government has failed to abide by its contractual obligations – often, for example, delaying for months or years payment for services properly rendered. Both before entering into a contract and during the term of the contract it is important to have experienced counsel to make sure that the contract protects you from problems with the government and then fight to make sure the government abides by the terms of the contract – including litigation if needed.
Understanding Contract Disputes with Government Entities
As with any other contract in the private sector, major government contractors need to be diligent in enforcing a contract and its terms. However, disputes with the government over contracts may have shorter statute of limitations periods, requiring you to go to court to protect your rights sooner than if you were dealing with a private party.
Key Laws and Regulations Governing Government Contracts
An important difference between government contracts and private contracts is that unlike private contracts, a government contract is not effective upon being signed by the government agency involved. Instead, both the City and State require that the contract, after being signed, be “registered” with the respective Comptrollers’ offices. Indeed, in most instances, until that registration takes place, the contract has no force. It can sometimes take many months for this registration to occur. While government agencies will often require that work begin before the contract is registered, this can be dangerous because until registration, you usually have no right to sue for enforcement or payment.
Also important to note is the Federal Acquisition Regulation (“FAR”) which sets out the policies and procedures for federal executive department procurement. This regulation standardizes the process across federal agencies. Both New York City and State have similar rules and regulations that standardize their contracting procedures as well.
Common Causes of Government Contract Disputes
Two common causes of disputes with the government both involve delays. First, the government, for various reasons, may delay getting the project started and these delays can add to the cost of the contract but are not always compensable under the contract’s terms. Second, in New York City and State the government has become notorious for not paying its bills in a timely fashion – something that has been the subject of multiple reports and reform efforts but none that have resolved the issue.
Steps to Take When a Dispute Arises
In New York, all agencies have an Agency Chief Contracting Officer (“ACCO”). That person and their staff are charged with managing the contracting process for their agency. This includes: Managing procurements; ensuring compliance with all government procurement rules and laws; negotiating and reviewing contracts; providing technical assistance to the agency’s own staff; and serving as a liaison to other government offices such as the Mayor’s Office of Contract Services (“MOCS”).
When a dispute arises, the first step, after hiring experienced attorneys, is to contact the ACCO to see if a resolution can be negotiated informally. If it cannot, and if all administrative avenues have been exhausted, it may be necessary to litigate the matter.
Administrative Remedies and Claim Procedures
Depending upon the nature of the dispute with the government, there are different remedies and procedures to be sought. As noted above, the first step almost no matter what is to have attorneys reach out to the ACCO to try to resolve the matter. If an informal resolution with the ACCO is not possible, in the City you must then follow the Procurement Policy Board’s rules and regulations (codified in Rule Section 4-09) that govern formal appeals of the ACCO’s decision. State and federal agencies have similar appeal structures; the federal rules are set out in the Contract Disputes Act – a 1978 federal law outlining the specific administrative process for resolving disputes between federal government contractors and the government. Such appeals must usually be exhausted before you can undertake any litigation of the matter.
Litigation Options and Considerations
If all of the administrative options have been exhausted, the next step is litigation.
- Suits against the City are filed in New York State Supreme Court.
- Suits against the State are filed in the New York Court of Claims.
- Suits against the federal government for monetary claims of $10,000 or more must be filed in the United States Court of Claims as governed by the Tucker Act, 28 USC 1491.
- For lawsuits against the federal government for under $10,000, you have two options for where to file your claim: a U.S. District Court or the U.S. Court of Federal Claims. This is due to the “Little Tucker Act,” which gives these courts concurrent jurisdiction over smaller monetary claims against the federal government and waives sovereign immunity.
Contact Peters Brovner Today!
The attorneys at the law offices of Peters Brovner LLP have decades of experience with government agencies. The firm has experience representing numerous businesses and nonprofits before a variety of government agencies. Before founding Peters Brovner LLP, Mark Peters and Lesley Brovner served as Commissioner and First Deputy Commissioner of New York City’s Department of Investigation (“DOI”), one of the oldest law enforcement agencies in the country. At DOI, they oversaw the Inspectors General for all New York City agencies and oversaw hundreds of investigations that resulted in criminal prosecutions and major agency reforms.
If you or someone you know is seeking legal advice concerning a government contract, please reach out to the lawyers at Peters Brovner LLP for a consultation.