Knowledge Base
Frequently Asked Questions
T4C claims are governed by FAR Part 49. Here's what you need to know.
What is a Termination for Convenience (T4C)?
A Termination for Convenience is the government's unilateral right to end a contract at any time, for any reason, without being in breach. It's governed by FAR Part 49. Unlike a termination for default, a T4C entitles the contractor to recover all allowable costs incurred, plus a reasonable profit on work performed — but not anticipated profits on unperformed work.
What is the filing deadline for a T4C settlement proposal?
Under FAR 49.206-1(c), you must submit your settlement proposal within one year from the effective date of the termination notice. Missing this deadline can result in your claim being barred. T4CClaim calculates and tracks your deadline automatically.
What costs can I recover under FAR Part 49?
Allowable costs include: direct labor and fringe benefits, materials allocable to the terminated work, subcontract costs (once settled), allowable overhead and G&A at negotiated or provisional rates, settlement expenses (accounting/legal fees directly related to the T4C), and a reasonable profit on work performed. Unallowable costs include anticipated profits on unperformed work and costs deemed unreasonable under FAR 31.201.
How does T4CClaim generate my settlement narrative?
We use Claude (Anthropic's AI) trained on FAR Part 49 case law and cost principles to generate a professionally written settlement proposal narrative. The narrative cites specific FAR clauses (31.201, 49.206-2, etc.), justifies each cost category, and is structured for submission to your Contracting Officer.
Is T4CClaim a substitute for a GovCon attorney?
T4CClaim is a preparation tool that produces a professional, FAR-compliant settlement proposal. For straightforward claims, many contractors can submit directly using our output. For large or complex claims (>$1M, disputed facts, or unique contract vehicles), we recommend having an attorney review the final document. We're dramatically faster and cheaper than starting from scratch.
What is the difference between commercial and non-commercial T4C clauses?
Non-commercial contracts use FAR 52.249-2 (or 52.249-1 for fixed-price supply). Commercial item contracts use FAR 52.249-6. The key differences involve cost calculation methods and documentation requirements. T4CClaim handles both and applies the correct rules based on your selection.
Can I recover profit if we were operating at a loss?
If the contract was unprofitable, FAR 49.203 governs loss contracts. You can still recover your costs, but profit may be limited or eliminated depending on your projected loss position. T4CClaim's rules engine flags this scenario so you can seek appropriate legal guidance.
What happens after I submit the settlement proposal?
The Contracting Officer (CO) reviews your proposal, may request additional documentation or an audit, and will issue a Contracting Officer's Final Decision (COFD) or negotiate a settlement amount. The typical negotiation period is 60-180 days but can vary widely. T4CClaim's deadline monitoring tracks your one-year submission deadline, not the negotiation timeline.
Can I use T4CClaim if I have subcontractors?
Yes. Step 4 of the intake wizard asks about subcontractor T4C claims. Under FAR 49.108-3, you're responsible for settling your subcontractors' claims before including them in your prime claim. T4CClaim helps document the subcontract settlement status in your proposal.
Is my data secure?
All data is stored in Supabase with row-level security (RLS) — only your account can access your claims. PDFs are stored in private, access-controlled storage buckets. We use Stripe for all payments and never store card information.