Are contractors generally held liable for the loss of Government property?

Contractors are generally not held liable for the loss of government property unless specific conditions are met. The prevailing view is that liability usually arises when there is negligence on the part of the contractor, meaning that the contractor failed to exercise the required level of care in handling or safeguarding property. This principle recognizes that contractors are not automatically responsible for every instance of loss or damage; a direct causative factor—such as negligence—must be established for liability to be applicable.

In many cases, government contracts include provisions or clauses that specifically outline the responsibilities of contractors concerning the handling of government property. These typically establish that contractors are granted certain protections unless it can be shown that their actions (or inactions) directly contributed to the loss.

Additionally, the notion that only high-value contracts would impose liability is not accurate, as the terms of liability involve the contract's stipulations and the circumstances surrounding the property's loss rather than just the contract's value. Therefore, the assertion that contractors are not liable for the loss of government property aligns with the general practice unless negligence can be proven.