Legal Updates

Maryland Federal Court Strictly Enforces the Miller Act's 90-Day Notice Requirement for Second Tier Subcontractors

The federal Miller Act, 40 U.S.C. §§ 3131-3134, requires a second tier subcontractor (a subcontractor or supplier with no direct relationship with the prime contractor) who wants to file suit on a payment bond in connection with a federal construct… Read More
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Categories: Legal Updates

Fourth Circuit Enforces Arbitration Clause in Subcontract Against Performance Bond Surety

A recent ruling by the Fourth Circuit considered an important issue for sureties, their principals, and claimants on construction projects regarding the enforceability of arbitration clauses against the surety. In Great American Insurance Co. v. Hin… Read More
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Categories: Legal Updates

Recent Court of Federal Claims Decision Demonstrates the Peril to Federal Contractors of Submitting Inflated Claims

Over the last few years, government contracting practitioners have noted an increase in the federal Government’s efforts to combat contractor fraud. At the Court of Federal Claims (COFC) Judicial Conference earlier this month, several practitioners… Read More
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Categories: Legal Updates

Nevada Supreme Court Rejects Fraud in the Inducement Claim in Construction Contect

In its recent opinion in Road & Highway Builders, LLC v. North Nev. Rebar, Inc., 284 P.3d 377 (Nev. Aug. 9, 2012), the Nevada Supreme Court considered whether a subcontractor had a valid claim for fraud in the inducement, allowing it to recover… Read More
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Categories: Legal Updates

Federal Circuit Distinguishes Between Allowable and Unallowable Attorney's Fees Under the Federal Claims Procedures

Unlike private construction contracts, in which a contractor’s recovery of attorney’s fees is typically limited to those incurred in litigation, a contractor on a federal government project may be able to recover legal fees incurred in preparing,… Read More
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Categories: Legal Updates

Court of Federal Claims Limits Contractor's Ability to Contest Negative Performance Evaluation

Last month, the U.S. Court of Federal Claims took up an issue not previously decided by the Federal Circuit – whether the Court of Federal Claims has authority to issue injunctive relief to revise a federal contractor’s “unsatisfactory” ratin… Read More
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Categories: Legal Updates

Maryland Federal Court Upholds One-Way Arbitration Provision

Last month, the U.S. District Court for the District of Maryland considered whether an arbitration provision found in a contract between a public owner and a contractor required the parties to arbitrate all disputes. In PC Constr. Co. v. City of Sal… Read More
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Categories: Legal Updates

Eleventh Circuit Upholds Strict Enforcement of Contract's Change Order Approval Process

A recent 11th Circuit decision considered whether a contractor could recover the costs for work that was undisputedly outside the scope of the construction contract when the contractor failed to obtain prior approval from a specific party. In Mallo… Read More
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Categories: Legal Updates

Virginia Supreme Court Holds that Sub-Subcontractor Could Not Maintain Third-Party Beneficiary Claim Against General Contractor

On public projects, payment bonds typically provide lower tier claimants with certainty of payment for their work in the event a contractor refuses or fails to pay. Unfortunately, even sureties go out of business from time to time, leaving some unpai… Read More
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Categories: Legal Updates

Maryland Federal Court Rules that Statute of Limitations Bars Construction Defect Claim Involving "Green" Building

Last month, the U.S. District Court for the District of Maryland held that Maryland’s three-year statute of limitations barred causes of action for breach of contract, contribution, indemnity, and negligence in a lawsuit involving the design and co… Read More
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Categories: Legal Updates