Public contracts

Payment Bond Surety Cannot Compel Subcontractor to Arbitrate

A Maryland federal court judge has reminded a payment bond surety that it cannot compel arbitration with the subcontractor making a claim under the bond. Baltimore Steel Erectors filed suit against Hanover, the payment bond surety for ARGO Systems on… Read More
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NH DOT Had Authority to Procure Electronic Tolling Services Through Best-Value Process

The New Hampshire Department of Transportation, using a best-value process, awarded the EZ-Pass electronic tolling system back office work to a new vendor. The original vendor challenged both the authority of the DOT to conduct this procurement (argu… Read More
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Unfortunate (and Unexpected) Restriction on Additional Insured Status

The New York Court of Appeals, in a split decision, has focused on one word in deciding that a owner’s construction manager was not entitled to additional insured status on the general contractor’s policy. The contract required the GC to include… Read More
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Payment Bond Does Not Cover Claim for Lost Work Opportunity

A subcontractor claiming that the general contractor failed to use and pay for a minimum number of workers made a claim against the GC’s payment bond, for the value of the workers not hired. A federal court has held that the Miller Act bond does no… Read More
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The Pay-if-Paid War Continues!

The subcontractor community has waged war against pay-if-paid clauses for many years. But the war is not over, per two recent decisions, one from the Kentucky Supreme Court and one from a Connecticut trial court. The Kentucky Supreme Court held that… Read More
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Change Orders – Be Clear on Intent

Just as clarity in contracting is a virtue, clarity with change orders is a must. Witness the dispute in an Ohio case, when the original and incorrect prevailing wage reference was revised via change order. The project was for renovation of housing u… Read More
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Computer Technician Was Doing “Construction Work” and Entitled to Prevailing Wages

A computer technician working onsite and testing HVAC components to ensure proper operation, to verify completion of a project, was performing “construction work” and thus entitled to be paid prevailing wages. So decided the Massachusetts Appeals… Read More
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No-Damage-for-Delay Clause Did Not Bar Acceleration and Inefficiency Claim

Where a sub was told that no additional time would be granted under any circumstances, the additional costs it incurred for acceleration and inefficiency could be recovered, even with a contract no-damages-for-delay clause. Also, the sub’s use of a… Read More
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Possible Tracing of Public Funds Did Not Make Project Subject to Prevailing Wage Rates

A construction project was undertaken by the New York Racing Authority (NYRA), a not-for-profit entity established in 2008. Near its inception, NYRA had received $5 million from its predecessor, without any designation or restriction on use of the fu… Read More
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Specifications Trump Industry Practices

When the specifications call for temporary structures to be paid in a certain manner, it does not matter what the industry practice may be. That is the lesson learned by a structural steel supplier on a large bridge project. During the run-up to bidd… Read More
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