Public contracts

Beware Hidden Dangers of Attorneys’ Fee Provisions

First, I believe the trial court got it mostly right. But the appeals court had the last word. The case serves as a reminder that attorneys’ fee provisions at times do not always serve the greater purpose of balancing the stakes in litigation. Seco… Read More
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Bad Faith Violation of Procurement Code Does Not Require Sanctions

The Pennsylvania Supreme Court has held, over a sharp dissent, that a public authority’s bad faith violation of the PA Procurement Code payment sections does not require imposition of sanctions or attorneys’ fees. The decision focused on use of t… Read More
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Divided Court Strikes Arbitration Clause based on Unconscionable Remedies

Concluding that a dispute clause left homeowners with no effective remedy, a divided South Carolina Supreme Court has stricken an arbitration clause in a home construction contract. The dissent, citing recent US Supreme Court decisions, argued that t… Read More
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Timely and Untimely Notice of Claims – What’s the Difference?

New York passed a law on June 18, 2016, affecting the right of a public authority to bar a claim due to untimely notice. Richard Dyer of Duane Morris has written a summary. The law appears intended to address the situation where contractors have lost… Read More
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Inadvertent Contractor Prequalification Can Be Overridden by Public Authority

A Massachusetts trial court has held that a public authority, which inadvertently prequalified an electrical contractor who did not have the proper license, can override its own prequalification decision and reject a bid from the contractor. The cont… Read More
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Lost Profit Claim is Constrained by Low Bid Setting

A contractor was the lowest bidder on a public project, and the second-low bidder was only $11,705 higher. A consultant later discovered that some of the bid quantities that it provided to the contractor (pre-bid) were mistaken. The contractor, who s… Read More
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The Contract Isn’t Signed, a Few Issues Remain, the Work is Done; Now What?

Lawyers hate this question. A contractor and subcontractor, having gone back and forth on a few contract terms while the sub is performing work, reach the end of the project – or at least the end of the sub’s work – without an agreed contract f… Read More
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Federal Court Rebukes US Dept. of Labor – Private Project on Publicly-Leased Land is Not Subject to Davis-Bacon Wage Rates

Referring to the “novelty of the U.S. Department of Labor’s interpretation,” a federal Court of Appeal has held that construction of the CityCenterDC private development project is not subject to Davis-Bacon wage rates, even though the land… Read More
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Withholding Less Retainage ≠ Release of Retainage; No Prompt Pay Act Violation

Sometimes a construction contract allows for the amount of retainage being withheld by the owner to reduce, once the project is more than half complete. For instance, retainage that starts at 10% may reduce, at the halfway mark, to 5% being withheld… Read More
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Contractor Claim Not Dismissed under Contract Disputes Act for Failure of Timely Notice

Almost two years into a multi-year design-build contract, the government questioned the basis of design of the piles for a ship repair wharf. The contractor stopped work while the design issue was resolved with the government. The work stoppage led t… Read More
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