Public contracts

Email was insufficient notice under payment bond law, but court left the door open for (more explicit) email notice in the future

The Massachusetts payment bond statute requires public project claimants to give notice to the general contractor by certified mail – not an uncommon requirement. The Massachusetts Appeals Court has just held that an email was not adequate notice,… Read More
Read More

Failure to follow claims procedure was an irrevocable waiver of the claim

Consider this sentence: “courts cannot decide cases of contract interpretation on the basis of what is just or equitable.” Contractors are reminded, via an Ohio Court of Appeals decision, that claim deadlines and waiver language will be applied w… Read More
Read More

Contractor's Court Judgment against Sub Did Not Resolve or Eliminate Sub-Sub’s Payment Bond Rights

When third-party creditors sought to garnish an electrical sub’s contract balance, the general contractor, McMillan-Pitts, commenced an interpleader action against the electrical sub and its known creditors, and deposited the remaining subcontract… Read More
Read More

Owner’s Claim for Defective Work Not Barred by Prior Arbitration

A contractor who successfully pursued payment in arbitration objected when the public authority owner subsequently filed a lawsuit claiming defective work. The contractor argued that the lawsuit was barred by doctrines of res judicata or collateral e… Read More
Read More

CM at Risk – Owner Still Impliedly Warrants Design

A public authority argued that the CM’s obligation to review and comment on the design in process meant that the authority did not impliedly warrant the sufficiency of that design. And thus the CM would have no claim against the authority when a su… Read More
Read More

Senate Bill Would Transfer VA Project Oversight to Corps

The Hill reports that an amendment to the Senate defense bill would transfer oversight of any U.S. Dept. of Veterans Affairs construction project larger than $100 million to the Army Corps of Engineers. The amendment is reportedly sponsored by the Co… Read More
Read More

Subcontractors May Have Limited Relief Against Town When Prime Contractor’s Surety Fails

Subcontractors on a public project for the town of Darien, Connecticut found themselves on the short end of the stick when the prime contractor failed to pay (apparently went out of business) and its surety turned out to be bogus. Subcontractor claim… Read More
Read More

No Equitable Adjustment for Contractor with Penny Bid

Believing actual quantities of rock removal would be far less than the engineer’s estimate, the contractor bid a penny per cubic yard of rock removal on a water main extension project. Of course, other bid items could then be inflated and yet the c… Read More
Read More

Contract Disputes Act Deadline for Contracting Officer Decision – Can’t Keep Extending

The government when faced with a complex contractor claim may extend the deadline for the Contracting Officer’s response to a date beyond the original CDA 60-day period. What happens when the CO seeks to extend the deadline a second time? The Court… Read More
Read More

Attacks on Prevailing Wage Laws – Where’s the Tipping Point?

News reports this week cover legislative action in four different states to reduce the scope of prevailing wage laws on public projects. Whatever your opinion on prevailing wage laws – love them, hate them, or somewhere in the middle – the effort… Read More
Read More