Construction Government Contracting Civil Procedure

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Contractor Barred from Using the “Total Cost” or “Modified Total Cost” Approach to Establish Delay Claim

In a recent ruling, Hill York Service Corporation v. Critchfield Mechanical, Inc., the U.S. District Court for the Southern District of Florida held that a contractor may not establish damages for delay under either the...more

ICSID Tribunal Orders Claimants to Disclose Details of Third-Party Funder

In what appears to be the first decision of its kind, an ICSID tribunal in the case of Muhammet Çap & Sehil Insaat Endustri ve Ticaret Ltd. Sti. v. Turkmenistan has ordered the claimants in the proceedings to disclose the...more

US District Court in New York Holds Owner’s Interference Bars Claim that Contractor Breached By Abandoning Project

NYU Hosps. Ctr. v. HRH Constr. LLC, 2015 U.S. Dist. LEXIS 31967 (S.D.N.Y. Mar. 12, 2015) - NYU Hospitals Center (“NYU”) hired HRH Construction LLC (“HRH”) to renovate NYU’s radiology center. HRH entered into...more

Pennsylvania Appeals Court Finds Public Owner Waived Written Change Order Requirement By Conduct

Coast Paving & Sealcoating, Inc. v. N. Allegheny Sch. Dist., 111 A.3d 220 (Pa. Commw. Mar. 6, 2015). - North Allegheny School District (“Owner”) hired East Coast Paving & Sealcoating, Inc. (“Contractor”) to pave...more

Arizona Court of Appeals Interprets Stricter Requirements for Payment Bond Claimants

Arizona has long protected the rights of subcontractors and material suppliers to seek recovery from the payment bond surety on public bonded projects. Arizona’s Little Miller Act, A.R.S. § 34-223, provides that claimants...more

When the Federal Govt acts badly, but not badly enough to show bad faith – what’s a contractor to do?

In the prior issue of this newsletter, we included an article on the high standard of proof and the practical considerations for a federal government contractor claiming that the federal government acted in bad faith in its...more

Under Construction - June 2015

Letter from the Editor - Welcome to the summer edition of our Under Construction newsletter. In this issue, we highlight several hot topic items affecting the construction industry such as what happens when the...more

Second-Lowest Bidder for Public Contracts May Sue Lowest Bidder Who Paid Less Than Prevailing Wages

Public agencies have little, if any, discretion when awarding public contracts because they are required to award the contract to the lowest bidder, subject to certain minimum qualifications. These limitations are designed...more

When Govt. Failure to Issue Final Decision on Certified Claim Is a Deemed Denial

A recent decision from the United States Court of Federal Claims (COFC) sets forth the standard for when the government’s failure to make a decision on a certified claim will be considered a deemed denial. In Rudolph and...more

Supreme Court of New Jersey Determines When Statute of Repose Begins to Run for a Mechanical System Serving a Project Completed in...

State v. Perini Corp., 2015 N.J. LEXIS 388 (N.J. April 30, 2015) - The Supreme Court of New Jersey held that for an improvement supplying critical utilities to multiple buildings constructed as part of a multi-phase...more

Critical Change for Serving Preliminary 20-Day Notices for Arizona Public Projects

Cemex v. Falcone Bros. On April 30, 2015, Arizona’s most common construction industry practice for serving a Preliminary Twenty Day Notice (“Prelim”) on an Arizona public project — first class mail with certificate of...more

Ober|Kaler's Construction Group Helps Client Win Bid Protest in Connecticut and Secure $153,000,000 Public Works Contract

Joseph C. Kovars and Jackson B. Boyd of Ober|Kaler's Construction Group recently helped a client win a bid protest in Connecticut and secure a contract worth over $153,000,000 to improve and expand a water pollution control...more

DOL Burdens Davis Bacon Contractors With Employee Lodging Costs

The Department of Labor’s Administrative Review Board (ARB) released its long-awaited opinion in the Weeks Marine case. In that decision, ARB announced a rule that is an important development for federal government...more

Stop, Think, and Be Careful What You Ask For: Lessons and Opportunities Created by Recent Arbitration Ruling

On April 21, 2015, the Missouri Court of Appeals in City of Chesterfield v. Frederich Construction Inc. upheld an arbitration award that included substantial attorneys' fees to the prevailing party, in a construction case...more

Federal District Court in Nevada Denies Contractor’s Motion to Stay Subcontractor’s Miller Act Suit Pending Resolution of...

KBW Assocs. v. Jaynes Corp., 2015 U.S. Dist. LEXIS 18220 (D. Nev. Feb. 13, 2015). This action arose out of the construction of additions to existing buildings at Creech Air Force Base in Indian Springs, Nevada (the...more

It Ain’t Over Till it’s Over. Why Project Completion in California Isn’t as Straightforward as You Think

Why “Completion” is Important in California - In California, project “completion,” is important not only for getting paid, but for also understanding the deadlines associated with California’s statutory construction...more

Difficulty in Obtaining the Approval of an Individual Surety

In a recent decision issued by the United States Court of Federal Claims, Anthem Builders, Inc. v. United States, April 6, 2015, WL 1546437, the Court considered a protest involving the proposed use of an individual surety...more

Appellate Court Notes

- SC19245 - Nation-Bailey v. Bailey - SC19245 Concurrence - Nation-Bailey v. Bailey Holding that a separation agreement that requires the payment of unallocated alimony and child support ‘‘until the …. [w]ife’s...more

Termination for Convenience Contract Provision Retains Responsibility for Liquidated Damages

Most construction contracts between an owner and prime contractor provide the owner with the right to terminate the contract for cause or for convenience. In an important decision released in early April, the Connecticut...more

Third Circuit Holds Subcontractor To Its Proposal On Grounds of Promissory Estoppel

DCK TTEC, LLC v. Postel Industries, Inc., 2015 U.S. App. LEXIS 2775 (3d Cir. Feb. 25, 2015) - This action arose out of the construction of two maintenance hangars at the Marine Corps Air Station in Yuma, Arizona (the...more

Connecticut Legislature Introduces Bill that Would Subject the State to a Statute of Limitations in Claims Against Design...

The Connecticut Legislature recently introduced a bill that would subject the State to a ten year statute of repose for claims against design professionals for defective design and/or administration of construction projects....more

Security of Payment Legislation and Set-Off Under Commonwealth Insolvency Laws

A recent Victorian Supreme Court case has clarified the impact of Commonwealth insolvency set-off provisions on State-based security of payments legislation. The case demonstrates that although a principal is generally...more

Court of Federal Claims Holds that Contractor’s Defense of Defective Specifications Is Not an Independent Claim Requiring...

Total Eng’g, Inc. v. United States, 2015 U.S. Claims LEXIS 30 (Fed. Cl. Jan. 26, 2015) - The United States Army Corps of Engineers (the “Government”) awarded a contract to Total Engineering, Inc. (“Total”) for preliminary...more

Court Dismisses Case For No Diversity Jurisdiction 2 Days After Filing

In an unusual display of speedy discretion, federal District Judge Sheri Polster Chappell wasted no time in dismissing the complaint on a public works payment bond filed by Advance Industrial Coating, LLC in Advance Indus....more

General Contractor, Not Employer

JP Cullen was the general contractor on a public renovation project. A subcontractor, EMI, hired its own subcontractors, including UCI. JP Cullen gave UCI work orders, and UCI passed those orders on to its employee, Walter...more

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