Construction Government Contracting Civil Procedure

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A Case to Watch: Highway Contractor Appeals $663M False Claims Act Judgment

On August 31, 2015, highway contractors Trinity Industries, Inc. and Trinity Highway Products, LLC (collectively, Trinity) appealed to the U.S. Court of Appeals for the Fifth Circuit a $663,360,750 final judgment entered...more

Federal District Court in Florida Holds that Contract Provision Giving General Contractor Discretion to Apportion Damages Does Not...

Davis Group, Inc. v. Ace Electric, Inc., 2015 U.S. Dist. LEXIS 83368 (M.D. Fla. June 26, 2015) - This action arose out of a construction project to build a new Radar Approach Control Facility at Seymour Johnson Air Force...more

Third Circuit Decision Could Have Broad Implications For Sentencing In Federal Fraud Cases

Last week, the Third Circuit issued a decision that could have major ramifications for sentencing in federal fraud cases. United States v. Nagle dealt with a fraud perpetrated against the Department of Transportation’s...more

Pennsylvania Court Refuses to Enforce “No Damages for Delay” Clause

A Pennsylvania appellate court recently refused to enforce a “no damages for delay” clause and upheld an award of delay damages against a school district where the district actively interfered with a general contractor’s...more

Project In(Site): Legal Developments Impacting Construction & Government Contract Industries

Welcome to the inaugural issue of Project In(Site), Seyfarth’s Construction and Government Contracts practice groups’ publication focusing on decisions or other items of interest for construction and government contract...more

A Case to Watch: Highway Contractor Appeals $663M False Claims Act Judgment

On August 31, 2015, highway contractors Trinity Industries, Inc. and Trinity Highway Products, LLC (collectively, Trinity) appealed to the U.S. Court of Appeals for the Fifth Circuit a $663,360,750 final judgment entered...more

New Jersey’s Appellate Division Holds State May Be Liable for Cleanup Costs under New Jersey’s Spill Act

Action Item: On August 26, 2015, in a case of first impression, the Appellate Division of the New Jersey Superior Court in NL Indus., Inc. v. State of New Jersey, No. A0869-14T3, 2015 N.J. Super. LEXIS 161 (N.J. Super. Ct....more

Court of Federal Claims Holds Contractor’s Duty to Continue Performance Under Disputes Clause May Be Excused Where Government...

Vanguard Constr., Inc. v. United States, 2015 U.S. Claims LEXIS 1158 (Fed. Cl. Sep. 8, 2015) The United States Air Force (the “Government”) entered into a contract with Vanguard Construction, Inc. (“Contractor”) to replace a...more

Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award...more

Pennsylvania Commonwealth Court Explains and Applies Active Interference Exception to No Damage for Delay Clause

John Spearly Constr., Inc. v. Penns Valley Area Sch. Dist., 2015 Pa. Commw. LEXIS 337 (Pa. Commw. Ct. July 24, 2015) - This action arose out of the construction of a biomass boiler system for the Penns Valley Area School...more

Pennsylvania’s Contractor and Subcontractor Payment Act Does Not Apply to Public Projects

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

Public Improvement Liens on Government-Owned Projects

While prior blog posts have discussed the basics of mechanics liens as they relate to private construction projects, this post addresses public improvement liens on property owned by the state, a subdivision or agency...more

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

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