Subcontractors

News & Analysis as of

House Bill Proposes Improvements to Small Business Contracting Policies

The House Small Business Committee approved legislation on March 25, 2015 to ensure more small businesses can compete for federal contracts and help save taxpayer money. ...more

Pennsylvania Court Holds Faulty Workmanship Not an Occurrence

In its recent decision in Nat’l Fire Ins. Co. v. Gabe’s Constr. Co., 2015 U.S. Dist. LEXIS 37533 (M.D. Pa. Mar. 25, 2015), the United States District Court for the Middle District of Pennsylvania, applying Wisconsin law, had...more

Your “Form” Teaming Agreement: Enforceable Contract or an “Agreement to Agree”?

Teaming agreements have become virtually universal in the world of government contracting, and their use is recognized and promoted in the Federal Acquisition Regulation. ...more

Congressional Hearing Highlights Concerns Over President's New Federal Contractor Reporting Requirements

Republicans and business groups continued to criticize the aggressive regulatory initiatives in President Obama's Executive Order 13673 (EO13673) at a recent House joint subcommittee meeting last month. ...more

They Can’t Take That Away From Me. Well, At Least Not At First

Some of you may recall the George and Ira Gershwin song, They Can’t Take That Away From Me made famous by Fred Astaire and Ginger Rogers in the film, Shall We Dance. A recent amendment to a mechanic’s lien statute will limit...more

Fissured Employment – the Government Has Set Its Sights on You

For centuries, businesses have used subcontracting arrangements, franchise agreements or otherwise contracted out the performance of some functions third parties. The business reasons for such actions are obvious: it allows...more

The White House's So-Called "Black List" Order Aims to Deny Federal Contracting with Companies Not in Compliance with Federal...

In July 2014, President Obama issued an Executive Order dubbed the Fair Pay and Safe Workplaces order that, once implemented, will allow the government to deny a company a contract if it or certain subcontractors violated –...more

Tips for Suspending Work for Non-Payment without Getting Fired

All work and no pay making you crazy? A temporary suspension of work may be an appropriate self-help remedy for an owner’s or contractor’s non-payment. Although termination of the contract for the material breach of...more

2015 Arizona Prime Contracting Transaction Privilege Tax Reform: Will This Third Annual Legislative Enactment (SB 1446) Bridge the...

For three years in a row, the Arizona legislature has enacted significant changes to the Arizona state and local tax on construction activity, known as the “prime contracting” transaction privilege tax (TPT). If anything,...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

Executive Order Requires Government Contractors to Monitor Human Trafficking by Vendors and Subcontractors

Existing human trafficking-related prohibitions for federal contractors and subcontractors were strengthened recently by the Obama Administration. While there has been an Executive Order outlawing certain "human trafficking...more

Legislative and Regulatory Update for Small Businesses

In This Presentation: - Small Business Mentor-Protégé Program - Joint Venture Changes - Kingdomware Decision - Changes to Limitations on Subcontracting - Rotech Decision -...more

Under Construction - March 2015

Welcome to the spring edition of our Under Construction newsletter. There have been some interesting legal changes that have taken place recently with the potential to significantly impact the construction...more

Feds Fast-Forward "Fissured" Focus

As David Weil, the still relatively new United States Department of Labor (DOL) Wage and Hour Administrator describes it, an industry is “fissured” when large companies no longer directly employ the workers that produce their...more

Analysis: Prevailing Party In Jury Trial Finds Uncertainty In Remedies Available Under Pennsylvania Contractor And Subcontractor...

Since 1994, Pennsylvania law has provided enhanced remedies for prevailing in a payment dispute arising out of a construction project. The prevailing party in a recent jury trial discovered uncertainty in the precise...more

Does the 72-Hour Rule Allow a Contractor in Maryland to Fix a Mistake in its MBE Participation Schedule After Bid Opening?

A recent Maryland Board of Public Works meeting addressed whether the state has flexibility in applying minority business enterprise (MBE) regulatory requirements in State contracts....more

Colorado Supreme Court: Construction Lender's Subsidiary Is Not a Subsequent Purchaser - Negligence Claim May Not Be Asserted...

Lenders and contractors may want to take additional precautions before they take title to a newly constructed home through foreclosure (or deed in lieu of foreclosure) following a recent decision by the Colorado Supreme...more

New York Appellate Division Holds That Subcontractor’s Failure to Give Cure Notice Before Stopping Work Did Not Bar Recovery...

U.W. Marx, Inc. v. Koko Contracting, Inc., No. 518611, 2015 N.Y. App. Div. LEXIS 600 (N.Y. App. Div. Jan. 22, 2015) - The Appellate Division of the Supreme Court of New York affirmed judgment in favor of a...more

OFCCP proposes updated regulations on discrimination on the basis of sex

The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) recently announced proposed regulations updating its current regulations for federal government contractors and subcontractors regarding...more

Look Out Below

How Subs Can Cause Problems For General Contractors - The U.S. Labor Department (DOL) often sets its sights up the food chain, focusing enforcement efforts on general contractors (GCs) for the wage violations of their...more

Weekly Update Newsletter - January 2015 #4

GOVERNMENT CONTRACTS - SBA Considering Extending Comment Period for Proposed Rule on the Limitations on Subcontracting - Although not yet official, we anticipate that SBA will grant an extension until April 6th...more

Reminder for N.Y. Employers: Significant Labor Law Amendments Take Effect February 27

As we previously reported, the New York State Legislature last June passed a Bill, intended to revitalize the Wage Theft Prevention Act (WTPA), that proposed significant changes to the state’s labor laws. Among other things,...more

Caught in the Middle: What Is a Supplier Supposed to Do When Its Customers Ask to Use a DBE as a Pass-Through?

Suppliers are caught in the middle of a new enforcement trend in federal, state, and local investigations of disadvantaged business enterprise (DBE) fraud. Historically, DBE fraud investigations have focused on the...more

Fourth District Reverses Lower Court Ruling in Construction Defect Litigation

On January 22, 2015, the Fourth District Court of Appeals issued for publication its decision in McMillin Companies LLC v. American Safety Indemnity Company, 4th Dist. Div. 1, D063586. The case is significant in...more

Managing Retail Employer Risk and the Janitorial Services Contractor-Subcontractor Relationship

Discount retailer Ross Stores, Inc.'s ("Ross") recent proposed settlement of a California labor law class action filed by immigrant and low wage subcontractors related to janitorial services performed in its Ross Dress for...more

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