In my last post, I discussed ways subcontractors can protect themselves from waiving their right to lien before the owner pays. However, what if an owner pays its general contractor (GC), but the funds never make it to the...more
Commencing from 1 August 2022, Western Australia will adopt a new statutory progress payment regime under the Building and Construction Industry (Security of Payment Act) 2021 (WA) (WA SOP Act). The WA SOP Act will change...more
Fidelity and Deposit Company of Maryland and the Internal Revenue Service (IRS) claimed they were entitled to funds from construction contracts between Cosmos Industrial Services, Inc. and the Ohio Department of...more
Both houses of Congress now have voted to pass the National Defense Authorization Act (NDAA) for Fiscal Year 2021. Although the threat of a presidential veto still hangs over the NDAA, we highlight below a few of the...more
While the health of our citizens is, as it must be, the primary focus of the response, Congress and the Executive Branch are scrambling to ensure that companies have sufficient liquidity to continue operations, and continue...more
As most government contractors are aware, progress payments are a form of contract financing in which the Government pays the contractor based on cost throughout performance of the contract, up to a cap dictated by the terms...more
a) On 9 October 2019, in the judgement of Mann v Paterson Constructions Pty Ltd [2019] HCA 32 (Mann), the High Court of Australia clarified the ability for contractors to claim on a quantum meruit basis....more
On October 21, 2019, significant changes to New South Wales ("NSW") security of payment laws come into effect with the commencement of the Building and Construction Industry Security of Payment Amendment Act 2018 and...more
A recent decision by Singapore's highest court has held that a contractor must first establish that it is entitled to payment under the contract in order to claim progress payments under the Security of Payment Act, raising...more
Legal “Holdback” Terminology Law also has a holdback concept which deals with the speed or time of performance. This type of holdback refers to delaying payment on part of a purchase price for a period time after the...more
DEFENSE DEPARTMENT - Performance-Based Payments and Progress Payments (DFARS Case 2017-D019) - The Department of Defense (DOD) is withdrawing the proposed rule on performance-based payments and progress payments that it...more
Deputy Secretary of Defense Patrick Shanahan announced on Monday, October 1, 2018, that the U.S. Department of Defense (“Department” or “DoD”) was withdrawing its proposal that would have made sweeping changes to the rules...more
SMALL BUSINESS ADMINISTRATION - House Small Business Committee Calls for a Status Update on FAR Revision of Limitations on Subcontracting. Last week, House Small Business Committee Chairman Steve Chabot and Ranking...more
A project is moving smoothly and the deadline arrives for the owner to make its next progress payment, which never comes. What does the contractor do when the owner stops making progress payments? The contractor has two...more
Two recent decisions – one from the U.S. Civilian Board of Contract Appeals and the other from the U.S. Court of Federal Claims – provide opposing holdings on whether the government can raise a “Severin doctrine” defense to...more
At the end of last month, the American Institute of Architects (“AIA”) released several revised documents including the primary agreements between the owner and contractor and the owner and architect. Many of the revisions...more
Port of Houston Auth. of Harris Cnty. v. Zachry Constr. Corp., 2016 Tex. App. LEXIS 13306 (Tex. App. Houston 14th Dist. Dec. 15, 2016) - This contract dispute dates back to 2004, when the Port of Houston Authority...more
The NSW Supreme Court recently handed down its decision in the matter of J Hutchinson Pty Ltd v Glavcom Pty Ltd [2016] NSWSC 126, in which K&L Gates represented Glavcom. The decision sheds light on numerous issues, including...more
Butch-Kavitz, Inc. v. Mar-Paul Co., Inc., 2015 U.S. Dist. LEXIS 160652 (M.D. Pa. Dec. 1, 2015) - The United States Army Corps of Engineers (the “Owner”) entered into a contract (the “Contract”) with Mar-Paul Company,...more
The Appellate Division of the Supreme Court of New York in U.W. Marx, Inc. v. Koko Contracting, Inc. affirmed judgment in favor of a subcontractor, holding that the general contractor’s failure to make three successive...more
Last week, the Supreme Court of Pennsylvania issued a decision which has important consequences for all members of the construction industry involved with public works projects. In Clipper Pipe & Service, Inc. v. The Ohio...more
The recent opinion from the U.S. Court of Appeals for the Fourth Circuit in United States ex rel. Badr v. Triple Canopy, Inc., serves as a reminder of the breadth of the civil False Claims Act when applied to federal...more
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