Subcontractors

News & Analysis as of

Federal Contractors and Sub-contractors Win in Rollback of "Blacklisting" Rule

President Trump signed a Congressional Review Act resolution that rolled back the Fair Pay and Safe Workplaces Act, which would have required bidders for federal contracts to disclose their alleged labor and employment law...more

Indecent Exposure: New Decision Confirms Subcontractors Liability To CD Damages Is Expansive

How broad is a “broad-form” indemnity provision in a construction contract? A recent decision by the Arizona Court of Appeals has held such a provision allows a developer great latitude in recovering monies paid for...more

Five on Friday – Five Recent Developments that We’ve Been Watching Closely

It’s Friday and time for another overview of developments in the field of business and human rights that we’ve been monitoring. This week’s post includes: the European Parliament’s adoption of a new conflict minerals...more

Security of Payment and the rise of the contractual reference date

The recent Supreme Court of NSW decision by Ball J in Fairfield City Council v Abergeldie Contractors Pty Ltd1 (Abergeldie), provides another demonstration of how issues with reference dates2 can provide potent grounds for...more

New Pilot Program Will Give Certain Small Businesses New Option to Obtain Past Performance Ratings

The difficulties faced by new small businesses lacking past performance ratings in winning federal contracts are well-known. Perhaps the most common approach by which new small businesses get their start in federal...more

Is Disloyalty Its Own Reward?

May a disloyal employee keep the compensation his employer paid him, even while he was betraying his employer’s trust? In a recent case, the Connecticut Supreme Court said “yes, at least in some circumstances.” Here’s the...more

Under Construction - March 2017

Letter from the Editor - Welcome to the spring 2017 edition of our Under Construction newsletter. We hope 2017 is off to a good start for you and your company. An issue that seems to commonly come up in cost-plus...more

Construction One-Minute Read: Trump Administration Increases Resources to Crack Down on Employers for I-9 Compliance

As part of his first-week initiatives, President Trump turned his focus toward immigration. These initiatives included dramatically expanding the resources of the U.S. Department of Homeland Security’s Immigration and Customs...more

Builders' lien trusts in a bankruptcy - Iona Contractors Ltd v Guarantee Company of North America, 2015 ABCA 240

In 2009, the Calgary Airport Authority (CAA) entered into a construction agreement with Iona Contractors Ltd. for Iona to improve CAA’s north airfield. By October 2010, the work was substantially complete; however CAA...more

Hydraulic Steel Works: A Case Study in Subcontracting for Hydro Projects

Originally posted in Hydropower & Dams, Issue One - 2017. Within the hydropower industry there are many ways to contract for hydraulic steel works. A project owner may choose to contract directly by way of one of more...more

Health Company Fined by UK’s Information Commissioner Office

Last week, the UK’s Information Commissioner’s Office (ICO) published a monetary penalty notice which fined a private healthcare company, HCA International, £200,000 for its failure to keep sensitive data secure....more

Last Straw for the Fair Pay & Safe Workplaces Rule – Congress to Take Final Vote on Repeal

As we previously reported, following the start of the Trump Administration, Congress has moved aggressively to overturn regulations passed in the final days of the Obama Administration through the rarely-used powers in the...more

Vavra Decision Highlights Avenues for Potential Anti-Kickback Act Liability

On February 3, 2017, the Fifth Circuit decided US ex rel Vavra v. Kellogg Brown & Root, No. 15-41623, 2017 WL 473873 (5th Cir. 2017), determining that defendant KBR could be held vicariously liable under the enhanced penalty...more

Stadium Construction Dispute Turns Into FBI Investigation

It is not often the FBI is brought in to investigate a construction dispute regarding design, delay, and cost overruns. However, this is exactly what has happened on the taxpayer-funded baseball stadium project in Hartford,...more

Time to Review Internal Confidentiality Agreements

Effective January 19, 2017, pursuant to Federal Acquisition Regulation (FAR) clause 52.203-19, Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements, federal government contractors are prohibited...more

French National Assembly Adopts Corporate Duty of Vigilance Law

On February 21, 2017, the French National Assembly (Assemblée nationale) adopted proposed legislation defining a duty of vigilance for parent companies and their subcontractors. The law provides that multinational firms...more

Pennsylvania’s New “State Construction Notices Directory” and the Implementation of Significant Changes to Pennsylvania’s...

Important changes to Pennsylvania’s Mechanics’ Lien Law recently took effect on December 31, 2016, with the launch of an online State Construction Notices Directory. These amendments to the Mechanics’ Lien Law (which were...more

New Los Angeles Regulations Provide Clarity on Ban-the-Box Directives

The Los Angeles Department of Public Works Bureau of Contract Administration published Rules and Regulations (“Regulations”) to assist employers in Los Angeles—including city contractors and subcontractors—with implementing...more

Missouri appellate court opens the door to Spearin claims by contractors against public entities

A Missouri appellate court has for the first time recognized that a construction contractor may pursue a breach of contract claim against a public entity owner based on the “Spearin doctrine,” meaning the contractor may...more

Joint Employment: Are Your Subcontractors Leaving You at Risk?

In a recent article, we discussed steps taken by the U.S. Department of Labor ("USDOL") to crackdown on the rampant misclassification of employees as independent contractors. The USDOL effectively created a default rule that...more

Kentucky Appellate Court Holds That a Contractor May Pursue Claim of Negligent Misrepresentation Against Architect Despite Lack of...

D.W. Wilburn, Inc. v. K. Norman Berry Assocs., No. 2015-CA-001254-MR, 2016 Ky. App. Lexis 206 (Ky. Ct. App. Dec. 22, 2016) - This case arose out of a construction project in which the Oldham County Board of Education...more

Court of Appeal confirms the conventional operation of extension of time provisions

The Court of Appeal in Carillion Construction Limited v EMCOR Engineering Services Limited [2017] EWCA Civ 65 has confirmed that the industry-wide practice of awarding extensions of time running contiguously from the previous...more

Taking Credit for Subcontractor Past Performance

- Procurements under FAR Part 8 are subject to a different default rule than FAR Part 15 procurements, GAO rules. - Absent clear direction from the solicitation, an agency conducting a Part 15 procurement must consider...more

Fourth Circuit Decision Establishes New Six-Factor Test for Determining Joint Employment under the FLSA

On January 25, 2017, the U.S. Court of Appeals for the Fourth Circuit established a new six-factor test to determine whether two or more entities are joint employers for purposes of the Fair Labor Standards Act (“FLSA”). ...more

Incoming! Incoming! OFCCP Issues Corporate Scheduling Announcement Letters

On February 17, 2017, the Office of Federal Contract Compliance Programs (OFCCP) mailed Corporate Scheduling Announcement Letters (CSAL) to federal contractors and subcontractors. The purpose of these letters is to give...more

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