Flow-Down Clauses in Federal Government Contracts - Tutorial 1 (Fundamentals)
Joint Venture Basics for Large and Small Contractors
Government Contractors: Preparing for OFCCP’s Affirmative Action Program Compliance Certification
Construction Webinar Series: Building Compliance: Construction Industry Concerns Under FCA
The Benefits of Commercial Item Contracting
Nonpayment of Subcontractors: Can Subcontractors Get Any Help From the Government?
Negotiating Subcontracts From Both Sides
The Trump administration, as part of its efforts to reshape the federal government, began terminating federal contracts for the convenience of the government almost immediately after coming back to town. These contract...more
Federal programs often require individuals employed by multiple corporations and by the federal government to work together. To ensure the project is successful, the prime contract and any related subcontract will often grant...more
Federal contracts famously include a clause permitting the government to terminate the agreement for the government's own "convenience"—even if the contractor did not default on its performance obligations. Aware of this...more
A recent decision from the Court of Appeals of Virginia may have companies doublechecking the workshare terms in their subcontracts. The Court held that a subcontractor's 40 percent workshare only applied to the $70 million...more
When hackers gain access to a subcontractor’s information systems and divert the prime contractor’s payment to themselves instead of to the subcontractor, does the prime contractor still have to pay the subcontractor?...more
Determining which language applies to a contract dispute is critical to any contractor seeking to recover costs through the claims and appeals process. Recently, through a series of appeals before the Civilian Board of...more
When two companies negotiate a subcontract in support of a federal government prime contract ("federal subcontract"), they may include provisions capping their liability to each other at specific amounts. In structuring such...more
Government contractors often "flow down" contract clauses from the Federal Acquisition Regulation (FAR) and its supplements to their subcontractors, including clauses related to changes (e.g., FAR 52.243-1) and excusable...more
Since the beginning of the pandemic, boards and courts have denied a vast majority of construction claims seeking pandemic-related costs under fixed-price contracts. In this blog, PilieroMazza summarizes a recent claim where...more
Over the last few years, the government has shifted away from lowest price technically acceptable valuations placing a larger importance on past performance. The past performance requirement can sometimes create obstacles for...more
Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute:...more
Generally, an “accord and satisfaction” is an agreement between two or more contracting parties to accept an alternate agreement and performance in lieu of a preexisting contractual duty between the parties. The new agreement...more
Here’s the Scenario: After months of working with a new national developer (and providing hours of unreimbursed value engineering), you get the draft prime contract and see that the named “owner” will not be the hugely...more
After months of working with a new developer client (and providing hours of unreimbursed value engineering) and hard negotiations over the cost plus GMP contract (fighting over indemnity/escalation/savings/liquidated damage...more
The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state's Prompt Payment Act...more
In a recent Arizona case, the trial court held that an owner could sue a subcontractor directly for recovery of the owner’s consequential delay damages based on the subcontract’s express indemnity clause, notwithstanding that...more
On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which makes “pay when paid” and “pay if paid” clauses unenforceable in most circumstances and requires both public and private construction contracts to...more
Author(s) Sydney M. Warren In one of its recent opinions, Kellogg Brown & Root Services, Inc. v. Sec’y of the Army, the Federal Circuit issued new guidance on what contractors must show to prove the reasonableness of costs...more
Bibi Hidalgo, the Associate Administrator for SBA’s Office of Government Contracting and Business Development, just announced during her keynote address at the National 8(a) Association Alaska Regional Conference that SBA...more
As the marketplace slows in response to the worldwide spread of COVID-19, companies are (or should be) breaking out their contracts and subcontracts to see what they say to protect themselves from current and future problems....more
With the novel coronavirus (COVID-19) spreading outside of China at an ever-increasing rate, government contractors should prepare for possible service and payment interruptions. In addition, the administration is considering...more
The British Columbia Supreme Court in MRC Total Build Ltd. v F&M Installations Ltd., 2019 BCSC 765 [MRC Total Build] recently considered an application by a general contractor to stay proceedings commenced by a subcontractor...more
Rad and D’Aprile, Inc. v. Arnell Construction Corp, No. 502464/14, 2019 BL 131606 (NY. Sup. Ct. April 3, 2019) - In June of 2001, Arnell Construction Corp. (“Arnell”) entered into a prime contract to build two sanitation...more
The Ninth Circuit recently affirmed a district court order vacating an arbitration award arising from the termination of subcontracts for the construction of army buildings and facilities in Afghanistan. ...more
Connelly Constr. Corp. v. Travelers Cas. & Surety Co. of Am., 2018 U.S. Dist. LEXIS 123009 (E.D. Pa. July 24, 2018). The Commonwealth of Pennsylvania Department of General Services undertook a project for the construction...more