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Prime Contractor Contract Terms

Venable LLP

Federal Subcontractors Beware: The Workshare Provision in Your Subcontract May Not Apply When the Government Increases the Value...

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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

Venable LLP

The Subcontractor Performed. The Prime Contractor Paid. But a Hacker Ended Up with the Money. Who Is Responsible?

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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

PilieroMazza PLLC

Terms and Conditions vs. Contract Clauses: Which Language Applies to Government Contract Disputes?

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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

Venable LLP

Federal Contractors and Subcontractors May Want to Double-Check the Liability Caps in Their Agreements After This Court Decision

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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

Venable LLP

My Subcontractor Is Suing Me for What Now? Court Allows One "Constructive" Change Theory Against Prime Contractor, Dismisses...

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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

PilieroMazza PLLC

Construction Contractor Wins COVID-Related Construction Claim on Appeal: Lessons Learned

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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

Bass, Berry & Sims PLC

Joint Venture Past Performance Can Be Gleaned from Previous Prime-Sub Relationships

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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

Bradley Arant Boult Cummings LLP

Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage safe under the Tree?

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

Bradley Arant Boult Cummings LLP

Accord and Satisfaction: To Release, or Not Release? That is the Question.

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

Bradley Arant Boult Cummings LLP

Prime Contractor Beware, No. 2: “Know Thy Owner”

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

Dunlap Bennett & Ludwig PLLC

Updating Government Contracting Documents for Cybersecurity

This article is the third and final installment in a series of articles about how lawyers can better serve their clients by involving themselves in cybersecurity planning at an early stage. Just like Return of the Jedi was...more

Bradley Arant Boult Cummings LLP

Prime Contractor Beware, No. 1: Watch Out for Owner/Lender Consent and Assignment Agreements

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

Venable LLP

Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses

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​​​​​​​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

Snell & Wilmer

Arizona Trial Court Holds Owner May Recover First-Party Consequential Damages From Subcontractor Despite Prime Contract Waiver

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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

Williams Mullen

New Virginia Prompt Payment Statutes Invalidate Most 'Pay When Paid' Clauses

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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

Bradley Arant Boult Cummings LLP

Assumptions Will Make a Fool out of You and the Reasonableness of your Delay-Related Costs Claim

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

PilieroMazza PLLC

BREAKING: SBA to Suspend Bona Fide Place of Business Requirements for 8(a) Construction Contracts, Effective Immediately

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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

Obermayer Rebmann Maxwell & Hippel LLP

[Webinar] Government Contracting Fundamentals Series: Teaming, Joint Ventures and the Mentor Protégé Programs - October 14th,...

Obermayer is excited to introduce its new “GovCon Examiner Live” webinar series, your resource for the fundamentals in government contracting and small business procurement. Over the course of 12 months, our experienced...more

Miles & Stockbridge P.C.

Protect Yourself: Safe Contracting and Subcontracting in the Era of Pandemics

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

Holland & Knight LLP

Contractors Should Prepare for the Coronavirus

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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

Bennett Jones LLP

Incorporation of Arbitration Clauses by Reference: A Cautionary Tale

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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

Troutman Pepper

New York Court Holds Contractor’s Failure to Timely Pass Through Subcontractor Delay Claim to the Owner Constitutes Breach of the...

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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

Carlton Fields

Ninth Circuit Affirms Order Vacating Arbitration Award, Faults Arbitrator’s Disregard of Contract’s Plain Language

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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

Troutman Pepper

Federal Court in Pennsylvania Holds Pay-If-Paid Clause Unenforceable Where Prime Contractor’s Inadvertent Delays Contribute to the...

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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

Williams Mullen

The Benefits of Commercial Item Contracting

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Commercial Item Contracting is intended to benefit both the government and contractors, but those benefits can sometimes get lost in the shuffle. Reminding the parties why Commercial Item Contracting was implemented can help...more

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