I previously blogged about the rules relating to pass-through claims, where a prime contractor’s recovery from an owner for damages suffered by its subcontractor is limited in certain circumstances. In the post, I talked about a “past-through-plus” claim based upon the Severin doctrine, which provides a prime contractor cannot sue an owner on behalf
Federal Construction
Who Assumes the Risk of Material Cost Increases? As Always, It Depends!
When a client asks me about a particular contract provision and why it is “unfair” or “uneven”, we began a discussion about risk allocation. You see, the contract is used to shift the various risks on the project to the party most appropriate to handle it. In other words, you are negotiating about who takes…
Proceed Wisely, Ninja Contractor, Because Suing Your DOT May Have Limitations
No self-respecting Ninja goes into battle without a plan, right? You need to know your environment, your opponent and the rules of the battle. For you Ninja contractors, it’s a good thing to fully understand your potential recovery before you spend countless months and thousands of dollars pursuing a claim against your state DOT for…
Opening Up the Doors (Roads) for Design-Build Contracts on Highway Projects
The Department of Transportation in my home state of New Mexico is the latest to allow the design-build delivery method for highway projects. Although design-build had been approved in New Mexico on limited public projects, road and highway construction had been previously excluded. That changed on March 9, 2016, when Governor Susana Martinez signed into…
Do Your Employees and Construction Laborers Belong to You? Depends.
When walking through the mall or the grocery store with my children, I inevitably get asked, “Are they all yours?” Depending on my mood, I may or may not claim them all. As a general contractor, you will want to know the law on whether laborers hired through a staffing company will be considered “yours”…
No Lump on the Head for One Contractor’s Failure to Follow Public Bid Instructions
In our house of chaos, rules are especially important. And when you don’t follow the rules—like no jumping on the furniture—you could end up with a lump on your head. Just ask Jackson.
In the world of government contracts, you know that rules, instructions, and directions should be followed precisely. In the case of Silver …
Top 10 Compliance Laws for Federal Highway Contractors
Following up on my post about the Yates Memo, I started to think more about the areas of compliance that federal highway contractors must face. Contractors certify many things and interact with a wide variety of governmental agencies. Similar to what occurred after the bid-rigging scandals, governmental scrutiny has increased because of a loss…
What Federal Contractors Should Know About the “Yates Memo”
On September 9, 2015, United States Deputy Attorney General Sally Q. Yates issued a memorandum directing increased focus on individual culpability in matters of corporate wrongdoing. In addition to fines and sanctions against the corporation, the memo highlights six policy directives targeting individuals involved in corporate wrongdoing. If you are a federal contractor, watch out!…
New Executive Order Requires Paid Sick Leave for Federal Contractors
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ATTN: Federal Contractors, Beware of Harassment and Discrimination on Construction Sites
“Did you hear the one about . . . ?” Of course you have. We have all heard the racial and discriminatory jokes at the work place. If you are a federal contractor, you should be aware of Executive Order 11246.
In separate investigations, a staffing agency and a construction company were recently charged…