In a groundbreaking move aimed at fostering fair competition and empowering workers, the Federal Trade Commission (FTC) issued a final rule last week to ban noncompete agreements nationwide. This ruling may carry profound implications for the construction industry, prompting construction businesses to reassess their practices and ensure compliance while maintaining competitiveness. Let’s explore how
Contract Void Ab Initio: Key Insights into the KBR vs. Corps of Engineers Affirmative Defense
In a recent Board decision dated December 13, 2023, the United States Army Corps of Engineers sought to amend its answer in the case of APPEALS OF – KELLOGG BROWN & ROOT SERVICES, INC., under Contract No. W912GB-13-C-0011. The proposed amendment introduces an affirmative defense, contending that Kellogg Brown & Root Services, Inc. (KBR) made
Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”
This weekend was all about The Rise of Gru. I love Gru so much that when my children ask for money, my best Gru-like voice belts back: “Now, I know there have been some rumors going around that the bank is no longer funding us….In terms of money, we have no money.” And
More Than Meets the Eye: TN Court Finds Arbitration Agreement in Employee Handbook Non-Binding
Excuse the eye patch, as I just had retina surgery yesterday. I am surprised at how different the world looks with only one eye to focus—from the depth of the stairway, to the water flowing from the sink, to the words flying out from the computer screen. In other words, there is more than meets
When is a Contractor’s Termination for Default Proper? When it Does Bad Things!
Sometimes you “do” bad things. Sometimes you “look like” you do bad things. Just look at the difference between Bad-boy Jack and my youngest daughter, who just “looks like” she’s up to no good. In the world of construction contracting, both can get in you in trouble, including a termination for default of performance.
Feeling Rejected? MA Court Construes for the First Time the Provisions of the Prompt Pay Act
In life, rejection is often hard to swallow. In construction, that rejection can sometimes amount to millions of dollars. A Massachusetts court recently held that an owner’s rejection of the contractor’s payment applications was not properly certified and, thus, violated the state’s Prompt Pay Act.
Slow As A Turtle? Florida Court Finds “No Damages for Delay” Clause Has Limits
My commute home last night took longer than usual. It was not excessive traffic, an accident, or a stalled car. Rather, the cause of my delayed commute was a turtle: one single turtle crossing the road, holding up about 30 cars for what seemed like an eternity. (Never mind the fact that no one got
You Can’t Treat Construction Claims Like Your Grandkids
I have seven children. and two of them have flown the coop. I also have two grandchildren who are ripe for spoiling. You see, grandchildren are a different type of kid, which means I get to treat them different than the kiddos living under my roof. In construction, however, some courts have held that
Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts
If you have Googled, “Virginia Pay If Paid” or “Virginia Pay When Paid” or “Pay if Paid Enforceable” or “best construction lawyer ever“, then you likely have found your way here (that last one is mere puffery). Let’s cut to the chase—Virginia has joined 11 other
Broad Form Lien Waivers No Longer Part of the Game in North Carolina
North Carolina Avenue is one of the hottest properties in Monopoly, says most of my kids. And if you are a contractor or subcontractor in North Carolina, the law makers recently afforded you some additional protections to your lien rights.
While many states prohibit prospective lien waivers—that is, an advanced waiver of lien rights usually