On July 15, 2011, the USDOT’s Office of Inspector General (DOT-OIG) issued a final report on the Federal Highway Administration’s (FHWA) oversight of federal-aid and Recovery Act projects administered by Local Public Agencies (LPA).  You can download a copy of the report here [pdf].

The DOT-OIG initiated the audit because the FHWA previously acknowledged that LPAs

Many construction cases that end up in court or arbitration do so because contractors are unable to prove each of the elements of its claim. Additionally, the value of many out-of-court settlements is also reduced because the contractor is unable to prove each of the elements of this claim. 

One of the more litigated issues