LexisNexis® Legal Newsroom
Steptoe & Johnson PLLC: Contractor Can Challenge Poor Performance Evaluation by Government

By Eric J. Hulett A poor performance evaluation of a contractor on a federal project is a ticking time-bomb waiting to explode on that contractor in future contract bids and can be "potentially devastating to a contractor[.]" Todd Const. L.P. v. U.S. , 85 Fed.Cl. 34, 42 (2008) [ enhanced...

Michael T. Callahan on Greg Opinski Construction, Inc. v. City of Oakdale

In this Analysis, Michael T. Callahan discusses Greg Opinski Construction, Inc. v. City of Oakdale , 199 Cal. App. 4th 1107 (Cal. App. 5th Dist. 2011) [ enhanced version available to lexis.com subscribers ], in which the California Court of Appeal held that a contractor could not defend an owner's...

Michael T. Callahan on American Underground Eng'g, Inc. v. City of Syracuse

In this Analysis, Michael T. Callahan discusses Am. Underground Eng'g, Inc. v. City of Syracuse, 2011 U.S. Dist. LEXIS 117102 (N.D.N.Y Oct. 7, 2011) [ enhanced version available to lexis.com subscribers ], finding that a contractor presented no proof how its home office overhead was affected by...

Sheppard Mullin Richter & Hampton LLP: Court Broadly Defines Subcontractors Who Qualify For Payment Bond Claims

By Edward Lozowicki and Scott Vignos Can a supplier of construction materials be considered a "subcontractor" for purposes of enforcing its claim on a public works payment bond? The answer is "yes" according to a recent decision of the California Court of Appeal. In Eggers Industries...

Duane Morris LLP: New E-Verify Requirement for Pa. Public Works Contractors, Beginning January 1, 2013

On July 5, 2012, Pennsylvania Gov. Thomas Corbett signed into law S.B. 637 , requiring state public works contractors and subcontractors involved in projects of more than $25,000 to use E-Verify starting on January 1, 2013, or they will lose their right to contract with the Commonwealth of Pennsylvania...

Sheppard Mullin Richter & Hampton LLPS: Knowingly Underbidding For Government Contract May Lead to False Claims Liability

By Robert Surgeon Contractors usually assume that the statutory prohibition on submitting "false claims" refers to inflated invoices, phony change order costs, and the like. However the courts are giving the relevant statutes a broader meaning which public works contractors should take into...

Vandeventer Black LLP: Subcontractor's Quantum Meruit Claim Irreconcilable With Breach of Contract Claim

EDVA Dismisses Quantum Meruit Claim as Irreconcilable With Breach of Contract Claim and Also Dismisses Claimed Private Right of Action to Enforce Alleged FAR Violation By Neil Lowenstein Judge Turk, Senior District Judge for the United States District of Virginia, Roanoke Division, issued a recent...

Williams Mullen: Construction Local and State Tax Issues

BY: STEPHANIE LIPINSKI GALLAND Every business has an accountant or finance resource. This resource spends 150% of his or her time handling the cash flow, paying the bills, and filling out the requisite federal income tax returns. What is usually missing is time to focus on state and local taxes...

PA Supreme Court Reverses Bricklayers Mechanics’ Lien Case

On April 17, 2014, the Pennsylvania Supreme Court, [ enhanced version available to lexis.com subscribers ], issued its long-awaited decision in Bricklayers of Western Pennsylvania Combined Funds v. Scott’s Development Co. , and reversed the Superior Court decision which held that a union trust...

Pennsylvania Court Determines if Union Trustees Have Standing to File Mechanic’s Lien

By Martin J. Saunders, Of Counsel. Pennsylvania, like many states, has a mechanic’s lien statute to ensure that contractors and subcontractors who make improvement to property will be paid for the labor and materials they furnish in the erection, construction, alteration or repair of property...

Pennsylvania Mechanics' Lien Law Amended, Clarifying Open-End Construction Loan Mortgage Priority

Pennsylvania Governor Tom Corbett has signed into law Act 117 of 2014, [ enhanced version available to lexis.com subscribers ], which amends the Pennsylvania Mechanics' Lien Law (MLL), 49 P.S. 1101, et seq., [ enhanced version available to lexis.com subscribers ], to provide that a construction loan...

Should a General Contractor Tell a Sub that its Bid is Too Low?

A recent article by my pal, and occasional guest poster , Craig Martin ( @craigmartin_jd ) asks the question: “ Does a General Contractor Have to Tell a Subcontractor that its Bid is Too Low? ” In his great post on a recent Nebraska decision, [ enhanced version available to lexis.com subscribers...

Pennsylvania Amends Mechanics’ Lien Law to Protect Home Owners from Double Jeopardy and Clarify Priority Given to Open Ended Mortgages

By Marc J. Felezzola On July 9, 2014, Governor Tom Corbett signed into law legislation amending Pennsylvania’s Mechanics’ Lien Law of 1963 (the current Mechanics’ Lien Law in Pennsylvania). The stated primary purpose of the amendments is to protect homeowners who pay the prime contractor...

Early Action on Your Construction Contract is Key

I bang the drum of early and frequent consultation with one of us construction attorneys on a regular basis here at Musings and in other places of the “blawgosphere.” Why do I do this? Doesn’t such consultation help to avoid the problems that seem to make those of us in the construction...

Reminder: Your MLA Notice Must Have Your License Number

Remember a couple of years ago when the Virginia mechanic’s lien rules changed to require inclusion of a claimant’s contractor’s license number (where a license is required) ? If not, then this is a reminder of that particular wrinkle in the strictly interpreted mechanic’s lien...

Just When You Thought General Contractors Were Necessary Parties. . .

Did you think that a subcontractor had to name a general contractor in a mechanic’s lien suit? I did. Did you think that nothing about this changed in the case where a Virginia mechanic’s lien was “bonded off” pursuant to Va. Code Section 43-71 , [ enhanced version available to...

The Anatomy of a Construction Dispute- The Claim

A new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many...

Mechanic’s Liens Demand “Perfection” in Virginia

By Bradfute "Brad" W. Davenport, Jr. and Stanley W. Hammer Mechanic’s liens can be powerful devices for contractors to secure payment. They receive priority over most other liens, and once a mechanic’s lien is recorded, the property in question is encumbered until the lien...

Construction Law 2014: A Year in Review – RESCHEDULED DUE TO WEATHER

Due to the weather for Thursday, March 5, 2015, Babst Calland’s Construction Law 2014: The Year in Review seminar has been rescheduled and will now be held on Wednesday, March 25, 2015. We apologize for any inconvenience this may cause you, and we hope that you will be able to join us on this new...

Pennsylvania Supreme Court Confirms That Only Clients and Patients of Professionals Need a Certificate of Merit

By Marc J. Felezzola , Associate, Babst, Calland, Clements and Zomnir, P.C. The Pennsylvania Supreme Court recently issued its opinion in Bruno v. Erie Insurance Company holding that the Pennsylvania Rule of Civil Procedure requiring a certificate of merit to pursue a negligence claim against a licensed...

Do We Really Want Courts Deciding if Our Construction Contracts are Fair?

As I posted recently, the Virginia General Assembly has passed, and I can see no reason why the governor won’t sign, [ enhanced version available to lexis.com subscribers ], a bill that would essentially invalidate preemptive contractual waivers of lien rights as they relate to subcontractors and...

Home Contractor’s Failure To Register Exposes It To Consumer Protection Act Liability

Case is Good Reminder to Ensure That Contractors Register With State With the record amount of snow, roof leaks and interior damage just beginning to hit Bay State homeowners, this spring should be a record season for Massachusetts home improvement contractors. But, according to a recent court ruling...

Agents Can Remain Independent Contractors, SJC Rules, But Questions Remain

SJC Issues Long Awaited Ruling That Agents Can Be Classified as Both Independent Contractors and Employees, But Leaves Questions The Supreme Judicial Court has just released its long awaited opinion in Monell, et al. v. Boston Pads, LLC , (link here) , ruling that Massachusetts real estate and...

July 1, 2015 Statutory Changes Affecting Virginia Contractors and Subcontractors

As always seems to be the case, this year, as in others, the Virginia General Assembly has seen fit to “tweak” a few construction related statutes. All of these changes will go into effect on July 1, 2015. The big one, and one that I posted about a while back is the change to the Virginia...

Quick Note: Be Careful with Pay if Paid Clauses (Both Subcontractors and General Contractors)

Aside from waiver of lien rights ( something that will be illegal in Virginia after July 1, 2015 ), the most troublesome contractual impediment to payment for a subcontractor or supplier on a project often is the “pay if paid” clause. As a general rule, in Virginia, these clauses where drafted...