Davis-Bacon Act: Certified Payroll Reporting

By Katharina Brekke Powers The Davis-Bacon Act (the "Act") requires payment of "prevailing wages." See 40 USC Section 3142(c) . The minimum wages to be paid are those that the Secretary of Labor determines to be prevailing for the corresponding classes of laborers and mechanics...

Vandeventer Black LLP: Builders and Contractors Exchange - Liquidated Damages and Planning Ahead

By: Jerrell Williams LAW TIPS You've thought of everything. You've considered all that could go wrong with the project. In fact, the owner or your subcontractor even agrees in the written contract that if certain circumstances occur that would result in a loss to you (for example...

Resolve to Set Construction Project Expectations Early and Often in 2012

As we enter 2012 expectations for the new year are in all of our thoughts. The best laid plans are made and possibilities seem endless. New Year's resolutions will be made (and possibly broken). As a construction attorney here in Virginia , if I could ask contractors and subcontractors...

Vandeventer Black LLP: Misrepresentation or Good Negotiation: KBR Hit With Multi-Million Dollar Verdict

By Neil Lowenstein Prime contractors often negotiate claims, including subcontractor pass-through claims, with owners. This can put the prime contractor at odds with its subcontractors, depending upon what the owner is willing to negotiate, for how much, for what, etc. A recent Fourth Circuit...

Troutman Sanders LLP: Construction Owner, General Contractor and Subcontractor Held Liable For Sub-Subcontractor Failure to Procure Required Liability Insurance

A recent decision by the Georgia Court of Appeals opens up a new (and potentially troubling) avenue for relief in cases involving personal injury and property damage caused by downstream subcontractors on a construction project. If not overturned, this decision would expose Georgia owners, prime contractors...

Vandeventer Black LLP: Subcontractor Not Third Party Beneficiary to Prime Contract

By Neil Lowenstein In Environmental Staffing Corp. v. B & R Construction Mgmt. , 283 Va. ___ 111067, ___ S.E.2d ___ (2012) [ enhanced version available to lexis.com subscribers ], just recently decided by the Virginia Supreme Court on April 20, 2012, the court held that a subcontractor was...

Vandeventer Black LLP: Am I Really Responsible for That?

By Neil Lowenstein Landowners hire contractors to perform work for the landowner. Contractors then typically hire multiple subcontractors to perform various portions of that work. And, subcontractors then hire sub-subcontractors to perform various portions of their work. And, so on depending upon...

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...

Don’t Let Receivership Kill Your Miller Act Claim

In this economy, even the companies that provide bonding for construction companies may have financial difficulties, and even go into receivership. Recently, the U. S. District Court in Norfolk, VA decided an interesting case relating to an interestingly named project. In U.S. v. Western Ins. Co. , the...

Vandeventer Black LLP: Offsite "Subcontractor" Found a Claimant Under Virginia Little Miller Act Bond

By Neil Lowenstein In a recent decision, Judge Harris of Hanover County Circuit Court allowed a Little Miller Act claim to proceed by an offsite disposal yard as a payment bond claimant. The case is Yard Works, LLC v. GroundDown Constructors, LLC, and Safeco Insurance Company of America, Hanover Circuit...

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...

No Setoff Between Bonded and Non-Bonded Projects

As any reader of Construction Law Musings knows, payment bond claims are a big part of my law practice . You have also likely read through the federal cases relating to the Miller Act that you can find here. On trend in these federal cases in the Virginia district courts is that determining set off rights...

Sometimes Scope Of Work Isn’t Obvious

We discuss contracts often here at Construction Law Musings . Why? Because in most states, and particularly in my home state of Virginia, the contract creates the “law” that will govern your interaction on a construction project. In construction, every word of the contract will be read carefully...

Party Relationships: Contract Form Can Dictate

Virginia Construction Law News and Notes When parties go into relationships they often think the relationship is one thing; but legally the relationship may be another. Judge Hughes' recent decision in the case of PEAC Consulting, LLC v. The Ridley Group & Associates, et al., decided September...

Be Careful When Walking Off of a Construction Project

I am truly grateful that my buddy Craig Martin ( @craigmartin_jd ) continues his great posts over at The Construction Contractor Advisor blog. He is always a good cure for writer’s block and once again this week he gave me some inspiration. In his most recent post, Craig discusses a recent Indiana...

Trust Your Gut When Deciding Whether to Sign a Construction Contract

My last Construction Law Musings were about the need to communicate before, during and after a construction project. Here I continue my thoughts on some business practices that make my life as a construction attorney and adviser (not to mention your lives as construction professionals) easier and less...

Pennsylvania Supreme Court Unanimously Holds That Union Members Are Not Subcontractors for Purposes of Pa. Mechanics' Lien Law

On April 17, 2014, the Supreme Court of Pennsylvania issued a decision eagerly awaited by owners, developers, contractors and others involved in the construction industry. Interpreting Pennsylvania's Mechanics' Lien Law of 1963 (the "Act"), the state Supreme Court unanimously held...

For Subcontractors-Incorporation by Reference-A Contract Clause Worth Negotiating

Authored by Attorney Casaundra Maimone Subcontractors should review proposed terms and negotiate final terms that are best suited to their role on the project. One concern is the impact of clauses incorporated by reference that might involve scope of work, quality, payment and disputes. In government...

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...

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...