Under the Miller Act, 40 U.S.C. §§ 3131 et seq., contractors hired to work on federal construction projects are required to furnish payment bonds in order to ensure payment to certain persons that provide labor for the project. The United States Court of Appeals for the Fourth Circuit recently issued a published decision clarifying the type of
The Construction Seyt
Practical Updates in Construction Law
Latest from The Construction Seyt - Page 2
What’s the Status of Buy American Requirements for Public Infrastructure Projects?
By Amy Hoang
More than a year has passed since Congress enacted the Build America, Buy America Act (“BABA”)—a sweeping change to domestic sourcing requirements for federally funded infrastructure projects. BABA, which was included as part of the November 2021 Infrastructure Investment and Jobs Act (“IIJA”), materially changes the way many companies must source supplies for federally-funded projects;…
Celebrating Women in Construction Week 2023: “Many Paths, One Mission”
The week of March 5-11, 2023 marks the 25th annual Women in Construction Week, which celebrates and promotes the role of women in the construction industry. Seyfarth is proud to co-sponsor a networking event on March 9th. The event is hosted by Women in Construction, Inc. and National Association of Women in Construction (NAWIC). More details…
The EEOC Targets Construction Industry For Heightened Enforcement
Seyfarth Synopsis: On January 10, 2023, the Equal Employment Opportunity Commission (EEOC) released for public comment its draft 2023-2027 Strategic Enforcement Plan (“SEP”)—a document that will guide the Commission’s enforcement priorities for the next five years. The EEOC’s prior Strategic Plan described how it would pursue its enforcement goals. (See our earlier blog on the Strategic Plan here…
California Court Confirms Surety’s Right to Recover Attorney Fees and Costs Incurred by Its Principal
By Jay Houghton
In Cell-Crete Corp. v. Fed. Ins. Co., a California court awarded a surety attorneys’ fees and costs that its principal incurred defending the surety against a claim on a public-works payment bond.[1] This is good news for sureties and their principals, who commonly defend sureties against such claims pursuant to a general indemnity agreements…
New Statutory Payment Regime for Public and Private Works in Virginia
For general contractors working in Virginia, 2023 marks the end of one of the more prolific contractual rights available—the pay-if-paid defense. Until now, pay-if-paid clauses were a valid means of shifting to subcontractors the risk of owner insolvency or wrongful withholding. In the spirit of freedom of contract, Virginia courts historically held that unambiguous language…
Jason Smith to Speak At AGC Surety Bonding and Construction Risk Management Conference
By Jason Smith & Colleen Vest
On January 30, 2023, Seyfarth’s Jason Smith will be speaking at a 3-day Associated General Contractors (AGC) panel discussion titled: “Navigating the Challenges of Complex Claims Involving Multiple Coverage Lines.” Using real claim examples, this session will focus on understanding and addressing the challenges associated with complex claims involving multiple lines of insurance. Experienced risk…
Federal Government Considering Inflation Relief for Contractors
Both the General Services Administration (“GSA”) and the Department of Defense (“DOD”) are recognizing the impact of the eight percent rate of inflation on federal contractors. On September 9, 2022, DOD released a memo providing guidance to contracting officers “about the range of approaches available to them” to manage the effect of inflation on existing firm…
Fraud and Forfeiture: Cautionary Tales of a Construction Claim Gone Wrong
In Lodge Construction, Inc. v. United States, the US Court of Federal Claims (“COFC”) prefaced its 46-page opinion by stating: “This case should serve as a cautionary tale to government contractors.”[1] Our ears perk up any time we read that kind of admonition in a published decision. The Lodge holding is, indeed, loaded with lessons on what to do,…
Surety Liability Under the False Claims Act
The federal Miller Act requires government construction contracts over $100,000 to be bonded. This process involves insurance companies, known as “sureties,” who issue payment or performance bonds to contractors, who in turn furnish the required bonds to the federal government. The bonds guarantee that the contractor will comply with the terms of the contract and…